TOP STORIES
Cigarette and service business tax hikes now in effect
Washington’s new $1 per pack cigarette tax increase took effect on Saturday, the same day that service businesses – including hair dressers, lawyers, accountants and architects — saw a temporary B&O tax increases of 0.3 percent take effect. New taxes on soda pop, candy and bottled water will follow on June 1. AWB remains disappointed that the Legislature chose to raise taxes instead of doing the difficult work of making government more efficient. Discouraging commerce by increasing sales tax items will not help business recover from the economic downturn.


Governor set to sign state operating budget, Energy Jobs Bill
Gov. Chris Gregoire will sign the state operating budget and the Energy Jobs Bill on Wednesday. AWB opposed the operating budget — SB 6444, sponsored by Sen. Margarita Prentice, D-Renton — because it is unsustainable and relies heavily on tax increases that will burden employers, threaten job creation and adversely impact families. AWB also opposed HB 2561, also known as the Energy Jobs Bill, sponsored by Rep. Hans Dunshee, D-Snohomish,. This bill allows the state to issue bonds above the debt limit to make energy efficiency upgrades in public schools, college and university facilities and state government buildings. Voters will have to approve this proposal in November. If they do not, the state will make the tax on bottled water permanent and fund the program with the revenue raised from those sales. For more information, contact AWB’s Amber Carter.


Governor signs state employee furlough bill
Gov. Gregoire signed into law a bill requiring some state workers to take 10 unpaid days off work by the middle of next year. The furloughs are a cost-cutting measure in the face of a $2.8 billion shortfall in the state’s general fund. The furloughs could cut some $50 million in wage and salary expenses from the generalfund and will affect thousands of state employees.


Financial reform back on track in Congress
After three days of impasse in the Senate last week, a major overhaul of the financial industry and its regulation is back on track. A vote on these reforms will take place this week, according to Sen. Christopher Dodd, D-Conn., the bill's sponsor. The bill includes some controversial provisions including the creation of a consumer financial product protection agency. Senate Minority Leader Mitch McConnell, R-Ky., said Thursday he would work to "reshape the bill … so that it actually ends bailouts, protects consumers without jeopardizing our small community banks and brings transparency … to the world of derivatives, without sacrificing economic growth and job creation."


Spotlight on health-care reform at AWB’s spring meeting, May 11-12
To help you gain a better understanding of how the new health-care reform law will affect your business, AWB has assembled a panel of experts to speak at our spring board meeting in Spokane. We will also live-stream the discussion at approximately 1:15 p.m. next Tuesday on our blog, Olympia Business Watch, for those unable to attend in person. The board meeting also features remarks by Dr. Elson Floyd, president, Washington State University; David Allen, executive vice president, McKinstry Co.; Dr. Arun Raha, executive director of the Washington State Economic and Revenue Forecast Council; the presentation of AWB’s annual Community Service and Environmental Excellence Awards; and discussions on the 2010 legislative session by AWB’s Government Affairs staff. The meeting is at the Davenport Hotel in Spokane May 11-12. Register online or contact AWB’s Jodi Martinez.


Skip Priest leaving Legislature for Federal Way mayoral race
Rep. Skip Priest, R-Federal Way, is leaving the Legislature after four terms. The 30^th Legislative District lawmaker is now running to become the first elected mayor of Federal Way. "There are times your community becomes a very important priority, and this is it," said Priest, who was the ranking minority member in the House Education and Education Appropriations committees. Priest’s announcement brings to 15 the number of state legislators who are not returning to Olympia next year, either due to retirement or because they are seeking another office.


Washington’s tax system No. 5 for small business, but still has room for improvement
Washington's tax system is fifth-best in the nation for entrepreneurship and small business, according to a report by the Small Business & Entrepreneurship Council. The Business Tax Index 2010 ranked Washington No. 5 for having the best overall tax structure, well ahead of neighbors Oregon (43) and Idaho (39); California ranked No. 48. Washington’s lack of a state income tax appeared to be a major factor behind the strong showing. Unfortunately, the report doesn't erase concerns about other cost factors that pose challenges for Washington businesses, including high workers’ compensation (which was not considered as one of the measures for the report) and unemployment insurance tax rates. While the ranking is flattering, there’s still plenty of work to be done to make the Evergreen State more business friendly.


State action on climate change continues forward
While the timing of congressional action on federal climate legislation is still being decided, state agencies have not been waiting around to act on the issue. The Governor’s 2009 Executive Order on climate change tasked the Departments of Ecology, Transportation, Natural Resources and Commerce with specific direction to develop recommendations related to low carbon fuels, forestry offsets and vehicle miles traveled, among other efforts currently underway. In addition, Washington state is continuing to participate as part of the Western Climate Initiative and last week, the state reached an agreement with TransAlta that establishes a process to replace the use of coal at its Centralia cogeneration plant by 2025 with another source of fuel, such as natural gas.AWB and member organizations have been participating in all of these discussions, which will drive future state and local policies related to climate change. For more information, contact AWB’s Grant Nelson.


Learn how health-care reform will affect your business
Now that President Obama signed health-care reform into law, significant changes to health-care coverage will affect every American. AWB has prepared an overview detailing items in the legislation of special interest to employers and sole proprietors. This is information every employer should have and is now available here.


Online state testing begins this week
One out of every four Washington schools with students in grades six through eight will participate in the first Measurements of Student Progress online test. Approximately 60,000 will take the statewide reading and/or math exams on a computer. The testing window for the online version of the test is May 3-June 4, and May 12-28 for the paper-and-pencil version.


Teacher salaries increase, but student performance lags behind in Seattle School District
A new study released by Washington Policy Center finds that most students in Seattle public schools lag in math and science learning, that only 63 percent of students graduate and less than half of African-American and Hispanic students finish high school.At the same time, the study finds the collective bargaining process has createda trend toward limiting duties and work hours, while increasing costs, salary levels, job security and periods of paid time off for teachers and other district employees.


KEY HEARINGS, MEETINGS
DOR’s Holmstrom to discuss new tax provisions at Wednesday’s Tax and Fiscal Policy Council meeting
Cindi Holmstrom, director of the Department of Revenue, will discuss implementation of tax avoidance and other provisions passed by the 2010 Legislature at AWB’s Tax and Fiscal Policy Council meeting on Wednesday, 9:30 – noon, at AWB. Also on the agenda: The high wage earner state income proposal, Initiative 1077 (recently revised and filed as I-1098); and SJR 8225, a referendum to the voters to provide a definition of interest in the state constitution. For more information, contact AWB’s Amber Carter.


David Dicks at Puget Sound Partnership Subcommittee meeting, May 5
Staff from the Puget Sound Partnership, including Executive Director David Dicks, will speak at this Wednesday’s meeting of the Puget Sound Partnership Subcommittee meeting, 1:30-3:30 p.m. at the Master Builders Association of King and Snohomish Counties, 335 116^th Ave. SE, Bellevue. Topics to be addressed include the 2010 legislative session review, the current work of the PSP Ecosystem Coordination Board and its newly formed workgroups, the PSP Leadership Council, and development of the PSP’s 2011 legislative agenda. For more information, contact AWB’s Chris McCabe.


Water Quality Committee/MTCA Task Force meeting on May 17
AWB’s Water Quality Committee and MTCA Task Force will meet Monday, May 17, 9:30 a.m. – noon at AWB. The meeting will include an updates on appeals filed on the Industrial Stormwater General Permit, the Stormwater Technical Resource Center, permit fees and MTCA/sediment management standards rule revision. For more information, contact AWB’s Grant Nelson.


Comments due May 28 on new draft boatyard permit
Following legal appeals and settlement negotiations, the Department of Ecology reissued a new draft boatyard general permit. The permit covers approximately 80 boatyards in Washington state that are engaged in construction, repair and maintenance of small vessels. Ecology will hold two public hearings on the draft permit; one on May 24 in Lacey and the other on May 26 in Everett. Comments are due by 5 p.m. on May 28. For more information, contact AWB’s Grant Nelson.


OTHER NEWS
Washington Business magazine exploring green technology in Spring 2010 issue
The upcoming issue of Washington Business magazine discusses emerging green technology, including Foss Maritime’s new hybrid tugboat. If you have stories about ways your business is employing new green technology, recycling materials, reducing waste, cutting energy costs, saving water or just doing things much more environmentally friendly, let us know.Contact AWB’s Jocelyn McCabe with your ideas and stories.


AWB members step up and pitch in for Seafair
The Boeing Co. is now the title sponsor for the yearly Blue Angels show at Seafair. The aerospace giant is the latest AWB member to step in and take a leading role in keeping Seafair going during a time of recession when sponsors are hard to find. Last week, Duke Moscrip, owner of Duke’s Chowder House, also an AWB member, pledged a $40,000 donation to keep Seafair’s hydroplane races afloat after Seafair found itself short of the $170,000 it needed to pay the hydroplane drivers. Read more about this story on AWB’s Member Spotlight. If you have good news to share about your company, contact AWB’s Paul Schlienz.


Washington Business Week open for students, needs business advisers
Washington Business Week is accepting registrations now for its 35th annual summer program lineup where high school students learn about business and entrepreneurship. The program also needs adult advisers. “This unique program offers numerous benefits to both students and advisers,” wrote David Brukardt, Sterling Financial Corp. executive vice president and AWB Board Chairman, in a letter to Sterling employees. “Previous advisors learned much from the program, returning to their jobs with enhanced personal communication skills and feeling more effective at facilitating groups.” Register online as either a student or mentor. To learn more, watch this video or contact Steve Hyer, executive director, at 253.815.6900.


Bucking the trend: Tell us who started or expanded a business during the recession
Do you know of a business that started or expanded during the height of the recession? Counter-intuitive as it may seem, an economic downturn is supposedly a great time to start a new business, at least according to some experts. Sixteen of the 30 companies that made up the Dow industrial average at the start of the 2008 recession reportedly began during a recession or depression. Help us identify the Washington companies that either started from scratch or expanded during the latest recession so we can feature them in a possible upcoming article in our magazine, Washington Business. Contact AWB’s Jason Hagey to share your story.


AWB EVENTS & RESOURCES
AWB to sponsor Bigfoot Social Media Conference
AWB is now a lead sponsor of Bigfoot, a new conference focused on social media and social networking for business. This fun and interactive event has been designed to get you up to speed on social networking tools for your business. Thirteen top experts, including three nationally known keynoters, will share what works and what hasn't in their use of social networking for large and small business. AWB is also sponsoring and moderating a special breakout panel on the use of social media tools like Facebook and Twitter networking to influence politics and policy for business. Register now and take advantage of the early bird rate of $149 (normally $199) through Friday, May 14. Lunch and breaks are included in pricing. Get an additional $10 off right now using the discount code word: AWB. Click here to register and view the complete list of speakers, or contact Frank Kenny at 360.275.4267.


AWB members save up to 26 percent on UPS shipping!
AWB members can save time and money thanks to our partnership with UPS! Save up to 26 percent on shipping costs with discounts on UPS Next Day Air^®, UPS Worldwide Express^SM and UPS 2nd Day Air A.M^®. Find out how to take advantage of these savings today by calling 800.325.7000 or click here to enroll in the program to begin receiving discounted rates! Be sure to identify yourself as an AWB member.


Let our preferred merchant services provider save you time and money!
AWB encourages you to take advantage of our exclusive partnership with FrontStream Payments (formerly Fast Transact, Inc.) for merchant services and credit card processing. As a preferred merchant, you can be sure to benefit from guaranteed savings and customizable options that fit your business needs. Increase sales, save time, save money. It’s that simple! Getting started is easy. Call 800.687.8505 ext. 156 for your free analysis or e-mail Kathy.adams@frontstreampayments.com.


THEY SAID IT
“I’d like to think what I’ve done will trigger some other people to get involved. It’s our community and we can’t sit around and wait for the government to make things happen because if you do, you’ll wait forever.” – Duke Moscrip, owner of Duke’s Chowder House, who contributed $40,000 to keep Seafair’s 2010 hydroplane afloat


This Week's President's Perspective: Too much wind power?