TOP STORIES
AWB session priorities: Private sector must lead recovery
Last Wednesday, AWB President Don Brunell launched the first in a series of session briefings to outline the priority issues for the 2011 legislative session. The first issue lawmakers should tackle: reforming workers’ compensation. Transformational changes must be made to the state budget, but above all the private sector must lead the recovery and lawmakers must prioritize spending to critical areas. “The private sector continues to be hit hard by waves of tax increases, including another increase in workers’ compensation. Although Inititiative 1082 failed at the ballot box, much work remains by lawmakers to reform this system,” said Brunell. “The cumulative impact of higher taxes and fees can be detrimental to employers, especially small businesses, trying to gain traction in this economy. Now’s the time to reset our spending and put our resources toward the services that matter most.” Watch for the next installment of our session priorities on Wednesday. The topic: Unemployment insurance.


Governor lays out possible spending cuts
Gov. Chris Gregoire proposed deep cuts last week in response to the state’s budget crisis, including ending the state's health insurance for the poor. Marty Brown, director of the Office of Financial Management, says the state needs to cut its spending $901 million below the amount budgeted. Legislators will likely face a special session to deal with the state’s budget gap before the regular session convenes in January.


Tell Congress to stop big tax increases in 2011
Help stop one of the biggest tax increases in our nation's history. Contact Congressnow and add your organization's nameto a letter that will be sent to lawmakers urging them to support extending the 2001/2003 tax cuts and business tax provisions. If Congress fails to act, Americans will face one of the biggest tax hikes in history beginning Jan. 1. Marginal tax rates will increase for every taxpayer, the capital gains rate climbs 33 percent and dividend rates jump by as much as 164 percent. Congress must act now to prevent this tax increase.Extending the expiring 2001 and 2003 tax cuts would boost investor, business, and consumer confidence by taking the uncertainty of tax policy off the table. Additionally, tax provisions — such as the R&D credit and active financing exception — have expired. An extension will bring more certainty to business owners and encourage investment.


Crippling business regulation comes to a vote today – Urge your senators to repeal the 1099 Mandate
The federal health-care overhaul, signed into law last year, has its share of problems – perhaps none more damaging to small businesses than the 1099 Mandate. This mandate would require businesses to file IRS 1099 forms any time they spend more than $600 on goods and services a year. Intended to pay for the massive deficit created by the health care takeover, the provision passes the cost onto American employers in the shape of new fees and mountains of paperwork. A U.S. Senate vote to repeal the mandate is expected today. Urge Sens. Patty Murray and Maria Cantwell to repeal this burdensome mandate.


McMorris Rodgers re-elected to U.S. House Republican leadership
U.S. Rep. Cathy McMorris Rodgers, R-Spokane, was unanimously elected by her colleagues to a second term as vice chair of the House Republican Conference.With Republicans now in the majority in the U.S. House of Representatives, McMorris Rodgers’ position will give Eastern Washington an important voice in Congress when crafting key public policy measures.


Three legislative races headed for recount
Three state legislative races are so close they are headed for recounts. The races include Pierce County’s 25th District race, where GOP challenger Hans Zeiger leads incumbent Rep. Dawn Morrell, D-Puyallup, by 47 votes. Republican challenger Steve Litzow leads incumbent Sen. Randy Gordon, D-Bellevue, by 194 votes in King County’s 41st District, and GOP challenger Vincent Buys leads Democratic incumbent Rep. Kelli Linville by 154 votes in Whatcom County’s 42nd District. Regardless of the outcomes of these races, Democrats will retain control of both houses of the Legislature.


Attention retailers: Candy, gum, bottled water and carbonated beverage taxes end Thursday
Voter approval of Initiative 1107 means new taxes on candy, gum, bottled water and carbonated beverages will expire effective Thursday – 30 days after the election. The passage of I-1107 also allows processors of food products that contain meat to pay a lower B&O tax rate. There will be no refunds for taxes paid prior to Thursday.


Holiday Tree Lighting is this Friday – Still time to donate!
Join AWB members and staff at 6 p.m. at the Legislative Building in Olympia this Friday and see what the holiday spirit is all about. Gov. Chris Gregoire, along with Ft. Lewis Sgt. Kevin Barretta and his family, will light the holiday tree in the Legislative Building Rotunda. AWB has hosted this tradition now for 22 years, in conjunction with its Holiday Kids’ Tree Project, which collects toys and food for rural families in need. Representatives from rural area fire departments will be presented with the cash and toy donations just prior to the lighting. Then Olympia’s Kids in Koncert will perform and there will be a special visit by Santa and his elves, too. For more about the history of the project – including photos of trees through the years – check out this timeline. And then come see for yourself why AWB President Don Brunell calls it one of the best things AWB does. There’s still time to contribute, too. Donate online or contact AWB’s Bonnie Millikan.


Arun Raha featured speaker at AWB executive committee meeting
AWB’s executive committee will hear from Arun Raha, Washington’s chief economist and executive director of the Economic and Revenue Forecast Council, and Judy Schurke, director of the state Department of Labor & Industries, during Wednesday’s meeting. The meeting, which also includes updates from AWB President Don Brunell and Gary Chandler, AWB’s vice president of government affairs, is intended to provide executive committee members with a preview of the upcoming legislative session.


Get ready for AWB’s 2011 regional outreach program
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. He needs your input. During 2011, Brunell or one of AWB’s team members may be available to travel to your region to keep you posted on current legislative events and hear your concerns. If you are interested in this outreach, contact AWB’s Bonnie Millikan.


Don’t Miss AWB Legislative Reception & Lobby Day in Olympia, Feb. 3-4
AWB’s Legislative Reception and Lobby Day is a great opportunity to meet with your lawmakers and educate them about issues affecting you as an employer. AWB’s annual legislative briefing and reception takes place 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. Interested in becoming a sponsor? Contact Anne Haller.


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.


KEY HEARINGS, MEETINGS
Land Use Committee meets Thursday
Mark your calendars for the next AWB’s Land Use Committee meeting Thursday, 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.


New date for Water Quality Committee meeting
The AWB Water Quality Committee meeting has been rescheduled for Thursday, December 9, from 2:00-4:00 p.m. in AWB’s large conference room. Agenda items include an update on the Stormwater Technical Resource Center, state water quality standard revisions and potential water quality-related legislation. For more information, contact AWB’s Grant Nelson.


OTHER NEWS
Wilbert Precast’s Dan Houck elected to lead National Precast Concrete Association
Dan Houk, president and CEO of Wilbert Precast Inc., was been elected chairman of the board of the National Precast Concrete Association (NPCA) on Oct. 24. An AWB member since 1987, Wilbert Precast manufactures a wide variety of precast concrete products in facilities in Spokane, Yakima and Lewiston. The NPCA provides technical, educational and safety resources to nearly 1,000 member companies in all 50 states and seven Canadian provinces, representing the $19 billion precast concrete sector of the construction industry.


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
“Dear Legislature: This is what you get for dodging and fudging the problems of the state budget, and being so slow to act. You get a palate of unpalatable choices. Deal with it. Now.” – Seattle Times staff editorial


This Week's President's Perspective: Washington’s workers’ compensation system must be reformed