Olympia Business Watch

Ecology director reveals what makes her lose sleep at night

Washington Department of Ecology Director Maia Bellon discusses her perspective on environmental protection and working with the business community as AWB Director of Governmental Affairs Gary Chandler looks on Tuesday afternoon in Spokane.

The directors of Washington’s departments of Ecology and Commerce pledged continued work to streamline permits and improve regulatory processes during a talk Tuesday afternoon at the AWB’s annual Spring Meeting in Spokane.

Gary Chandler, AWB's director of government affairs, held a panel discussion with Maia D. Bellon, director of the Washington state Department of Ecology, and Brian Bonlender, director of the state's Department of Commerce.

Both directors said Gov. Jay Inslee has made it clear that jobs and working cooperatively with the business community are priorities.

“I will tell you that he, in no uncertain terms, has told me that I must partner with you and your community,” Bellon said.

Bellon, appointed in February as director of the Department of Ecology, said although she is an attorney and enjoys the courtroom, she always prefers to broker agreements that help everyone understand one another’s concerns and move forward rather than resorting to litigation. Not everyone will get everything they want, she said, but sometimes that’s the best outcome possible.

She said one of the biggest worries she had when offered the director position, one that kept her up at night and almost prevented her from accepting the post, is the issue of modifying the state’s longstanding water quality standards. Bellon said the federal Environmental Protection Agency had given her a deadline of this Christmas, but that she pushed for more time to hold a full public process. As a result, the state now hopes to have a new rule in place by the end of 2014. AWB has been working with other member companies on that rule, which stands to affect not only businesses but every municipal water system in the state.  

Here are 7 Washington businesses doing right by the environment

Just after Jim Hanna, director of environmental impact for Starbucks, got through telling AWB members that businesses will solve the world's environmental challenges, AWB handed out awards to seven companies that are already proving him right.

The 21st AWB Environmental Excellence Awards were presented to:

Sustainable Communities & Green Building

Saint Martin’s University, Lacey

 The ground below and the sun above both help keep Cebula Hall energized and comfortable at Saint Martin’s University. This new $7.5 million engineering building, which was crafted from recycled materials, pulls energy from the soil using geothermal heat exchange coils. The three-story building has rooftop garden space and 2,500 square feet of photovoltaic solar panels that produce 15 percent of the building’s electricity. Thanks to its LEED Platinum design, the building uses 64 percent less power and 40 percent less water than the baseline. Some of the duct work, pipes, beams and insulation were deliberately left exposed in the 27,000-square-foot facility to give students in the School of Engineering a glimpse inside the heart of this truly green building.

Green Enterprise & Technology

Liberty Bottleworks, Union Gap

When REI, LL Bean, Willie Nelson and the Dave Matthews Band want an environmentally friendly, toxin-free aluminum bottle, they turn to the high-tech Liberty Bottleworks factory near Yakima. In just three years this company has churned out a half million bottles that are part fashion statement, part reusable container and all-American. The outsides are decorated with high-resolution textural art that you can feel as well as see. The insides are powder coated without use of phthalates or BPA in a closed-loop process, part of the company’s zero-waste philosophy. Water is retreated and reused on site. The infrared lamps that cure the powder are 800 percent more efficient than conventional curing ovens. Since Liberty’s are the only American-made metal bottles in the marketplace, they are the first housewares product that Whole Foods NW has been able to promote as “locally made.”

Starbucks makes the business case for sustainability -- and whipped cream

 

Starbucks' Jim Hanna, director of environmental impact, addresses the winners of AWB's 2013 Environmental Excellence Awards Tuesday.

It's time for business to redefine the conversation about sustainability, Jim Hanna, director of environmental impact for Starbucks, told AWB members Tuesday during the keynote address at the 2013 Spring Meeting.

The conversation has gone off track in the last decade, Hanna said, often turning into a political issue when it shouldn't be.

Business leaders can change the tone, Hanna said, by focusing on what matters for their particular business.

For Starbucks, climate mitigation is the company's primary focus. That's because the company relies upon high-quality arabica beans for its main product -- and the beans only grow in certain conditions. Already, Starbucks is encountering changing soil conditions, increasing pest infestations, soil erosion, and other threats to the bean.

"From a business perspective, it's impacting the longevity of our company," Hanna said. "We need to make sure the bean still exists."

Starbucks is addressing climate issues in a variety of ways, including some that make a significant difference -- and some that are mainly issues of perception.

Bloomsday comes off without a hitch

Hip Hip Horray!  Spokane's annual "happening!" was another huge success. 

The 48,000 people who registered for the annual Bloomsday Run enjoyed the sunshine and warmth of eastern Washington on Sunday.

Race organizers and Spokane law enforcement officers were out in full force with many officers integrated in the race, bomb sniffing dogs,  SWAT teams and helicopter surveillance. They kept runners, walkers, wheelchair participants and spectators safe.

Since it was one of the hottest race days in recent years, medical responders treated participants and spectators for heat related injuries.

According to the Spokesman Review: "With added security across the 7.5-mile Spokane Bloomsday course, runners and walkers cruised through a warm and uneventful race marked mostly by dozens of runners being treated for dehydration."

The Review went on to say:  "Concern generated by last month’s bombing at the Boston Marathon led to heightened security, but organizers said the city’s 37th annual Bloomsday race occurred without a hitch."

Thankfully, we all enjoyed a traditional community event where everyone could once again feel safe and have fun.

With Bloomsday runners headed home, AWB members are coming to Spokane for our annual spring meeting which is at the Davenport Hotel.  The meeting starts Tuesday morning and concludes at noon on Wednesday. Follow the meeting in AWB's website, Twitter and Facebook. 

AWB will be presenting its annual Environmental Excellence and Community Service awards.  Former state auditor Brian Sonntag will be presented the David Gordon Award for his contributions to our state. 

Ed Vanderpol, co-owner of Oak Harbor Freight will receive the Bruce Briggs award for community service and Don Conant, Valley Bolt, Tumwater, will be awarded the Judy Coovert Award for his volunteer efforts on behalf of AWB. 

AWB members can still register for the annual Spring Meeting. They can contact AWB's Jennifer Davis at 360-943-1600.

 

Larry Morris awarded ACCE top honor for his 17 years of achievements as AWB membership manager

Larry Morris, long-time Association of Washington Business membership manager, join a select group of chamber of commerce membership professional when the American Chamber of Commerce Executives (ACCE) awarded him the lifetime sales achievement award.  The award was presented at Morris' retirement luncheon at AWB on Friday.

Morris started at AWB in 1996 and over his 17 year career sold 1,779 memberships worth $854,000. 

"Larry has been rock solid,"  AWB President Don C. Brunell said. "We will miss his sense of humor, knowledge and ability to sell and retain our members.  The ACCE honor is rare, but richly deserved."

To qualify for the Lifetime Achievement Award, a membership sales manager must reach $500,000 in membership dollars in his/her career.  Fewer than a dozen membership managers across the country have achieved what Larry has, Brunell added.  "This is a significant achievement and we are very proud of Larry and appreciate what he has done for AWB and our members."

Larry has been a key part of AWB's membership team which has not only been recognized by ACCE, but the Association of State Chamber of Commerce Professionals (ASCP).  ASCP has recognized AWB with its top award, the President's Award, in 2005 and 2011. 

AWB also is the only state chamber which has received Accreditation with Distriction from the U.S. Chamber of Commerce.  That happened in 2007 and 2011. 

Gov. Inslee signs bill to aid AWB-supported scholarship program

Kids' Chance of Washington, the AWB-supported group that gives scholarships to the spouses and children of workers who die or are permanently disabled on the job, will have an easier time spreading the word about their efforts thanks to a bill signed Friday morning by Gov. Jay Inslee.

AWB President Don Brunell, right, joins other advocates for the Kids' Chance charity as Gov. Jay Inslee signs a bill allowing L&I to cooperate with this nonprofit scholarship provider.

House Bill 1863 allows Kids Chance, a charitable nonprofit founded by business, attorneys, doctors and labor organizations in 2001, to access information from the Washington Department of Labor and Industries about children who might be elibible for these need-based scholarships.

"These scholarships have made a difference for many families," said AWB President Don Brunell, "and this bill will make it easier for Kids' Chance to connect with people who might not have known they were eligible for the program."

Spreading the word about the scholarships has been an ongoing challenge, especially for high school-age children whose parent might have died or become disabled on the job many years before. HB 1863 will allow Kids' Chance to access information from L&I, which will allow the charity to send brochures and scholarship application information to people they might not have known about, according to Debbie Guillot of the Washington State Council of Fire Fighters, who is secretary for Kids' Chance.

"We have money," Guillot said. "We just need applicants."

Anyone wanting to donate to Kids' Chance can learn more here. There are also a few seats still available for a benefit dinner on June 6, "Dreams Take Flight" at the Museum of Flight in Seattle. Conact Jan Donley of J Donley Associates at 206.441.4020 or email Jan@JDonley.com for more about the fundraiser.

Brunell: What happens in Seattle should stay in Seattle

Seattle officials had a bad idea a couple of years ago, AWB President Don Brunell writes in his weekly column.

Now some lawmakers want to take that idea -- mandatory paid sick leave -- and apply it statewide.

One of the problems with Seattle's sick leave ordinance is how confusing it is. Employers must keep track of every minute their employees are within the city limits of Seattle, no matter where the company is based.

Seattle officials see nothing wrong with this, but what if the tables were turned? What if a neighboring city passed an ordinance exempting Seattle companies from their paid sick leave obligations while their employees were working in that neighboring city?

Seattle officials would likely see such a policy as an outrageous intrusion, Brunell writes.

Exactly.

Herrera Beutler, Hastings, McMorris Rodgers and Reichert honored as Spirit of Enterprise recipients

Four of Washington's 10 members of the U.S. House of Representatives were honored by the U.S. Chamber of Commerce for their 2012 voting records in support of free enterprise and employers. To qualify, a member must have a 70 percent or higher voting record on the U.S. Chamber's legislative scorecard.

The Chamber's prestigious "Spirit of Enterprise" award is given annually to members of Congress based on rankings it gives for key business votes outlined in its yearly publication, How They Voted. This is the twenty-fifth year that the U.S. Chamber has formally honored the accomplishments of this select group of members of Congress.

Since being elected to Congress, Representatives Jaime Herrera Beutler (3rd), RIchard "Doc" Hastings (4th), Cathy McMorris Rodgers (5th) and David Reichert (8th)--all Republicans--were honored with annual Spirit of Enterprise Awards.  All are Republicans. 

The last Democrat to score higher than 70 percent was Sen. Patty Murray and that was in 2004. She was recogized with the Spirit of Enterprise Award that year.

Herrera Beutler, like Hastings and McMorris Rodgers, served in the Washington State Legislature before being elected to Congress. She was elected in 2010 and re-elected last November.  She represents southwest Washington, which is the Third District including Vancouver and Longview.  Herrera Beuter has a lifetime 100 percent voting record with the Chamber.

Hastings is the chairman of the United States House Committee on Natural Resources and was elected to Congress in 1995. Hastings owned and operated a small family business and served in the Washington State House from 1979 to 1987.

Hastings Fourth Congressional District covers central Washington, our state's agriculture belt, and the Hanford Reservation. It includes Yakima, TriCities and Moses Lake. 

Hastings has a lifetime 94 percent voting record with the Chamber.

McMorris Rodgers is the U.S. Representative for Washington's 5th congressional district, serving since 2005. Her district runs from Walla Walla to the Canadian Border with Spokane as its largest population center.

She is currently the highest ranking Republican woman in Congress, serving as the Chair of the House Republican Conference. She is only the second woman to serve in that capacity, following former Congresswoman Deborah Pryce, who served from 2003-2007.

Similiar to Herrera Beutler, McMorris Rodgers voting record with the U.S. Chamber in 2012 was perfect at 100 percent.

Before being elected to Washington's Eighth Congressional Distict, Dave Reichert was King County Sheriff.  He led the investigation which solved the Green River Killer case. Reichert served with the King County Sheriff's Department beginning in 1972 until elected to Congress to succeed Jennifer Dunn in 2005. 

HIs district runs from Lake Washington on the west to Lake Chelan in the east and includes Wenatchee, Ellensburg and Issaquah.  Reichert has a 86 percent voting record with the Chamber.

The Chamber's designated "key votes" are recorded floor votes on issues established as priorities by the Chamber, on which the Chamber informs Congress of its position on prior to the vote.

The Association of Washington Business is our state's Chamber of Commerce.

 

 

Survey Says! Hydro is renewable and keep those Snake River dams

From Northwest RiverPartners:

Hydroelectric power has 72 percent of the region’s support as a clean, renewable source of energy, according to a recent Northwest RiverPartners poll.

Furthermore, 67 percent of residents believe Congress and state legislatures should define hydroelectric power as a renewable energy resource.

According to Terry Flores, executive director of Northwest RiverPartners. “Hydropower provides 90 percent of the region’s renewable energy, and it keeps 100 percent of our air clean.”

The poll also shows that 47 percent of Northwesterners consider hydroelectric power the most practical energy resource available in the region over all other sources. In a distant second place, wind lands only 19 percent of the vote.

Additional findings in the poll show an appreciation for dams beyond the benefits of hydroelectric power. Seventy-three percent of Pacific Northwest residents believe dams provide vital flood control that protects lives, private property and the economy of local communities. And 77 percent cite the irrigation for farms that feed the region as another fundamental asset provided by dams.

The public also showed strong support for the Snake River dams. The poll finds 62 percent of voters consider the four federal dams critical to the Northwest and removing them an extreme measure that would do more harm than good. Only 15 percent indicated support for removing the dams.

Northwest RiverPartners' Clean Hydro campaign is on the air. Check it out!

AWB is a long-time member of Northwest RiverPartners.  Portland-based polling firm Davis, Hibbits & Midghall conducted the poll of 1,200 residents of Idaho, Oregon and Washington in February for Northwest RiverPartners.

AWB joins ceremony honoring fallen workers

A solemn ceremony in Tumwater Tuesday honored the 66 people who died in Washington last year on the job or from workplace injuries or illness. AWB joined Gov. Jay Inslee and representatives of organized labor in pledging to keep improving workplace safety until there comes a year when no one dies on the job.

Speaking to the families and friends of those who went to work and never came home, Inslee said the state honors their loss. "You need to know we embrace you today," Inslee said, noting that he has personally felt the loss of a family member -- a cousin who died while working for the King County Sheriff's Office.

AWB President Don Brunell reads the names of some of the 66 people who died from workplace injuries last year, including Christopher Rudolph, 30, a marketing director for Stevens Pass. Rudolph died in a Jan. 17  avalanche.

The governor called for a renewed culture of safety. He thanked the business community for its work in making workplaces safer. "We're not perfect yet," Inslee said. "We're ahead of the curve, but we have work to do."

This was the 20th annual memorial for those who died on the job. AWB President Don Brunell, who attended Washington's first such ceremony in 1993, noted that his upcoming retirement means this will be his last. As he addressed a packed room at L&I headquarters, he offered condolences to the families of those who died. 

"At the end of the day, we want a safer workplace where people come home every night to their loved ones," Brunell said. His own father, a volunteer firefighter, nearly died after being hit with a live wire during a call in Montana, Brunell said, adding that recent events have shown that even school teachers can be in the line of fire. 

Jeff Johnson, president of the Washington State Labor Council, told the crowd that every worker's compensation claim is a missed opportunity for injury prevention and said we all have "a moral obligation to make work as safe as it can possibly be."

Four members of the Washington State Patrol in formal blue uniforms -- one with a ceremonial sword -- honored the workers who died. Bagpipers played "Amazing Grace" as firefighters from Tumwater rang a silver bell in honor of those who died.

L&I Director Joel Sacks said the ceremony is a reminder that we can never take workplace safety for granted. Sacks noted that Washington's ceremony is unusual in that it includes wide represenatation -- from labor, business and government. 

"Each and every day we have to recommit ourselves to preventing workplace safety," Sacks said.

The 787 is in the air again!

Remember Willie Nelson's hit song: On the Road Again?   After a horrific last week, there is good news for all of us to head to work again on Monday.  The 787 is back in the air again. 

The Federal Aviation Administration said Friday it would send airlines  instructions and publish a notice next week lifting the 3-month-old grounding.

Airlines will be able to begin flying the planes again as soon as the revamped lithium-ion battery systems are installed and they have approval from safety regulators in their own countries. Dreamliner flights could resume within a week, the  agency told members of Congress.  Boeing has delivered 787s to Japan, Poland and other countries.

Boeing is eager to get the planes flying. It has stationed 300 workers on 10  teams around the world to do the work, some of it beginning on Friday, 787 chief  engineer Mike Sinnett said. It will take about five days to install the revamped lithium-ion battery system on each plane.

The new batteries and kits with the parts for the new battery systems  have been shipped to Boeing supply centers around the world and are ready to be  installed. The 787s will get the fix in approximately the order they were  delivered, Boeing said.

Boeing has completed 20 separate tests of the new system, FAA Administrator  Michael Huerta told Congress earlier this week.

The redesigned battery “made a great airplane even better,”  Boeing Commercial Airplanes CEO Ray Conner told The Seattle Times.  

Boeing is one of the Association of Washington Business' oldest and largest members.  AWB, formed in 1904, has 8,000 members.

It sure makes this week start off much better than last week which tragically saw Boston's traditional marathon race end with killer bombs and shoot out with the pair suspects and the deadly explosion just outside of Waco, TX.  They are still looking for victims of that fertilizer plant explosion.

As you head back to work, please keep those suffering in their tragic aftermath in your thoughts and prayers.

Don C. Brunell, President (DonB@awb.org)

Obamacare heading for a "Train Wreck!"

From POLITICO: 

Senate Finance Committee Chairman Max Baucus (D-MT), one of the health reform law's chief authors, says he’s worried about a “huge train wreck coming down” if the Obama administration doesn’t improve its public outreach about the legislation.

Baucus, a Montana Democrat who is up for reelection in 2014, sharply criticized the administration’s outreach efforts in a budget hearing on Wednesday. He told Health and Human Services Secretary Kathleen Sebelius that people and businesses “have no idea what to do, what to expect” from the law.

After the hearing, Baucus explained that the train wreck is “that consumers and businesses will just not have enough information. That it will be too confusing.”

Sebelius defended the administration’s efforts, arguing that there will be navigators — guides to help consumers through the exchanges — ahead of the Oct. 1 enrollment date. Sebelius also said that people will be in the states this summer to inform people about the law. She said HHS officials and the Small Business Administration are holding webinars and seminars and will be holding more through the summer.

Sebelius said there will be no polling, testing or benchmarks to measure how much people know about the law. The administration has requested $554 million for outreach and education efforts

Brunell: New federal regulations will boost the cost of gas -- again

President Obama wants to invest more than $20 billion on roads, bridges, highways and ports as a way to stimulate economic growth. At the same time, the Environmental Protection Agency announced new mileage standards and air quality rules that could raise the price of gas as much as 9 cents per gallon.

It's as if one part of the federal government was trying to rescue a floundering economy while another part tosses it a concrete block, AWB President Don Brunell writes in his weekly column.

"With our teetering economy, it's vital that Congress and the Obama administration carefully weigh any benefit of new regulations against their impact," Brunell writes.

State lawmakers play a role, as well.

Washington legislators want to increase the state's gas tax 10 cents per gallon, a move that would bring the total of state and federal taxes to 65.9 cents -- third highest in the nation.

There is no question that Washington needs additional money to repair roads, bridges and highways, Brunell writes. But how the gas tax is structured -- and how the money is spent -- will determine whether it harms or helps our economy.

Roll out the empty barrels

Remember ye ole Beer Barrel Polka?  How about "Roll out the EMPTY Barrels?"

Gov. Jay Inslee (D) and House Democrats in Olympia both want to raise barrel taxes on all beer regardless of whether it is brewed by Anheuser Busch in St. Louis or Seattle brewery Schooner Exact. 

The brewing industry employs about 42,160 people in Washington and brings in about $4.3 billion to the state annually, according to a recent study by the National Beer Wholesalers Association and the Beer Institute. The industry paid approximately $946 million in state taxes in 2012, according to the study.

Breweries that produce fewer than 60,000 barrels per year have until now been getting a $15.50-per-barrel tax exemption on beer sold in Washington state.  Now, small brewers will be tossed in with MillerCoors and Budweiser.

Almost every Washington brewery would see taxes more than quadruple for the beer they sell in the state. Brewers told the Puget Sound Business Journal that is an unfair burden to ask one small industry to bear, and that it will encourage brewers to sell more of their beer in neighboring states where taxes are significantly lower.

If you want to raise the ire of sports fans, raise the costs of a pint by a buck at the ballpark. Guess who they will blame? I'll bet it won't be the guy running the beer stand!  

We'll see if it stays in the final budget as the Legislature winds up its work in the next couple of weeks. If it does, some enterprising signature gatherer may just roll out the petitions to roll off the tax.

Stay tuned!

Don C. Brunell, President (DonB@awb.org)

 

Peterson: Act now on CRC or wait at least 10 years

 

Lynn Peterson, Washington's transportation secretary, speaks Thursday at AWB's Lobby Lunch meeting. Photo: Dan Brunell/AWB

A change in any element of the plan to build a new Interstate 5 crossing over the Columbia River will result in at least a 10-year delay, Lynn Peterson, Washington's new transportation secretary, said Thursday.

That's because removing any element of the proposed Columbia River Crossing  -- such as the controversial light rail line -- will require a new environmental impact statement, Peterson told AWB members at the weekly Lobby Lunch meeting.

The EIS alone would add millions to the cost of the project, Peterson said, and construction costs would likely double during that time.

Her comments came a day after U.S. Transportation Secretary Ray LaHood visited Olympia to lobby state lawmakers on behalf of the project, which has run into opposition from Vancovuer lawmakers who oppose extending light rail from Portland and putting a toll on the crossing.

If Washington state doesn't come up with its $450 million share of the $3.4 billion crossing, hundreds of millions in federal funding earmarked for the project will likely go to other projects LaHood said.

"It's time to fish or cut bait," he said.

Boeing planning $1 billion 787 expansion in Charleston aided by South Carolina legislature's incentives

According to The State, Charleston, SC, The Boeing Co. is expanding in South Carolina and will invest another $1 billion, creating 2,000 new jobs during the next eight years. 

The 787 assembly plant in North Charleston will expand its operations. The first of the new 787s made in South Carolina rolled off the assembly line about a year ago. (Photo courtesy of The State).

"Since 2009, Boeing has invested more than $1 billion in land, facilities, infrastructure, and tooling in South Carolina and today we have more than 6,000 teammates working at the Boeing sites in the state," Boeing's Candy Eslinger told The State today. 

Paving the way for the expansion is a package to incentives the South Carolina Legislature is authorizing to attract The Boeing expansion.  The State reported that House Speaker Bobby Harrell and state Sen. Hugh Leatherman plan to co-sponsor legislation providing $120 million to offset Boeing's upfront expansion costs, like site preparation and utility expenses.

Lawmakers reportedly said  they've been told the company will establish an information technology center creating about 1,000 jobs. The other 1,000 jobs will be comprised of 787 engineers and production employees.

"I think what we're seeing is a whole new phase of building airplanes in South Carolina," Gov. Nikki Haley told the newspaper.

Last year, the Charleston County Aviation Authority began the process of selling 320 acres of land near the North Charleston assembly site.

The agency voted to give Boeing first rights of refusal on nearly 500 more acres, as well as an option to buy another 265 acres. Last year Boeing also bought the South Carolina Research Authority office site near its assembly plant.

"One thing is clear," AWB President Don C. Brunell said.  "States like Utah and South Carolina are doing everything they can to expand their aerospace sector. Boeing and its suppliers like Janicki Industries are their prime targets." 

Earlier this year, Boeing announced it will expand its Utah operations and build the tail section of the 787. Boeing is opening a third plant in Utah.  The Salt Lake City plant will employ 100 paying an average of $65,000 a year and brings Boeing Utah workforce to roughly 700.

Currently, 787s are assembled at Paine Field near Everett and at the North Charleston plant.  As a side note, in the April 12 editorial from The Spokesman Review, Spokane, there was an interesting take on the announcement.

 

todlRead more here: http://www.thestate.com/2013/04/09/2714901/haley-boeing-planning-1-billion.html#storylink=cpy

 

Read more here: http://www.thestate.com/2013/04/09/2714901/haley-boeing-planning-1-billion.html#storylink=cpy

 

Read more here: http://www.thestate.com/2013/04/09/2714901/haley-boeing-planning-1-billion.html#storylink=cpy

Health care costs and uncertainty are top of small business owners' minds--frustration boiling over

In the latest U.S. Chamber of Commerce small business survey, employers across the country say they need certainty.  As for how government call help them, 87% of small business owners are looking for more certainty compared to 5% looking for assistance.

Clearly, 79% of small businesses still think the American economy is off on the wrong track, and 27% lost employees in the last year.

Requirements of the health care law are now the biggest concern for small businesses, having bumped economic uncertainty from the top spot which it has held for the last two years.

Seventy seven present say the health care law will make coverage for their employees more expensive, and 71% say the law makes it harder for them to hire more employees. One third of small businesses plan to reduce hiring as a result of the employer mandate, and 31% will cut back hours to reduce the number of full time employees.

On energy, 77% of small businesses see higher energy prices as an immediate threat to their business, and 80% do not believe the Administration is doing enough to keep gas prices low, increase domestic energy sources, or develop an energy policy that supports American jobs.

With regard to taxes and regulations, eight out of ten small businesses (79%) support comprehensive tax reform and over half (52%) indicated that the tax code should be made less complex. Regarding regulations, 84% say that regulations, restrictions, and taxes negatively impact their ability to do business.

The first quarter, 2013, U.S. Chamber of Commerce Small Business Outlook Survey was conducted online between March 14 – 26 by Harris Interactive among 1,332 small business executives (defined as executive level position in a company with fewer than 500 employees and annual revenue less than $25 M).

AWB members are asked to participate in these quarterly polls as well. 

OFM director: Senate budget is overly optimistic about savings

 

State OFM Director David Schumacher speaking April 4, 2013 at AWB's Lobby Lunch meeting. Photo: Dan Brunell/AWB

The state Senate's proposed 2013-15 budget is overly optimistic about how much money the government can save by becoming more efficient, David Schumacher, director of the state Office of Financial Management, said Thursday.

That budget, which differs substantially from Gov. Jay Inslee's budget proposal, relies on "some heroic savings assumptions" Schumacher told AWB members at the weekly Lobby Lunch gathering.

In fact, Schumacher said he would imagine the roomful of business lobbyists might actually prefer Inslee's budget to the Senate budget.

"This is the type of thing that this group would typically be pretty rough on," Schumacher said in reference to the Senate budget's proposed fund transfers and possibly unrealistic savings projections.

"That said," Schumacher continued, "the way that the governor's budget was able not to make social service cuts or fundamentally change some of those other programs is that he put $1.2 billion in new revenue on the board."

And that's the rub.

It's true that there are parts of the Senate's proposed budget that employers don't support, but it's also true that Inslee's budget proposal would raise more than $1 billion in new tax revenue largely on the backs of employers.

As AWB President Don Brunell noted last week, businesses don't support raising taxes at a time when the economy remains fragile and when the state's tax revenue is projected to grow approximately $2 billion without any increases.

A state House budget proposal is expected sometime next week. Once it's released, three budgets will be in play and leaders can sit down and talk about them with the goal of reaching agreement on a spending plan by April 28, the last day of the 2013 regular legislative session.

Regarding the chances that lawmakers will find a solution before the end of the regular session, Schumacher said, "I'm hopeful, but not optimistic."

STEM focus is right for economy

Richard Davis, president of the Washington Research Council, has an insightful colum today which is published in The Herald (Everett) and The News Tribune (Tacoma) on the need for STEM (science, technology, engineering and math) education. 

Dick talks about the mismatch between the job market and the inability of employers to find skilled and trained workers.  He cites a new report by the Washington Roundtable and the Boston Consulting Group explains the problem, which is the "gap between the skills needed by employers and those possessed by potential employees." Closing that skills gap will create jobs and boosts the economy.

This latest report brings us back to urgency. David writes.  Combining analyses of publicly-available employment and education data with executive interviews, BCG was able to document the economic impact of the skills gap in Washington.

The researchers estimate that the mismatch accounts for 25,000 unfilled jobs in Washington today. They count only those jobs that have been unfilled for more than three months because of a lack of qualified candidates. Of those 25,000 jobs, 80 percent are in STEM (science, technology,engineering, and math) fields or high-demand health care occupations. The shortfall is expected to double by 2017, with the STEM and health care share increasing to 90 percent.

Because filling these jobs generates additional employment demand, BCG calculates that successfully addressing the problem could create an additional 110,000 jobs in 2017. That gain could reduce the
unemployment rate by as much as 1.8 percentage points.

The new jobs would also stimulate economic activity and increase state tax revenues by $720 million annually.

Candidate Inslee: Fund schools with growth

When he was on the campaign trail, Jay Inslee sounded like someone who opposed raising taxes to pay for schools. 

He responded with a "yes" when asked during his first debate with rival gubernatorial candidate Rob McKenna whether he would take the idea of a new, voter-approved school funding source off the table.

And while it's true that Inslee said throughout the campaign that he wanted to close unspecified "tax loopholes," he seemed unequivocal during the AWB-hosted debate in Spokane about his belief that Washington schools should be financed through economic growth.

Now that he is governor, Inslee is proposing to raise $1.22 billion in new revenue for schools largely through the elimination of tax incentives and by making so-called temporary taxes permanent.

Economic growth, which is projected to raise an additional $2 billion in revenue during the next budget period -- without raising taxes -- is barely worth a mention.

Inslee's sales tax proposal not sitting well in Vancouver

From today's The Columbian:

One part of Gov. Jay Inslee's budget proposal — requiring Oregonians to pay retail sales tax when shopping in Washington — isn't sitting well with business leaders in Southwest Washington.  Inslee expects his proposal for out-of-staters to pay Washington sales tax raises $63.7 million in the next two years.

Kelly Parker, president of the Greater Vancouver Chamber of Commerce, said Vancouver niche businesses — such as furniture shops and art galleries — get 25 to 40 percent of their business from Oregon shoppers.

Those Oregon shoppers could become turned off by having to pay a more than 8 percent sales tax on their purchases in Washington, she said.

Under Washington law, shoppers from other states or Canadian provinces are exempt from paying retail sales tax if they live somewhere with a sales tax of 3 percent or less. Qualifying states include Oregon, Montana and Alaska.

Even The Columbian editorial blasted Inslee's proposal to eliminate the out-of-state sales tax exemption.  

The Columbian editors wrote: "We assumed the governor thought more highly of Clark County than that.  Exempting Oregon shoppers from state sales taxes is one of the few arrows in the quiver of Clark County merchants as they struggle against sales-tax-free competitors across the Columbia River."

State Rep. Jim Moeller, D-Vancouver, said he supports the idea of doing away with the sales tax exemption, although he's also in favor of an amendment he says will soften the blow to border communities. That proposal would let Oregonians apply for a sales-tax refund on purchased they make in the Evergreen State.

To get a refund, shoppers would apply online through a process that proves their out-of-state residency. They would only apply once a year for their refunds, and the refunds would have to total at least $25.

Parker said repealing the tax exemption could still create a misconception among the public that they would have to pay sales taxes on vehicles. Oregonians will see a 30-second story on the news about having to pay sales taxes in Washington, and they'll assume that extends to buying a car.

State Rep. Ed Orcutt, R-Kalama and assistant ranking minority member on the House Finance Committee, said removing the sales tax exemption "is going to devastate many of our retailers along the border.  It will have a huge effect on retailers in Southwest Washington."

It is important to remember that our state is projected to have $2 billion in additional revenue from the current tax system over the next two years....that is before Inslee's $1.2 billion tax increase is figured in.

Stay tuned.  The battle over tax increases and the budget is just beginning.

Don C. Brunell, President (DonB@awb.org)

 

 

Inslee's budget and tax breakdown

Richard Davis, executive director of the Washington Research Council, sent an e-mail analysis of Gov. Jay Inslee's proposed 2013-15 state budget and accompanying taxes. 

According to Davis, the headline will be $1.2 billion in increased taxes and a 10.6 percent biennial spending increase.

Meanwhile, AWB President Don Brunell said that while we understand and support Gov. Inslee’s desire to increase funding for education, we do not support raising taxes. Whether it’s called a tax increase or ‘closing a loophole,’ the result is the same: Families and employers pay the government more money.

Inslee was quick to say that "dollar for dollar new revenues go to education," adding that the state had a "civic and moral commitment" to meet its constitutional requirements to fund the schools.

Meanwhile, members of the Senate majority coalition and House Republicans have contended that education is the first responsibility of the Legislature and should be funded first within existing revenues. The governor rejected that argument, saying that recent budgets have left little room for additional cuts in non-education programs and services.

As expected, Inslee proposes making permanent the 2010 temporary taxes on beer and certain business services scheduled to sunset this year. He also proposed extending the beer tax to small breweries. More than $500 million is generated by reducing the value of a number of business tax "preferences" and repealing other exemptions. 

Here's a list of what he targets for a tax hike.

• Limit trade-in exemption to first $10,000 of value
• Repeal sales tax exemption for local residential telephone service (HB 1971) 
• Repeal sales tax exemption for custom computer software
• Trim preferential B&O rates for most industries by 25%
• Repeal sales tax exemption for non-residents
• Repeal sales tax exemption on bottled water
• Repeal use tax exemption for extracted fuel, except hog fuel
• Eliminate preferential tax rate for resellers of prescription drugs
• Repeal B&O tax exemption for long-term rental of commercial real estate 
• Narrow tax exemption for import commerce
• Repeal sales and use tax exemption for farm auction purchases

 

Study, Study, Study: Enough is enough! We've already paid billions in higher electric bills--Why more?

Good grief! 

Now the National Marine Fisheries Service kicked off another process to assess salmon recovery efforts in the Northwest.  According to Northwest RiverPartners, this sounds harmless enough, but, as usual, the devil is in the details, and the timing is downright strange.

To date Northwest families and businesses have spent over $12 to $13 billion on fish and wildlife protection and mitigation measures over the past three decades. That money is collected from our electric utility bills. In recent years, fish and wildlife costs equal about one-third of total BPA power costs.

There are more fish in the Columbia River today than at any time since the first dam was built at Bonneville in 1938. Young salmon are surviving the trip downstream through the eight federal dams at higher levels now than when passing only four dams in the 1970s.

This year early estimates show that young salmon migrating downstream past the eight Snake and Columbia River dams to the ocean had the second highest survival rates since 1999. Salmon numbers have dramatically increased this decade; over 1.5 million adults returned to Bonneville dam in 2011. Many are hatchery fish, but wild populations are trending upward too.

So what's the problem?  Why do we, as electric ratepayers, have to spend millions, perhaps a billion, on a whole new assessment?

Perhaps Congress and President Obama ought to be asking the same question. 

Don C. Brunell, President (DonB@awb.org)

High Court scores one for common sense

Strike a solid blow for common sense!

The U.S. Supreme Court ruled in a 7-1 decision that forest roads are not "point sources" of rainwater pollution and that state-managed best management practices (BMPs), rather than federal permits,
are the best way to regulate rainwater runoff from forest roads.

The decision affirmed longstanding state and federal policy that says rainwater runoff from forest roads is not the same as water discharges from, for example, factories, septic systems, or waste water treatment plants. 

Mark Doumit, executive director of Washington Forest Protection Association (WFPA) said:  "the decision is uplifting because it means that the highest court in the land agrees that Washington's regulatory system of state-managed best management practices (BMPs) works."

"Over the last decade, the state BMP approach has resulted in public and private landowners opening about 5,000 passages for fish and more than 3,200 miles of fish habitat, inventorying more than 57,000 miles of forest roads and investing more than $172 million in environmental stewardship," Doumit added. 

We agree with Mark, a member of AWB's Board of Directors, that what the Supreme Court decided makes common sense - using the same federal permit system that is applied to our country's point sources is not appropriate for our forests.

 .

 

Outdated American immigration laws deporting innovative and creative foreign-born entrepeneurs

 

Too often when we talk about the need to change our antiquated immigration laws, we only focus on jobs in agriculture, restaurants and hotels, but the issue is much larger and encompassing.  For example, our nation's colleges and universities, among the very best on the planet, attract bright young people from around the world to study here.

While they are in the United States studying, many like Danny (featured in the video developed by the American Immigration Lawyers Association) develop their own businesses but had to abandon them here and locate in another country.  Their visas expire.

Before 9-11, many of those talented students completed their bachelors, masters and doctors degrees and stayed in the U.S. working for our government and American companies.  Many, like Danny, even invented their own companies and products. However, today it is harder for them to come to the United States to study and nearly impossible for them to stay here and work.

It is not just Microsoft, Boeing and other large corporations which are having trouble keeping the brightest from around the world here on visas, but look at what is happening to young  creative people.

Immigrant entrepreneurs established 18% of all Fortune 500 companies, which combined have generated $1.7 trillion in annual revenue and currently employ 3.7 million workers worldwide, according to the Partnership for a New American Economy.

Current U.S. immigration laws, however, make it difficult for many immigrant entrepreneurs to contribute to the nation’s growth.  Meanwhile, countries like Canada, China and Chile are welcoming immigrant entrepreneurs with open arms.

President Obama and Congress really need to update our immigration laws to make America more competitive.  The erosion of talent and workers essential to our economy must stop.

Don C. Brunell, President (DonB@awb.org)

Democratic state treasurer says Wash. business taxes are too high

Washington state Treasurer Jim McIntire speaking at the March 21, 2013 Lobby Lunch. Photo: Dan Brunell / AWB

Washington's tax system isn't working for anyone, according to state Treasurer Jim McIntire.

The regressive system over-taxes working families, McIntire said Thursday at AWB's weekly Lobby Lunch gathering, probably to the surprise of no one in the room.

But McIntire said he also believes businesses are over-taxed, a comment that he knew would raise an eyebrow or two.

"You don't often hear a Democrat say we over-tax business, but we do," McIntire said. "I want to be really clear that it's a problem in the state."

Gary Chandler, AWB's vice president of government affairs, asked McIntire to repeat the statement. He did.

And, McIntire said, you can add education and local government to the list of groups that are ill-served by the outmoded tax structure.

The problem, he said, is that Washington's system -- which includes a regressive sales tax, a complicated B&O tax and a property tax -- was created in the 1930s when the state had a goods-based economy.

Washington now has an information-based economy.

Walla Walla Community College named co-winner of Aspen Award

Congratulations to Walla Walla Community College for being named as a co-winner of the 2013 Aspen Insitute College Awards.  Long-time WWCC President Dr. Steve Van Ausdle was presented the award on Monday, March 19, by Dr. Jill Biden, Vice President Joseph Biden's wife. The award presentation was in Washington, D.C.

The two winners, along with the two finalists-with-distinction, were selected from the nation’s more than 1,000 public community colleges and will each receive a $400,000 prize to support their programs.

As the nation’s signature recognition of high achievement and performance in America’s community colleges, the Prize recognizes institutions for outstanding achievement in four areas: student learning outcomes, degree completion, labor market success in securing good jobs after college, and facilitating minority and low-income student success.

According to Aspen, Walla Walla Community College’s greatest strength is developing students for jobs and helping to drive growth in the regional job market. WWCC maintains strong relationships with employers to assess whether what students are learning is aligned to specific job needs.

By adding new programs and trimming others based on which programs will provide the best opportunity for employment and good wages, Walla Walla helps students obtain degrees that translate into genuine opportunity in areas from nursing to wine-making to wind energy.

Aspen went on to say with a majority of its students entering below college-ready standards, Walla Walla has placed a priority on responding to issues that cause students to drop out. The administration and faculty have developed strategies such as mandatory personal, academic and career advising, as well as unique technological tools used to counsel students on program selection and track student progress to a degree.

These programs have led Walla Walla students, many of whom are the first in their family to attend college, to achieve graduation and transfer rates well over the national community college average.

Congratulations to Steve Van Ausdle, our AWB Board Chair Doug Bayne, WWCC foundation director, and all the folks connected with Walla Walla Community College.

Don C. Brunell, President (DonB@awb.org)

Brunell: One-stop tax collection makes sense

Last year, some of the state's larger cities worked together to kill a bill that sought to streamline collection of business and occupation taxes.

They said a centralized system didn't work for them.

The question they failed to ask, AWB President Don Brunell writes in his weekly column, is this: Does it work for the taxpayer?

Of course it does. Giving businesses, particularly small business, a centralized place to pay B&O taxes simply makes sense because it removes bureaucracy that costs time and money.

Seattle City Council President Sally Clark and Bellevue Mayor Conrad Lee are still fighting the measure, which was reintroduced this year. They say a streamlined approach will cost the cities money.

And yet they are proposing to set up their own streamlined collection system.

"If consolidating tax collection doesn't save money," Brunell writes, "then why are they proposing to do just that?"

KING 5 News looks at workers' comp

Jeff Johnson, president of the Washington State Labor Council, is "relatively comfortable" that his allies can kill legislation aimed at heading off $1.1 billion worth of workers' compensation taxes.

That's what he told Allen Schauffler, anyway, during a taping of the KING 5 News program "Inside Politics."

And why wouldn't he be? House Speaker Frank Chopp has reportedly given orders that workers' comp reform bills shouldn't even get a hearing.

But Kris Tefft, AWB's general counsel and government affairs director, noted that Senate Bill 5127 -- the bill that employers are most interested in seeing through this year -- passed out of the Senate with strong bipartisan support before heading to the House.

The bill would give injured workers age 40 or older the option to enter into a voluntary settlement. Currently, the option is limited to workers 55 and older. 

And while it's true that it faces more of an uphill climb in the House, Tefft and Johnson both agreed that the issue could end up surfacing late in the session as an end-game issue.

It's starting to sound like 2011 all over again.

Washington wines growing in prominence

March is Wine Month in Washington.

In Sunday's Seattle Times, business writer Jon Talton wrote an excellent column on our state's growing wine industry---growing in size, stature and importance to Washington's economy. 

Between Talton and Jason Hagey's story in last summer's Washington Business Magazine on our viticulture industry, you get a good overview on our state's wine industry which is second only to U.S. front-runner, California.

Talton and Hagey are gifted writers. As they point out California produced 3.6 million tons of wine grapes in 2010 compared with Washington’s 160,000 tons. The Golden State corked 606 million gallons versus 25 million gallons here.

In 1981, the state had 19 wineries. In 1983, the Yakima Valley was the first area in the state  to be certified by the federal government as an American Viticultural Area. A year later, the Walla Walla and Columbia valleys won this designation.

By 2011, that had grown to some 750 wineries and 11 certified-viticultural areas. While Woodinville is a big wine-tourism destination because of its proximity to Seattle, most of the industry lies east of the Cascades. The majority of the state’s grapes are grown in the Columbia Valley.

The mere fact that more folks are writing about Washington's wines and our wine industry is in itself a testament to its growing success. So uncork a bottle of Washington wine and toast our success. 

Remembering Booth Gardner

Booth Gardner cared about people.  He cared about doing what was right.  Booth Gardner cared about our state's citizens.  He made tough decisions based on what he thought was the best for his Washington.

Booth Gardner, 76, died after a long and painful fight with crippling Parkinson.

I have fond memories of Booth Gardner and always considered him a friend, especially after he left office. 

When he was elected in 1984, I worked for Crown Zellerbach and we had supported Gov. John Spellman (R) for re-election.  Booth won, but there was not a vindictive bone in his body.  To Booth--the election was the election, but when the election was over, it was time to govern.

In 1986, my first year at the Association of Washington Business, the legislature passed hotly debated and very divisive liability insurance (or tort) reform bill.  The bill was the backbone of our 1986 legislative agenda and much needed. Plaintiff attorneys vigorously opposed the legislation, while a coalition of business, local governments, schools, hospitals, doctors and insurance carriers supported the reforms.  It came down to Booth Gardner to either sign or veto the bill.  Key Democrat legislative leaders, politicians from his own party, pressured him to veto the bill. 

Gardner set up a series of meetings.  He called me into his office for one of those meetings. He asked me point blank why he should sign the bill.  My response was "Governor, it is the right thing to do!  We need to find a way to make liability insurance more affordable and available and this bill does that!"

Later that night, he signed the entire bill after listening to all sides and  stewing over the decision for days. His signature angered some of his strongest election supporters. 

Then in 2005, Gardner and I hit the road doing a series of editorial boards stumping for federal class action lawsuit reform.  At the time, he was beginning to feel the effects of Parkinson. It was a tough road trip for him.  I was amazed at how captivating he was with his arguments and logic.  On the fun side, we both loved hamburgers and he knew where the best hamburger places were.  We tried them all.  In a way it was like his swan song, barnstorming tour of the state and he loved it.

Gardner always spoke at our Policy Summit and Legislative Day.  I remember greeting him at the door and he'd pull me aside and asked:  "So, Brunell, how many of these folks do you suppose voted for me?"  My response always was "more than you think!"

Booth Gardner had a great sense of humor in a humbling way.  When Gardner first called our house one night, one of our young children answered the phone and then yelled: "Dad--There is some guy named BOOOF who wants to talk to you!"  We'd always get a good laugh out of that one.

Booth Gardner loved people and they loved him.  He would often stop by our office just to say hello, even when Governor.  You always knew when he'd walk through the door because his infectious smile and vibrant personality brightened up the place.  You could hear him ask:  "Does Don Brunell still work here?  Is he treating you right!" 

Booth Gardner was one of the most disarming people I've met.  I actually believe he could have talked Bonnie and Clyde out of an armed robbery and make them feel like they'd done the right thing handing over the "tommy guns" and getting arrested.

While Parkinson finally took his life, nothing can erase his legacy as Governor or his wonderful way with people.  God Speed, Booth Gardner.....May you rest in peace and without any more pain and suffering.

Don C. Brunell, President (DonB@awb.org)

 Special thanks to the Associated Press and Seattle Times for the Booth Gardner photos!

 

Brunell: Grassroots momentum growing for immigration reform

Train of copper ore cars leaving the mines in Butte, Mont. for the smelter at Anaconda. Photo: Library of Congress/Russell Lee

AWB President Don Brunell, writing about the growing momentum for immigration reform, describes his own family's experience decades ago as immigrants from England, France, Ireland and Germany settling in Montana to mine copper.

"Without the foreign miners, the copper mines would not have thrived, and the descendants of those miners would not have gone on to become doctors, engineers, teachers, electricians, shop owners and civic leaders," Brunell writes.

Today, immigrants are playing a major role in Washington's economy, particularly in agriculture where immigrant workers often take jobs that citizen's won't.

That's one reason why Brunell went to Yakima last week to sign the Washington Compact, a set of guidelines that a coalition of community, faith, business and law enforcement groups want Congress to consider as lawmakers take up the issue of immigration reform.

Previous attempts to reform the system have failed, Brunell noted. And questions remain for Congress and President Obama to answer about how, exactly, it would work.

"But they need to buckle down and act this year," Brunell writes.

FAA gives greenlight to test 787 battery fix

From The Seattle Times:

The Federal Aviation Administration on Tuesday approved Boeing’s certification and testing plan for the redesigned 787 Dreamliner battery system, which chief executive Jim McNerney called “a critical and welcome milestone toward getting the fleet flying again.”

The fix includes a completely redesigned battery.

Boeing acknowledged it’s just the first step in a process of “extensive testing and analysis,” including flight tests by two designated 787s. Leading industry figures, while they expressed confidence in Boeing’s fix, said that even once the FAA clears the planes for service, getting the 50 grounded Dreamliners operational again and resuming the delayed deliveries could take months.

Let's hope all goes well.  Our state and region has much to gain by returning Boeing 787 to the skies.

Don C. Brunell, President

Lack of money isn't what ails state budget, Baumgartner says

Sen Michael Baumgartner (R - Spokane) addressing the crowd at AWB's Mar. 7, 2013 lobby lunch. Photo: Dan Brunell / AWB

Washington state will have approximately 7 percent more money to spend in the next two-year budget than it had in its last budget, Sen. Michael Baumgartner, vice chairman of the Senate Ways & Means Committee, said Thursday at AWB's weekly Lobby Lunch meeting.

Many businesses would be pleased with that kind of growth, Baumgartner said.

But not state government.

Despite the growth in revenue, lawmakers could still be about $2 billion short of the amount they would like to spend.

And that, Baumgartner said, is the problem.

"It just speaks to the challenges of how our state government has grown and what this edifice has become and how it decides to spend money that even at a time when we have $2 billion more than we had -- that we spent -- last biennium, we're looking at a budget that on the books is probably $2 billion short of what some folks would like to spend," he said.

What's wrong with hearing workers' comp bills?

The idea apparently spooks House Speaker Frank Chopp, who has made it clear to House Labor & Workforce Development Chairman Mike Sells, D-Everett, that it shouldn't happen.

Sells, speaking at a labor forum, initially said that it doesn't make sense to give a hearing to the workers' compensation reform bills approved last month by the Senate because Gov. Jay Inslee is "with us," according to News Tribune reporter Jordan Schrader's Twitter timeline:

— Jordan Schrader (@Jordan_Schrader) March 7, 2013

Then, in case it wasn't clear that Sells wasn't making the call himself, he removed any doubt and said that it was Chopp and House Majority Leader Pat Sullivan, according to Schrader.

Sells underlines on workers comp: "The leadership has actually said to me, don't hear those bills," citing Chopp & Sullivan. #waleg

— Jordan Schrader (@Jordan_Schrader) March 7, 2013

The reluctance to make any changes to Washington's high-cost, high-benefit workers' comp system -- even relatively minor tweaks -- is reminiscent of the argument that took place two years ago.

In that case, reformers prevailed and managed to pass two important reform bills.

AWB offers support for immigration reform

AWB President Don Brunell offers the association's support of immigration reform at the Washington Compact press conference in Yakima.
Photo: Dan Brunell / AWB

AWB has joined a broad coalition of community, faith, law enforcement and business groups in calling on Congress to pass comprehensive immirgation reform this year.

Under the collective banner of the Washington Compact, the group announced its statewide effort at a press conference Tuesday in Yakima. The compact follows on the heels of similar pacts signed by several other states, incuding Utah, Iowa, Indiana, Colorado and Texas.

"The Washington Compact is not a proposed bill," said Mike Gempler, executive director of the Washington Growers League. "It's a set of principles that we hope Congress will consider."

The principles outlined in the Washington Compact were designed as guidelines for Congress in resolving the issue. The five principles include:

1. IMMIGRATION: Urging Washington's congressional delegation to strengthen federal laws, protect the nation's borders and create a new immigration proces that creates a fair path to legal status for those without documentation;
2. LAW ENFORCEMENT: Local law enforcement resources should focus on criminal activities, not civil violations of federal code;
3. FAMILIES: The compact opposes policies that unnecessarily separate families;
4. ECONOMY: Acknowledge the economic role immigrants play as workers and taxpayers in the U.S. and Washington state; and
5. A FREE SOCIETY: Adopt a humane approach to the realities of immigration and create policies that reflect our society's core belief of inclusion.

Brunell: People helping people

With unemployment still high and the federal government poised to cut assistance programs as part of "sequestration," AWB President Don Brunell writes in his weekly column about the founding of Rotary First Harvest.

The program, which began in the early '80s during another difficult time, took off and now supplies food banks with 11 million pounds of produce per year.

It's is a good example of people and businesses banding together to help people, rather than relying on government. As the nation begins to grapple with its debt, that's something that will become increasingly important.

"In the end, maybe families helping families and neighbors helping neighbors will revitalize our country and give new meaning to the term 'service above self,'" Brunell writes. 

Lobby Lunch: Is transportation package and DOT reform either-or proposition?

Rep. Judy Clibborn (D - Mercer Island) speaks to the AWB lobby lunch crowd on transportation issues as Sen. Doug Ericksen (R - Ferndale) looks on. Photo: AWB / Dan Brunell

Before she formally announced her $9.8 billion transportation funding proposal, House Transportation Chairwoman Judy Clibborn, D-Mercer Island, said she was hearing from all sides that it wasn't large enough.

Business, labor, and environmental groups all wanted more, Clibborn said Thursday at AWB's weekly Lobby Lunch meeting. But they all wanted more of different things.

After the proposal was unveiled, and the public found out that it included a 10-cent-per-gallon gas tax hike, the discussion changed.

"One of the reasons I wanted to roll it out is have the public say '10 cents! Oh my God!'" Clibborn said. "So now we're tempering our conversation around 'What can you really do?"

The public reaction may have brought the talk back to earth in Clibborn's view, but it was clear that Republicans see it differently.

Rep. Ed Orcutt, R-Kalama, said the reaction from his constituents has been, "Oh my God, no!"

Supreme Court delivers 'sharp rebuke' to voters on tax limit

Yes. Yes. Yes. Yes. Yes.

Five times, Washington voters gave their approval to measures requiring a two-thirds vote of the state Legislature to raise taxes.

One time, a majority of nine state Supreme Court justices said "no," issuing a 6-3 ruling today that overturns Initiative 1053, the two-thirds tax measure that voters approved by nearly 64 percent in 2010.

And that's the opinion that prevails, at least for now.

The irony in the decision was not lost on Justice James Johnson who wrote in his dissenting opinion that the court's majority members claimed a "fear of tyrannical minority control" as a result of the two-thirds threshold.

And yet through a single decision, "a court of nine people (actually only six votes) is imposing their policy preferences over that of the 1,575,655 voters who passed Initiative 1053 and the millions who qualified and passed similar tax protections."

If the irony is noteworthy, so too is the fact that the court decided even to take up the issue.

Justice Charles Johnson observed in his written dissent that by doing so, the court had abandoned its longheld practice of staying above the political fray.

Support for Obamacare plunging among President's backers

As we get closer to the full implementation of the Affordable Care Act, the latest Kaiser Family Foundation public opinion poll finds that support for Obamacare is falling like a rock among Democrats.

More Americans hold an unfavorable view of President Obama’s Patient Protection and Affordable Care Act, and Democrats are among the opponents of the law, according to a new poll.

Less than a year before the PPACA takes full effect, Kaiser Family Foundation’s latest tracking survey finds that opponents of the law outnumber supporters (42 to 36 percent). Kaiser says the seven percentage point drop in favorability is “driven primarily by a post‐election fade in support among Democrats.” 

Democratic support has taken a big dip, dropping 15 points since November. The share of Democrats backing the law dropped from 72 percent in November to 57 percent. 

Most Americans (45 percent) say they have based their impression of the law mainly on what they’ve seen in the media, while 22 percent say their own experience has been the primary driver of opinion and 14 percent say their views are primarily based on what they’ve learned from friends and family.

 

 

Brunell: Association health plans work

They weren't part of his original plan, but association health plans -- which came about as a result of Gov. Mike Lowry's failed first attempt -- have turned out to be a huge success, AWB President Don Brunell writes in his weekly column.

They cover an estimated 500,000 people in Washington, nearly half of whom were previously uninsured because their employer could not afford coverage, he writes.

And yet the plans are now in jeopardy, Brunell writes, because state Insurance Commissioner Mike Keridler insists on imposing restrictions that go far beyond those called for in the federal health care law -- even though his agency admits it has no authority to do so.

"Rather than eliminate (association health plans) because they don't net as much premium tax revenue, we should keep them so small businesses can afford to grow and hire people," Brunell writes. "In the end, the state will net far more revenue that way."

Video Rewind: Rodney Tom, Ann Rivers and Richard DeBolt

Last week, our weekly Lobby Lunch series featured Senate Majority Leader Rodney Tom, D-Medina, Sen. Ann Rivers, R-La Center, and Rep. Richard DeBolt, R-Chehalis.

Transportation figured prominently in the discussion, which came the day after Rep. Judy Clibborn, D-Mercer Island, unveiled a $10 billion transportation funding proposal.

Also, as noted in a previous blog post, Tom suggested that Gov. Jay Inslee's choice to lead the state Department of Transportation may encounter a difficult confirmation hearing.

Here are some video highlights of the rest of the meeting, starting with DeBolt's observations about the 2013 session so far -- a session that he believes sees a "chasm of philosophies" in the House of Representatives that's as deep as he's ever seen.

Boeing launches website to provide updates on 787 battery

Want to know the latest information regarding Boeing and the current 787 situation?

Boeing has made it easy to follow the issue by launching a new website equipped with information and status updates as the company works through a recent technical challenge on its 787 Dreamliner.

The investigation into two incidents continues by authorities in the U.S. and Japan, with focus on the airplane's batteries and electrical system. The site provides information about these critical systems, the company's internal processes and its work with regulatory authorities to ensure airplane safety and performance.

It features weekly updates, links to the latest company statements, and detailed information about the airplane's systems, including video and infographics.

Find it at 787updates.newairplane.com.

Lawmakers about to find out why Frank Luntz calls Pete Carroll 'the best' motivator

Photo by @rodmarphoto via Instagram

If Frank Luntz is correct, Washington lawmakers are about to get the pep talk of their lives.

Pete Carroll, head coach of the Seattle Seahawks, is coming to Olympia this week to meet with Gov. Jay Inslee and members of the state House and Senate, TVW reported this morning. Carroll's schedule includes a speech on the Senate floor at 11:15 a.m.

Luntz, who is best known for his work in politics, thinks Carroll is a master motivator and the best in the business.

"He's the best communicator in pro football," Luntz told Washington Business magazine for a Q&A published last fall. "Nobody holds a candle to Pete Carroll when it comes to relating to people and motivating them, and getting them excited and passionate about what they do. Carroll is the best."

In addition to his work in politics, Luntz advises corporate clients -- including pro sports teams -- about communication. His client list last year included 17 pro sports teams.

Washington wines finding new markets, fans in Hong Kong

As it turns out, that nice glass of Washington state cabernet sauvignon on your table might also be on the table of a consumer in mainland China or Hong Kong.

U.S wines -- especially those from Oregon and Washington -- are increasingly popular in Hong Kong and neighboring mainland China. And with any luck, they'll gain even more traction thanks to special meetings like the one held earlier this week at AWB.

Joining AWB President Don Brunell for lunch Tuesday were Hong Kong Commisioner Donald C K Tong, along with Hong Kong Economic & Trade Office Director Subrina Chow (L), Deputy Director Wendy Au and Barnard Griffin Winery Co-Owner Deborah Barnard.

U.S. wine, particularly Oregon and Washington wine products, are highly regarded in Hong Kong and China. Consider that in 2008, Hong Kong imported just $9 million worth of U.S. wine, but in 2011, that figure jumped to $75 million.The market dipped slightly last year -- just $67 million -- but Tong says this was a temporary fluctuation.

With about 7 million people, many of whom thirst for quality wines, Hong Kong represents an exciting new market for the state's wine community. The U.S. is currently the third largest wine exporter to Hong Kong. Red wines account for 96 percent of all wine sales in the one of the world's leading financial centers, according to Tong, and 81 percent of all wines sold in Hong Kong stay in Hong Kong. The rest find their way to mainland China.   

Wines are primarily purchased by Hong Kong consumers through supermarkets, specialty stores and restaurants. And since Hong Kong is also known for its multicourse meals, Tong said, that's "good news for the wine business."  

Tong noted two key advantages for Washington wineries exporting into Hong Kong. First, a 2010 wine memorandum of understanding with Washington and Oregon encourages wine-related trading, tourism, investment and education between the Special Administrative Region of China and the two U.S. states. Hong Kong's

Hong Kong also has an agreement with Chinese customs that ensures that products shipped into Hong Kong bound for mainland China are distributed within one to seven working days. Hong Kong has a specific memorandum of understanding with China on wine, giving the country a free trade pact with the mainland.

"We would like to see more Washington wine in Hong Kong," said Tong, a sentiment many AWB member wineries, like Barnard Griffin, would gladly cheer.

Lobby Lunch: Transportation secretary pick won't receive a rubber stamp

Sen. Rodney Tom, D - Medina, speaking at the Feb. 21, 2013 AWB Lobby Lunch. Photo: Dan Brunell / AWB

Lynn Peterson, the Oregon highway engineer chosen by Gov. Jay Inslee to lead Washington's Department of Transportation, won't necessarily cruise into the position, Senate Majority Leader Rodney Tom suggested Thursday at AWB's weekly Lobby Lunch meeting.

"You will see a confirmation hearing that is not a rubber stamp," Tom, D-Medina, said in response to a question from Larry Ehl, publisher of Transportation Issues Daily.

Peterson is known as an advocate for public transit and her selection has raised concern among those who believe Washington's economic health requires investment in things like highways, bridges and ports.

Tom said he wants to learn more about her background and her vision for the job.

"If the sole focus is on carbon reduction, that's probably not going to work as transportation secretary," he said, noting that the position has wide-ranging responsibilities and requires somebody who can take a "balanced approach."

That's particularly important, Tom said, if lawmakers hope to pass a major transportation funding package this year.

How the Legislature can help Obama keep his health insurance pledge

There's still plenty of confusion and uncertainty surrounding the implementation of the Affordable Care Act, but President Obama was crystal clear about one point: "If you like your health care plan, you can keep your health care plan."

The president repeated the line many times during the debate leading up to passage of his controversial health care law, and now the Washington Legislature can help him keep the promise by passing a bill aimed at preserving association health plans.

Substitute Senate Bill 5605, sponsored by a bipartisan group of four senators, proposes simply to allow association health plans to continue operating under existing rules while their operators work with the U.S. Department of Labor to confirm that they continue to meet certain criteria.

As AWB's Matt Canedy explained Tuesday during testimony before the Senate Health Care Committee, association health plans have historically been regulated as large groups. Operating under those rules, the plans have grown over the years and become an important part of the state's health insurance market.

The Association of Washington Business operates one such plan, HealthChoice, that now extends coverage to 4,000 employers and covers approximately 40,000 people, many of whom lacked coverage before.

But the ability to continue providing coverage is now in jeopardy because of the way the state insurance commissioner's office is interpreting the law.

Brunell: A hydropower renaissance

 

The Grand Coulee Dam in 1942/Photo: U.S. Bureau of Reclamation

Decades after the "Eighth Wonder of the Modern World" -- the Grand Coulee Dam -- was completed in 1942, the world is experiencing a boom in construction of new hydroelectric dams, AWB President Don Brunell writes in his weekly column.

From China's gargantuan Three Gorges project, with triple the power generation of Grand Coulee, to Peru's plans for harnessing the power of the Amazon river, world leaders are recognizing the value of clean, efficient hydropower.

The Laotian government is proposing a network of 11 dams on the lower Mekong River, similar to our Columbia and Snake River hydro network complete with a mammoth and controversial 1,260 megawatt dam on the lower reaches of the river.

Unlike the controversial Xayaburi proposal in Laos and China's Three Gorges dams, the Columbia and Snake River network did not cover millions of acres of farmlands and forest or displace millions of people, Brunell writes.

"We should realize that we have what the rest of the world is seeking: a reliable source of clean, affordable renewable energy."

Video Rewind: Democratic Caucus leaders deliver Valentine's Lobby Lunch remarks

Our Valentine's edition of Lobby Lunch featured guests from the House and Senate Democratic Caucuses: Sens. David Frockt, D-Seattle, and Nick Harper, D-Everett, and Reps. Jim Moeller, D-Vancouver, Tami Green, D-Lakewood, and Kevin Van De Wege, D-Sequim.

Our blog post on the meeting focused on Moeller's comments regarding transportation, a subject that will be in the news this week if Rep. Judy Clibborn, D-Mercer Island, releases a funding proposal on Wednesday as expected.

But the legislators also touched on education, health care, and Gov. Jay Inslee's jobs plan.

Check out the full video below:

2013 Lobby Lunch Series: House and Senate Democratic Caucuses. from Association of WA Business on Vimeo.

Lobby Lunch: No need to fight over transportation dollars

Rep. Jim Moeller, D - Vancouver, addresses the crowd at AWB's Feb. 14 Lobby Lunch as Sen. Nick Harper, D - Everett, looks on. Photo: Dan Brunell / AWB

State Rep. Judy Clibborn, chairwoman of the House Transportation Committee, will be rolling out a major transportation tax package next week -- or possibly the following week -- Rep. Jim Moeller, D-Vancouver, said Thursday at AWB's weekly Lobby Lunch meeting.

And once it's out there, Moeller made it clear that he wants lawmakers line up to support it, rather than bickering about which parts of the state stand to benefit the most from it.

"There's no need to fight over who gets what," Moeller said, adding that the future of Washington's economy depends on a vibrant transportation network.

Joining Moeller at the luncheon were Sens. David Frockt, D-Seattle, and Nick Harper, D-Everett, and fellow Reps. Tami Green, D-Lakewood, and Kevin Van De Wege, D-Sequim.

One of Moeller's main interests with regard to transportation is the planned replacement of the Interstate 5 bridge over the Columbia River.

The so-called Columbia River Crossing project is expected to be one of several "mega projects" included in Clibborn's tax package, along with money for a new Highway 520 floating bridge, Spokane's north-south freeway and Highway 167 in Pierce County.

The proposal is expected to come out next Wednesday, although Moeller hinted at a possible delay, saying it would come "next week or the week following."