Coalition of Washington Business Organizations (COWBO) holds meeting on state budget By Jan Teague, President/CEO
Each year the major association CEOs and their Government Affairs staffs get together to discuss legislative issues including the state budget. At the meeting this week, Arun Raha, Executive Director of the state Economic and Revenue Forecast Council, gave a chilling overview of the state of the economy. He said we have had the longest recession since the Great Depression. He expects construction to remain low through 2010 and retail to have some recovery in the middle of 2009.
There is a problem with trying to make a calculated guess on how long the recovery will take. There is no model to use since our situation is unprecedented. There continues to be a decline in home values which is a major problem holding people back from buying. People have money, but they just are not spending it. It was not a good report other than to know that the Governor expects that the Federal Government will give the state $1 billion dollars, but nothing is confirmed. Foreclosures and unemployment are not as high as other states, and people's incomes are rising. But consumer sentiment is at the lowest it has ever been. Raha also said that the snow will definitely mean that Christmas sales tax receipts will be lower than projected, impacting the budget even more.
The COWBO group members briefed each other on their top concerns and all seemed to agree that the main issue is for the Legislature not to take any steps that might raise costs on business. At the same time, we agreed that if we were going to be successful at resolving the significant state budget shortfall (likely to top $6 billion), we needed to problem solve with the Legislature.
There was grave concern among the attendees that some in the Legislature will not sit back and wait on issues that have been on the table for a number of years. Climate change is expected to be one major issue with the likelihood of being expensive to implement. Paid family leave which passed in 2007 will have advocates for a funding source since it will go into effect this fall, and sales tax on services is expected to be advanced as one solution for the budget shortfall. Other cost burdens are likely to get hearings, but hopefully will be held up for a better economic reality.
The COWBO group hopes to be more engaged with legislators this session by providing facts at hearings and testifying on key budget issues. The COWBO group will be meeting weekly during session to communicate and coordinate.
Minimum wage increases cost jobs, hours, studies show
Today's Vancouver Sun carries an opinion piece concluding that increases to the minimum wage cost younger workers job opportunities and hours.
"Increases in the minimum wage come with serious negative costs, particularly for those workers it is intended to help," concludes economist Niels Veldhuis of the Fraser Institute.
Veldhuis cites a review of 100 studies covering 20 countries over a 15-year period that concluded that wage increases result in decreases in employment.
The British Columbia Federation of Labour has been urging a 25 percent hike in the province's minimum wage, from $8 to $10. Veldhuis concludes such a hike would eliminate between 11,000 and 52,000 jobs for workers aged 15 to 24 in British Columbia.
At $8.55, Washington State's minimum wage is the highest in the U.S.
The Washington Retail Association has proposed that the Legislature approve future minimum wage increases and the elimination of the annual inflator. WRA also favors a lower "training wage" for the first 90 days of employment and a state study of the impacts of Washington maintaining the nation's highest minimum wage.
To read the full Vancouver Sun story on the minimum wage, click here.
Source: Vancouver Sun
Legislative session starts on Monday
A scheduled 105-day session of the Washington Legislature begins on Monday with debate over a growing state revenue shortfall expected to dominate the proceedings.
Legislators this week were predicting the state's revenue shortfall heading into the biennial budget period could top $6 billion. The shortfall has resulted from government spending and the slowdown of the state and national economies.
The Washington Retail Association looks forward to working with legislators to represent the interests of the state's retailers in controlling spending and avoiding new costs for retailers struggling in the current recession.
The association's Top 10 list of issues in priority order are:
1. Tax increases, and the need to avoid them. 2. Union organizing, or defeating a union proposal to approve workplace organizing without a vote of the workers. 3. Protecting workers' compensation retrospective rating programs from any legislative proposals that would change the way they operate. 4. Reform of unemployment insurance to comply with federal law. 5. Holding constant the felony theft limit for organized retail theft unless a retail theft task force and a special organized retail theft prosecutor are approved. 6. Opposing a mandated health care plan, or a so-called "pay or play" health care system. 7. Relief from the state's current $8.55-an-hour minimum wage, the nation's highest. 8. Health care affordability. WRA urges efficiencies and the use of technology to hold down premium costs. 9. Product stewardship. WRA supports manufacturer or producer responsibility and voluntary take backs of products where companies have the space and ability to do so. 10.Greenhouse gas/carbon reduction. WRA will participate with the business community on realistic efforts that do not harm the economy to curtail greenhouse gas emissions.
For further information on these issues, contact the WRA's Mark Johnson, Vice President Government Affairs, at 360-943-9198, Extension 15; 360-704-0048 cellular; or at mark.johnson@retailassociation.org.
Rep. Bill Grant dies
Rep. Bill Grant (D-Walla Walla) died on Sunday about a month after he was diagnosed with lung cancer. He was 71.
The 22-year Legislature veteran served as the House Democrats' caucus chairman, presiding over House Democratic Caucus meetings. He won re-election to serve the 16th Legislative district last November.
Grant, a fourth-generation wheat farmer, came down with pneumonia before dying Sunday at a Walla Walla hospital.
He was the second state legislator to die in the recent one-week period. Rep. Steve Hailey, (R-Mesa) died of colon cancer on Dec. 28.
Mark Johnson, WRA's Vice President Government Affairs, commented on Grant's passing.
"WRA will miss working with Representative Grant," Johnson said. "He was a no nonsense straight shooter who wasn't afraid to speak his mind and stick by his convictions. The state has lost a tremendous leader."
Sen. Mike Hewitt, the Senate Republican leader who served with Grant in the 16th district, issued this statement:
"I am deeply saddened by the passing of Bill Grant. As my House seatmate, Bill was someone I could work closely with on issues that helped the people of the 16th District. As my friend, Bill was someone I could count on personally. Bill was a true statesman and represented our district very well, especially in the area of agriculture. My thoughts and prayers, as well as those of the members of my caucus, are with Bill's family today. He will be sorely missed."
Sources: The Olympian, Walla Walla Union Bulletin
Capitol Record blog debuts
TVW this week launched The Capitol Record, a new blog covering the Legislature, courts and state agencies.
To read the blog, go to capitolrecord.org. Niki Sullivan, who covered state government for The Associated Press in Oregon and The News Tribune in Washington, writes the blog. She also is producer of Legislative Review, TVW's daily show about the state Legislature.
The blog promises to provide links to the Legislature where citizens may submit comments to their elected representatives. The first link it offered was leg.wa.gov/legislature for contact information.
Source: TVW
Weather, traffic alerts on the Internet
State government Websites can be helpful to commuters worried about traffic conditions due to winter weather.
Three Department of Transportation sites are particularly helpful.
The E-Cycle Washington program has begun around the state.
As a result, households, small businesses, schools and school districts, small governments, special purpose districts and nonprofits and charities can recycle electronic products free of charge at collection sites around the state.
Eligible items for recycling include televisions, computers (portable or laptops) and computer monitors. Peripherals such as keyboards, mice and printers are not included in the program.
The program, financed by the product manufacturers, includes more than 200 collection sites in every county in the state and city or town with more than 10,000 in population.
To find a drop off center near you, either call 1-800-RECYCLE or visit ecyclewashington.org.
Source: Department of Ecology
WRA Website adds new features
If you haven't visited the Washington Retail Association's Website recently, please take another look.
We're putting more information onto the site more frequently as we near the next Legislative session. The quicker pace of additions to the site will continue through the next session and beyond.
A new right-hand column on the homepage now includes periodic video and audio updates on important issues, recent news developments of importance to retailers and several Internal Revenue Service business-related links to help retailers prepare for the upcoming tax season.
Our hope is that WRA members and the public at large will increasingly rely on the Website to keep abreast as issues related to retailers and their well-being surface or change.
And, of course, we invite your feedback and suggestions.
Please contact Jim Szymanski, Director of Public Affairs, with any thoughts you have regarding the additions to the site or further changes you believe might be useful. You can reach Jim either at 360-943-9198, Extension 12 or at jim.szymanski@retailassociation.org.
The Washington Retail Association, WRA, is a 501 C 6 trade association formed to advocate for Washington State’s retailers at the local, state and national level. Since 1987, the WRA has protected Washington's retailers from unreasonable taxes, fees, regulations and legislation. The efforts of the WRA benefit all Washington state retailers and help fuel statewide economic growth.
