TOP STORIES
Legislators cut $588 million from deficit in one-day special session
Lawmakers met Saturday for a rare one-day special session and passed a budget bill that cuts about $588 million from the state’s $1.1 billion budget deficit. Combined with $110 million in cuts made by Gov. Chris Gregoire, the action trims the current budget shortfall nearly in half. Gregoire said she will offer a plan Friday to cover the rest of the gap. The bill enjoyed strong bi-partisan support, passing 86-6 in the House and 30-9 in the Senate. “The Legislature is at last moving in a positive direction,” said Sen. Joseph Zarelli, R-Ridgefield. But Senate Republican Leader Mike Hewitt of Walla Walla called the cooperation an “aberration” and predicted it won’t last. The deal included $208 million in federal aid for public schools, and a number of cuts, including $51 million for higher education, $50 million from K-12 education, $48 million from the Department of Corrections, and cuts to the Basic Health Plan and Disability Lifeline.


Special session a good start, but state must re-evaluate spending habits
AWB called on lawmakers today to follow up on the budget cuts from Saturday’s special session with deeper, fundamental changes in the way the state spends money. The third in a series of 2011 legislative briefs proposes that the Legislature do what businesses and families have done already: re-examine spending priorities and align budgets accordingly. Specific proposals include calls to:

    *  Re-enact the original spending limits imposed under Initiative 601, which ties
        state spending to annual economic growth

    *  Adopt a constitutional amendment to require the transfer of one-time
        extraordinary revenue gains to the emergency rainy day fund

    *  Restrict the transfer of money from dedicated fund

    *  Implement performance audit recommendations from the State Auditor.

The passage of Initiative 1053 gave lawmakers a new opportunity and a clear directive from voters to balance the budget without tax increases. Call your legislator today and urge them to control spending, prioritize government services and avoid new obligations. Toll-free legislative hotline: 1.800.562.6000 or http://www.leg.wa.gov/pages/home.aspx.


Federal judge rules health-care law’s individual mandate unconstitutional
A Virginia federal judge today struck down the federal health-care law’s requirement that individuals must buy health insurance. The ruling asserts that the Constitution’s Commerce Clause only allows federal regulation of economic activity that affects interstate commerce, and does not apply to economic inactivity, including not buying health insurance. The federal government is expected to appeal. This ruling resulted from a suit against the health-care law from Virginia’s attorney general. Washington, along with numerous other states, joined a similar suit against the health-care law brought by Florida’s attorney general. Washington State Attorney General Rob McKenna issued a statement Monday saying the judge’s decision validates the constitutional question raised by the 21 states challenging the mandate.


UI taxes skyrocketing? Tell us about it
Unemployment insurance tax statements arrived in most mailboxes last week and even with fair warning from the Employment Security Department, the tax increases are startling. The department reported that the average increase would be 41 percent, but just like last year, employers are seeing increases that exceed 200-300 percent. AWB is working on a proposal to address the volatility of UI taxes and mitigate the exceedingly high tax increases, but we need your help. To help demonstrate the impact of these tax increases, please fax us your Unemployment Insurance tax statements from 2009, 2010, and 2011.Feel free to redact your name, but please leave the city where the business is located visible on the statements. In addition, if you did experience lay-offs in any of those three years, please identify how many individuals were laid off and in which years.Fax this information to AWB’s Donna Steward at 360.943.5811, by Friday.


AWB: Street utility tax legislation unwarranted
The business community is concerned about efforts underway to introduce new taxing authority for city streets. Known as a Street Utility Authority, possible legislation would authorize cities to tax residents and business in a defined street maintenance utility area. Similar legislation has been repeatedly introduced and fails each year because of the sweeping nature of the new authority sought by Washington cities. The proposal ignores the bigger effort underway to look at funding the state’s next transportation package. AWB and other organizations are urging legislators to not sponsor any street utility tax legislation. For more information, contact AWB’s Amber Carter.


President Obama’s tax deal with GOP under fire as key votes near
The U.S. Senate was expected to pass a measure this week that will prevent one of the largest tax increases in history from taking effect next month. It survived a key procedural vote today. But the deal that President Obama cut with congressional Republicans to preserve Bush-era tax cuts was drawing criticism from both the left and right, and its fate in the House was less certain. Liberals are complaining that the deal would give tax breaks to the wealthy, while some conservatives complain that it revives the “death tax.” On Friday, Sen. Bernie Sanders, I-Vermont, spoke for 8 ½ hours against the deal in the first genuine filibuster Congress has seen since 1992, while Obama invited former President Bill Clinton into the White House to defend it. Despite the opposition, House Majority Leader Steny Hoyer, D-Md., said Monday that he believes the House will also approve the deal, possibly by Friday.


Don C. Brunell Scholarship for Future Leaders now online
You can now apply online for the Don C. Brunell Scholarship for Future Leaders, a great funding opportunity for outstanding college students, at the AWB Institute website. 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 your 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 Legislative Reception & Lobby Day in Olympia, Feb. 3-4
Meet with your lawmakers and educate them about issues affecting you as an employer at AWB’s Legislative Reception & Lobby Day. AWB’s annual legislative briefing, informative panels and reception takes place Feb. 3 at Olympia’s Red Lion Hotel. Then on Feb. 4, the action shifts to the Capitol Campus where AWB members will meet with legislators. Register online. Interested in becoming a sponsor? Join top sponsor companies BP, Costco, 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 information.


Better Workplace Awards – Deadline Extended - Nominations due Tuesday 5 p.m.
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 by Governor Gregoire and AWB President Don Brunell at our annual Legislative Day in Olympia on Feb. 3. For more information, contact AWB’s Chana LaChapelle. The deadline to submit a nomination is tomorrow at 5 p.m.


EPA announces delays on ozone, boiler MACT rules
The U.S. Environmental Protection Agency has asked a federal judge for a 15-month extension for releasing the boiler Maximum Achievable Control Technology or MACT rules. These rules are intended to regulate hazardous air pollutants from commercial and industrial boilers and solid waste incinerators. The EPA requested the delay so they could have more time to rework the standards proposed earlier this year, and to accept more comments. The final rule, slated to be finalized in January 2011, will now likely be finalized in April 2012. The EPA requested the delay so they could have more time to rework the standards proposed earlier this year, and to accept more comments. In October, AWB sought help from U.S. Sens. Patty Murray and Maria Cantwell in delaying the rule, citing the harm it would inflict on the state’s economy. Questions? Contact AWB’s Grant Nelson.


KEY HEARINGS, MEETINGS
Water Resources Committee meeting, Dec. 20
Maia Bellon, the Department of Ecology’s new Water Resource Program Manager, will discuss short and long-term needs in water resources. This is an excellent opportunity to learn about water resource policy issues. The department’s recent decision not to pursue fees on existing water rights, ideas for making the water right permit application process more effective, and other issues the agency may pursue during the 2011 legislative session will also be discussed. The meeting is Monday, Dec. 20, 10 a.m. – noon, at AWB. For more information, contact AWB’s Chris McCabe.


OTHER NEWS
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
"These are painful cuts, there's no question about it. They aren't anything I want to do ... but the fact of the matter is, these are the times and we have to step up and provide the necessary leadership and get the job done." – Gov. Chris Gregoire on the special legislative session


This Week's President's Perspective: It’s Time to Act