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Home / Washington Business - September/October 2005 / Chair's Column: AWB Members Optimistic, BUT . . . |
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Chair's Column: AWB Members Optimistic, BUT . . . |
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Written On: September/October 2005 |
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Written By: By Tom Lemly - Chair, Board of Directors |
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Tom Lemly is a partner in the Davis Wright Tremaine law firm in Seattle, where he specializes in all aspects of labor law.
The good news is you are more optimistic about the economy. In our annual membership poll this year, three-fourths of our members believe there are tangible signs of recovery.
The bad news is you don’t see Washington becoming more business friendly. Three out of four believe our state is headed in the wrong direction. Furthermore, nearly two-thirds of AWB members believe the 2005 legislative session was anti-business and only two percent said it was pro-business.
A whopping 78 percent of you were dissatisfied with this year’s Legislature for four main reasons:
• 86 percent oppose reinstatement of the state’s inheritance tax (death tax) which the state Supreme Court threw out in January.
• 80 percent object to the repeal of Initiative 601 — the state’s spending limit approved by the voters in 1993.
• 78 percent oppose repealing the unemployment insurance reforms passed in 2003 and just completely phasing in this year.
• 74 percent oppose funding the costly first collective bargaining agreement for state employees.
How Do We Pay for It?
Government spending and the state’s tax burden on business continue to be troubling. Eighty-five percent of you believe Gov. Christine Gregoire cannot spend more for education and health care without raising taxes, even though state revenues pick up. In fact, less than 10 percent believe economic growth will make up the difference between spending, which increased by 12 percent, and available revenue, which went up by 7 percent.
Flashing a clear warning signal for elected officials, 86 percent of our members say a spending limits initiative, like Initiative 601, is necessary, and they would support such restrictions on excessive spending.
While most AWB members believe more money is needed to fund transportation projects, you are evenly split (49-49) over the nine-cent gas tax passed this year. When asked about tolls, eight in 10 favor tolls to pay for replacing worn out, damaged bridges and construction of new highways. The unanswered question is: How much are you willing to pay at the tollbooth?
It is encouraging to find that 92 percent of AWB members provide health benefits. However, it is discouraging, but no real surprise, to hear that almost all of you are still experiencing insurance premium increases, and many are in the double digits.
While almost half of you have paid the increased costs, a growing number (38 percent) have either reduced coverage or charged workers more. Nonetheless, 82 percent are opposed to the Legislature’s “pay-or-play” proposal where the employer either provides health insurance or pays a tax to the state for it to provide employee insurance.
Poll Should Concern Elected Officials
Mulling over this year’s poll results, we can see disturbing trends that should cause the governor and lawmakers a good deal of concern.
First, the growing dissatisfaction lingering after the 2005 session cannot be dismissed as just a difference in the way one political party or the other assesses the outcome. The problems employers face in this highly competitive global economy are real and need to be addressed no matter how difficult they may be. Too often our elected officials seem to side-step the tough issues.
Second, perception is everything. If voters in general share the view of employers that the Legislature is skirting the public will by inappropriately attaching emergency clauses to prevent bills from reaching the ballot, or by simply bypassing spending limit initiatives, then they will lose confidence in the system. When that happens, they take matters into their own hands and circulate initiatives and referendums that can have unexpected consequences or even make matters worse.
Third, if employers, the state’s job providers, continue to view Washington as unfriendly to business, they will accelerate their search for more friendly places to operate, especially when the economy slumps.
Finally, costs matter. When our members look at legislation increasing their unemployment premiums, health care costs, state employee compensation and resulting taxes and fees, their calculators make decisions for them. Today, pennies decide if a plant stays in Washington or moves to Shanghai or Idaho.
While you see some sunshine today, thunderheads lurk on the horizon. Before the storm hits, join us in a redoubled effort to convince our elected officials to make the tough choices needed to improve our business climate.
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