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Home / Washington Business - January/February 2005 / Inside Washington - January/February 2005 |
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Inside Washington - January/February 2005 |
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Written On: January/February 2005 |
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Surplus Turns to Deficit
In mid-November the Wall Street Journal reported that overseas trade of American agricultural products turned from a surplus to a deficit in June and August of 2004.This is apparently the first months of a trade deficit in agricultural products since 1986.
Part of the problem is the 1994 North American Free Trade Agreement. While NAFTA lowered barriers to U.S. food export, it also lowered the bar for food imports, giving consumers a broader selection of goods and prices.
Speculation is that on an annual basis the existing, but shrinking, surplus of agricultural exports could turn into a yearly deficit as early as the fiscal year ending in September 2005. That would be the first annual deficit in agricultural trade since 1959.
Economy Recovering – Education Required
The Olympian reported an economic recovery in early December, but manufacturing jobs are still declining. Experts say that jobs in industries like sociology, veterinary, dental, childcare and computer software are the fastest growing in Washington. At the same time, however, manufacturing jobs have declined from 33 percent of the total workforce to about 10 percent since 1960.
Experts say the more education that workers obtain, the more likely they are to find gainful employment. Jobs that require a Masters degree or a Doctorate are steadily on the rise, while jobs that do not require a college education are declining rapidly.
Toll Road for Trucks
The Olympian reported on Nov. 14 that Sen. Dan Swecker (R-Rochester) plans to push a plan to construct a three-lane, trucks only route from Chehalis to I-90 in an effort to improve traffic conditions on Puget Sound freeways.
The key to this proposal, Swecker said, was whether or not the truckers would be willing to pay a toll to use the 100-mile road. If so, he figures the road can be built.
Rep. Richard DeBolt (R-Chehalis) called the proposal remarkable because of it’s reliance on public funding. He did, however, note that immediate political support was unlikely because of environmental permitting problems and the initial outlay of state dollars required at a time when Washington faces a $1 billion budget shortfall.
ANWR Drilling Possible
Several sources, including the Wall Street Journal, the Washington Post and World Net Daily, suggest that the enlarged Republican majority in the U.S. Congress will make oil exploration and recovery possible in the Arctic National Wildlife Refuge in the northeast corner of Alaska.
For decades Democrats in Congress and in the White House have successfully fought attempts to open ANWR for oil drilling. Pushed by environmental groups playing loose with the facts, the flawed reasoning usually suggested potential harm to the area’s caribou herds as a key reason for avoiding oil exploration. In actual fact, caribou numbers near the active oilfields of nearby Prudhoe Bay have increased ninefold since oil production began there in the 1970s.
Recently, with gas prices topping $2 a gallon in most states, Republicans have pointed out that this is due to an import shortage of about 1 million barrels of oil a day, exactly the amount of additional oil that would be flowing down the trans-Alaska pipeline had then-President Bill Clinton not vetoed 1995 legislation allowing oil exploration and recovery in ANWR.
Tacoma Port to See More Containers
Enhanced facilities and new customers have Port of Tacoma officials projecting a 19 percent rise in container numbers for 2005, according to a report in the Tacoma News Tribune.
Evergreen Lines will move to a new 171-acre terminal facility, and other shipping companies will shift sites accordingly to take over Evergreen’s former site. Yang Ming Marine Transport Corp. from Taiwan is expected to move into some of the vacated space by the middle of the year.
Handling the increased cargo and maintaining the new facilities is expected to create more than 650 high-wage jobs by the end of the year.
Prices Continue to Rise in King County
The Seattle Times reported an increase in the median price of homes in King County to more than $300,000. But even those homes are hard to find. The average house will only stay on the market for 30 to 45 days, something that hasn’t happened in many years. With an increase in demand for homes rising and the amount of homes for sale diminishing, the median price for a single family home should continue to rise.
Government Keeps an Eye on Crop Dusters
The Tri-City Herald reported in December that the FBI is investigating crop dusters. While no specific threat exists, the FBI will continue to screen each crop-dusting company through phone calls and personal visits. Such monitoring is a result of the Sept. 11 attacks, and the FBI wants to ensure the safety of the American people.
Crop dusting aircraft are considered a possible means of spreading bio-terror agents over large areas.
Dam Removal Proposed
PacifiCorp seeks to remove the 91-year-old Condit Dam from the White Salmon River instead of installing a costly fish ladder required to renew its operating license.
The Columbian, a Vancouver-based newspaper, reported in late November that both Skamania and Klickitat counties oppose the dam removal plan claiming it will clog the lower river with more than 2.3 million cubic yards of silt.
If PacifiCorp succeeds in getting a permit to remove the dam, the process will begin in the fall of 2006. At 125 feet in height, the Condit would be the largest dam removal in history.
Revenue Remains Static
Washington’s top economic forecaster, Chang Mook Sohn, said on Nov. 16 that there will be little change in state revenues for 2005, despite a continuing surge in job creation.
As his time in office wound down, out-going Gov. Gary Locke was wrestling with the last budget he would present to the Legislature. He reportedly was considering the idea of submitting two budgets, one listing spending cuts required to keep under legislative-imposed spending caps and another relying on more spending and possible new sources of revenue.
Capitol Reopens
It’s been some 30 months since earthquake damage forced state government out of the Legislative Building and into temporary offices in other buildings. That all ended when workers began moving files, furniture and other necessities back into the domed capitol building in mid-November.
Legislative offices stuffed into 11 different buildings across the Capitol Campus are now back under one roof. The refurbished capitol building opened on Nov. 15 for authorized staff and those with business inside. It opened to the public at large on Dec. 1.
Businesses Get a Break
Employers in Washington will be paying 1.35 percent less in unemployment taxes in 2005, according to the Tacoma News Tribune, falling from $600 to $578 per employee. The amounts paid by employers will vary based on several criteria, including how often layoffs are issued by the employer.
The State Employment Security Department sent notices to employers in December.
Biodiesel is On the Way
The Yakima Herald Republic reported on one of Washington’s innovations in petroleum products in December, biodiesel. Just like ethanol, a corn-based cousin, biodiesel is a mixture of vegetable oil and fossil fuels. Researchers are testing various products that have potential use in this process and hope to make biodiesel more affordable for consumers.
Small Rise in Workers’ Comp
Washington adopted a 3.7 percent increase in workers’ compensation for 2005, according to the Tacoma-based News Tribune. This is the smallest increase in three years.
The increase became effective on Jan. 1 and is expected to raise an additional $52 million, according to Department of Labor officials.
Jean Leonard Named Top Lobbyist by AWB
Jean M. Leonard received the Ron Gjerde Award in September for her efforts and continuous support for Washington’s business community. The recipient is selected by a majority vote of the state’s most influential activists and awarded to the person they consider to be the state’s top lobbyist.
Leonard graduated from the University of Puget Sound Law School in 1983 and is currently a contract lobbyist representing some of Washington’s most prominent businesses: State Farm Insurance Companies, T-Mobile Wireless, Puget Sound Energy, and the Washington Wine Institute to name a few.
Leonard also serves as chair of AWB’s Legal Affairs Council and assists AWB in advocating for employers before the Legislature and state agencies, primarily in the human resources, labor relations and liability reform arenas.
Leonard succeeds because of her ability to represent clients in an honest, fair and credible manner. “I think that my clients continue to retain me because I maintain a sense of humor and respect for the process while representing each client in a professional manner,” Leonard said.
“I really enjoy the opportunity to advocate for a variety of client interests, learn new things every day, and NEVER be bored,” Leonard said. “It's just amazing, an honor, a thrill. I'm so very proud to be have been given the Ron Gjerde Award, and it means an awful lot to me, especially given the number of highly qualified individuals lobbying in Olympia, and knowing the company I'm in with the previous recipients.”
Leonard’s peers voted for her to receive AWB’s top lobbying award, named in honor of Weyerhaeuser lobbyist Ron Gjerde who died 11 years ago. Gjerde was a longtime member of AWB’s Board of Directors and Executive Committee.
“Jean is a well-respected member of Olympia’s business lobby and a dedicated AWB member and volunteer,” said AWB President Don Brunell. “She is respected by her peers and has been a very effective chair of our Legal Affairs Council.”
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