TOP STORIES
State budget shortfall will reach $8 billion
The Economic and Revenue Forecast Council released a preliminary revenue forecast at the Legislature’s request on last Thursday. According to Arun Raha, the council’s executive director, Washington’s budget shortfall will hit $8 billion through the middle of 2011. This forecast does not replace the official March revenue forecast; it only serves as early guidance about the impact of deteriorating economic conditions on state revenues since the last official forecast in November. View a copy of Raha’s presentation on the forecast or contact AWB’s Amber Carter at (360) 943-1600.


House and Senate committee cutoff deadlines approaching
Last Friday marked the unofficial House cutoff date for bills to be reported out of policy committee. Wednesday, Feb. 25 marks the official date set by the House and Senate for policy committee cutoff. Policy bills having an impact on the state budget have been referred to the respective House and Senate fiscal committees for hearing. House and Senate fiscal committee cutoff is set for Monday, March 2. Policy and fiscal bills must be reported out of the House and Senate by Thursday, March 12 for cutoff.


Podcast: U.S. Rep. McMorris Rodgers discusses federal stimulus package
U.S. Rep. Cathy McMorris Rodgers, R-Spokane, who represents much of eastern Washington in Congress, visited AWB last week to discuss a variety of issues, including the federal stimulus package, the economy, cap and trade, energy issues and education. The day after her visit to AWB in Olympia, McMorris Rodgers and AWB President Don Brunell addressed the Walla Walla Rotary Club, underscoring the need for the private sector to lead us back to prosperity. In November, McMorris Rodgers was elected vice chair of the House GOP Caucus and helps develop the Republicans’ communications strategy with other members of the House leadership team.


KEY HEARINGS, MEETINGS
Lobby Lunch No. 5: Brown stresses seriousness of budget crisis, soundness of UI trust fund
“We’re in unprecedented territory,” said Sen. Lisa Brown, D-Spokane, of the state budget crisis during last Thursday’s Lobby Lunch. “[Balancing the budget] is not going to be easy,” Brown added. Responding to business concern over dipping into the state’s unemployment insurance trust fund in order to provide a stimulus, Brown stated: “We have a healthy UI trust fund. We have a very significant cushion and we’ll be able to handle this recession.”


Rep. Upthegrove at AWB’s Lobby Lunch on Feb. 26
The next Lobby Lunch will be this Thursday, Feb. 26, beginning at noon at AWB. This week’s guest is Rep. Dave Upthegrove, D-Des Moines, chair of the House Committee on Ecology & Parks and sponsor of HB 1819, Gov. Chris Gregoire’s climate change legislation. Attendees should RSVP by 5 p.m. on Tuesday, Feb. 24. Individual lunches are $14. For more information, contact AWB’s Connie Grande at (360) 943-1600.


Transportation Committee meeting Thursday
AWB’s Transportation Committee will meet at AWB on Thursday, Feb. 26 from 10 a.m.- noon. The purpose of the meeting is to discuss various proposals before the Legislature, including the street utility tax, funding of the 520 Bridge, and the Alaskan Way Viaduct.The committee will also discuss the recently adopted economic stimulus package, its funding of various transportation projects and how it impacts the state transportation budget. For more information, contact Amber Carter at (360) 943-1600.


PRIORITY LEGISLATION ALERT: Tell your legislators to oppose the employer gag rule bill
The employer gag rule bills, HB1528, sponsored by Rep. Mike Sells, D-Everett, and SB 5446, sponsored by Sen. Margarita Prentice, D-Renton, are on the move. The House version moved out of the House Commerce and Labor Committee last Friday and the Senate is due out late today or sometime tomorrow. You can view AWB’s opposing testimony here. Tell your legislators to oppose this violation of employers’ free speech rights! For more information, contact AWB’s Kris Tefft at (360) 943-1600.


Initiative 937 “green energy” bill dies in House, passes out of Senate Committee
HB 1133, sponsored by Rep. John McCoy, D-Tulalip, and strongly opposed by AWB, appears to have died in the House Technology, Energy & Communications Committee. Meanwhile, SSB 5840, sponsored by Sen. Chris Marr, D-Spokane, passed the Senate Environment, Water & Energy Committee. AWB supported SB 5840 in its initial form because of the addition of variety of resources, including existing hydropower, and other tools to help utilities meet existing standards. Unlike the original bill, the substitute bill increased the renewable portfolio standard to 21 percent by 2025. AWB is concerned that this higher standard will ultimately result in even higher power costs and place Washington’s businesses, employees and families at an even further competitive economic disadvantage. AWB will continue to work on and monitor SSB 5840 as it moves forward. For more information, contact AWB’s Chris McCabe at (360) 943-1600.


CORRECTION: AWB testifies with concerns over digital goods bill
Last week, AWB testified in the House Finance Committee with concerns regarding HB 2075, sponsored by Rep. Ross Hunter, D-Medina, which establishes greater clarity in the tax code on electronically delivered products in light of previous task force work, agency and legislative actions and changes in the streamlined sales tax agreement. You can view AWB’s testimony online. For more information, contact Amber Carter at (360) 943-1600.


AWB-supported stormwater legislation passed by House committee
AWB’s stormwater legislation, HB 2222, sponsored by Rep. Brian Blake, D-Aberdeen, was passed by the House Committee on Agriculture and Natural Resources. The bill will improve the health of Puget Sound and other waters of the state by clarifying the methods businesses can use to comply with stormwater permit requirements; allowing flexible alternatives to comply with permit requirements; giving the Department of Ecology one additional year to develop stormwater permit requirements for state waters needing special attention; and improving technical assistance, education and enforcement activities that will promote permit compliance. View AWB’s committee testimony in favor of this bill here. For more information, contact AWB’s Grant Nelson at (360) 943-1600.


Growth Management Act/climate change legislation moves forward
Despite much controversy surrounding the proposal, HB 1490, sponsored by Rep. Sharon Nelson, D-Maury Island, and SB 5687, sponsored by Sen. Chris Marr, D-Spokane, both passed out of House and Senate policy committees last week. AWB continues to oppose this environmental community priority because of the prescriptive burdens and costs that will placed on businesses, families and local governments and corresponding land use litigation and appeals that will result if this legislation passes. For more information, contact Chris McCabe at (360) 943-1600.


AWB supports real property tax reform
AWB endorses HB 1523, sponsored by Rep. Mark Ericks, D-Bothell, and SB 5965, sponsored by Rep. Mark Schoesler, R-Ritzville, clarifying the burden of proof for property valuation appeals by taxpayers. Washington currently uses the clear, cogent and convincing standard. Both bills return Washington to what is known as the preponderance of evidence standard used until 1971. “The current standard assumes that the assessor’s value is correct and can only be overcome by clear, cogent and convincing evidence. HB 1523 and SB 5965 would eliminate the unfair advantage the assessor has and level the playing field,” said Amber Carter, AWB director of government affairs. For more information, contact Amber Carter at (360) 943-1600.


AWB supports wellness measure heard in Senate
Today in the Senate Committee on Health & Long-Term Care, AWB members Susan Fagan of Schweitzer Engineering Laboratories and Don Conant of Valley Nut and Bolt testified in support of SB 6019, sponsored by Sen. Karen Keiser, D-Des Moines. This is an AWB priority bill, having been developed by the Subcommittee on Health Care Reform, and provides discounts on health insurance premiums for small employers who develop and implement outcome-based wellness programs that show progress toward meeting the stated goals. This measure is an important step to improving overall employee wellness as well as lowering health care costs within the state. For more information, contact AWB’s Donna Steward at (360) 943-1600 or listen to today’s podcast with Don Conant here.


Gov. Gregoire’s revised climate change bill still unsatisfactory
Gov. Gregoire’s greenhouse gas cap and trade legislation, HB 1819, sponsored by Rep. Dave Upthegrove, D-Des Moines, and SB 5735, sponsored by Sen. Phil Rockefeller, D-Bainbridge Island, would implement a regional cap and trade program linking Washington with other states and Canadian provinces as part of the Western Climate Initiative. Although improvements to the new versions of the bills that came out last week have been made, AWB is still opposed to the legislation which now authorizes the Department of Ecology to implement a cap on emissions in 2012, long before any other state. Rather than risk further economic harm by implementing expensive regulations on businesses and citizens of the state, AWB believes that a single national system to regulate greenhouse gas emissions implemented at the federal level is far superior to a state or regional approach that will put Washington employers at a competitive disadvantage. For more information, contact Grant Nelson at (360) 943-1600.


Green building legislation clears first hurdle
Both HB 1747, sponsored by Rep. Christine Rolfes, D-Bainbridge Island, and SB 5854, sponsored by Sen. Derek Kilmer, D-Gig Harbor, cleared committee cutoff last week and were passed to House and Senate fiscal committees for review. Another environmental community priority, this legislation requires 40 percent more energy efficient residential and commercial buildings by 2013 and 70 percent more efficiency by 2031. Although AWB strongly supports energy conservation and increased energy efficient buildings, this legislation fails to consider increased construction costs during a struggling housing and real estate market, and places additional liability on builders, developers and building owners. In addition, the state building code is already increasing building efficiencies 30 percent by 2010. For these reasons, AWB continues to oppose these bills. For more information, contact AWB’s Chris McCabe at (360) 943-1600.


Brown indicates UI conformity bill will be passed as requested by employer community
SB 5963, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle, which would put the state’s UI system in conformity with federal law, is scheduled to move from the Senate Labor and Commerce Committee on Tuesday, Feb. 24, meeting the Feb. 25 committee deadline. This is a priority bill for AWB this session, an effort Sen. Lisa Brown indicated she supports during last week’s Lobby Lunch. For more information, contact Donna Steward at (360) 943-1600.


OTHER NEWS
Laura Grant-Herriot chosen to represent 16^th Legislative District in House
Rep. Laura Grant-Herriot, D-Walla Walla, was chosen last week to serve out the term of her father Bill Grant, the long-serving state representative who died in January. Grant-Herriot was elected 6-5 by 11 county commissioners representing Walla Walla, Columbia, Benton and Franklin counties. Read more in the Walla Walla Union-Bulletin.


Washington export numbers strong in 2008
Washington exports set a new record in 2008, growing to $66.8 billion — a $400 million increase over 2007. The state also maintained its rank as the fourth-largest exporter in the U.S. by total value.Agricultural exports were especially strong, led by a 90 percent increase in cereal exports over 2007. A weak U.S. dollar during part of the year contributed to the increased demand for agricultural products. Exports of aerospace products, which were impacted by the two-month labor strike, fell nearly 20 percent in 2008. Growth in most other sectors, including industrial machinery, forest products, and high-tech equipment, made up for the shortfall.


WASHINGTON BUSINESS MAGAZINE
Get the background on cap and trade
The winter issue of Washington Business offers an excellent backgrounder on cap and trade. If you did not receive your copy, contact J-Anne Nepomuceno with AWB Communications at (360) 943-1600.


AWB EVENTS & RESOURCES
AWB holding issues briefings throughout the state
AWB President Don Brunell will continue his legislative briefings this week with a stop in Vancouver on Friday, Feb. 27. After that, briefings will be held Tuesday, Mar. 10 (Tacoma); Wednesday, March 11 (Spokane); Tuesday, March 24 (Redmond); Wednesday, March 25 (Mountlake Terrace and Seattle); and Wednesday, April 15 (DuPont). View the entire briefing schedule online or contact AWB’s Bonnie Millikan at (360) 943-1600 to RSVP.


Wage & Hour Law Seminar - March 12
A steady stream of wage and hour litigation threatens to inundate employers. Those investigations often result in considerable fines to the employer as a result of the employer’s failure to keep proper records and pay its employees accurately and in a timely fashion. Join us for this half day seminar and leave with rock-solid knowledge and the confidence to make the right decisions. Protect your organization and your career. It couldn’t be easier. Register online or contact Jennifer Costello at (360) 943-1600.


Mitigating 401(k) plan fiduciary liability workshop
Join us for this FREE two hour workshop on Tuesday, Mar. 24 at AWB. As an employer and sponsor of a 401(k) plan, your company shoulders a significant responsibility. Fiduciaries can be held personally responsible for the plans they oversee, making it critical that you take appropriate steps to reduce potential liability. This educational workshop will provide a best practices review and overview of ERISA fiduciary responsibilities that will help you optimize your company’s 401(k) plan. For additional details or to register, please click here or contact Jennifer Costello at (360) 943-1600.


Forklift: Train the Trainer workshop - Wednesday, March 25
Proper forklift safety training will make your company a safer place to work — and keep you in compliance with the law. Attendees who complete the course will receive a certificate of completion, a CD of workshop materials and a PDF manual they can reproduce to train their own employees on proper forklift safety. Register online or contact Jennifer Costello at (360) 943-1600.


FROM THE PRESIDENT
This Week's President's Perspective: Coal is part of our future