TOP STORIES
Lawmakers unveil plan to cut $479 million from budget deficit
Gov. Chris Gregoire has given up on lawmakers reaching deal to solve the state’s $2 billion budget shortfall in December, but legislators are hoping to at least make a start. Legislative leaders unveiled a plan today (191-page bill available here) that would cut $479 million from the deficit, leaving approximately $1.4 billion to deal with during the 2012 regular session. It includes a mix of cuts, fund transfers and delayed payments. Among the largest items is $50 million saved by delaying school bus payments, the Associated Press reported. Regardless of what they end up doing, lawmakers are talking about leaving Olympia by Dec. 20. Meanwhile, Sen. Jim Kastama, D-Puyallup, has produced a video that provides the best explanation yet for the state’s ongoing budget problems, and why lawmakers it’s time for to adopt a sustainable budget.

NLRB drops case against Boeing after Machinists ratify groundbreaking contract
Machinist union members voted overwhelmingly last week to approve a four-year contract extension with Boeing that ensures production of the fuel-efficient 737 MAX will occur in Renton. Two days later, the National Labor Relations Board announced it has withdrawn its case against Boeing over the company’s South Carolina production facility. The contract is an early Christmas present for the region and it guarantees labor peace for Boeing as it ramps up production to meet growing demand, the latest sign of which came on Thursday when The Wall Street Journal reported Southwest Airlines is planning to order more than 100 of the 737 MAX airplanes. But even though the NLRB case has disappeared, the possibility of similar action leaves a “cloud of uncertainty hanging over the business community,” according to the U.S. Chamber of Commerce’s Randy Johnson.

Environmental issue blamed for closure of Everett mill
Most of the 700 people who work at Kimberly-Clark Corp.’s mill in Everett will lose their jobs since negotiations broke down last week to sell the operation to Atlas Holdings Inc. Bob Brand, a Kimberly-Clark spokesman, said a problem came up regarding an environmental issue with Everett’s East Waterway and it could not be resolved. Since the mid-1980s, Kimberly-Clark spent has spent about $300 million making the operation more environmentally friendly, AWB President Don Brunell noted in a post on Olympia Business Watch. The governor, legislators and agency officials should take notice of why the deal fell apart, Brunell said.

New Forbes ranking reveals Washington’s difficult regulatory climate, high business costs
Washington state ranks seventh in the country overall for doing business, according to the latest rankings from Forbes magazine. That’s down one spot from last year, but perhaps even more worrisome is the spotlight the report shines on the state’s regulatory climate and business costs. In those two categories, Washington ranks No. 20 and 21 respectively, a fact that The Olympian’s Brad Shannon says “buttresses complaints from the Association of Washington Business.” The magazine ranked Utah as the best state for doing business, and Maine the worst.

Longview port shuts down amid Occupy protest targeting West Coast ports
The Occupy movement turned its attention to West Coast ports today, protesting at ports from Washington to California. Protesters reportedly wanted to shut down the ports, believing that cutting off the ports would cut into corporate profits. Labor unions have struck a loose if fragile alliance with the movement, but the International Longshore & Warehouse Union said it did not support today’s action. Nevertheless, Longshoremen in Longview went home early for health and safety reasons, essentially shutting down the port.

Former DSHS director appointed to lead agency again
Gov. Chris Gregoire has appointed Robin Arnold-Williams director of the state Department of Social and Health Services, returning her to a post she held from 2005 until January 2008. Since then, she has led Gregoire’s executive policy office and worked as a consultant and teaching graduate courses at the University of Washington’s School of Social Work. Arnold-Williams will replace Susan Dreyfus, who has served as DSHS director since Arnold-Williams left. Her appointment is effective Jan. 3.

Multiple lawsuits filed over successful liquor privatization measure
A pair of labor unions filed a lawsuit last week over Initiative 1183, the voter approved liquor privatization measure, arguing that it’s unconstitutional because it address more than one subject. A second lawsuit followed soon after, this one coming on behalf of a Longview resident who leases commercial space to a state-run liquor store that will close, as well as the operator of two Red Apple grocery stores and the Washington Association of Substance Abuse and Violence Prevention.

AWB hosts college presidents for workforce development discussion
Community college presidents from throughout the state gathered last week at AWB to discuss current work on workforce training. Among those attending were Charlie Earl, executive director of the State Board for Community & Technical Colleges, Jim Bricker, SBCTC chair, AWB staff, including President Don Brunell, and representatives from Big Bend Community College, Clover Park Technical College, Columbia Basin College, Everett Community College, South Puget Sound Community College and Grays Harbor College.

AWB files friend of court brief in tax appeal
Earlier today, AWB filed an amicus curiae (“friend of the court”) brief in the Washington Supreme Court urging the justices to accept and hear the appeal of AWB member Getty Images, a Seattle-based distributor of digital images and media worldwide.At issue is Getty’s use of a common centralized cash management system, shared with its affiliates, where funds are loaned between offices to cover administrative expenses.The City of Seattle has imposed its B&O tax on the amount of administrative fees Getty received from this system as if it were gross income.Getty is fighting the tax bill, concerned that an adverse precedent would lead to substantial unexpected tax increases for companies with similar cash management practices and would dissuade companies from locating their headquarters in Washington State.For more information, contact AWB’s Kris Tefft.

Redistricting Commission soldiers on without a deal
The commission charged with redrawing the state’s legislative districts still has no agreement on a new map, but Lura Powell, the non-voting chair, is hopeful the group will have something to show for its work, The Olympian reported. The commission, made of two Democrats and two Republicans, has a Jan. 1 deadline. It is scheduled to meet again tomorrow.

Justice Alexander returning to private practice after year’s end
Gerry Alexander, the state Supreme Court justice who is retiring at the end of the year because he has reached the mandatory retirement age of 75, is joining the Olympia law firm of Bean, Gentry, Wheeler & Peternell. Alexander was first elected to the state Supreme Court in 1994 and is the longest-serving chief justice in state history, The Olympian reported. He last practiced law in 1973, before he was appointed to the Thurston-Mason County Superior Court by Gov. Dan Evans.

Audit shows L&I paid millions for missed medical exams
A state audit found the Department of Labor & Industries paid more than $3.8 million for workers’ compensation-related medical exams where the patients in question either failed to show up or canceled late. The audit looked at appointments between July 2008 and the end of June 2011, The Seattle Times reported.

A ‘thumbs up’ for AWB Holiday Kids’ Tree program
The Olympian’s editorial board gave a “thumbs up” to AWB’s Holiday Kids’ Tree program over the weekend, calling it a “worthwhile holiday tradition.” The paper noted the donated tree from Port Blakely Tree Farms, as well as the cash contributions from AWB members. This year’s program raised more than $23,000 for needy rural families, bringing the total raised since 1989 to more than $320,000. “Thanks goodness the Christmas tree tradition survived that brouhaha,” the paper said, noting the controversy a few years ago regarding holiday displays at the Capitol.

KEY HEARINGS, MEETINGS
Reminder: Environmental Affairs Council meeting Dec. 21
The AWB Environmental Affairs Council meeting that was scheduled for Dec. 12 has been moved to Dec. 21 at 8:30 a.m. For more information, contact AWB’s Brandon Houskeeper.

AWB Transportation Committee to meet Jan. 5
AWB’s Transportation Committee will meet Jan. 5 from 10 a.m.-noon at AWB. The date is intended to allow time for the upcoming special session to adjourn and for the Connecting Washington Task Force to complete its work. We will provide a reminder and materials as the date draws closer. If you have topics you would like to see on the agenda, please notify AWB’s Amber Carter.

AWB EVENTS & RESOURCES
AWB Legislative & Lobby Days, Jan. 17-18 – register by Friday to meet with your lawmaker
With the economic recovery sputtering and lawmakers scrambling to close a budget deficit, employers and elected officials both face some tough choices in the coming year. That’s why your support in the upcoming legislative session is critical if the business community hopes to maintain some of the progress it made during the last session and protect business interests in the coming year. AWB’s Legislative & Lobby Days give employers an opportunity to talk directly with lawmakers, something that business owner seldom make time to do, but the U.S. Chamber of Commerce reminds us is vitally important.

Legislative Day will include moderated panel discussions with legislators and industry leaders talking about budget and taxes, labor and workforce and education and workforce training issues. Gov. Chris Gregoire is our invitedlunch keynote speaker. Legislative Day culminates with our Legislative Reception, a premiere event bringing legislators and business leaders together at the Red Lion Hotel in Olympia. Then join us the next morning for Lobby Day as we travel to the Capitol to meet directly with your legislators. Go online and register today. Friday is the registration deadline to secure a meeting with your lawmaker. Chamber Executive Director Scholarships are available again – the deadline to apply has been extended to Friday. You can also show your support through sponsorship. Contact Anne Haller at 800.521.9325.

AWB Spring Meeting set for June 12-13 in Spokane
Save the date: AWB’s Spring Meeting will be held June 12-13 in Spokane. The meeting, which is normally held in May, is being pushed back next year so it can include a gubernatorial debate and AWB’s endorsements for governor and attorney general. Those activities have historically occurred at AWB’s Policy Summit in September.

New, low cost 401(k) program for AWB Members!
AWB is pleased to announce a new member service, the BenefitGuard 401(k) Plan. You don’t need to be a Fortune 500 company to have benefits like one! The plan is full-service and low cost and can be tailored to your company’s specific needs. The plan takes care of all the paperwork, the plan audit and IRS filings so that your time is spent taking care of your business. To find out how to take care of this powerful retirement plan option, please call us toll free at 866.670.4015 or go to http://www.awbbenefitguardplan.com/.

THEY SAID IT
“Am I going to get my wish for Christmas? No, I’m not.” ~ Gov. Chris Gregoire, regarding her belief that lawmakers will not figure out how to close a $2 billion state budget gap during the current special session

This Week's President's Perspective: Despite Glum State Budget News, There is Some Joy in Olympia