TOP STORIES
State’s chief economist predicts recession will end in July, August or September
Dr. Arun Raha, executive director of the Washington State Economic and Revenue Forecast Council, predicts in the preliminary June economic forecast that the recession could end as early as July or as late as Septmber. "We believe the recession will officially end sometime in the third quarter with a peak-to-trough decline in real Gross Domestic Product of 3.7 percent, only slightly weaker that the 3.5 percent drop expected in March," said Raha. Although he expects growth will turn slightly positive the second half of this year, it will remain weak for a year, picking up more in the second half of 2010. He expects Washington's unemployment rate to rise to 9.9 percent in the April-June 2010 time frame. It was 4.4 percent in December 2006, and 8.9 percent in April. The official forecast comes out June 18. Also, you can see Raha and Karen Lee, head of the Employment Security Department, discuss economic issues on TVW. Raha gave a preview of the forecast when he spoke last month at the AWB Spring Board Meeting in Spokane.

Numerous health care proposals emerge from Congress
Congressional leaders are rising to the challenge set before them by President Obama who has made it a top priority for his administration to revamp the health care coverage system in our country.At last count, five distinct proposals were being contemplated by factions within each house and each party.Employers should pay special attention to these efforts, including proposals that eliminate the tax credit when an employer provides health coverage; require employers to provide health insurance coverage or pay additional taxes; and establish minimum requirements for acceptable health care coverage, which may exclude high deductible health plans and/or health savings accounts. These changes could dramatically increase costs for employers nationwide, but employers in Washington may feel the punch of these reforms first due to the passage of SSB 5945, sponsored by Sen. Karen Keiser, D-Des Moines. This bill volunteers Washington to be a pilot state for whatever reform is ultimately passed. For more information, contact AWB’s Donna Steward.


Small employers can have an impact on health insurance costs
Small employers now have an additional tool to help mitigate the costs of rising health insurance premiums. With the passage of SSB 6019, sponsored by Sen. Karen Keiser, D-Des Moines, small employers willing to develop and implement an outcome-based employer wellness program can negotiate modest premium reductions with insurers if the employer is able to meet the goals established for the program.Program goals could focus on such items as increasing the percentage of employees receiving age-appropriate health screens, increasing the percentage of employees receiving flu shots, or setting a percentage goal for the number of employees who stop smoking.The Wellness Council of America offers several ideas for employers interested in establishing such programs. For more information, contact AWB’s Donna Steward.


Washington receives $672 million federal stimulus grant for education improvement
Gov. Chris Gregoire announced Wednesday that $672 million is now available for Washington state under the American Recovery and Reinvestment Act to support education improvements. Washington will be eligible to apply for another $331 million this fall. “Access to this much needed federal funding comes at a critical time when education resources are diminishing,” said Gregoire. “These stabilization funds will keep the core of our education system intact while we work to pull our economy out of recession.”


Border alert: Secure ID required to visit Canada
Starting today, Washington residents who are driving to Canada need to show either a U.S. passport, an enhanced driver’s license or other ID that meets federal security standards in order to re-enter the United States. A regular driver’s license accompanied by a birth certificate is no longer acceptable for border crossings. The new rule is an outgrowth of legislation passed by the U.S. Congress in 2004 in response to the 9/11 Commission recommendations. Learn more about applying for an enhanced driver’s license, a passport, a passport card or a NEXUS card.


Oregon to British Columbia rail corridor is finalist for federal money for high speed rail
Trains between Eugene, Ore., and Vancouver, B.C., could run faster than ever before thanks to money from the federal stimulus package. The corridor is one of 10 finalists in the nation for some of the $8 billion in the stimulus package for high-speed rail. Between six and 10 corridors could receive the money as early as this fall with the possibility of more funding later on. The money would go into improvements like sidings where freight trains can wait for passenger trains to pass, eliminating grade crossings and building a GPS system. Work could start on overpasses and other improvements as early as next year. Ultimately, improvements would greatly reduce travel times between the cities on the rail corridor. Read more.


KEY MEETINGS
AWB to host meeting on new seller’s permit requirements
AWB’s Tax & Fiscal Policy Council will meet at AWB, Friday, June 12, 9:30 a.m.-12 noon, with Rob Rice from the Department of Revenue.The agency will provide the latest information on the implementation of the new seller’s permit requirement, as authorized by SB 6173, sponsored by Sen. Margarita Prentice, D-Seattle.This new law goes into effect next Jan. 1. For more information, contact AWB’s Amber Carter.


Stakeholder meetings on digital goods tax policy
Now that the governor has signed the digital goods tax policy bill — HB 2075, sponsored by Rep. Ross Hunter, D-Medina — the Department of Revenue is implementing the new law. A series of stakeholder meetings are scheduled from Monday, June 8 through Thursday, June 11, (2101 4th Avenue, Ste. 1400, Seattle, 9 a.m.-1 p.m., except for the Tuesday meeting, which runs 8-11 a.m.) to gain insight from employers on compliance questions and other implementation issues.AWB is collecting a list of issues that need further action and encourages your comments. If you plan on attending or for more information, contact AWB’s Amber Carter.


State agencies reach out to business owners
Experts from several state agencies will share information and tips about winning contracts with the state, surviving in tough times and available online services for businesses at the Eastside Vendor Education Seminar (Thursday, June 4, 9 a.m.-3:30 p.m., Mirabeau Park Hotel, 1100 N. Sullivan Road, Spokane Valley). Do you have opinions about how Washington state’s regulations impact your business? Plan to join the senior leaders from the departments of Labor & Industries, Revenue and Employment Security, and the Office of Regulatory Assistance for a roundtable discussion. You will have a chance to share your ideas with these leaders about ways to make it easier for your business to meet Washington’s regulatory requirements. For more information, go here.


OTHER NEWS
AWB Institute is now online
A skilled workforce is the underpinning of a strong economy. That's why AWB created the AWB Institute— to ensure a dedicated focus on the training and development of high quality workers for businesses in our state. Now, the AWB Institute is online at http://www.awbinstitute.org/. On this site, you'll find information about workforce development training programs, along with resources for employers looking to enhance their own employee training. Here you will also find industry-specific information about worker training, upcoming events, legislative updates and volunteer and scholarship opportunities. For more information, contact AWB’s Mike Hudson.

Order your copy of Washington – The Nature of Innovation
AWB is pleased to offer a beautiful new custom book, Washington – The Nature of Innovation, promoting the economic strengths that make Washington unique. Written by Pulitzer Prize–nominee Bob Condor, the book offers an insightful look at Washington’s storied arts and cultural scene, its universities and colleges, its recreation opportunities and professional sports, and the other lifestyle offerings that contribute to the state’s unbeatable quality of life. The book also discusses Washington’s diverse and robust industries and their impact on the state’s economy and features profiles of companies and organizations that have contributed to Washington’s economic development and success. The book is available for $49.50 for AWB members ($59.50 for non-members) and can be purchased online or by contacting Jennifer Costello at jenniferc@awb.org or 800.521.9325.


Register for Entrepreneur of the Year contest by June 15
Entrepreneur magazine’s Entrepreneur of the Year Contest is looking for entrepreneurs who (1) own at least 51 percent of a company with fewer than 100 employees, (2) had gross sales of at least $500,000 in 2008 and (3) have been in business for at least four years, you could win great prizes, including a profile in this widely read publication. Deadline for entry is June 15.


Don’t miss AWB’s new Member Spotlight
Be sure to check out the new AWB Member Spotlight, our online profile of the awards and achievements of AWB members. We’ve recently published stories on Blumenthal Uniform Company, Wilcox Family Farms, General Motors, International Paper Company, Railex and O Bee Credit Union. If you have a good news story about your company, send it to AWB’s Paul Schlienz.


AWB is now on Twitter
AWB recently joined the microblogging site, Twitter. This allows us to post brief (140 characters) updates about AWB events, ask members quick questions, share breaking news and link to resources. Twitter is the third most popular social networking application on the Internet, right behind MySpace and Facebook. Learn more about the site and start following AWB on Twitter today.


AWB EVENTS & RESOURCES
Wage and hour law seminar — Tuesday, June 9 in Bellevue
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 AWB’s Jennifer Costello.


Government Affairs Council retreat set for June 16-18
The annual Government Affairs Council retreat will be at Alderbrook Resort on Hood Canal June 16-18. The retreat will begin on the evening of Tuesday, June 16 and last until approximately noon on Thursday, June 18. There will be panels on local government, environmental issues and the revenue forecast. Rooms will be on a space-and price-available basis. For more information, contact AWB’s Connie Grande.


Common HR Mistakes — And How to Avoid Them seminar on June 24
Don't let innocent mistakes become costly matters for your company! Whether the issue relates to pay practices, employee classification, discrimination and harassment, labor and employment laws are difficult to interpret and are constantly changing. The good news is that the most common mistakes can be easily avoided. Effective HR practices are at the core of prevention. Join us for this half day seminar on Wednesday, June 24, at the Doubletree Guest Suites Seattle-Southcenter, in Tukwila, which will help you create and implement best HR practices designed to prevent legal problems and identify potential areas where your company may be vulnerable. To register, click here or contact AWB’s Jennifer Costello.


Free safety education Webinars
AWB and Sedgwick CMS offer courses for safety and non-safety professionals who wish to increase their safety knowledge and effectiveness in developing and administering safety programs within their company. We have identified that the two most common causes of injuries are overexertion resulting in back and shoulder injuries and slips, trips and falls either from tripping over uneven surfaces, slipping on floors, or falling from heights. We offer free educational Webinars to all AWB members on these topics to help you identify and control these risks in your workplace. For additional information and webinar training dates, click here.


THEY SAID IT
“With school districts and taxpayers struggling across Washington state, this funding will help teachers keep their jobs and help students get the skills they need to succeed in school and the workplace. We all know that education is the key to our future economic strength and that makes continued investment in our schools and students especially important when times are tough.” – U.S. Sen. Patty Murray, D-Wash., on federal stimulus funding for education


This Week's President's Perspective: There is no magic answer to our energy problems