Local governments ask House Committee for more taxing authority By Jan Teague, President/CEO
Representatives of the Local Government & Housing Committee heard from city and county lobbyists this week on the need to free up restrictions on the use of tax funds. They explained that their expenses are largely fixed by court costs, binding arbitration and planning costs related to complying with state mandates. They pointed out that counties only get 17 cents of every dollar collected for property tax and cities get 13 cents. Their high areas of need included infrastructure, public safety and health costs.
In summary:
*Both cities and counties want new authority to impose utility taxes. No bills have been introduced yet, but a number of them are anticipated.
*The counties would like flexible authority for the use of real estate excise taxes so they can broaden how the money gets used.
*Now that budgets are being cut, they want to use funds coming from the state for obesity education, child vaccinations, and communicable diseases to instead fund HIV coordination, family planning, and the WIC program.
*Counties want County Commissioners to have the authority to shift the 0.3% sales tax into public safety.
As I considered the idea of allowing local governments more flexibility, it occurred to me how the history of these local taxes evolves incrementally with full discussions in the Legislature for every new taxing authority authorized or every grant given to local government for a special purpose. Now they want to cannibalize years of public discussions to fund territorial preferences rather than statewide public policy priorities such as obesity education or child vaccinations.
In the long run, this is an erosion of the state's guardianship for limiting local government tax increases and the Legislature's decision making on how to use the state's general fund money to improve high state priority issues, whether that be in the area of health, transportation or other public services.
I think that shifting authority for how taxes or grants are used will increase taxes as new leaders will forget the reasons for the shift, but not the need for such issues as obesity education, child vaccinations and communicable diseases. In other words, there will be new taxing authority, new grants, and more dollars given to local governments that got funds moved around during the recession. It will soon be forgotten when the economy bounces back.
From a nuts and bolts utility tax perspective, it seems like business as usual. Never mind that the economy is in the tank. Local governments want more money from a new source of taxing. It is a great disappointment that local government representatives are bringing this to the Legislature. It would certainly impact retailers, many of whom are having trouble paying their existing B & O tax and other current taxing obligations. Let's hope these bills fail to pass.
Legislature hears bill on light pollution By Mark Johnson, VP Government Affairs
On January 15 the House Local Government and Housing Committee heard testimony on House Bill 1069, restricting light pollution. You may ask, what is "light pollution" and why is it a problem?
I had the duty of listening to the testimony and then weighing in on behalf of Washington's retailers. Light pollution, also described in the bill as "sky glow", is caused by outdoor lights that emit light upward and not strictly downward. This causes problems for people who want to look at the stars and also contributes to carbon emissions and greenhouse gases.
The solution proposed is to have all new construction beginning in 2010 use more expensive fully "shielded" lights that also use less power and cut down on greenhouse gases released into the environment and to require all existing lighting after 2020 to meet the new standards and include timers, dimmers and sensors.
I made the case that retailers need lights to advertise their stores, to make their parking lots safer and to cut down on criminal activity, among other things. I also made the point that right now retailers are struggling to make ends meet and can't afford to increase their operating costs. My testimony was received with nods of agreement from many of the committee members.
However, the witness who probably put the nail in the coffin so to speak was the Seattle Mariners' representative. He testified in opposition to the bill on how it wouldn't work for the Mariners' Safeco Field and that it would be even a greater problem for smaller minor league teams. One of the committee members quipped that if the Mariners don't like, he was voting no.
Adding to the list of opponents were cities and local recreation programs that depend on lights for their ball fields and safety at parks.
This bill highlights some of the interesting ideas that are being proposed in this Legislative Session.
It's time we turn out the lights on the light pollution bill.
L&I proposes changes to injured worker exam procedures
The Department of Labor and Industries has proposed rule changes that would limit the number of examiners able to perform medical examinations for Washington injured workers. With the already current lag in the system, L&I has proposed changes that would require doctors to have 384 hours of patient-related services (excluding independent medical exams).
The proposal is a directive from trial attorneys that has no valid relationship to the results of an examination. Tammie Hetrick, Vice President of Retail Services for the Washington Retail Association, has been working on a committee to improve independent medical exams.
"We realized there were areas that needed improvement, most importantly the way the worker is treated during an examination and the time a doctor spends with the worker thoroughly going through their history," Hetrick said. "We also agreed that the records Labor and Industries provides to those doctors needed to be improved and provided to the doctor in some type of order so they were easy to follow and understand the history. However, we never received evidence that supported the fact that a doctor must have some form of active practice or patient related services ongoing to provide quality independent medical examinations."
Currently, a significant portion of the independent examinations are performed by doctors who no longer have an active practice and are able to devote more time to these examinations. By requiring these doctors to have active practices or patient-related services puts a limit on the number of available examiners, bogging down a process that already is slow, Hetrick said.
WRA will be submitting comments on the proposal to resolve the matter without causing further delay in completing physical exams.
Protect workers' comp
With the state facing a $5.7 billion budget revenue shortfall that could grow this year, it has been an ongoing concern that state government may look to the healthy workers' compensation fund that employers and workers of Washington pay into to protect their employees and co-workers from injuries in the workplace.
The Washington Retail Association supports the newly-introduced House Bill 1386 that limits the use of those funds for industrial insurance purposes. WRA expects to participate in a hearing on the bill to protect this fund from misuse during these tough economic times.
COWBO urges spending cuts over tax increases
Members of the Coalition of Washington Business Organizations (COWBO) have urged Gov. Christine Gregoire and the state Legislature to oppose any new taxes to help close the state's growing revenue shortage.
"Raising taxes will overburden struggling families and businesses and devastate what modest consumer and confidence remains," COWBO directors said in their letter.
Members urged lawmakers to make job creation their top priority. Policies that would add costs to businesses will only delay or jeopardize the state's recovery from recession, the letter said.
Members urged avoiding new regulations and holding down workers compensation and unemployment insurance costs to help businesses remain competitive.
Among those signing the letter was Jan Teague, President/CEO of the Washington Retail Association. Other groups represented in COWBO include the Washington Restaurant Association; Associated General Contractors; Association of Washington Business; the Washington Food Industry; Western States Petroleum; Washington Farm Bureau; the Washington Roundtable; National Federation of Independent Business; Washington Bankers Association; Independent Business Association; the Washington Association of Realtors and the Washington Forest Protection Association.
Cox appointed to fill Legislature vacancy
Former Rep. Don Cox of Colfax has been appointed to fill the vacant House seat left after Rep. Steve Hailey, R-Mesa, died in December.
County commissioners from Whitman, Garfield, Asotin, Adams, Franklin and Spokane counties made the appointment this week to fill the 9th District seat.
Cox is returning to the Legislature, where he was elected in 1999. He stepped down before the 2006 session as ranking Republican on the House Higher Education Committee.
Cox is the former Colfax schools' superintendent and a professor at Washington State University.
Hailey died after a year long battle with colon cancer.
Source: Seattle Times
Retail jobs fall in December to 2004 levels
New state data show the effects of the recession on state retail jobs.
The state had 11,200 fewer people working in retail jobs this past December compared to a year ago, Employment Security Department data show. The 332,600 working in retail in December was 3.3 percent lower than the 343,800 in December of 2007, the data show.
The December number of retail jobs was the lowest number for that month since 2004, when the state had 328,000 working in retail, said Jim Vleming, a regional economist for the Employment Security Department.
"The recession is not good for any of the job numbers," Vleming said. "It's kind of unusually to see December (retail) numbers drop off. That's when we expect retail to do a little better."
The state unemployment rate increased to 7.1 percent in December, up from November's rate of 6.4 percent, state data show.
December employment among motor vehicle and auto parts dealers dropped the most, falling 11.2 percent compared to the same month a year ago. General merchandise stores saw a 5.3 percent drop, the data show.
Source: Employment Security Department
Economist paints dim picture of state retail economy
Until consumers develop more confidence, the state retail economy will remain weak, a state labor market analyst told a Senate committee last week.
Greg Weeks of the Employment Security Department said consumer confidence is at "deep recessionary levels" and warned committee members that the state economic downturn is serious.
"I don't want to minimize anybody's distress in this situation," Weeks said. "It is very serious."
The state lost 22,400 jobs, many in the construction industry, in the past year, Weeks said.
"We're just not buying stuff," Weeks told Se. Paull Shin (D-Mukilteo), who asked for an explanation of reasons for the state recession.
A plunge in housing starts has hurt employment in the construction industry.
Weeks blamed careless lending practices and lack of regulatory oversight for the weakened housing market.
"(Mortgage) loans were made that clearly shouldn't have been made," Weeks said. "People were using their homes as ATMs to finance vacations."
Deflation, a depression in the price of goods, is the emerging worry on the economic horizon, Weeks said. Depressed prices will only further hurt retailers, Weeks said.
"If we go into a period of deflation, it's going to be hard to get financing," he said.
State Website tracks labor, wage information
A new state Website offers a good way to make monthly checks on changes in the state retail economy.
The site, www.workforceexplorer.com, is compiled by the state Economic Security Department. The site also includes a schedule to learn when monthly updates on jobs and wages will be released. Click here or on the above link to visit the site.
In the year ending last November, the state lost 22,400 jobs as the nation and region slipped into a recession. Nearly 40 percent of those lost jobs, or 9,000 (not seasonally adjusted), were lost in the retail sector.
Source: Employment Security Department
Home Depot recycles fluorescent lights
Owners needing to safely dispose of expired fluorescent light bulbs can do so for free at Home Depot stores.
Customers may bring expired, unbroken fluorescent light bulbs to any Home Depot returns desk. Store associates then turn the bulbs over to an environmental management company that packages, transports and recycles them.
Home Depot also is converting the showroom space in its U.S. stores from incandescent bulbs to more energy-efficient compact fluorescent lights.
According to the Environmental Protection Agency, switching to fluorescent lighting will result in a reduction of greenhouse gas emissions.
The Department of Revenue has updated its Website to help flood victims from the winter snow and rain storms.
Links on the site offer information on obtaining extensions for filing taxes and other agencies that can offer help. When the page loads, scroll down to the "more information" section to find links to help for flood victims.
Parlette introduces minimum wage bill aimed at saving jobs
Sen. Linda Evans Parlette (R-Wenatchee) has introduced a bill that would eliminate the requirement that minimum wages be raised annually.
At $8.55, Washington State's minimum wage is the nation's highest. In the current recession, Parlette said, the minimum wage has become an excessive burden for some small businesses that are forced to lay off employees due to rising payroll costs.
Prior to 1998, the Legislature decided the minimum wage. But in 1998, voters passed Initiative 688. As a result, beginning in 2001 and annually thereafter, the state's minimum wage must be adjusted based on changes in the federal Consumer Price Index for urban wage earners and clerical workers.
Basing wages on the federal urban index hits rural small businesses, where incomes and expenses are lowest, the hardest, Parlette said.
Parlette's Senate Bill 5362 was referred to the Labor, Commerce and Consumer Protection Committee.
The Washington Retail Association supports eliminating the annual minimum wage inflator and returning to the Legislature control in determining increases. It also supports creating a "training wage" for the first 90 days of employment and a study of the benefits and negative impacts of Washington maintaining the nation's highest minimum wage.
Parlette's bill sets the minimum wage at its current level for employees aged 18 and older. The ((director???)) would establish the minimum wage for employees younger than 18, under the bill.
"We all support paying people good and fair wages, but with our economy in such dire shape we've literally reached the point where these wage hikes are hurting the people they were designed to help," Parlette said. "Many small businesses are hanging by a thread and these automatic wage increases, which must be adhered to whether or not businesses can afford it, are threatening their viability."
Parlette urged passage of the bill this year.
"The sooner we do so, the more jobs we can save," she said.
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.
