TOP STORIES
AWB leaders meet with Gov. Gregoire
AWB Chair Lynn Townsend-White, Western Polymer, Moses Lake, and President Don Brunell joined their counterparts from the Washington Roundtable and Greater Seattle Chamber in meeting with Gov. Gregoire last Thursday afternoon. They discussed the state’s revenue shortfall, streamlining of regulations, workers’ compensation reform, the costs of unemployment insurance and other employer issues which will are likely to be considered by the legislature in January. All of these organizations – as well as other AWB members, the Washington Policy Center and Washington Research Council – have been working with the governor on a task force aimed at transforming state budgeting. Many of those changes are being finalized for the
2011 session. Stay tuned …


Gov. Gregoire suspends state rulemaking process
Gov. Chris Gregoire signed an executive order last week suspending and limiting non-critical state rulemaking processes as a means of helping businesses and local governments in the face of a sluggish economy and growing budget deficit. The order suspends new rulemaking, with multiple exceptions, through Dec. 31, 2011. AWB generally welcomes this action as a move in the right direction, but would like to see the moratorium extended to areas outside formal rulemaking, including policy guidance and other non-essential regulatory work such as the Department of Ecology’s SEPA greenhouse gas reduction guidance. Additionally, Gregoire is asking state employee unions to reopen existing contracts, her prerogative under state law. Office of Financial Management Director Marty Brown has declared that contracts reached for 2011-13 are unfeasible and must be reopened.


State revenue forecast drops another $1.2 billion, calls for special session grow louder
Washington's projected revenue fell another $1.2 billion through the end of 2013, Arun Raha, the state's chief economist, announced Thursday. Of that, $385 million less is projected to come into the state coffers in just this budget year, according to the official report from the state’s Economic Research and Forecast Council. Raha attributed the decline in projected revenue to the severity of the recession, which officially ended in June 2009 but nevertheless lingers. Following the forecast, Gov. Gregoire moved to re-open labor contracts and state officials announced that the McNeil Island prison will close April 1. Calls for a special session of the Legislature grew louder, too, including Sen. Joseph Zarelli, R-Ridgefield, who renewed his call for a special session, saying it’s better to make budget cuts sooner rather than later.

AWB launching proactive legislative campaign to make Washington competitive
Even though the 2011 Legislature is more than a month away, AWB is assembling a proactive agenda and is asking its members to talk to their legislators about it. “This is the time to discuss important issues such as taxes, the budget, workers compensation, unemployment insurance, health care, privatization, and streamlining regulations,” AWB President Don C. Brunell said. “Over the next month, AWB will roll out innovative proposals which will create jobs, reinvigorate our economy, improve the effectiveness of state government, and make us more competitive. Watch for our proposals for workers compensation, the first out of the chute.”


State printer hiring lobbyist for 2011 legislative session
At a time when the state needs to be trimming budgets, the Department of Printing is trying to hire a lobbyist for the 2011 legislative session. "I find that very offensive," said Sen. Rodney Tom, D-Medina, who authored a measure last session to eliminate the state printer and plans on re-introducing it in 2011. "To me that's [the Department of Printing]saying 'Legislature, we're more powerful than you are. We're going to find a way to stay alive no matter what the public is saying, we're fighting for our lives and our lives are more important thandoing what's right in the public eye.'"


Senate, House caucuses name leadership
Senate Republicans returned Sen. Mike Hewitt, R-Walla Walla, to his role as a minority leader on Friday. Also on Friday, the House GOP caucus re-elected Rep. Richard DeBolt, R-Chehalis, as its minority leader. Democrats unanimously chose Frank Chopp, D-Seattle, to remain Speaker of House. More details on caucus appointments are available from the House Democratic Caucus, Washington House Republicans, Senate Republican Caucus, and Senate Democrats. In related news, Sen. Margarita Prentice, D-Renton, the long-time chairwoman of the Senate Ways and Means Committee, is stepping down from that position in hope of becoming the Senate President Pro Tem. Sen. Ed Murray, D-Seattle, is expected to replace Prentice as Ways and Means chairman. Additional leadership appointments will be made during Assembly Days; the Senate meets Dec. 6-7, and the House meets Dec. 9-10.


Nine steps to budget sustainability in Washington state
Thrive Washington, the new research series from the Washington Roundtable and the Washington Research Council, released its second report last Thursday entitled Nine Steps to Budget Sustainability in Washington State. The series gives lawmakers a set of policy recommendations for transforming state government in light of the estimated $5.7 billion budget deficit. "Even with robust projections of nearly 17 percent revenue growth in the next biennium, Washington will not be able to fund all existing or promised services," said Richard Davis, Washington Research Council president. "The money simply isn't there and the structural deficit - which exceeds 10 percent - requires a fundamental budget reset."


SBA chief counsel endorses repeal of 1099 provision in health-care reform law
One of the federal health-care reform law’s most burdensome requirements on business is under fire. Winslow Sargeant, SBA’s Chief Counsel for Advocacy called for a repeal of the expanded Form 1099 reporting requirement for business at a U.S. Senate Small Business and Entrepreneurship Committee hearing last Thursday. The new regulation requires businesses to file a 1099 form with the Internal Revenue Service for each business-to-business purchase of $600 or more. “The Form 1099 requirement will greatly increase the reporting and recordkeeping burdens on small businesses,” said Sargeant. “We’ve heard strong opposition from small business about the new 1099 requirement, and the message we heard was repeal.”


Legislature holds hearings on 12 percent workers’ comp rate hike; AWB Shares Concerns
Last Wednesday, a joint session of the House Commerce & Labor Committee and Senate Labor, Commerce, and Consumer Protection Committee held hearings on, among other things, the Department of Labor & Industries’ proposed 12 percent average rate increase for workers’ compensation premiums in 2011. Lawmakers invited comments from Kris Tefft, AWB’s general counsel and employment law director, who expressed concern about the size of the rate hike, the solvency of the state fund, and the sustainability of the system without substantial reforms.Public hearings on the rate hike will be held on January 4, 2011 at locations to be announced in Spokane and Tacoma.Meanwhile, employers can go online to check out their base rate by industry classification.For more information, contact Kris Tefft.


Reminder: Report damages to your local emergency management agency
The Washington State Emergency Management Division sent out a reminder for businesses to report damages from last week’s windstorm to their local emergency management office. Now is a good time to make sure your business is ready for a disaster. The Emergency Management Department has a web portal especially for businesses. Here you can find out how to prepare and plan for if a disaster strikes your business. The portal also has comprehensive information on what to do if a disaster affects your business. Don't wait until it’s too late.


Get ready for VoIP phone service tax rate increase, Jan. 1
Attention users of voice over Internet protocol (VoIP) phone systems: You will pay more for this service next year. Beginning Jan. 1, the state enhanced 911 (E911) tax will increase and extend to VoIP. Most counties will also raise the county E911 tax and apply that tax to VoIP lines. Only Clark and Yakima counties are not applying the full increase to the county E911 taxes. For more information, contact AWB’s Amber Carter.


Department of Revenue releases draft legislative package for 2011 session – Your input needed

The Department of Revenue has released its draft legislative package for the upcoming session. Proposed bills include expanding electronic filing and reporting, temporary suspension of the tax exemption study, nonresident exemption and tax issues related to competitive sports teams. AWB needs your input on this legislation as early as possible so we can coordinate a response from the business community. Send your comments to AWB’s Amber Carter.


Get ready for AWB’s 2011 regional outreach program
AWB needs your input to help make our state more attractive for private employers, workers and families.AWB President Don Brunell meets quarterly with Gov. Chris Gregoire to share business concerns, as well as with many of the state agency directors to discuss critical issues. During 2011, Brunell or one of AWB team members may be available to travel to your region to keep you posted on current legislative events. If you are interested in this outreach, contact AWB’s Bonnie Millikan.


Mark your calendar for AWB Legislative Reception & Lobby Day in Olympia,

Feb. 3-4
Don’t miss out on AWB’s Legislative Reception and Lobby Day. This is a great opportunity to talk with your lawmakers about issues affecting you as an employer. AWB’s annual legislative briefing and reception takes place on Feb. 3 at Olympia’s Red Lion Hotel. Then on Feb. 4, AWB members will meet with legislators on the Capitol Campus. Visit us online to register or become a sponsor.


Nominations open for Better Workplace Awards
AWB’s Better Workplace Awards honor companies that go the extra mile to create better working environments in the areas of workplace safety, job training, advancement programs and innovative benefit and compensation programs. Have your company recognized for its accomplishments! The awards, sponsored by Davis Wright Tremaine, will be presented at our annual Legislative Day in Olympia on Feb. 3. For more information, contact Chana LaChapelle. The deadline to submit a nomination is Friday, Dec. 10.


Holiday Kids’ Tree Project needs your support
It’s that time again! For more than 20 years, AWB has hosted the Holiday Kids’ Tree Project, which collects toys and food for rural families in need. This great tradition also includes the state tree-lighting ceremony in the Legislative Building Rotunda with inspiring music from Olympia’s Kids in Koncert, the tree lighting by an active-duty military family and a special visit by Santa and his elves! During the ceremony, rural area fire departments will receive cash and toy donations for families in need. Please join AWB members and staff, along with Gov. Chris Gregoire and Santa on Friday, Dec. 3, at 6 p.m. at the Legislative Building in Olympia. None of this, however, is possible without your generous support. Make a donation onlineor contact AWB’s Bonnie Millikan.


Remember: AWB closed for Thanksgiving
AWB will be closed on Thursday and Friday to celebrate the Thanksgiving holiday. We will reopen on Monday. We wish all of our members a happy Thanksgiving.


KEY HEARINGS, MEETINGS
Land Use Committee meets Dec. 2
Mark your calendars for the next AWB’s Land Use Committee meeting Thursday, Dec. 2, 9:30 – 11:30 a.m., at Perkins Coie in downtown Seattle. Stay tuned for details on the agenda. For more information, contact AWB’s Chris McCabe.


OTHER NEWS
Member Spotlight: Tenaska Ferndale power plant honored for 10 safe years
Workplace safety is more than just a motto for the employees of Tenaska Ferndale. Since theco-generation plant opened in 1993, employees have had no work-related injuries, illnesses or fatalities resulting in days away from work. Learn more about Tenaska’s amazing record by reading AWB’s Member Spotlight, and share your company’s good news with AWB’s Paul Schlienz.


Dream Big Small Business Award nominations due Jan. 7
The U.S. Chamber of Commerce’s DREAM BIG Small Business of the Year Award, sponsored by Sam’s Club, honors job creators and recognizes their significant contributions as drivers of economic growth. This is an excellent opportunity to honor small businesses that are active in your community. The winner receives a $10,000 cash prize. Blue Ribbon Small Business Award winners, seven regional finalists, and the 2011 DREAM BIG Small Business of the Year winner will be honored at America's Small Business Summit 2011, May 24, in Washington, D.C. Nominations are due Jan. 7.


AWB EVENTS & RESOURCES
Employee vs. Independent Contractor: Where's the Line Webinar – Dec. 8
The U.S. Department of Labor and the Internal Revenue Service recently identified employer misclassification of independent contractors as a top enforcement priority across the country, and here in Washington the state Department of Labor & Industries has intensified its focus on this issue in specific industries. Misclassification of employees costs federal and state government’s substantial tax revenues each year and exposes employers to penalties and liability for back taxes, overtime pay, workers’ compensation and retirement benefits. Yet the rules for properly classifying employees and independent contractors are not always clear. This 60-minute webinar will tackle the latest strategies for correctly classifying and managing independent contractors and discuss L&I's enforcement program and what to expect if you are audited. Register online or contact AWB’s Chana LaChapelle.


THEY SAID IT
“Our budgets are getting tougher, that’s for certain. But this new forecast doesn’t fundamentally change what needs to be done.We need budget solutions that work for both the short-term and the long-term.We need to enact policies that help put people back to work rather than adopting policies that place roadblocks in front of our small businesses.And we need to enact these changes sooner rather than later.” – Rep. Ed Orcutt, R-Kalama


This Week's President's Perspective: Thanksgiving is about neighbor helping neighbor