TOP STORIES
House Republicans avoid sales tax hike in budget proposal
House Republicans released a supplemental budget Friday that purports to protect education, public safety and programs that aid the “most vulnerable” in society – without increasing the state sales tax. Rep. Gary Alexander, R-Olympia, called it an “all-priorities budget that funds the core services of government” without raising the sales tax or resorting to budget gimmicks. The budget proposes nearly $840 million in cuts to state programs, including the elimination of the Basic Health Plan and Disability Lifeline. It also would eliminate three tax exemptions, including a tax break for out-of-state banks. The budget follows the release of the House Republicans’ proposed stand-alone education budget. House Democrats are expected to unveil their budget plan this week.

Sales tax vote appears less likely following caseload, revenue forecasts
Lawmakers enjoyed a rare double-dose of positive financial news over the last two weeks, diminishing the need for a tax hike in order to balance the budget. First came the state’s caseload forecast, which showed a drop in demand for government services on the order of $340 million. Then came the quarterly revenue forecast, which showed a $96 million increase in expected tax collections. It’s a modest uptick, but it nevertheless marked the first time in 15 quarters that the state’s revenue forecast improved. The combined effect of the two reports has lawmakers backing away from a spring sales tax vote.

Obama touts manufacturing during Boeing visit
President Barack Obama recorded his weekly radio and Internet address while visiting Boeing’s Everett manufacturing plant last week, and he used the visit to promote America’s manufacturing sector. “Companies like Boeing are realizing that even when we can’t make things cheaper in China, we can make things better,” he said. “That’s how we’re going to compete globally.” But U.S. Rep. Cathy McMorris Rodgers, who delivered the Weekly Republican Address, criticized Obama for driving up the national debt and warned that he is setting up the country for a financial crisis similar to the one in Greece.

Teacher evaluation deal comes together
The Senate voted 46-3 last week in favor of a teacher evaluation bill that came together following a clash within the Democratic Caucus that threatened to derail the expansion of teacher and principal evaluation programs. Gov. Chris Gregoire helped broker a compromise that led to passage of Senate Bill 5895, a measure that expands the use of teacher and principal evaluation pilots statewide and makes sure that beginning teachers are kept on provisional status until they perform at the top of levels of the evaluation scale. For more information, contact AWB’s Donna Steward.

Labor unions, trial attorneys fail to unravel workers’ comp reform
A series of bills that would have turned back the clock on last year’s historic workers’ compensation reform failed to move out of committee last week, thanks to the hard work of the business community and its supporters. One of the bills, House Bill 2359, prime-sponsored by Rep. Chris Reykdal, D-Tumwater, would have eliminated the savings from last year’s reforms. It’s unfortunate the issue came up at all. As Rep. Christopher Hurst, D-Enumclaw, noted at Thursday’s AWB Lobby Lunch meeting, labor and business interests had an agreement to refrain from introducing workers’ comp-related legislation this year so last year’s reforms could take hold. For more information, contact AWB’s Kris Tefft.

House leaders propose transportation budget
House transportation leaders released a $9.8 billion transportation budget last week. It includes $55 million for pressing needs, but is mostly unchanged from the previous year – another indication that lawmakers have given up on pushing a statewide transportation financing package this year. Instead, they are moving forward with a variety of fee increases on everything from license plates and drivers licenses to studded tires and title applications. AWB has concerns about the overall impact of so many fee hikes, as well as specific proposals that would give local governments more ability to raise gas taxes. One of them, SB 6582, would allow counties to raise gas taxes with a vote of the people. Language that would have also allowed cities to raise gas taxes was stripped from the bill, but AWB remains concerned that allowing counties to raise gas taxes will make it more difficult to pass a statewide gas tax in the future.

Election Watch: McKenna opens up 9-point lead over Inslee in governor’s race
Washington Attorney General Rob McKenna has a “significant early advantage” over rival U.S. Rep. Jay Inslee in the 2012 governor’s race, according to pollster Stuart Elway. A new Elway Poll shows the Republican McKenna with a 9-point lead over Democrat Inslee, continuing a trend. Elway said McKenna is picking up 13 percent of Democrats, while only 3 percent of Republicans said they would cross party lines to vote for Inslee. A separate Survey USA poll shows McKenna with an even larger lead, pulling ahead by double-digits. The race has shown signs of heating up recently. AWB will host the first formal debate between the candidates June 12 in Spokane during the annual Spring Meeting.

Day 43: What’s alive and what’s dead in the Legislature
Lawmakers passed a key deadline last week – Valentine’s Day was the last day for non-fiscal bills to be heard in their house of origin. The Associated Press and The News Tribune both assembled round-ups over the weekend summarizing the budget work that remains to be done, and highlighting bills that are still alive or likely dead. The 60-day session is scheduled to end March 8.

PRIORITY LEGISLATION
Bill to allow purchase of health care coverage across state lines advances
AWB priority legislation that would allow for the purchase of health care coverage from health insurers in other states passed from the House Health Care Committee this afternoon. The measure, ESB 6440, has just a few more hurdles to jump through before becoming state law. If enacted, small employers may soon have many more choices of health insurers and health plans to choose from. For more information, contact AWB’s Donna Steward.

Industrial stormwater bill continues to advance
House Bill 2651, Department of Ecology request legislation aimed at helping industrial stormwater general permit holders comply with the permit, is scheduled for a hearing Wednesday in the Senate Environment Committee. It’s another positive step for the legislation, which seeks to change the current numerical standard regarding bacterial contamination to a narrative standard. For more information, contact AWB’s Courtney Barnes.

Scaled-back bill would ban one chemical in children’s products
The latest version of a scaled-back children’s products safety bill received a hearing Friday in the House Environment Committee. AWB opposed SB 6120 when it was introduced, arguing that it was an ill-timed and costly proposal that didn’t achieve the goal of protecting children. After lawmakers stripped out the ban on the use of the flame retardant, TDCPP, and the requirement that manufacturers of children’s products containing certain chemicals complete an alternatives assessment, our position changed to neutral, however we remain concerned that the bill would ban the use of the flame retardant TCEP. For more information, contact AWB’s Courtney Barnes.

Land-use bill would help developers impacted by recession
A bill intended to help developers whose projects were delayed because of the recession received a hearing this morning in the Senate Committee on Government Operations and Tribal Relations & Elections. Enhanced House Bill 2152 would give developers up to nine years to submit a final plat for projects in which the preliminary plat was approved by a local government on or before Dec. 31, 2007. AWB supports the proposal, which is prime-sponsored by Rep. Jan Angel, R-Port Orchard. For more information, contact AWB’s Brandon Houskeeper.

Brownfield Redevelopment Trust Fund would create jobs, accelerate cleanup
Senate Bill 6211, prime-sponsored by Sen. Kevin Ranker, D-San Juan Island, seeks to use money from the Model Toxics Control Account, known as MTCA, to create a trust account that would fund cleanup of contaminated industrial sites. The Brownfield Redevelopment Trust Fund Account would not only accelerate the cleanup of contaminated sites, but it would also create badly needed jobs. The bill is scheduled for a hearing at 1:30 p.m. tomorrow in the House Environment Committee. For more information, or to learn how you can support the legislation, contact AWB’s Brandon Houskeeper.

Bill tries to improve customer service from state regulatory agencies
A bill aimed at improving the level of customer service that small businesses receive from state regulatory agencies received a hearing last week in the House Committee on State Government & Tribal Affairs. Senate Bill 6142, prime-sponsored by Sen. Derek Kilmer, D-Gig Harbor, would require regulatory agencies to provide small business owners with a written copy of the state law or agency rule that it’s been found violating. It would also bar the agency from adding more violations during the review period, and allow small business owners to complete an anonymous customer service survey following interactions with regulatory agencies. For more information about the bill or how you can support it, contact AWB’s Brandon Houskeeper.

OTHER NEWS
Roadkill Caucus vows to keep up fight for budget reform
The loose-knit group of moderate Democrats known as the Roadkill Caucus established itself as a force within the Legislature during last year’s battle over workers’ compensation reform. Now they’re using their power to advocate for long-term budget reform, something they say is growing more difficult as the need for new revenue diminishes and some lawmakers begin eyeing the exit doors in Olympia. “Now is the time to stay vigilant,” Sen. Steve Hobbs, D-Lake Stevens, told AWB’s Lobby Lunch audience last week. This week’s Lobby Lunch speaker is Steve Lerch, interim executive director for the Economic and Revenue Forecast Council.

Secretary of State’s office asks Supreme Court to approve redistricting plan
The Secretary of State’s office wants the Supreme Court to approve the state’s new redistricting boundaries, at least for this year. A Vancouver man is challenging the new boundaries, but elections officials say there are deadlines they must meet in order to administer this year’s elections, The Seattle Times reported. If the court ends up making any changes in the boundaries, they suggest making them take effect after the election.

Boeing secures biggest airplane order ever
Boeing announced last week that it has secured its largest airplane order ever, a deal which will send 230 planes worth $22.4 billion to Indonesia-based Lion Air. The deal is the largest commercial airplane order for Boeing both in terms of dollar value and number of airplanes, the Associated Press reported. It includes 201 737-MAX airplanes and 29 extended range 737-900s.

Today show partners with U.S. Chamber in program to hire military veterans
NBC’s Today show is joining forces with the U.S. Chamber of Commerce to launch Hiring our Heroes, a new initiative aimed at helping military veterans find work. Today will broadcast a three-day series on the topic, culminating in free worldwide job fairs for veterans on March 28. More than 1,500 veterans and military families and 100 companies are expected to participate in events in New York, Chicago and Fort Hood, Texas.

Bill Ayer retiring as Alaska Air CEO
Alaska Air Group CEO Bill Ayer is retiring and handing over control of the company to Brad Tilden, who officially begins his new job in May. Ayer, 57, took the job in 2002 and saw the company through a turbulent period marked by recession and change.

Election Watch: Gig Harbor teacher will challenge Rep. Jan Angel
Karin Ashabraner, an eighth-grade history teacher at Goodman Middle School in Gig Harbor, announced last week that she will run as a Democrat against Rep. Jan Angel, R-Port Orchard, in the 26th District.

Legislative bill tracking available to members
Sign up to receive in-depth reports about bills moving through various legislative committees this session. Our weekly reports, crafted by AWB’s government affairs directors, give the latest news about bills affecting everything from education and health care to the environment, workplace safety, the environment, tax and fiscal and more. Contact Connie Grande at 800.521.9325 to be added to the weekly distribution of these reports, which are based on issue areas.

Programming note: No Friday Phone Briefing this week
AWB’s Friday Phone Briefing will not be held this week due to the level of uncertainty over remaining legislative issues. It’s expected to resume next week at its usual time, 7:30 a.m.

2012 Environmental Excellence Awards nominations due Wednesday
AWB is currently seeking nominations for its Environmental Excellence Awards, marking the 20th anniversary of the program. The program, sponsored by Tupper Mack Wells PLLC, is a showcase for companies successfully implementing programs that demonstrate initiative in the area of environmental protection. Award categories include: Sustainable Communities & Green Building, Green Enterprise & Technology, Resource Conservation and/or Pollution Prevention, Leading Environmental Practices and Environmental Innovator. The awards focus on actions that create a better environment, products that help environmental quality, actions to prevent or reduce environmental problems as well as conserve resources and processes; including education and business operations that improve the environment. Awards will be presented June 12 in Spokane at the Davenport Hotel and Tower, in conjunction with the AWB Spring Meeting. Download a nomination form today; entries must be submitted by Wednesday. For additional information contact Karlee Glasgow at karleeg@awb.org at 800.521.9325.

Deadline is Wednesday for AWB’s 2012 Community Service Awards
Nominations are due Wednesday for AWB’s 2012 Community Service Awards, which honor members for their volunteerism and the contributions that make our communities better places to live and work. Tell us about projects that support education, youth organizations, community beautification, 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. Awards will be presented at The Davenport Hotel and Tower in Spokane in conjunction with AWB’s spring meeting. Don’t miss this opportunity to be recognized for your contributions to your community. Apply by Wednesday. For more information, contact AWB’s Karlee Glasgow.

AWB EVENTS & RESOURCES
Seattle's Paid Sick/Safe Leave Seminar, March 6 in Seattle
The City of Seattle’s new ordinance requiring employers to provide paid sick/safe time to employees takes effect Sept. 1. The law imposes new obligations on employers related to paid sick/safe time accrual, usage, carry-over, and notice requirements.Join us March 6 from 9:30-11:30 a.m. at The Columbia Center in Seattle to learn about the new law and how it will affect your existing policies and practices. Selena Smith, an attorney at Davis Grimm Payne & Marrra, will present hypothetical scenarios to illustrate how the law is applied and provide guidance for compliance.Register online or contact Karlee Glasgow at 800.521.9325.

2012 Wage & Hour Boot Camp, March 20 in Seattle
Join us for a half-day seminar, A Guide to Combating Wage & Hour Liability, and learn why employers should care about wage and hour compliance. The panel of seasoned attorneys from Littler will address significant wage and hour risks faced by employers today, including minimum wage and overtime basics, meal and rest periods, off-the-clock work, continuous workday issues, and employee misclassification. It takes place March 20 from 8 a.m. to noon at the Seattle Airport Marriott. Cost is $95 for AWB members, $145 for non-members. Register online or contact Karlee Glasgow at 800.521.9325.

Get in compliance for 2012!
On Jan. 1, 2012 the Washington’s state minimum wage increased to $9.04 an hour. In addition, The National Labor Relations Board has delayed the required posting date of its new NLRB posting until April 30.. While there have been lawsuits filed objecting to the content of the posting, the NLRB asserts this time is to "allow for further education and outreach" to employers. Employers should still expect to be required to post this by April 30.. Order your updated poster set today to ensure your company is in complete compliance with Washington state and federal labor law posting requirements. To order an updated state and federal poster set, contact AWB’s Karlee Glasgow at 800.521.9325.

Get Ready for the Elections with the AWB Spring Meeting, June 12-13 in Spokane
Employers can get a leg up on the 2012 elections this spring by attending AWB’s Spring Meeting, featuring two key debates between the candidates for attorney general and governor. The debates will be held at the historic Bing Crosby Theater and we are fortunate to again host our meeting at the beautiful Davenport Hotel and Tower. If you are interested in becoming a Spring Meeting sponsor, contact AWB’s Anne Haller at 800.521.9325.

THEY SAID IT
“Flat is the new awesome.” ~ Rep. Ross Hunter, D-Medina, regarding Thursday’s virtually flat state revenue forecast

This Week's President's Perspective: No More Band-Aids for the State Budget