TOP STORIES
Governor may call special session to make budget cuts
A special session may be in the offing if $480 million in Medicaid matching money doesn't come from the federal government by Aug. 9. According to Gov. Chris Gregoire, who wants to limit any special session to one day exclusively devoted to the budget, the state is facing a projected $3 billion hole in the 2011 budget, and the sluggish economy is forcing big changes in the operations of state government. To give the public a say in expected cuts, the governor is asking for ideas on a website and holding a series of forums. Meetings were held last week in Tacoma and Everett. Others are planned Tuesday in Vancouver and Thursday in Spokane. Despite the budget’s dire straits, many of those who attended the first two forums argued against cutting their favorite programs. This is a perfect illustration of why voters need to pass Initiative 1053, a measure that would restore the two-thirds vote requirement for the Legislature to raise taxes. Without this protection, the temptation to raise taxes to avoid budget cuts would likely prove too much to resist for many legislators.


Big week for Initiative 1053: Certified by state, endorsed by Seattle Times, gets new website
The state has certified Initiative 1053, the measure to bring back the two-thirds vote requirement for the Legislature to raise taxes, last Monday. That means this important initiative will be on the November ballot. I-1053 also received a strong endorsement from the Seattle Times on Wednesday. According to the Times, “The people have supported a two-thirds requirement three times already, and the Legislature has at various times set it aside. We believe the people will support it again.” I-1053’s new website, created and operated by AWB, also went live last week, providing voters with accurate information on this vital protection for the state’s taxpayers at a time when legislators are looking to balance the state budget with new taxes. Click here to contribute to the I-1053 campaign.


Campaigns to approve workers’ comp reform, defeat state income tax going strong, need your support
Initiative 1082, which seeks to open up the workers' compensation market to private insurers, is mounting a strong campaign in the face of opposition from powerful interests including organized labor. AWB believes I-1082 is essential for Washington's struggling economy and urges its members to financially support this measure. Your financial help is also needed to defeat Initiative 1098, which would create a state income tax and discourage employers from creating new jobs.


Washington state ranks near the top in jobs lost
Washington state is supposed to be leading the nation out of the recession, but numbers released last week show the state lost nearly 16,000 jobs in the past year— more than 41 other states. The Puget Sound Business Journal reported on the latest state-by-state employment numbers released by the U.S. Bureau of Labor Statistics. This seems to underscore what Arun Raha, the state's chief economist, told AWB members at the annual Governmental Affairs Council retreat: Weak job growth continues to be a major drag on the tepid recovery. Clearly, this is no time to burden the economy with new taxes and other disincentives to growth.


President Obama signs financial reform bill
President Obama signed into law a far-reaching set of changes to U.S. financial regulation on Wednesday. This gigantic, poorly crafted bill is no cause for celebration. The measure expands government involvement in the private sector with 533 required regulatory rulemakings, 60 studies, and 93 reports. This massive bill, hiding numerous controversial measures within its bulk, will be burdensome on the financial industry and will not help the private sector grow.


Transportation 2040 plan under fire from environmental groups
The Sierra Club, Futurewise and Cascade Bicycle Club are suing the Puget Sound Regional Council over its Transportation 2040 plan. One of their claims is that the plan does not adequately address climate change or greenhouse gas reductions under the State Environmental Policy Act. State law requires a 25 percent reduction in carbon emissions by 2035 and a 50 percent reduction by 2050, in comparison to 1990 levels. The environmental groups want the plan rewritten to reduce a predicted 1,000 new road-lane miles in favor of increased pedestrian, bicycle and transit projects.


Governor faces lawsuit to stop executive order on climate change
Gov. Gregoire faces a legal challenge alleging an executive order she signed would enact much of a climate change bill that failed to pass during the 2009 legislative session. Last Wednesday, six taxpayers represented by the Evergreen Freedom Foundation, filed suit in Thurston County Superior Court, claiming Gregoire’s executive order is an unconstitutional attempt to make law without legislative approval and a violation of separation of powers between the executive and legislative branches of government. The executive order directs the Departments of Ecology and Transportation to develop emission reduction strategies and emission benchmarks, assess whether the California low-carbon fuel standard should be implemented in Washington and develop additional transportation choices among other agency efforts.


AWB’s 2010 Judicial Review out this week
AWB’s 2010 Judicial Review, your comprehensive guide to the Washington State Supreme Court’s rulings on key business issues and ratings of judges, is headed toward mailboxes this week. The Judicial Scorecard and AWB’s 2010 Vote Record and Legislative Review are great companions to this fall’s elections. Keep them near your voter’s pamphlet!


Mark your calendars: Business Week’s 35th anniversary celebration, Sept. 17
Washington Business Week is 35 years old! This is cause for celebration because Business Week helps educate and inspire thousands of high school students to recognize their potential as responsible employees, employers and citizens. Join AWB and other friends of Business Week on Friday, Sept. 17, from 10:30 a.m. – 1:30 p.m., to celebrate its past, present and future successes aboard the MS Zaandam at Terminal 91 in Seattle. Registration is required; deadline is Thursday, Sept. 6. RSVP to 253.815.6900 or e-mail Janice@wbw.org. You can also volunteer or donate directly to this great program. None of Business Week’s success would be possible without the generous contributions of AWB members.


KEY HEARINGS, MEETINGS
Education and Training Committee meeting rescheduled for July 30
Due to scheduling conflicts, the July 22 AWB Education and Training Committee meeting has been moved to Friday, July 30, 10 a.m. – noon, at AWB. For more information, contact AWB’s Donna Steward.


Legislative objectives to be discussed at next AWB Land Use Committee, Aug. 3
AWB’s Land Use Committee will meet on Tuesday August 3, 10 a.m. – noon, at the law offices of Perkins Coie in Seattle. The committee will discuss AWB’s land use legislative objectives for 2011-12. For more information, contact AWB’s Chris McCabe.


Policy objectives and vehicle miles traveled on agenda at Transportation Committee meeting, Aug. 5
AWB’s Transportation Committee will meet Thursday, Aug. 5, 10 a.m. – noon, at AWB.We will review transportation policy objectives in preparation for the 2011 legislative session.We will also review the latest 2030 Washington Transportation Plan and learn about the implementation of Gov. Gregoire’s executive order on climate change as it relates to vehicle miles traveled. For more information or if you have topics you would like included on the agenda, contact AWB’s Amber Carter.


Next Workers’ Comp Coalition meeting, Aug. 10
The Workers’ Comp Coalition will meet Tuesday, Aug. 10, 10 a.m. – noon, at the new AGC offices at 3601 20^th St. E., in Fife. For more information, contact AWB’s Kris Tefft.


Discussion of legislative objectives continues at next Energy Committee meeting, Aug. 17
AWB’s Energy Committee will meet Tuesday, Aug. 17, 10 a.m. – noon, at AWB. A conference call option will be available. The committee will continue discussing AWB’s energy legislative objectives for 2011-12 and adopt final edits and changes on recommendations to AWB’s board meeting in September. For more information, contact AWB’s Chris McCabe.


AWB Regional Membership and Board Meetings set for August, September
AWB’s Regional Membership and Board Meetings are open to all AWB members and prospective members, and provide an excellent opportunity to hear directly from local legislators. Candidate endorsements are also on the agenda. This fall’s meetings are scheduled for:

•Aug. 31 — Tacoma
•Sept. 1 — Vancouver
•Sept. 2 — Bellevue
•Sept. 8 — Spokane
•Sept. 9 — Tri-Cities
•Sept. 9 — Yakima
•Sept. 10 — Moses Lake
•Sept. 14 — Mount Vernon
•Sept. 15 — Mountlake Terrace

More detailed information, including times, specific location and agendas, is available on AWB’s events calendar.


OTHER NEWS
Get prepared at Tsunami Awareness Course
Tsunamis are a real hazard in Washington’s coastal areas. The Tsunami Awareness Course gets participants up to speed on tsunamis and response responsibility in both public and private sectors including government/public decision makers, emergency managers, response personnel, planners, and others. Participants will apply this knowledge in facilitated scenario-based group activities. The course takes place this Friday, 8:30 a.m. – 4:30 p.m., at Camp Murray, Building 91. Lunch will be provided. To register, contact Stefani Christensen.


Immigration: Why Reform Can’t Wait, Aug. 12
AWB is co-sponsoring a one-day conference and strategic planning session for employers who rely on immigrant workers and grasp the urgent need for immigration reform. Featured speakers include U.S. Sen. Patty Murray, D-Wash.; entrepreneur and scholar Vivek Wadwha; and veteran political commentator Morton Kondracke. The summit will bring together engaged employers from across the U.S. to share ideas about how best to advance immigration reform in 2011. The conference takes place at the Seattle Sheraton on Thursday, Aug. 12. Register online. Registration fee is $35. The VIP Dinner and summit is $300.


Boeing employees serve communities worldwide and at home
In this week’s Member Spotlight: On July 17, more than 1,000 Boeing employees came together at sites around the world to take part in the company's inaugural Global Day of Service. In the Puget Sound region, nearly 800 employee volunteers donated a Saturday to 33 local community service projects, including six Habitat for Humanity home construction sites. Share your company’s good news with AWB’s Paul Schlienz.


AWB EVENTS & RESOURCES
Health-Care Reform and Your Business – What does it mean?
President Obama signed landmark legislation on health-care reform into law, and the impact on employers is substantial and complicated. For the first time, many employers will be subjected to penalties if they do not offer coverage to employees or if the coverage fails an affordability test. Some requirements go into effect now, and others are phased in over the course of several years. Down the road, employers also could be affected by a new tax on costly health insurance plans if health-care plan costs continue to rise. Several items within this law affect all employers – new reporting requirements, new IRS responsibilities, required changes to health plan coverage's and more. To help employers learn what their obligations under the massive new law will be, we have developed a webinar series to address key provisions on health-care reform and explain how it will affect your company. To view webinar topics and dates click here. To register, contact AWB’s Jen Costello Jen Costello at 800.521.9325.


Save the date: Policy Summit at Semiahmoo – Sept. 21-23
Have you registered yet for AWB’s 21st Annual Policy Summit? There is no better place to get up to speed on public policy issues at the state and federal levels. Attorney General Rob McKenna will join us for dinner along with candidates running for the Legislature. Bill Conerly, editor of Businomics will look at the state economy. Matthew Bishop, American business editor for The Economist, will discuss the U.S. economy and look at its prospects for the future. Gary Langer, ABC News’ director of polling, will examine the national political scene two months before the November congressional mid-term election. Additionally, there will be discussions on topics including health care, energy and education. Join us this fall at scenic Semiahmoo Resort. To register, click here or contact AWB’s Jen Costello at 800.521.9325.


2010 Manufacturing Excellence Awards accepting nominations until Friday
AWB’s awards recognize manufacturing firms for their contributions to growing our economy and improving quality of life. Awards will be given to a small, medium and large manufacturer in the following categories: Green Manufacturing, Operational Excellence, Innovation and Manufacturer of the Year. Download the nomination form here. Awards will be presented at a special luncheon on Wednesday, Sept. 22, in conjunction with AWB’s annual Policy Summit at Semiahmoo Resort in Blaine. Nominations are due this Friday. For more information, contact AWB’s Jen Costello.


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To learn about more upcoming AWB events, view our online events calendar.


THEY SAID IT
“The problem is not a lack of capital. Businesses have plenty of extra cash – with the Federal Reserve reporting this month, for example, that nonfinancial firms are sitting on $1.8 trillion, about a quarter more cash-on-hand than when the recession started. The key issue is whether companies have a reason to invest. In other words, if they start spending money and hiring workers, will they make money? Unfortunately, almost everything Washington's done the last 18 months has sent the opposite message.” – Daniel J. Mitchell, New York Post


This Week's President's Perspective: Never forget that free enterprise makes America tick