TOP STORIES
Legislature comes to standstill over House/Senate budget impasse
The Legislature accomplished absolutely nothing last week and is at a standstill over the final shape of the state operating budget. Lawmakers are not scheduled to meet today or tomorrow and are halfway through the 30-day special session called by the governor. The big sticking point is that Senate Democrats want to raise the state sales tax by two-tenths of a cent. House Democrats and Gov. Chris Gregoire oppose a sales-tax increase, preferring instead to close tax exemptions and collect more money from service businesses. The governor is threatening across-the-board 20-percent cuts if the Legislature does not act. Senate Majority Leader Lisa Brown, D-Spokane, said lawmakers are now looking at “fresh tax options” but would not offer details..

Health-care overhaul now the law of the land – companies already warning of higher costs
Now that the massive federal health-care overhaul is the law of the land, major companies are issuing warnings about its massive expense, how it will increase costs and force cuts in employee benefits. Meanwhile, several states, including Washington, are challenging its individual mandate in federal court. Gov. Gregoire, a supporter of the Democrats’ health-care overhaul, is threatening to file a lawsuit against Attorney General Rob McKenna, in an effort to block his participation in the suit which is being organized and funded through the Florida Attorney General’s office.At the same time, the Democrat-controlled Legislature may try to block McKenna’s participation by cutting funding to the Attorney General’s Office, or requiring that McKenna receive approval from the governor prior to continued participation.Fourteen states are now participating in the lawsuit.


Lawsuit latest challenge for $100 million toxics tax
Washington service station owners filed a lawsuit last week challenging the state’s tax on oil and other chemicals, providing another hurdle for the environmental community, which is lobbying for a huge increase in the tax. Their top priority bill of 2010, HB 3181, sponsored by Rep. Timm Ormsby, D-Spokane, seeks a whopping $100 million increase in the tax to help local governments pay for stormwater cleanup. The lawsuit, filed in King County Superior Court, challenges the existing tax on the basis that the monies raised, in the form of a gas tax, are being used for non-highway and general fund purposes — a violation of the state constitution. The case is scheduled for trial in September. AWB is part of a broad coalition opposing the proposed tax increase, which will not only raise the cost of fuel, but also lead to lost jobs and jeopardize future transportation funding. Learn more at http://www.stopwahiddengastaxes.com/. For more information, contact AWB’s Grant Nelson.


Only two of 16 states receive Race to the Top grants in Round One
Delaware and Tennessee are the first winners in the federal Race to the Top (RTTT) grant competition, the U.S. Department of Education announced today. The competition, implemented lastyear by President Obama, offers states $4.35 billion dollars to improve student achievement.Round One finalists were identified three weeks ago and included 16 of the 40 applicants. Washington was eligible for more than $250 million in RTTT funds, but Gov. Gregoire declined to submit an application, preferring to address weaknesses in Washington’s law to make the state more competitive in future rounds. Serious legislative debate occurred this session on what revisions to our state laws were necessary to give the state a serious shot at winning a grant award in the upcoming Round Two of the competition.However, the two items that appeared to clinch the award for Delaware and Tennessee are inclusion of student data in teacher evaluation and the strong expansion of charter schools in those states.Washington lawmakers specifically chose not to address either of those issues this year, so it is unclear how competitive Washington will be. The $250 million that is now at stake would have significantly helpedthe state’s K-12 system by restoring some of the cuts that have been made in response to our current budget crisis – specifically lower class sizes for students in K-4 grades.For more information, contact AWB’s Donna Steward.


DOR issues new rule on reseller permits and enhanced collection tools
The Department of Revenue has adopted new rules affecting financial institutions, and businesses that buy goods tax-free for the purpose of re-selling them. One rule recognizes ESSB 6169, sponsored by Sen. Margarita Prentice, D-Renton. This bill authorizes the department to conduct electronic levies on the bank accounts of individuals with unpaid tax warrants. The rule explains the procedures for electronic Notice and Order to Withhold and Deliver service (E-Withhold).It explains how E-Withhold is served, what information is included, and when funds are to be withheld by the banks, credit unions and other financial institutions. In addition, the Department of Revenue has amended 25 rules to recognize that the new reseller permit replaces the resale certificate. For more information, contact AWB’s Amber Carter.


Federal COBRA subsidy qualifying period ends April 5
Congress recessed last Friday without extending the option for COBRA subsidies to individuals laid-off after Monday, April 5.Last year’s stimulus package, known as the American Recovery and Reinvestment Act (ARRA), established premium subsidies for individuals who had been laid-offbetween Feb. 17, 2009, and Feb. 28, 2010 (with a one-month extension granted in March 2010).Under the ARRA, qualifying laid-off employees are required to pay only 35 percent of the premium costs for the COBRA coverage.The remaining 65 percent is paid by employers who receive a corresponding tax credit for the expenditure.The subsidies last for 15 months, which will not be affected by the decision to not extend the subsidies to newly eligible individuals.Thus any employer with former employees taking advantage of these subsidies must continue to provide the 65 percent match for the full 15 months of the former employee’s eligibility, or until the former employee terminates the COBRA coverage.For more information, contact AWB’s Donna Steward.


AWB reviewing Puget Sound Partnership’s Strategic Science Plan
Last week, the Puget Sound Partnership released its draft Strategic Science Plan for public review and comment. Comments received by Monday, April 5, will be summarized and submitted to the Science Panel in advance of their April 13-14 meeting. AWB is reviewing the draft document. For more information, contact AWB’s Chris McCabe.


KEY HEARINGS, MEETINGS
FEMA’s national floodplain maps, ordinances on agenda at tomorrow’s Land Use Committee meeting
AWB’s Land Use Committee will meet tomorrow from 1:30–3:30 p.m. at Perkins Coie, LLP to discuss the Federal Emergency Management Agency’s newly proposed national floodplain maps and draft model ordinance. Nate Caminos, King County outreach director for Sen. Maria Cantwell, D-Wash., is scheduled to give the committee a quick briefing of the work being done on this issue by Washington’s congressional delegation. The committee will work to prepare comments on behalf of AWB members and the business community for submission to FEMA by the Monday, April 5 deadline. The committee will focus specifically on what affect this will have on businesses in Washington state to get flood insurance in the newly designated areas. For more information, contact AWB’s Chris McCabe.


PRIORITY LEGISLATION
Rulemaking process begins on new greenhouse gas reporting rule
SSB 6373, sponsored by Sen. Kevin Ranker, D-San Juan Island, is now law. This measure brings Washington state greenhouse gas reporting requirements more in line with those adopted last year by the Environmental Protection Agency, and eliminates reporting requirements for vehicle fleets and minor sources of emissions. AWB is now monitoring the Department of Ecology’s rulemaking process on this important issue. For more information, contact AWB’s Grant Nelson.


OTHER NEWS
City of Kent offers ways to reuse sand, get rid of sandbags
With tomorrow marking the official end of the 2009-10 flood season, people are looking for ways to get rid of their sandbags for the summer. While the sandbags won’t last until the next flood season, there are ways residents can save the sand for fall or use it for gardening and home improvement projects. For Kent residents unable to keep the sand onsite through the summer, the city will collect the sand and sandbags each Saturday in April, 9 a.m. – 3 p.m., at Home Depot (26120 104^th Ave. SE, Kent) and Grandview Park (3600 S 228^th St, Kent). Assistance is available at 206.755.4814 or kentserviceclubs@yahoo.com. Businesses are not allowed to dump sand at these sites, but they can find additional resources and potential disposal sites at www.kingcounty.gov/floodplans. Non-Kent residents should contact their local emergency management office for sandbag disposal options in their area.


Reminder: April is Disaster Preparedness Month in Washington
Does your business have plans to participate in the drop, cover, hold drill on Wed., April 21, 9:45 – 10 a.m.? Visit the Emergency Management Division’s (EMD) In Focus to learn more about activities you can do in your workplace to improve your disaster preparedness. For more information, contact Rosanne Garrand at 253.542.7419. There is also a simple yet valuable resource at the EMD Business Portal available for small and medium businesses that need help initiating a meaningful disaster response and/or continuity plan.


Annual manufacturing and wholesale survey needs your input
The AWB Institute, in partnership with RSM McGladrey, is hosting an annual manufacturing and wholesale distribution survey. The survey focuses on key areas within the industry dealing with condition of business, growth strategies, global economy, supply chain, operational effectiveness, margin improvement, innovation, health care, tax strategies, information technology, risk management and workforce. The survey is open until Friday, April 2. For more information, contact AWB Institute’s Grant Gilmore.


Register now for Partners in Emergency Preparedness Conference, April 6-7
Don’t miss this opportunity to join with emergency management planning professionals from the private and public sectors and share lessons in emerging topics in preparedness. The Partners in Emergency Preparedness Conference takes place April 6 – 7, at the Greater Tacoma Convention and Trade Center. Call 866.986.8083 or 253.238.8000 for lodging registration at the Hotel Murano. For more information, contact Dana (Schlenker) Colwell at 253.445.4575.


Win $10,000 for your small business with Office 2010 video contest
Any business with seven or fewer full-time employees in Washington state is eligible to enter the Greater Seattle Chamber of Commerce and Microsoft Corporation’s “It’s Time for Business with Office 2010 Video Contest. Participation is easy. Download a FREE trial version of Office 2010 and use it in your business. Then create a short video about your positive experience with Office 2010. Finally, complete the video contest submission form at ItsTimeForBusiness.com before Thursday, April 22. Submissions will be judged on five criteria: originality, creativity, concept, information, and overall presentation. Prizes include $10,000 (Best Video/Grand Prize Winner), $1,000 (Best Foreign Language Video) and $1,000 (Best Video by a Woman-Owned Business). No purchase is necessary but participants must meet all contest rules and eligibility requirements. Click here for more information.


AWB EVENTS & RESOURCES
Employee handbooks and personnel policies: Are you in compliance?
Given the growing legal and practical importance of personnel policies in today's workplace, many employers are turning to the use of employee handbooks to implement and communicate the details of the employer/employee relationship. A carefully prepared and customized handbook can be an employer's biggest weapon against labor and employment litigation, if properly crafted and utilized. This seminar on Tuesday, May 4 from 8 a.m. – noon at the Holiday Inn Seattle-SeaTac Airport (17338 International Blvd., SeaTac) will offer helpful advice on what to include in your employee handbook so that you can maximize communication and minimize your liability. For more information, contact AWB’s Jodi Martinez.


AWB Spring Meeting is May 11 – 12
Join us for our annual spring meeting at the historic Davenport Hotel in Spokane May 11-12. Keynote speakers include Dr. Elson Floyd, president, Washington State University; David Allen, executive vice president, McKinstry Co. and Dr. Arun Raha, executive director of the Washington State Economic and Revenue Forecast Council. The event also features the presentation of AWB’s annual Community Service and Environmental Excellence Awards. As part of the afternoon program on May 11, AWB government affairs staff will lead issue discussions and reflect on the 2010 legislative session. Register online or contact AWB’s Jodi Martinez.


Get recognition for your company’s achievements with AWB’s Community Service Awards
AWB’s Community Service Awards recognize members’ volunteerism and contributions that make our communities better places to live and work. Entries may be submitted for projects that support education, youth organizations, community beautification projects, community organizations that help people in need or programs recognizing volunteerism. There’s also a special general category for projects that mobilize communities into action. Awards will be presented at the Davenport Hotel in Spokane, in conjunction with AWB’s Spring Meeting May 11-12. If you would like us to fax or mail a nomination form to you, contact AWB’s Jodi Martinez.


AWB members save up to 26 percent on UPS shipping!
AWB members can save time and money thanks to a new 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.


Reminder: We need your nominations for AWB Board
AWB is seeking nominations for its board of directors. Please send the name and contact information of your nominee(s) to Dick Walter, AWB vice president of operations, by Friday, April 30.


Washington Small Business Forum on Friday, May 14
You are invited to attend the Washington Small Business Forum on Friday, May 14, from 9 am – noon at Bellevue City Hall. Agencies and organizations that participate find valuable information, opportunities to network and a valuable exchange of ideas. This forum will be hosted by the Internal Revenue Service andthe City of Bellevue’s Office of Economic Development.Speakers include: Lincoln Ferris, vice president of the Washington Association of Small Business Incubators; Ashley Zanolli and Wallace Reid, from the Environmental Protection Agency, who will talk about new EPA rules and their impact on small business, and Kari Gilje, of the IRS, who will give an overview of the provisions of the new Hiring Incentives to Restore Employment Act.To register, contact Kari Gilje at 206.220.5469.


THEY SAID IT
“With the passage of Obamacare, creating a vast new middle-class entitlement, a national sales tax of the kind near-universal in Europe is inevitable. We are now $8 trillion in debt. The Congressional Budget Office projects that another $12 trillion will be added over the next decade. Obamacare, when stripped of its budgetary gimmicks — the unfunded $200 billion-plus doctor fix, the double counting of Medicare cuts, the 10-6 sleight-of-hand (counting 10 years of revenue and only 6 years of outflows) — is at minimum a $2 trillion new entitlement.” – Washington Post columnist Charles Krauthammer


This Week's President's Perspective: Intervention and uncertainty stalling economy