TOP STORIES
Voters will get to decide this fall on fixing workers’ comp and limiting taxes
Supporters of Initiative 1053, which would restore the two-thirds vote requirement for the state Legislature to raise taxes, turned in more than 330,000 signatures Friday, apparently securing its place on a crowded November ballot. AWB has strongly endorsed the initiative, which would force lawmakers to look beyond taxes next year as they attempt to deal with an estimated $3 billion shortfall in the 2011-13 budget. Two days earlier, backers of another initiative endorsed by AWB — Initiative 1082 — turned in more than 340,000 signatures. I-1082 would open up the state’s workers’ compensation insurance market to private insurers, a necessary first step toward fixing a broken system that is costing employers more every year. The campaigns to defeat these measures are expected to spend heavily, meaning your support is critical. For more information, including how you or your company can contribute to I-1053, contact AWB’s Amber Carter. More information about 1-1082 is available here. Or, contact AWB’s Kris Tefft.


Defeat 1098 campaign against state income tax kicks into high gear
Backers of Initiative 1098, the initiative to institute a state income tax, turned in enough signatures by the Friday deadline to put it on the November ballot. If I-1098 passes, it is bad news for the state. I-1098 will raise taxes by $1 billion at a time when our state can least afford it. It will hurt small businesses, reduce job creation and weaken our fragile economy. The Washington Research Council released a report revealing the tax structure I-1098 would create as highly unstable. Alarmed? Sign the pledge to defeat I-1098. For more information on the campaign to stop this misguided initiative, visit Defeat1098.com.


Governor goes to D.C. in search of Medicaid money
Gov. Chris Gregoire traveled to Washington, D.C., last week in an attempt to get federal funding to shore up the state’s current Medicaid budget.More than $400 million is at stake for just this one year, but it’s looking less likely the money will come through, raising speculation at the state level about the need for a special session. At the same time, the governor has already committed taxpayers to future new and undetermined expenditures for a new health-care high-risk pool and a new state-based health insurance exchange, both of which are duplications of efforts the federal government must also provide, and both of which will require millions in new taxes. During these tough economic times, the use of every tax dollar should be closely scrutinized before more is demanded from taxpayers.


Small employer health-care tax credit – much ado about nothing?
Beginning this year, employers with fewer than 25 employees may be eligible for a tax credit if they provide health-care coverage for their employees.This new tax credit was part of the federal health-care reform legislation that passed Congress in March.Unfortunately, determining just who is and isn’t eligible for the credit is confusing and time-consuming for these small employers.“Employers with 25 or fewer employees with average annual wages of $50,000 or less” seems pretty straightforward, but a complicated set of eligibility rules and IRS formulas finds manysmall employers who meet the simple criteria are ultimately ineligible for the credit.A quick reference chart for employers quickly reveals disappointing news for most small employers.AWB has created a tool employers who may be eligible can use to determine the potential value of the credit. Because payment of health-care premiums is also a tax deduction, employers should contact an accountant to determine whether accepting the credit negates the benefit of the overall tax deduction.AWB would like to hear from members with fewer than 25 employees whether they qualify for the credit and whether they intend to use the credit option.Please send a quick e-mail to Donna Steward and let us know whether you are eligible and participating in the credit.This information will be used in future discussions on affordability of health-care premiums with legislative leaders.


British Columbia resident sales tax exemption put in doubt by court order
A Skagit County Superior Court judge barred the Department of Revenue from advising Washington retailers that British Columbia residents are able to buy goods in Washington without paying sales tax beginning July 1. While the court order, issued last Wednesday, is directed only at the department, retailers may be potentially liable for any unpaid tax if the court eventually decides that B.C. residents should not have received the non-resident sales tax exemption. The court order stems from a lawsuit filed by the City of Bellingham and Whatcom County in response to the exemption.


Final financial reform bill passes House, future uncertain in Senate
The U.S. House of Representatives passed the final version of the financial reform bill, but that measure’s future in the Senate is uncertain. With the death of Sen. Robert Byrd, D-W.Va., Senate Democratic leadership delayed a vote on the bill due to uncertainty if the bill can pass can with a filibuster proof 60 vote majority. This poorly crafted legislation greatly expands government regulation and control over the private sector. The U.S. Chamber of Commerce’s Marching For Main Street: A Virtual March On Washington campaign is generating grassroots opposition to Congress’ financial regulatory reform legislation. Let your voice be heard today without leaving your computer by writing a letter to Congress and standing up for America's job creators against this badly crafted legislation that greatly expands government regulation and control over the private sector.


AWB 2010 Vote Record, Judicial Scorecard in your mailbox this month
AWB’s 2010 Vote Record and the new Judicial Scorecard will be out later this month. 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. Members will also receive a second publication, the 2010 Judicial Scorecard, which included a thorough evaluation of the Washington Supreme Court justices on cases of importance to the employer community and business in Washington state.


KEY HEARINGS, MEETINGS
Initiatives on agenda at Tax and Fiscal Policy Council meeting, July 7
AWB’s Tax and Fiscal Policy Council will discuss tax initiatives that get certified for the November ballot and make recommendations on endorsements at its meeting Wednesday, July 7, 9:30 a.m. - noon at Department of Revenue, 1025 Union Avenue SE in Olympia. For more information, contact AWB’s Amber Carter.


Arun Raha at AWB’s GAC retreat
Arun Raha, the state’s chief economist, will speak next month at AWB’s Governmental Affairs Council retreat. There will also be forums on environmental issues, tax and fiscal policy and state ballot measures. The retreat will be held July 12-14 at the Alderbrook Resort on beautiful Hood Canal. Call Alderbrook at 360.898.2200 and mention you are reserving a room for the retreat. The deadline for reserving rooms has passed, but reservations will be considered on a space and rate availability basis. Cost for the GAC retreat is $220, including all meals and meeting costs. For more information, contact AWB’s Connie Grande.


Legislative objectives on agenda at next Land Use Committee meeting, July 21
AWB’s Land Use Committee will meet again on Wednesday, July 21, from 10 a.m. – noon, at Perkins Coie in Seattle. We will continue discussing AWB’s Land Use Legislative Objectives for 2011-12. For more information, contact AWB’s Chris McCabe.


OTHER NEWS
L&I offices closed statewide next Monday
All 21 offices of the state Department of Labor & Industries will be closed Monday, July 12 as the result of temporary layoffs ordered by the Legislature to help balance the state budget, the department announced. For questions about a claim that day, call 360.902.6767. A limited number of employees will be working. To report work-related fatalities and hospitalizations within eight hours, as required, or to report dangerous conditions requiring immediate attention, call 1.800.423.7233. Offices will reopen on regular hours Tuesday, July 13. A second closure is planned Friday, Aug. 6.


Google goes global and local with community service
In this week’s Member Spotlight: more than 6,000 of AWB member Google’s employees participated in GoogleServe, a service program involving staff from 65 offices in 27 countries last month. Are your employees involved in community service? 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 has 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 will be phased in over the course of several years.Employers may also eventually 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, AWB 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 at 800.521.9325.


Economist’s Matthew Bishop at Policy Summit at Semiahmoo – Sept. 21-23
Matthew Bishop, American business editor of The Economist magazine, will headline AWB’s 21st Annual Policy Summit. Bishop will give his insights into the American economy. Gary Langer, director of polling for ABC News and an expert on electoral trends, will also speak on America’s political pulse in advance of the November election. Join us this fall at scenic Semiahmoo Resort. To register, click here or contact Jodi Martinez at 800.521.9325.


Become a sponsor of AWB’s premier event
Today is the deadline to secure your sponsorship of AWB’s Policy Summit so your company is included in promotional materials. There’s no better place than the AWB Policy Summit for an informative and engaging look at what’s ahead. Summit sponsorship is $2,500, and a response form is available online by clicking here. As a sponsor, your company receives acknowledgement before, during and after the event in marketing materials, signage and AWB’s magazine, Washington Business. Click here for a detailed agenda. To become an event sponsor or to register, contact Jodi Martinez 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 Jodi Martinez.

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


THEY SAID IT
“As former President George W. Bush found out only a few years ago, a never-ending supply of bad news saps a presidency, and a political party, of its strength. Voters who once felt hopeful and gave the new president the benefit of the doubt instead distrust the White House’s explanations and assume the worst. No number of high-profile speeches will reverse the decline. Only good news will, and it isn’t anywhere to be found. - Stuart Rothenberg, The Rothenberg Political Report


This Week's President's Perspective: Protecting the Sacred Cow