OLYMPIA — Association of Washington Business President Don C. Brunell told civic and business leaders in Gig Harbor today any decision in Olympia to raise taxes should be tempered by the Legislature’s duty to build a sustainable budget. 

Local, state and federal governments are searching for every conceivable way to raise money for cash-strapped budgets, and that spells trouble for everyone, including businesses that have already cut to the bone, said Brunell, speaking before the Gig Harbor Chamber of Commerce. 

“As business leaders, you know how tough things are right now. Employers have reduced, streamlined and cut as much as they can. They’re doing their best to keep people employed and the doors open.  But taxes are going up across the board — on utilities, workers’ comp, unemployment insurance — and that put more stress on employers and employees alike.”

Brunell said the Association of Washington Business’ top legislative priority this session is to work with legislators and the governor on developing a supplemental budget that prioritizes spending and encourages private-sector job creation while bridging a $2.6 billion spending gap.

“We need to focus on the things that will get our economy growing again — like private-sector jobs and reforming the state’s workers’ compensation system,” said Brunell. "They need to carefully re-prioritize the way we spend our sparse tax dollars. It won't be easy, but we must not get trapped in the old paradigm of simply cutting across the board or trimming around the edges and then raise taxes.  To do so only opens up a bigger revenue hole when lawmakers return to Olympia in January 2011 to write the next two-year state budget,” he said.

“We also need to learn from our counterparts to the south — Oregon and California — who are swimming in debt and trying to tax their way out. It’s not working, and it’s actually damaging their business climate,” he added. 

In Oregon, business leaders are dealing with 12 to 13 percent unemployment rates and have seen 131,500 private sector jobs disappear since November 2007.  In California, between 2001-09, the state has lost 32 percent of its industrial base, which translates into 600,000 manufacturing jobs alone, Brunell added.

“We can’t afford to fall into that same trap. We have some amazingly innovative companies in Washington state and are blessed to not be in as dire straits as many other states in the nation,” Brunell said.  “We should be using this economic crisis as an opportunity to reboot our economy, starting next week in Olympia.”

The Legislature will convene on Monday, Jan. 11 and is scheduled to meet for just 60 days to address supplemental budget needs. 

To read more of Brunell’s remarks to the Gig Harbor Chamber, visit AWB’s blog, Olympia Business Watch.


About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association, and includes more than 6,800 members representing 650,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org.