TOP STORIES
Governor planning unilateral budget cuts if no federal money
Gov. Chris Gregoire is not giving up on her attempt to secure $480 million in federal funds that lawmakers relied upon to balance the budget, but officials also are beginning to plan for a scenario where they don’t materialize, Jim Justin, the governor’s new legislative director, said Tuesday during AWB’s annual Government Affairs Council retreat. If Congress does not approve funding before its Aug. 9 recess, the governor has indicated she will take action. That could mean across-the-board cuts in the range of 4 to 5 percent. Also at the retreat, Rep. Ross Hunter, D-Medina, said he has little confidence that Washington will receive the funding known as FMAP or Federal Medicaid Assistance Percentage. He prefers that the governor makes the cuts rather than calling a special legislative session. Tonight a task force aimed at re-examining government and finding ways to get control of the budget meets in Tacoma. AWB President Don Brunell is one of the members, and Gregoire plans to attend.


Unemployment insurance cost increasing more than 40 percent in 2011
Representatives of the Employment Security Department (ESD) testified to the State Senate and House Labor Committees last week that the average employer unemployment insurance tax will likely rise from this year’s 2.39 percent to 3.36 percent in 2011. Along with an increase in the taxable wage base, this means an approximately 42 percent increase in unemployment insurance costs for employers. We are currently looking at the data presented by the department. Be sure to keep an eye on our blog, Olympia Business Watch, for further developments. For more information about this increase or other unemployment insurance matters, contact AWB’s Donna Steward


Zarelli to receive 2010 Matson Award
State Sen. Joe Zarelli, R-Ridgefield, has been selected by AWB to receive its 2010 Jim Matson Award. The award recognizes a current or former state legislator who consistently supports issues important to Washington’s employers and the state’s competitiveness. Zarelli was singled out for his consistent leadership on fiscal matters, particularly his ardent calls for fiscal restraint and a resetting of state budget priorities in the face of continued deficits and reliance on federal bailouts. Formal presentation of the Matson Award will take place at AWB’s Policy Summit Sept. 21-23 at Semiahmoo Resort in Blaine.


AWB lends support to key ballot measures
AWB filed papers last week establishing a political action committee to raise money for Initiative 1082, which seeks to open up the workers' compensation market to private insurers and was officially certified for the November ballot on Tuesday. The Committee for Workers' Comp Reform is the second PAC formed by AWB following last month's creation of Citizens for Responsible Spending, which is raising money for Initiative1053, the initiative that seeks to restore the supermajority vote requirement for the Legislature to raise taxes. These moves demonstrate how important AWB believes these measures are for Washington's struggling economy. Unfortunately, powerful interest groups, including labor unions, oppose these measures and are willing to use enormous amounts of cash to defeat them. AWB members’ financial support of I-1053 and I-1082 is critical. Your financial help is also essential in order to defeat Initiative 1098, which would create a state income tax and discourage employers from spending on creating new jobs, is also on the ballot. Meanwhile, Initiative 1100, which would end the state monopoly on liquor sales, was certified for the November ballot.


Raha: Washington's economic recovery, though still underway, hit a bump in May
Washington’s economy, which had been steadily recovering, hit a road bump in May when retail sales dropped 1.2 percent, Arun Raha, the state’s chief economist, told a gathering of AWB members Tuesday. His comments came one day after the state announced that collections were $91.3 million less than forecast, prompting Raha to take a less optimistic view of the economy than just a few months ago. Even so, the state’s economy is continuing to improve, Raha said, and he stood by his earlier prediction that it will not experience a second, or “double-dip,” recession. “We have a recovery in progress, although it seems to have stumbled,” he said. In related news, the state’s economy showed some signs of recovery. Private-sector payrolls continued to grow in June and Washington’s unemployment rate fell for the third straight month, to 8.9 percent – the lowest rate since April 2009.


Senate passes financial reform bill
The U.S. Senate passed a sweeping set of changes to the financial regulatory system on Thursday. The bill, previously approved by the House, now goes to President Obama for his signature. The latest in a series of enormous bills with controversial measures hidden in their bulk, this poorly crafted legislation greatly expands government regulation and control over the private sector by creating 533 required regulatory rulemakings, 60 studies, and 93 reports. By contrast, the Sarbanes-Oxley legislation passed in 2002 only had 16 rulemakings and six studies.


Harry Reid announces he will push cap-and-trade legislation in two weeks
For those who thought federal cap-and-trade legislation was dead, think again. On Tuesday, Senate Majority Leader Harry Reid, D-Nev., announced he will introduce a bill in the U.S. Senate to reduce pollution, and includes a scaled back version of the House-passed language to reduce carbon output by charging some polluters for emissions above a certain threshold. According to Reid, the bill will only cut pollution from energy utilities and power plants. In contrast, the bill passed by the House last year, also targeted transportation, agriculture and sectors of the U.S. economy. According to an analysis from the Environmental Protection Agency, any effort the U.S. undertakes to reduce greenhouse gas emissions will have no effect on the climate unless other countries also join in. All the more reason to think carefully before making the United States less competitive for business in the name of combating climate change.


Proposed EPA air quality rules harmful to business – AWB needs your input now
The Environmental Protection Agency has proposed new rules that include new emission limits for air pollutants from boilers, process heaters and solid waste incinerators. The flawed methodology EPA is using to set emission limits is extremely stringent, often approaching levels that can barely be detected. EPA estimates national costs at approximately $10 billion in 2013. However, of greater concern, only a handful of boilers will be able to meet the new EPA standards.While AWB has information on the major industrial boilers that will be impacted, we need your help identifying who will be affected in other categories, particularly owners and operators of smaller boilers. Members that may be affected by EPA’s rulemaking should contact AWB’s Grant Nelson by Monday, July 26 for more information as we plan to work with EPA, our Congressional delegation and others to negotiate a better outcome for the business community.


AWB 2010 Vote Record in your mailbox this week
AWB’s 2010 Vote Record will be out this week. The 2010 Legislative Review includes a comprehensive voting record for the governor, House and Senate on key business issues, as well as in-depth analysis of the top issues for the 2010 session. Keep an eye out for it.


Don’t miss Business Week’s 35th anniversary celebration, Sept. 17
For 35 years, Washington Business Week has helped educate and inspire thousands of high school students to recognize their potential as responsible employees, employers and citizens thanks to the generous donations of time and money from AWB members. 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 Janice@wbw.org.


KEY HEARINGS, MEETINGS
Legislative objectives on agenda at next Land Use Committee meeting, Wednesday
AWB’s Land Use Committee will meet Wednesday, 10 a.m. – noon, at Perkins Coie in Seattle and continue discussion of AWB’s Land Use Legislative Objectives for 2011-12. For more information, contact AWB’s Chris McCabe.


High risk pool administrator Karen Larson at next Health Care Committee meeting, Wednesday
The AWB Health Care Committee will meet, Wednesday, 10 a.m. – noon, at AWB. Karen Larson of the Washington State High Risk Pool will speak. Karen Larsen, who will administer the new federal high risk pool that will open for enrollment Aug. 1, will speak. Additionally, the 2011 health-care legislative objectives will be finalized during this meeting. For more information, contact AWB’s Donna Steward.


Focus state energy strategy and legislative objectives at next Energy Committee meeting, Thursday
The AWB’s Energy Committee will meet Thursday, 10 a.m. – noon, at AWB. Dept. of Commerce staff will update us on the state’s energy strategy. Additionally, energy legislative objectives for 2011 will be discussed. For more information, contact AWB’s Chris McCabe.


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


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.


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
Attention, King County business owners: Make your voice heard in job sector survey closing Friday
The Seattle Chamber of Commerce has launched an online job sector survey to unearth measurable data about the sentiments, challenges and aspirations of King County businesses. This information will be presented to decision makers at all levels, including other business leaders, elected officials and opinion leaders. The survey is open until Friday. As added incentive to participate in this survey, one lucky winner will be selected from the completed surveys for two round trip tickets on Southwest Airlines.


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 on Friday, July 30, 8:30 a.m. – 4:30 p.m., at Camp Murray, Building 91. Lunch will be provided.To register, contact Stefani Christensen.


NAC Architecture recognized for its innovative school designs
In this week’s Member Spotlight: NAC Architecture, an AWB member since 1991 with offices in Seattle and Spokane, received Civic Design Honor Awards from the American Institute of Architects for its work for the Bellevue and Snohomish school districts on May 20. Additionally, Learning By Design, a publication of the National School Boards Association, conferred a Citation of Excellence for outstanding facility design on Eastgate Elementary School, in Bellevue. Share your company’s good news with AWB’s Paul Schlienz.


AWB EVENTS & RESOURCES
Learn what health-care reform means to your business
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. To help employers keep up with the latest developments, 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.


Langer and Bishop headlining at Policy Summit at Semiahmoo – Sept. 21-23
Gary Langer, ABC News’ director of polling, and Matthew Bishop, American business editor of The Economist magazine, will headline AWB’s 21st Annual Policy Summit. Langer will look at America’s political pulse while Bishop will discuss the U.S. economy. Attorney General Rob McKenna will join us for dinner along with candidates running for the state legislature, and Bill Conerly, editor of Businomics will look at the state economy. 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
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. For more information, contact AWB’s Jen Costello.


2010 AWB Salary and Benefits Survey results now available
The third quarterly release of the AWB Salary and Benefits Survey results are now available. The AWB Salary and Benefits Surveyresults are updated quarterly and provide the ability to select and filter results by geographic location, industry, annual revenue and/or number of employees. The survey results include a comprehensive set of statistics and analysis tools. Incentive pay, pay practices and benefits results are also included for no additional cost. AWB members receive a $150 discount off the standard subscription price. The discounted rate is $349 for survey participants and $749 for non-participants. Subscribe using the special promotion code AWB223 to receive the discount. Click here to sign-up now! If you have not yet participated in the survey, it's not too late. Since the survey results are updated quarterly, your data can still be included.

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


THEY SAID IT
“The probability of a lost decade is significantly greater than a double dip. We don't have too many engines of growth functioning right now – housing, consumer spending, exports are all sputtering. I have a hard time seeing where we can get 3 percent economic growth back." - Sung Won Sohn, professor of economics, California State University Channel Islands


This Week's President's Perspective: Pig in a Poke

 

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