TOP STORIES
Governor proposes $4 billion in budget cuts
Hot on the heels of a one-day special legislative session, Gov. Chris Gregoire last week unveiled her 2011-13 budget. It proposes to bridge an estimated $4.6 shortfall primarily through a series of cuts in social service and education spending, prison closures, cuts to the ferry system and elsewhere. Although it does not include new taxes, the budget does propose a host of user fees. As painful as the cuts will be, lawmakers generally reacted positively to the proposal. “Her proposal includes some bold moves that are necessary if we’re going to break the cycle of unsustainable budgets moving forward,” said Rep. Gary Alexander, R-Olympia. Sen. Joseph Zarelli, R-Ridgefield, the ranking Republican on the Senate Ways and Means Committee, disagreed with some of the budget’s details, including the proposed contract with state workers, but remained supportive of the plan’s thrust. "The governor has to be given credit for taking a very tough and delicate situation and actually presenting a list of options ... that get us where we need to be," said Zarelli.


Proposed supplemental budget closes $1.1 billion current budget gap
Two days after Gov. Gregoire announced her 2011-13 budget, she introduced a supplemental budget that would close the remaining gap in the 2009-11 budget. Lawmakers reduced what had been a $1.1 billion shortfall by $588 million during the Dec. 11 special session. Gregoire’s supplemental budget finishes the job through a series of cuts, many of which are also part of the next two-year budget proposal. It also would eliminate the Children’s Health Program, suggests a 6.3 percent reduction in levy equalization payments and eliminates extra money to keep smaller classes in K-4.


Gregoire proposes $30 million savings by consolidating agencies, eliminating boards and commissions
As part of her attempt to close the state’s budget shortfall, Gov. Gregoire announced a plan last week to consolidate state agencies and eliminate boards and commissions. The plan would reduce the number of state agencies included in the consolidation plan from 21 to nine, saving nearly $30 million and cutting 125 state jobs over the next biennium. Among the plan’s highlights: Consolidating the Department of Fish and Wildlife, the State Parks and Recreation Commission, the Recreation and Conservation Office and the law enforcement unit of the Department of Natural Resources into a new Department of Conservation and Recreation; and consolidating the work of the Columbia River Gorge Commission, the Pollution Liability Insurance Agency and the Department of Health’s reclaimed water program into the Department of Ecology.


President Obama signs tax cut extension into law
President Barack Obama signed an $858 billion tax deal into law on Friday that extends Bush-era tax cuts that would have expired Dec. 31. The measure also extends unemployment benefits for 13 months, cuts the payroll tax by 2 percentage points for a year, and lowers the estate tax. The IRS has issued instructions for employers to comply with the imminent reduction in the payroll tax. The final House vote on Thursday was 277-148 with nearly equal numbers of Democrats and Republicans in support. Reps. Jay Inslee, D-Bainbridge Island, Brian Baird, D-Vancouver, Jim McDermott, D-Seattle, and Adam Smith, D-Tacoma, voted against the package while all other members of Washington’s congressional delegation supported it.


Washington Stormwater Technical Resource Center opens
The Washington Stormwater Technical Resource Center is now operating. The center, created in part by AWB, will assist industrial, construction and municipal stormwater general permit holders by providingtraining, one-on-one assistance, sharing of information, and education and outreach. Based at the University of Washington’s Puyallup Research and Extension Center, the Center is a joint venture between WSU-Puyallup, UW and Tacoma Center for Urban Waters. Gary Chandler, AWB’s vice president of government affairs, called on the Legislature to support the work of the Center in a letter to state Ecology Director Ted Sturdevant, saying it’s “good business and good environmental stewardship.”


AWB Legislative Reception & Lobby Day in Olympia, Feb. 3-4
You won’t find a better opportunity to meet and interact with your lawmakers than AWB’s Legislative Reception & Lobby Day. Scheduled for Feb. 3 at Olympia’s Red Lion Hotel, this annual event includes a legislative briefing, informative panels and a reception. Gov. Gregoire has also confirmed her attendance at our luncheon that day. Then on Feb. 4, the action shifts to the Capitol Campus where AWB members will meet with legislators – a great opportunity to educate them about issues affecting you as an employer. Register online. Interested in becoming a sponsor? Join top sponsor companies BP, Costco, KeyBank, Microsoft Corporation, SDS Lumber Company, Wal-Mart, Sterling Financial Corporation Western States Petroleum and others and support the business community’s effort to continue the dialogue with elected officials. It’s crucial that we have a strong showing by members in Olympia for these key events. Act fast, though! Sponsorship levels are filling up quickly. Contact AWB’s Anne Haller for more sponsorship information.


AWB provides scholarships to 2011 Legislative Reception & Lobby Day
AWB is partnering with Washington Chamber of Commerce Executives to encourage local chambers to participate in the 2011 Legislative Reception & Lobby Day to show the business communities solidarity to our elected officials. This year AWB launched the first Annual Chamber Executive Director Legislative Day & Lobby Day Scholarship.Times are tough for many of our smaller chambers and many don’t have the travel funds necessary to attend. The scholarship includes registration to both days event for the chamber executive. The executives will bring local chamber members who will have an opportunity to meet with their elected officials. Congratulations to the following recipients:Kristen Whitener, Mount Vernon Chamber of Commerce; Coreen Haydock, Port Orchard Chamber of Commerce; Pola Kelley, Sedro-Woolley Chamber of Commerce; Kelly Parker, Greater Vancouver Chamber of Commerce; Caldie Rogers, Greater Marysville Tulalip Chamber of Commerce; Nancy Wyatt, Auburn Area Chamber of Commerce; and Terri Jeffreys, Shelton-Mason County Chamber of Commerce.


Don C. Brunell Scholarship for Future Leaders now online
The application for AWB’s Don C. Brunell Scholarship for Future Leaders is now online. This is a great funding opportunity for outstanding college students. AWB established the scholarship to inspire and aid Washington's future business leaders. Recipients may receive up to $2,000. Although applications are not due until June 1, 2011, now is a good time to make application.


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.


AWB’s Dick Walter to retire Dec. 31
Dick Walter, AWB vice president of operations, will conclude eight years with AWB on Dec. 31. A former member of AWB’s Board of Directors, Walter joined AWB in 2003 after his retirement from Xerox. Walter’s achievements include substantial membership growth, increased financial stability for the association and spearheading a successful accreditation effort with the U.S. Chamber of Commerce, resulting in AWB being one of only three state chambers to be accredited with distinction, the highest award for a state chamber. Walter will continue working part-time with AWB on membership development, investment and benefit programs and as the business community member of the state’s emergency management committee. AWB Vice President Kristofer T. Johnson will succeed Walter as the association’s new vice president of operations. Prior to joining AWB in August, Johnson served for three years as president of the Saint Paul Area Chamber of Commerce in Minnesota, and led the Tri-City Regional Chamber of Commerce in Kennewick, where he served on AWB’s Board of Directors.


Reminder: AWB on holiday schedule, no Fast Facts until Jan. 3
As the holiday season kicks into full gear, keep in mind that AWB will be closed Christmas Eve (Friday, Dec. 24); Monday, Dec. 27; and New Year’s Eve (Friday, Dec. 31). Fast Facts will resume Monday, Jan. 3. We wish everyone a joyous holiday season.


KEY HEARINGS, MEETINGS
UI Committee meeting Jan. 4
AWB’s Unemployment Insurance Committee will meet Tuesday, Jan. 4, 10 a.m. – noon, at AWB. The Employment Security Department’s proposals for accessing Reed Act dollars and the social tax will be discussed. For more information, contact AWB’s Donna Steward.


Parlette, Schmick and Onizuka at next Health Care Committee meeting, Jan. 6
The AWB Health Care Committee meets Thursday, Jan. 6, 10 a.m. – noon, AWB. Guests for the discussion include Sen. Linda Parlette, R-Wenatchee; Rep. Joe Schmick, R-Colfax; and Richard Onizuka from the Washington Health Care Authority. For more information, contact AWB’s Donna Steward.


OTHER NEWS
Great discounts for AWB members with freight savings program
AES Logistics has again been recognized by the Puget Sound Business Journal as one of the 100 fastest-growing companies in Washington. As a licensed NVOCC and IATA member with 320 offices worldwide, AES Logistics has partnered with AWB on a discounted freight program which provides members complete logistics management on both domestic and international shipments. AES can provide complete services on over the road, ocean, freight forwarding, custom brokerage, documentation and live help for all your shipping needs. Take advantage of the savings offered by this program today!


What Health-Care Reform Means to Your Business CD
If you missed our live health-care webinar series, the recorded webinars are now available for purchase on a CD. Topics included are Federal Health-Care Reform: What Employers Need to Know and Why, Small Employer Tax Incentives Provided in Federal Health-Care Reform: Blessing or Curse?, Prepping for 2011 – What Employers Need to Know to Comply with the First Round of Changes Required of Federal Health-Care Reform, Keeping Your Current Health Plan: What it Means for Employers and Employees, New Employer Responsibilities to Provide Health Care Coverage: Who is Affected and How. AWB Members can purchase individual CD’s for $89.99 plus tax. For more information contact AWB’s Chana LaChapelle.


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 on May 24 in Washington, D.C. Nominations are due Jan. 7.


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THEY SAID IT
“It won’t bring about the ‘reset’ of state government that is overdue, but the governor’s budget looks like a step in the right direction.” – Sen. Joseph Zarelli, R-Ridgefield


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