TOP STORIES
With UI costs soaring, lawmakers consider expanding benefits
Unemployment insurance taxes are already going up for Washington businesses — as much as 500 percent or more in many cases — and now Gov. Chris Gregoire and some legislators are pushing for costly new benefits. Doing so will increase pressure to raise rates even higher in the future in order to keep the state’s unemployment trust fund solvent. Employers need to call the Legislative Hotline today at 800.562.6000 and tell the governor and lawmakers, “Enough is enough!” Don’t expand benefits for part-time employees. Don’t expand benefits to individuals who voluntarily quit their jobs. Don’t increase the benefit multiplier to increase weekly benefit payment. And don’t prevent employers from hiring new workers. More employer costs will jeopardize jobs — and Washington’s fragile economic recovery. For more information, contact AWB’s Donna Steward.


Ad campaign spotlights rising employer costs
Later this week, the Washington Alliance for a Competitive Economy (WashACE) will launch a paid-advertising campaign aimed at the importance of putting people back to work and the danger of increasing costs — like UI and workers’ compensation premiums — on employers in this economy. The campaign includes a combination of radio, newspaper, direct mail and online advertising, and features first-person accounts from business owners in Western and Eastern Washington. Help spread the word that employers are struggling, jobs are being lost and higher costs will make the problems worse. For more information, including how to contribute, contact Richard Davis at WashACE.


State budget takes center stage
Gov. Gregoire may release her tax increase proposals this week to “buy back” nearly $800 million worth of programs she cut in her initial budget (it was initially scheduled for last Friday). Also, hot on the heels of its vote last week to suspend Initiative 960, the state Senate is expected to unveil its budget plan by Thursday. A combination of tax increases and cuts is certain as lawmakers attempt to close a $2.8 billion shortfall — but just what they will be and how much is still unknown. The House could release its budget plan next week. Read more on AWB’s blog, Olympia Business Watch.


Legislature on verge of suspending Initiative 960
A move to overturn Initiative 960’s requirement for a two-thirds legislative majority to raise taxes is nearing completion. On Wednesday, the state Senate voted 26-22 to temporarily suspend the tax-limiting initiative in its entirety until 2011, including a requirement for a public advisory vote on tax increases that are deemed an emergency by lawmakers. On Saturday, the House Finance Committee approved the Senate’s I-960 suspension measure, SB 6130, sponsored by Sen. Margarita Prentice, D-Renton. A House floor vote on this bill is likely within a few days. For more information, contact AWB’s Amber Carter.


Let your legislators know you support cross-border health insurance competition
An AWB priority bill to allow Washingtonians to buy health insurance across state lines is likely within days of a House floor vote. HB 3015, sponsored by Rep. Eileen Cody, D-Seattle, is real health care reform. It will lower costs and help revive the individual market by allowing cross border competition. Let your lawmakers know this bill is important to Washington employers – especially small businesses. Visit Washington Business Votes Web site to find your legislator and send them a quick message in support of HB 3015. Or, call the toll-free Legislative Hotline at 800.562.6000. For more information, contact AWB’s Donna Steward.


Revenue forecast shows drop in state revenues, signs of recovery
The state's Economic and Revenue Forecast Council projected an additional $118 million drop in estimated state revenue, pushing the total state budget shortfall to $2.8 billion. The forecast, released last Friday, also indicates that Washington's economy is recovering, but some sectors, including exports and software, are performing better than others, such as commercial real estate. "The great recession may be over but it has wrought havoc on the economy, which will take time to heal," said Arun Raha, the state’s chief economist. More evidence that lawmakers need to get costs under control before jeopardizing a fragile economic rebound with new taxes. Read more on AWB’s blog, Olympia Business Watch.


Linville and Tom discuss budget at last week’s Lobby Lunch
Democrats hold a clear majority in the Washington state Senate, but they have yet to coalesce around a plan for solving the state's budget crisis, Sen. Rodney Tom, D-Medina, vice chairman of the Senate Ways & Means Committee, said Thursday during AWB's Lobby Lunch last Thursday. "I have no idea what direction we're going to go," Tom said. His preference would be to target sin taxes and tax incentives that may not be giving the benefit that was expected. That's the opposite view of Rep. Kelli Linville, D-Bellingham, chairwoman of the House Ways & Means Committee. Linville favors a small, across-the-board sales tax increase that would go away when the economy improved as opposed to numerous smaller tax hikes aimed at specific targets such as the oil industry. Read more on AWB’s blog, Olympia Business Watch.


It's all about jobs!
A recent Harris Poll shows that 70 percent of Americans believe the current job market of their region is bad, and just one in 10 believes it is good. As Washington lawmakers consider how to re-balance the 2009-11 state budget, they need to remember that employers in Washington have already had their workers compensation rates and unemployment taxes increase this year.AWB President Don Brunell blogged last week that lawmakers in Olympia “need to connect the dots and do the math.It is the cumulative impact of costs of the federal, state and local governments that must be considered.”


AWB event helps HR professionals get up to speed in Olympia
Workers' compensation, unemployment insurance and other workplace issues were front and center at the AWB/Societyof Human Resource Management 's HR Day on the Hill Wednesday.Nearly 70HR professionals from around the state toured the Capitol, met with legislators and participated in the event at AWB. The attendees were encouraged to get involved in the legislative process and make their voices heard on the workplace issues that directly affect employers. Read more on AWB’s blog, Olympia Business Watch.


McIntire to speak at this week’s Lobby Lunch
State Treasurer Jim McIntire is the guest speaker Thursday at AWB’s Lobby Lunch meeting. If you have not already RSVP’d and are interested in attending, please do so by 5 p.m. tomorrow. Lunch begins at noon and is $14 per person. Please allow plenty of time to find parking when visiting either AWB or the Capitol. For more information or to register, contact AWB’s Connie Grande.


Winter 2010 issue of Washington Business magazine in the mail this week
Check your mailboxes for the winter issue of Washington Business magazine, with its emphasis on the fragile economy. AWB writer Jason Hagey interviewed a trio of state, regional and national economists about what we can do to help revive it. Don’t miss the latest news about our state’s agricultural exports sector and the launch of Windows 7 — and what it means for Washington. This is an issue you won’t want to miss. Keep an eye out for it!


Weekly Twitter chat on legislative issues each Thursday
Last week’s Web chat was a lively one! Tune in at 4 p.m. this Thursday on Twitter to see what people are saying about the 2010 Legislature, proposed tax increases and much more. To join in the AWB-led discussion, log on to Twitter, follow AWB, and set up a search for the hashtag #walegchat. You can also follow the action in the Legislature any time by tracking the hashtag #waleg. If you need more information about the chat or how to use Twitter, contact AWB’s Jason Hagey.


Get caught up on the week in Olympia with Friday’s WashACE phone briefing
Looking for a concise wrap-up of the week’s legislative action? Join us this Friday for our weekly WashACE phone briefings on legislative issues with policy experts. The call begins at 7:30 a.m. and ends promptly at 8 a.m. Register for Friday’s call online or contact WashACE’s Richard Davis with questions about these briefings.


KEY HEARINGS, MEETINGS
AWB will testify against bill to triple hazardous substance tax
HB 3181, sponsored by Rep. Timm Ormsby, D-Spokane, is up for a hearing in the House Capital Budget Committee on Wednesday, at 3:30 p.m. AWB will testify against it. This legislation would triple the state’s hazardous substance tax. The bill adds significant costs for air transportation, agriculture, gas stations and other businesses that pay in to the state toxics control account. For petroleum products, it would result in as much as $186 million annually in new taxes – a huge burden in tough economic times. The Department of Revenue estimates that fuel costs would increase a minimum of 3-cents-per-gallon under the tax, and other estimates suggest that fuel costs could increase as much as 6-cent-per-gallon. This would impair future funding for critical transportation projects around the state. To learn more, or to tell your legislator you oppose this idea, go to http://www.stopwahiddengastaxes.com/. For more information, contact AWB’s Grant Nelson.


State’s effort to gain Race to the Top Dollars will be heard on Wednesday
Washington’s bid to gain prize money from Race to the Top (RTTT), a federal program designed to encourage innovation in public education is falling short. SB 6696, sponsored by Sen. Rosemary McAuliffe, D-Bothell, is touted as the way to improve the state’s schools enough to bring Washington as much as $250 million in RTTT money, but it does not go far enough. In order to have a better chance of gaining the money, Washington needs to develop charter schools, reform its cumbersome process for firing poor-performing teachers, and develop a clear link between student performance and teacher evaluations. The bill does none of these things. SB 6696 passed the Senate on Thursday and will be heard in the House Education Committee on Wednesday at 1:30 p.m. For more information, contact AWB’s Donna Steward.


PRIORITY LEGISLATION
AWB members testify against tax avoidance bill
AWB strongly opposes HB 3176, sponsored by Rep. Ross Hunter, D-Medina. On Friday, several AWB members testified against this revenue package in the House Finance Committee. In the name of closing tax loopholes, the bill would aim a tremendous financial hit on the employer community at a time when businesses are struggling to stay afloat in a rough economy. Please call the Legislative Hotline at 800.562.6000 and tell your legislator to oppose HB 3176.For more information, contact AWB’s Amber Carter.


SEPA streamlining bills move forward in both chambers
Good news to report on the permitting front: Both SHB 2538, sponsored by Rep. Dave Upthegrove, D-Burien, and SB 6720, sponsored by Sen. Karen Fraser, D-Olympia, were approved with strong bipartisan support in their respective chambers this past weekend. This is AWB’s priority land use issue for the year. Both bills would incentivize higher building density within urban growth areas for residential and mixed-use developments, stimulate economic development and create jobs. For more information about these bills, contact AWB’s Chris McCabe.


Shorelines bill approved in the House
Today, the House passed an important bill that will protect existing businesses and uses on Washington’s shorelines. AWB has worked hard over the last 12 weeks to reach agreement with a wide variety of stakeholders including, counties, cities, ports and the environmental community on House Bill 1653 to protect existing structures and uses on Washington’s shorelines. The bill now moves to the Senate for a public hearing. For more information, contact AWB’s Chris McCabe.


House passes AWB-supported wage payment bill
HB 3145, sponsored by Rep. John McCoy, D-Tulalip, passed the House unanimously on Thursday. This bill strengthens the Department of Labor and Industries’ enforcement tools to obtain unpaid wages and impose penalties against employers who repeatedly and willfully violate wage payment laws.Members of AWB’s Employment Law Committee worked with worker advocates to hammer out a fair compromise that targets unfair practices in the economy without creating new liability or uncertainty for honest employers. The bill now heads to the Senate. For more information, contact AWB’s Kris Tefft.


AWB opposes trial lawyer attempts to raise employers’ liability
Two trial lawyer-supported bills that would raise employer liability are seeing action on the Senate floor this week. SB 6508, sponsored by Sen. Darlene Fairley, D-Shoreline, expands wrongful death liability and passed the Senate Monday afternoon with an amendment offered by Sen. James Hargrove, D-Hoquiam, limiting the liability of state and local governments. SB 6764, sponsored by Sen. Randy Gordon, D-Bellevue, raises judgment interest rates for private sector defendants and is awaiting a possible floor vote by tomorrow’s cutoff deadline. AWB is working hard to stop both of these bills. For more information, contact AWB’s Kris Tefft.


Task force bill a poor substitute for desperately needed workers’comp reform
SB 6775, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle, would create a task force to study reforming the state’s workers’ comp system. The issue has been studied to death, and action is needed now to do something to slow skyrocketing workers’ comp rates by making fundamental changes to the system. This very inadequate bill awaits a floor vote in the Senate. For more information, contact AWB’s Kris Tefft.


AWB working to stop burdensome workplace bills
Two bills AWB opposes for their needless burdens upon employers await votes in the Legislature. HB 2444, sponsored by Rep. Brendan Williams, D-Olympia, expands the state Family Leave Act to apply to all employers for the purposes of leave from work for a child’s educational events. It passed in the House on Sunday and awaits action in the Senate. HB 2764, sponsored by Rep. Steve Conway, D-Tacoma, is a reaction to the swine flu scare. It would prohibit employers from disciplining an employee who stays home or goes to the doctor with influenza-like symptoms, which are broadly defined. AWB is working to stop these bills. For more information, contact AWB’s Kris Tefft.


OTHER NEWS
World’s largest zip line course planned for Olympic Peninsula
The Olympic Peninsula may be on the verge of gaining a major new tourist attraction and a unique, eco-friendly way to experience the region’s natural beauty. Clallam County approved a conditional use permit for Green Planet Zipline, an AWB member since 2009, to operate seven gravity zip lines in the foothills of the Olympic Mountains south of Port Angeles. The company plans on building a $1.8 million course with 8,000 feet of cable that would be the largest in the world. Read more on AWB’s Member Spotlight. If your company has good news you’d like to share on Member Spotlight, contact AWB’s Paul Schlienz.


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. Early bird registration of only $250 ends on Tuesday, Feb. 16, so act now. 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.


AWB EVENTS & RESOURCES
2009 AWB Annual Report now available online
AWB’s annual report, “2009: Advocating for Free Enterprise” is now available to all members online. This concise publication contains key financial and membership data about the association, as well as other noteworthy accomplishments from this past year. We have printed a limited number of these reports because we believe this is a more economical approach to distributing this kind of information. If you have questions or comments about the report or its distribution, contact Jocelyn McCabe, APR, AWB vice president of communications.


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. Download a nomination form here. Awards will be presented at the Davenport Hotel in Spokane, in conjunction with AWB’s spring meeting. If you would like us to fax or mail a nomination form to you, contact AWB’s Jennifer Costello.


AWB Environmental Excellence Awards - Now accepting nominations
AWB’s Environmental Excellence Awards recognize companies demonstrating initiative, innovation and outstanding achievements in environmental compliance, protection and conservation. Award categories include resource conservation and pollution prevention, sustainable communities and green building, leading environmental practices, and green enterprise and technology. Click here for more details.


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.


THEY SAID IT
“By undermining Initiative 960, the Democrat majority is turning a deaf ear to struggling families and employers, and there needs to be accountability for the course they’ve chosen to take.” – Rep. David Taylor, R-Moxee


This Week's President's Perspective: Robbing Peter to pay for Paul is bad money management