Maple Valley Chamber hears Legislative wrap up By Jan Teague, President/CEO
This week I was invited to talk at the monthly Maple Valley Chamber luncheon. The Executive Director, Sue VanRuff, asked me to give a positive message as she is working to encourage these small businesses to keep up their spirits and keep trying to survive the recession. She said that people need to focus on what they do best and spend more time doing it.
I thought it was a great message and one that I found myself trying to emphasize as I talked about what happened during this past session.
After giving them a few comments on the association and its legislative priorities, I told them that business did well this session. I found myself telling them the unemployment insurance story and the fact that the $4 billion dollars that was in the fund was used to buy down some of the anticipated increases that will be coming due to the recession. I told them that there was no major tax increase even though the state budget was nine billion dollars short for funding all of the state's programs.
That is good news for business and a situation that I think is practically unique across the country. Few states had a savings in their unemployment insurance fund and fewer ended their session without a major tax increase. I rolled my eyes and told them that the Tim Eyman effect was definitely partly responsible for no tax increase, even though many of us might not like him. His Initiative 960 curtailed the ease for passing new taxes. Taxes would have had to go to the voters and legislators were just not comfortable sending a tax proposal to the voters during the recession.
All in all, it was a good session for business. I talked about a few bills that died and gossiped about why, had a wonderful lunch at the Lake Wilderness Lodge, and sat next to the Maple Valley Mayor and City Manager.
Chambers play a vital role in meeting and learning about these issues. I told them to try and have a cup of coffee this summer with one of their representatives and to consider writing a letter on a key issue next session. I told them that one of business' biggest challenges was to participate in democracy. They are all so busy working and trying to make a living, it is very hard to find the time. But I told them that political involvement needed to be a part of their business and that it would be the only way that business would have any impact on the Legislature.
I was energized by the chamber members and it was good to talk to them afterwards about their businesses and how they are getting by.
WRA participates in shopping bag giveaway
Mark Johnson, WRA's Vice President Government Affairs, joined Seattle Mayor Greg Nickels Wednesday in giving away thousands of reusable shopping bags at the NW Harvest Food Bank.
WRA members including Safeway, Bartell Drugs, Target, J.C. Penney and Wal-Mart donated thousands of reusable bags that will be distributed to low-income citizens through Seattle food banks.
Other WRA members who attended the bag giveaway included Nikki Solace, a Target human relations executive; Jeff Coate, Manager of the Penney's Northgate mall store; and Dan Durkin, Manager of the Penney's Southcenter mall store.
WRA and its members also are working with the City of Spokane on similar efforts and have supported attempts to implement reusable bag and recycling programs on a statewide basis. The association does not support a ban on existing bags or a new tax on their use.
Seattle's hope is that with more reusable bags in circulation, fewer plastic bags will be needed, which will save customers and retailers money while protecting the environment. Also, many of the retailers recycle plastic bags, which often are made into reusable bags.
WRA members interested in participating in the reusable bag and recycling campaigns may contact Mark Johnson, at 360-943-9198, Ext. 15 or at mark.johnson@retailassociation.org.
State drops plan to cut Medicaid reimbursements
The state has dropped a plan to cut Medicaid prescription reimbursement rates, which caused some pharmacies to announce they would or might have to close stores in the state.
The dispute prompted a number of pharmacies to seek legal relief in federal court in Tacoma. The case resulted in the judge blocking the rate cut, ruling that pharmacies had not been properly consulted about it and that the reimbursement cut would reduce the quality of care for Medicaid patients.
The state argued it needed to save $13.4 million a year in costs.
The state will maintain its payment rate of 86 percent of the average wholesale price on name-brand drugs through at least July 1, said Jim Stephenson, a Department of Social and Health Services spokesman. The state had proposed cutting the current reimbursement rate to 80 percent, which pharmacists argued would make it unprofitable to do business in Washington.
Stephenson said no decision had been made whether to seek a smaller rate cut after July 1.
In 2002, the state cut its Medicaid reimbursement rate from 89 percent to the current 86 percent.
Source: Associated Press
Legislators to be honored at business luncheon
The Business Institute of Washington will honor five state legislators for their support of business issues during the 2009 Legislature.
The lawmakers being honored are Senator Tim Sheldon, (D-Potlatch); Senator Janea Holmquist, (R-Ephrata); Senator Jim Honeyford, (R-Sunnyside); Representative John Driscoll, (D-Spokane); and Representative Joel Kretz, (R-Wauconda).
The 2009 Business Stars were selected on their willingness to support pro-business legislation that will benefit the economy.
"We are working to show employers and their employees that a clear understanding of business' role in public policy is not only great for business, it's great for the State of Washington," said Erin McCallum, President of the Business Institute.
The awards luncheon will be on June 2 at the Seattle Sheraton. It will be the Business Institute's third annual Business Stars luncheon.
The state's chief economist anticipates that about 35 car dealerships could close in the state due to the recession.
Arun Raha estimated about 1,750 layoffs will result, but he added the impacts from the closures on the recessions could be softened.
"A large part of the workforce's income comes from commissions," Raha said. "If we see that business move to another dealer, so will the commissions and the hit to the income in the state will be smaller than would be usual for two thousand layoffs."
Chrysler has announced it will close 15 dealerships statewide. General Motors has announced it plans to close 1,000 dealerships nationwide, but has not yet been specific on which dealerships it plans to close.
Raha said state officials had not factored the recent auto dealership closings into their March economic forecast, which projected a $9 billion state revenue shortfall that dominated this year's Legislative session.
"We did not explicitly factor in the dealership closures in our March forecast because they were not announced yet," Raha said. "We did implicitly factor it in by having a weak auto sales assumption."
Dealers that close are expected to offer shoppers bargains, Raha said. This, too, may soften the economic blow from the closures, he said.
"We should see a short term spike in car sales as closed dealerships try to dump inventory with sweetheart deals," Raha said.
The announced or expected dealership closures will be factored into the state's next quarterly economic forecast to be released in June, Raha said.
Sources include The Seattle Times, Olympian
New law replaces resale certificates
A new state law that takes effect in January will change the way businesses that buy items for resale can qualify for a tax exemption.
The law will replace self-issued resale certificates with sellers' permits that must be pre-approved by the Department of Revenue. The law is expected to increase state revenues by eliminating misuse of the current certificates. The final consumer of products pays the sales tax when businesses that re-sell products claim a tax exemption.
The department will undertake an outreach effort to help businesses prepare for the new procedure.
Taxation of digital products such a streaming videos will be clarified under a new state law taking effect on July 26.
The new law updates the state's tax laws for the digital age by specifying when products are subject to sales tax. It results from a study that concluded that state laws needed to be updated so that goods and services were taxed the same way regardless of how they were delivered to customers.
The new law is meant to treat online merchants the same as traditional stores. It clarifies how certain new types of transactions, such as purchases of streaming video or online gaming subscriptions, should be taxed, according to a news release from the state Department of Revenue.
The new law allows businesses that sell digital products to pay a lower business and occupation tax retailing rate rather than the higher services rate for selling products not subject to sales tax.
Attorney General Rob McKenna and Secretary of State Sam Reed today announced a crackdown on lawless, so-called "badge charities" that claim to be making calls on behalf of police, firefighters and service veterans.
In many cases, the callers return little if any money to the agencies, Reed said.
McKenna announced enforcement actions against four companies in cooperation with the Federal Trade Commission.
For more information, including tips on avoiding charity scams, click here.
State agencies to conduct contractors, vendors seminar
Vendors and contractors wishing to learn more about doing business with the state may attend an all-day seminar scheduled on June 4 in Spokane.
Representatives from several state agencies will attend to answer questions and take suggestions on ways to streamline and simplify regulatory requirements.
The seminar will run from 8 a.m. to 4 p.m. at the Mirabeau Park Hotel and Convention Center. To register, including a $55 fee, visit www.ga.wa.gov/Events/EVESHome.htm.
WRA co-presenting health care conference in June
Steve Eastaugh, a health care educator and author, will headline the 7th Health Care Conference on June 3 at the SeaTac DoubleTree hotel.
The Washington Retail Association is co-presenting the event with the Washington Policy Center.
Dr. Eastaugh, a health care advisor to President Obama, will discuss the economics of health care and current federal health care policy reform proposals. Eastaugh works in the Department of Health Services Management at George Washington University.
The program will include a review of newly-enacted bills related to health care from the 2009 Legislature and panel discussions about new ways to deliver health care to employees and a demographic review of the nation's 45 million people without health care coverage.
For more information about registration, contact Lindsay LeVeque at 206-937-9691 or at lleveque@washingtonpolicy.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.
