TOP STORIES
Washington voters say no to taxes, yes to restructuring state government
It wasn't even close. Voters passed Initiative 1053 by nearly a two-to-one margin, sending Olympia a loud and clear message that it's time to get serious about restructuring government. AWB led the campaign for I-1053, which restores the two-thirds vote requirement for the Legislature to raise taxes. Passage of the initiative makes it unlikely that lawmakers will be able to follow up this year's near-record $770 million tax hike with another large tax increase next year. Underscoring this support for fiscal restraint and restructuring, voters also rejected Initiative 1098, which would have created a state income tax, and approved Initiative 1107, repealing the candy/soda/bottled water taxes. "This is the fourth time voters have approved more rigorous limits on tax increases," said AWB President Don Brunell. "It's clear they feel the state should be doing a better job managing our tax dollars. And voters are growing weary of lawmakers who aren't listening to them.”


Special session, budget cuts on table following voter rejection of new taxes
Gov. Chris Gregoire says she gets the message following last week’s election: Voters don’t want any more taxes to balance the budget. Passage of initiatives 1053 and 1107, and the rejection of the Initiative 1098 income tax, made it clear that voters want an “all-cuts budget,” Gregoire said Friday during a conference call from Germany. "Just to get through the rest of the year I've got to cut $55 million," Gregoire said Thursday. Among the programs Gregoire is eyeing for possible elimination is the state’s Basic Health Plan. House and Senate Republican leaders responded to the election by asking Gregoire for an immediate meeting of the four legislative caucus leaders to begin talks on balancing the state’s budget. Gregoire said she is open to the idea of a one-day special session if there is agreement for quick action.


Workers’ comp insurance rates going up 12 percent next year on heels of I-1082 failure
Less than a week after the failure of Initiative 1082, which sought to open up Washington’s workers’ comp insurance market to private carriers, state officials proposed a 12 percent average rate hike for 2011. Officials held off announcing the figure until after the election, drawing criticism from some that they were playing politics. The steep rate increase, which follows this year’s 7.6 average rate hike, is more evidence that the status quo is not working and the lawmakers must address the state’s broken workers’ comp system.


Democrats retain control of Legislature, Herrera elected to Congress, Murray retains Senate seat
While ballots are still being counted, it appears Democrats will retain control of both houses of the Legislature. Democrats in the state Senate have already lost four seats, seeing their 31-seat majority fall to 27. House Democrats have likely lost six seats off of their current 62, but control of either legislative house continues to elude the GOP. In Washington’s most closely watched congressional race, state Rep. Jaime Herrera, R-Camas, captured the 3rd Congressional District seat being vacated by Rep. Brian Baird, D-Vancouver. The 2nd Congressional District race remains close with incumbent Rep. Rick Larsen, D-Arlington, retains his slim lead. In the U.S. Senate race, incumbent Sen. Patty Murray, D-Wash., defeated GOP challenger Dino Rossi, 51-49 percent.


Thrive Washington offers road map for state government re-set
The Washington Roundtable and Washington Research Council launched a new research and communication series last week aimed at helping Washington scale back government spending while still preserving essential services. The series, called Thrive Washington, will provide lawmakers with state policy recommendations that, if enacted, will allow the state to transform the way government preserves services, but also lays a foundation for economic growth. The first paper, Charting a New Course, is available online. Watch for the second paper, Ten Steps to a Sustainable Budget in Washington State, soon, and follow the series on Twitter (@thrivewa).


Raha: As predicted, growth in economic activity is slow and modest
Arun Raha, the state’s chief economist, began his quarterly economic review last week by comparing Washington’s economy to the Seattle sports scene: “It mostly sucks, but there are some bright spots and we all hope things will get better.” The report, which precedes the Nov. 18 revenue forecast, shows that consumers are tentatively opening up their wallets, but hiring remains weak and credit conditions remain tight for small businesses.


AWB Institute needs your input on workforce training
Has the recession forced your company to cut back on employee training? Or have you found a way to continue developing your workforce? A company’s employees are its greatest asset, which is why the AWB Institute is partnering with Washington’s community and technical college system to help businesses learn about and access the many training platforms that are available throughout the state. To assist in the effort, we’ve created a short 10-question survey to better understand your needs and use of our community and technical college system. Please take a moment and fill it out. The survey closes Nov. 19 and results will be posted on the AWB Institute website Dec. 1. For more information, please contact AWB Institute’s Mike Hudson.


Attention retailers: Candy, gum, bottled water and carbonated beverage taxes end
Dec. 2
Voter approval of Initiative 1107 means new taxes on candy, gum, bottled water and carbonated beverages will expire effective Dec. 2 – 30 days after the election. The initiative also allows processors of food products that contain meat to pay a lower B&O tax rate. The Department of Revenue will begin notifying retailers and other affected businesses that they should stop collecting the sales tax on candy, gum and bottled water after Dec. 1, and will advise bottlers to cease paying an excise tax on carbonated beverages on Dec. 2. There will be no refunds for taxes paid prior to Dec. 2.


Comment period on SEPA greenhouse gas proposal runs through Nov. 17
The state Department of Ecology is moving forward with its plan to use the State Environmental Policy Act to reduce greenhouse gas emissions. While AWB believes the current plan, which proposes creating a toolbox of information resources, is a significant improvement over earlier proposals, SEPA, designed to address local environmental impacts, is not an appropriate tool for greenhouse gas reduction. The draft working paper was released last week and a public comment period runs through Friday, Nov. 17. AWB is still reviewing the working paper. For more information, contact AWB’s Chris McCabe.


Chief economist to speak at AWB executive committee meeting
Arun Raha, chief economist for the State of Washington and executive director of the Economic and Revenue Forecast Council, will be the luncheon speaker at AWB’s executive committee meeting Dec. 1. In addition, AWB President Don Brunell will discuss the recent election and what it means for Washington’s political and economic climate, and Gary Chandler, AWB’s vice president of government affairs, will preview the 2011 legislative session. The meeting is from noon – 4 p.m. at AWB’s offices in Olympia and will be immediately followed by a retirement reception for Dick Walter, AWB’s vice president of operations. For more information, contact Bonnie Millikan.


AWB Legislative Reception & Lobby Day in Olympia, Feb. 3-4: Don’t miss it!
Don’t miss a great opportunity to talk with your lawmakers about issues affecting you as an employer. Mark your calendar for Feb. 3, when AWB will host its annual legislative briefing and reception at Olympia’s Red Lion Hotel. Then on Feb. 4, AWB members will meet with legislators on the Capitol Campus to educate them on the importance of keeping Washington competitive for business. Watch this space, and your mailboxes, for additional details!


Nominations open for Better Workplace Awards
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 at our annual Legislative Day in Olympia on Feb. 3. For more information, contact Chana LaChapelle. The deadline to submit a nomination is Friday, Dec. 10.


Holiday Kids’ Tree Project brightens the season for families in need
AWB will once again host its Holiday Kids’ Tree Project, including the state tree-lighting ceremony in the Legislative Building Rotunda on the Capitol Campus. This community tradition includes a presentation of cash and toy donations to rural area fire departments who will distribute them to families in need, a wonderful performance by anOlympia area kids choir, the tree lighting by an active military family and a special visit by Santa and his elves! Please join AWB members and staff, along with Gov. Chris Gregoire and Santa on Friday, Dec. 3, at 6 p.m. at the Legislative Building in Olympia. For information on making donations, contact AWB’s Bonnie Millikan at 360.943.1600.


KEY HEARINGS, MEETINGS
L&I’s Workers’ Compensation Advisory Committee meets Wednesday
The rate-setting meeting of the Workers’ Compensation Advisory Committee, postponed until after the election, is now set for Wednesday, 9 a.m. – noon, at Labor and Industries headquarters in Tumwater.L&I will likely announce both the indicated rate as well as the 2011 proposed rate, possibly adopting it through an emergency rulemaking process.For more information, contact AWB’s Kris Tefft.


Workers’ Comp Coalition planning for 2011 session at Nov. 17 meeting
With the defeat of Initiative 1082, workers’ compensation reform will be a major issue in the 2011 legislative session. The Workers’ Comp Coalition meets at AWB, Wednesday, Nov. 17, 1 – 3:30 p.m., to focus almost exclusively on legislative strategy and substance heading into December committee days and the 2011 session. Also of interest, earlier on Nov. 17, from 10 a.m. – noon, the House and Senate Labor and Commerce committees will be holding a joint work session in Senate Hearing Room 1.Workers’ Compensation is the first item on the agenda. Coalition members are encouraged to attend. For more information, contact AWB’s Kris Tefft.


PBT Workgroup meets Nov. 19 – Main Focus, Children’s Safe Products Act
The PBT Workgroup meets Friday, Nov. 19, 10 am – Noon, at AWB. The main items on the agenda will be the recently released Draft Children's Safe Products Act (CSPA) rules and revised draft CSPA legislation. AWB is opposed to the draft CSPA legislation and believes the department should implement the proposed rules first. Additionally, the workgroup will review and discuss Ecology and General Administration’s revised draft Environmentally Preferable Purchasing (EPP) legislation. For more information, contact AWB’s Grant Nelson.


OTHER NEWS
Cindi Holmstrom resigns as Department of Revenue director
Cindi Holmstrom will leave the Department of Revenue on Dec. 1 after serving nearly six years, longer than any director of the department in the past 35 years. Holmstrom will take a new position with Pierce Consulting Group, an economic consulting and government affairs business based in Olympia. Prior to joining Revenue in 2005, Holmstrom was executive director of the Joint Legislative Audit and Review Committee.


Reserve your seat for the 1st Annual Greater Seattle Business Forum, tomorrow
Check out the region’s first “State of the Union” report, view an annual snapshot of job activity from a survey of more than 1,200 businesses, and find out why many Seattle business leaders say they are more optimistic about the prospects for economic growth. The 1st Annual Greater Seattle Business Forum will feature all that and more tomorrow from 7:30 – 9 a.m. Speakers include King County Executive Dow Constantine, Seattle-Northwest Securities Corporation President & CEO Maud Daudon, and Ivar’s President Bob Donegan. Cost is $50 (includes breakfast and a bound copy of the Job Sector Survey analysis). Register online or contact the Greater Seattle Chamber of Commerce’s Larry Pike at 206.389.7215.


AWB EVENTS & RESOURCES
Federal Health-Care Reform: What Employers Need to Know and Why webinar, tomorrow
Major changes are in store for health-care benefit programs as implementation of the new health-care law draws closer. The new law is complicated and, in some cases, unclear. This webinar will help you understand the key components of this highly contentious new law and the impact it will have on employers and individuals over the next several years. Join us as AWB’s Donna Steward explain the details of the new law and discuss steps your organization can take to prepare for and meet the challenges you're likely to face in this new era of health-care reform. Register online or contact AWB’s Chana LaChapelle.


THEY SAID IT
“Voters statewide could not have made their point more clearly: Stop looking for ways to increase revenue (almost always by increasing taxes), and find creative ways to solve the state’s massive deficit problems. That message came through loud and clear on votes in three initiatives on Tuesday’s ballot.” – The Columbian editorial


This Week's President's Perspective: Vive la France?