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Home / Washington Business - January/February 2005 / SIDEBAR: TOP ISSUES OF 2005 |
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SIDEBAR: TOP ISSUES OF 2005 |
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Written On: January/February 2005 |
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Washington faces a $1.6 billion budget deficit. Although this shortfall is considerably less than the state’s $2.6 billion deficit of 2003, this budget hole is likely to be more difficult to fill because there are fewer non-essential services to cut than there were two years ago. In 2003, the Legislature successfully balanced the budget without raising new business taxes. Indications are that 2005’s Legislature may look at raising revenue through such means as taxes on items like soda pop and alcoholic beverages. There is also likely to be a push to raise the gas tax to pay for transportation projects.
Health Care
Health care costs are rising at an alarming rate. As a result, many businesses are finding it prohibitively expensive to provide health insurance for their employees. Possible responses from the Legislature include:
• Allowing small business owners to place their employees on the state’s Basic Health Plan.
• Allowing small businesses to join larger groups in order to purchase health care.
• Mandating that the state directly subsidize health care.
• Enacting a “pay-or-play” system where employers with 50 employees or more would be given the choice of providing health care for their employees or paying for their employees to join the Basic Health Plan.
Medical malpractice insurance will be an issue because of two initiatives, one from doctors, the other from trial lawyers, which were submitted to the Legislature. The Legislature will either pass the initiatives into law, send them to the electorate, or send them to the voters with an alternate initiative written by the Legislature. Broad-based tort reform, however, is very unlikely.
Workers’ Comp / Unemployment Insurance
Washington reformed its unemployment insurance system in 2003. The benefits of theses reforms are just starting to kick in for both employers and employees, but there’s a real possibility that the 2005 Legislature will attempt to undo these needed changes.
Washington’s workers’ compensation system has the fourth highest benefits package in the United States. While AWB has consistently argued for comprehensive workers’ comp reform, this is unlikely to be realized during this legislative session.
Environment
Gov. Locke’s Global Warming Initiative has set the stage for a bill that would mandate California’s stringent emissions standards for all automobiles purchased in Washington state. Proposals for burdensome mandates related to mercury and restrictions on flame retardants may emerge from this session. There also may be attempts to increase funding for the persistent bioaccumulative toxin (PBT) program.
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