Political pressure from President Obama on health care By Jan Teague, President/CEO
I read a report this week from one of our national partners that emotional television ads ran in 12 states where moderate Senators live. The ads were paid for by the President's campaign arm, Organizing for America. This past week the President has held press conferences and he sent HHS Secretary Kathleen Sebelius to the National Governors Association annual meeting. She also spoke on Sunday talk shows.
I listened to Secretary Sebelius on Meet the Press Sunday. It sounded like damage control since the week prior there was an official fiscal report out that talked about how expensive the health care proposal would be for taxpayers. She tried to convey that it is too early to say what the costs might be because work remains underway on the financial piece. So this week's message is to wait on the money piece until the package is ready. She did say that Massachusetts had made the mistake of putting the requirements in place without vetting the costs adequately and that Congress does intend on having a financial plan before the bill passes.
The political pressure is just beginning. I think that what we see is only the tip of the iceberg when it comes to the pressure that these elected officials will experience from the President. The President will likely hold hostage other legislation that should pass, or he will promise to support legislation to fund projects in various states in exchange for votes.
Does he need the business vote? No, but he needs the moderate Democrats who are nervous about the cost of the proposal. Does he want the business vote? Yes, so that he can lay potential blame on both parties when it's time to run for re-election.
At the end of the day, each "yes" vote on the final bill will have a story unique to that elected official. This will take time to develop and all of the President's resources and contacts will be in play before this is over.
I suspect the same will be true of major companies that decide to support the final bill. The entire health care industry has a lot to gain by an overhaul of the system. By that I mean that if more people can purchase care, health care businesses and professionals will have more business. Other businesses that supply the health care industry stand to benefit such as drug companies.
As businesses line up on both sides of the issue, it becomes clear that those who will find a profit in the effort will support a bill and those who will pay for that profit will be on the other side.
"What's in it for me?"
That will be the driving political question for President Obama to answer. Additionally, he will have to evaluate how many of those who support his health care reform will also fund the future of his Presidency. They may not be the same number of people. Recent polls show President Obama's handling of healthcare has dropped from 57 percent to 49 percent.
Please tell us what you think
The newly-named Washington State Department of Commerce is asking business leaders a series of questions as it prepares a new business plan to be presented to the Governor and Legislature in November.
As of this coming Sunday, the former Community, Trade and Economic Development Department will be re-named The Department of Commerce.
The department is asking business leaders across the state for answers and insights toward helping the state recover from the recession and eventually to prosper. The Washington Retail Association asks that you review and send your answers back to Jim Szymanski, Director of Public Affairs, at jim.szymanski@retailassociation.org.
We will gather your answers and report them to the Department of Commerce. You also can send answers to Marie Sullivan, the department's Government Relations Director, at maries@cted.wa.gov.
Before you review the questions, here is the department's vision statement: "The Department of Commerce is the widely recognized business champion in state government and a respect leader and partner with the private sector in growing our state's economy for the benefit of all of our citizens."
Here are the questions:
*What significant opportunities does the state have right now and how do those opportunities relate to retaining and creating jobs in the state?
*What do our customers and stakeholders think about how we're doing?
*How does Washington compare to other states and parts of the world in your area?
*What should government do to take advantage of our strengths and mitigate our weaknesses?
*What gaps and overlaps do we need to address to ensure that our programs are delivered well, particularly as we consider federal, state, regional and local resources?
*What activities can we stop doing to create the capacity to do new things or what specific activity can we do more of?
*In what sense do you feel your group's work aligns with the mission and vision for Commerce? What are the pros and cons of being more closely aligned with Commerce?
*With what other groups or agencies are you more closely aligned? What are the pros and cons of strengthening those alignments?
Unemployment Insurance: good and bad news By Mark Johnson, Vice President Government Affairs
There was good news and bad news in a recent briefing on the health of the state's unemployment insurance system delivered by Employment Security Department staff.
First, the good; our UI trust fund as of July 15 had a balance of $3.289 billion. This is the highest trust fund balance in the nation. Unfortunately several other states are out of trust fund money and are resorting to borrowing from the federal government. For example, California has already borrowed $2.4 billion and Michigan has borrowed $2.2 billion. Predictions are that more than 20 states will be out of money and borrowing by the end of the year.
The bad news; our state continues to lose jobs. Our current unemployed rate is 9.4 percent and it is expected to rise above 10 percent in 2010. Really disturbing is the prediction that our rate will continue to be over 8 percent through 2015.
To give you some perspective, our unemployed rate in June 2008 was 5 percent. What does this mean? As the rate goes up it drains the trust fund. Sadly, if predictions are accurate, many businesses may not see much if any tax relief in the immediate or long term future.
To make matters worse, rumors are running that organized labor will ask the Legislature in 2010 for additional benefit increases. If approved, tax increases on businesses will likely be close behind.
Let's hope the economy rebounds and consumer confidence rises to pull us out of this recession sooner rather than later.
Two Washington State Congressmen give briefing on national health care reform
U.S. Congressmen Jay Inslee (D- District 1) and Dave Reichert (R- District 8) briefed a group of lobbyists and stakeholders by phone from D.C. on the latest developments with the national health care reform efforts. Mark Johnson, Vice president of Government Affairs, attended the briefing.
Congressman Inslee said he is seeking cost reduction provisions before he will support a plan. This could mean adopting wellness provisions such as successful programs instituted at Safeway and REI. It also means moving our system away from a "fee-for-service" approach which leads to over utilization, to a "bundled payments" style based on overall outcomes. Also, Rep. Inslee suggested we look at value added reimbursement rates.
Congressman Reichert said he is concerned about the costs of the reforms being proposed and the effects they will have on both individuals and businesses, particularly small businesses. Rep. Reichert sponsored an amendment in committee to increase the small business exemption on the "pay or play" mandated employer health care requirement. Unfortunately, the amendment, along with 50 others, failed. Reichert would also like to see tax credits for small businesses that provide health care.
Both Congressmen are skeptical that a reform package will be passed before the summer recess, as President Obama requested.
Interestingly, Governor Chris Gregoire is currently back in D.C. lobbying on this issue and others. Additionally, the state legislative Health Care Committees are holding a joint work session on the national proposals on Thursday, July 23. Health care reform is getting lots of attention both nationally and on a state level. WRA members are concerned about the health care issue as it continues to raise their costs of doing business.
Immigration reform bill may be headed to Congress
The Immigration Works Washington coalition met this week to discuss a reform bill that could be introduced in Congress around Labor Day.
The coalition of Washington businesses is hoping any federal bill would ensure a ready, reliable and legal workforce to prevent further erosion in the U.S. economy from a worker shortage.
The group's goals include lobbying for a bill that speeds the screening of workers coming to the U.S. from other countries and avoiding placing too much of the burden for screening on employers.
The Washington Retail Association is working with the Farm Bureau and Association of Washington Business to support legislation that will ensure a stable, legal workforce is available to support demand for services in the U.S. economy. WRA favors unburdening employers from underfunded, ineffective verification systems; supports a monitored guest worker program and development of an earned pathway to legalization of undocumented, non-immigrant workers already contributing labor to the state and national economies.
House Bill 1896, to establish an essential worker pilot program in the state, received a committee hearing in February but the Legislature failed to bring it up for a vote. The Farm Bureau is expected to reintroduce a similar bill next year.
An immigration reform bill is being prepared by Meanwhile Sen. Charles Schumer (D-N.Y.), who heads the Senate Subcommittee on Immigration, Refugees and Border Security.
The current computerized worker verification system is bureaucratic and can take up to two months to verify qualified workers.
While the coalition awaits details of an immigration reform bill, it is preparing a letter to Congressional leaders that urges quick action, but discourages talk of establishing a federal commission to establish quotas for determining how many workers can enter the U.S. from outside the country.
The nation's immigration needs - from recruiting roofers to computer engineers to farm workers - is too diverse for a commission to accurately gauge the need for workers by industry, the letter states.
Poll: Seattle disposable bag tax heading for defeat WRA quoted on KIRO radio report on upcoming vote
New polling shows Seattle voters may defeat a proposed 20-cent fee on disposable plastic and paper grocery bags.
The matter will be put to a Seattle vote on Aug. 18.
The KING5/Survey USA poll shows the proposal is opposed by 51 percent of the voters, with 42 percent saying they would vote for the tax. Among voters older than age 50, the poll showed 57 percent opposition to the tax.
The Washington Retail Association circulated a news announcement this week reviewing its position against the bag tax. President and CEO Jan Teague was later quoted explaining WRA's position in a story about the upcoming vote that aired on News Talk 97.3 KIRO FM radio.
The Washington Retail Association favors recycling the shopping bags on several grounds. Recycling preserves choices for shoppers, avoids financially penalizing shoppers of modest means and eliminates the threat that consumers would avoid Seattle stores to escape the tax.
Seattle tried to impose the tax at grocery, drug and convenience stores in January, but opponents gathered enough signatures on a petition to place the matter on the ballot.
Source: SurveyUSA.com
Auction donations needed By Jan Teague, President/CEO
We hope you will give some thought to supporting an important political program with an auction donation.
The funds provide scholarships to state executives to network on key issues that might sweep across the country. All state retail associations belong to this group, the Council of State Retail Association Executives.
We get together and share information on issues, how to respond and review who are the key supporters and opponents on issues. These discussions include background papers and information sharing that would not occur if we didn't all get together.
Many state associations lack the funds to send someone so we work hard each year to fund their attendance with a scholarship. If you could help that would be great!
Any type of item would be great, just let me know if you have something by contacting me at jteague@retailassociation.org or by phoning me at 360-943-9198 ext. 19.
Plans in the works for free small business workshop
Tammie Hetrick, WRA's Vice President Retail Services, met this week to plan a free small business workshop scheduled in Tacoma from 10 a.m. to 2 p.m. on October 7.
Hetrick, who chairs the Governor's small business committee on safety and health, said the workshop will occur the first day of the two-day Governor's Industrial Safety & Health Conference at the Greater Tacoma Convention & Trade Center, 1500 Broadway.
This year's conference will place emphasis on sharing successful business strategies to overcome the recession, Hetrick said.
The Governor's Safety & Health Advisory Board is cooperating with several state government departments to staff a Small Business Resource Center at the workshop. Resource center representatives will answer questions regarding a range of small business issues including workplace safety, workers' compensation, licensing, unemployment insurance and taxes.
"It's a good opportunity for small businesses to learn the ins and outs of dealing with state agencies," Hetrick said about the resource center.
State retail sales fall in first quarter
Though the pace of the state's economic decline may have slowed, signs of the recession remain.
For example, taxable retail sales in the state dropped nearly 13 percent the first three months of the year compared to the same time in 2008, according to the Department of Revenue's latest report.
Most retail categories showed sales declines including several in double digits, percentagewise.
Among categories with some of the largest quarterly declines:
*Boat and motorcycle dealers, down 29 percent. *New and used car dealers, down 25 percent. *Building materials, down 21.5 percent.
Overall, department stores saw a 5.5 percent sales decline.
To review the Department of Revenue announcement with links to city and county sales results, click here.
Source: Department of Revenue
Pay attention to back safety
Many factors affect the health of your back including poor posture, lack of flexibility, poor physical fitness and lack of rest.
Any of these factors combined with poor lifting practices can cause workplace back injuries, says Patti Vernie, WRA's Claim/Safety Advisor. She shared the following steps you can take to ensure safe lifting on the job:
*Size up the job first. Stand close to the object, bend at the knees, and keep your back straight, do not bend at the waist.
*Tighten your abdominal muscles and lift with the muscles in your arms and legs, not your back.
*If you must turn, do so by moving your feet, do not reach and twist when holding an object.
*When setting an object down, apply all of the same techniques. If you think the job is too big to handle on your own, have someone help you, or if possible use mechanical equipment to avoid manual lifting at all.
Vernie is available to visit worksites of WRA members to make safety recommendations. To contact her, call 360-943-9198, Ext. 21 or patti@retailassociationservices.com
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.
