The looming $3.2 billion state budget deficit should be getting the attention of retailers statewide, says the Washington Research Council's Economist and Vice President of Research.
"What everybody's worried about right now is a tax increase," said economist Kriss Sjoblom. "I would be worried that any tax I'm paying could be increased."
In the campaign for Governor so far this year, neither Gov. Christine Gregoire nor Dino Rossi, her election challenger, has proposed any tax increases to balance the state budget,
The revenue shortfall may be worsened because of faltering retail sales activity statewide, Sjoblom said. The state is heavily dependent on sales tax revenues to fund services. But since early in 2006, quarterly percentage gains in taxable retail sales have been falling statewide and dipped to a negative growth position in the second quarter of this year, the first time taxable retail sales fell below a positive growth level since 2002. Sales drop-offs in real estate and auto sales have been major contributors to the state economic slowdown.
The projected revenue shortfall raises numerous possibilities for balancing the budget, from higher taxes and fees to spending and service cuts. Legislators sometimes can't resist the temptation to consider raiding unrelated accounts such as the state workers' compensation fund to make up for shortages in other accounts.
Jan Teague, President/CEO of the Washington Retail Association, offered several suggestions on adjusting to the revenue shortfall. They include scouring the millions of dollars of cost savings outlined in State Auditor Brian Sonntag's reviews of various state departments and following the Priorities of Government budgeting process that requires funding only top government priorities and services, while cutting less important functions.
Teague also suggested moving to privatize some services, which would reduce steadily increasing state health and retirement benefit costs.
"I think privatizing is a good long term strategy to keep service costs competitive and government's long-term pension costs down," Teague said.
Sonntag's office has had the authority to conduct independent performance audits of state and local governments since voters approved Initiative 900 in November of 2005. The audits are designed to identify costs savings in the spending of public funds.
Sonntag, for example, has recommended the sale or reassignment of 113 underused vehicles from the state motor pool to save money. In other audits, he has urged the use of private collection agencies and offering Internet payment options to speed and improve state collection efforts.
Small business forums start in October
A series of small business forums by the Washington Policy Center will begin Oct. 29 in Spokane. Meetings will be held across the state through November.
WPC staff and policymakers will preview the 2009 Legislative session and review recent legislation that changes requirements of operating a small business. Business owners will be able to learn how to obtain health care coverage, become more environmentally sensitive and ask questions about various business tax policy changes that could be in the works.
Registration costs $25, including a meal and forum materials, and can be arranged by calling 206-937-9691 or e-mailing Lindsay at lleveque@washingtonpolicy.org. Click here for more information.
Forum locations, dates and times include: *Spokane, Oct. 29, from 7:30 a.m. to 9:30 a.m., at the Spokane Red Lion at the Park. *Tri Cities, Oct. 30, from 11:30 a.m. to 1:30 p.m., at the Red Lion Hotel - Richland Hanford House. *Bellevue, November 12, from 7:30 a.m. to 9:30 a.m., at the Bellevue Red Lion. *Central Washington, November 13, from 7:30 a.m. to 9:30 a.m., in Wenatchee, at a site to be determined. *Tacoma, November 18, from 7:30 a.m. to 9:30 a.m., at the Tacoma LaQuinta Inn. *Vancouver, November 20, from 11:30 a.m. to 1:30 p.m., at the Vancouver Red Lion at the Quay.
Answers available for new food labeling law
Beginning in October, certain retailers will be required to adopt new "country of origin" labeling on some of their food items.
The new U.S. Department of Agriculture requirements apply mostly to meat and produce labeling.
In an effort to clarify the requirements for shoppers, the Food Marketing Institute has prepared answers to common questions consumers may have, including contact information.
Q. My store recently began labeling some foods with country of origin information. Why?
A. A new law requires country of origin labeling information to appear on certain foods that are produced or packaged after September 30, 2008.
Q. Will all foods be labeled?
A. The law applies only to the following foods: beef, pork, lamb, chicken, goat meat, seafood, fresh and frozen fruits and vegetables, pecans, peanuts, macadamia nuts, and ginseng. The law doesn't apply to processed foods or foods that are sold by restaurants, food service establishments, butcher shops, seafood stores, or very small grocery stores. Processed foods include products that are cooked, smoked, cured, roasted or combined with other foods
Q. Are imported foods safe?
A. All foods sold in the United States are required to meet United States food safety standards and regulations no matter where they were produced.
Q. Will country of origin labeling make my food safer?
A. The USDA says, "COOL is a retail labeling program and as such does not provide a basis for addressing food safety. Food products, both imported and domestic, must meet the food safety standards of the Food and Drug Administration and the Food Safety and Inspection Service."
Q. What does it mean if my meat is labeled "Product of the U.S."?
A. Beef, pork, lamb, chicken and goat meat may only be called "Product of the U.S." if the source was born, raised and harvested entirely in the United States.
Q. Why are some meat products labeled "Product of U.S., Canada, Mexico"?
A. Most of the beef and pork products in the United States come from U.S. herds that include animals that may have been born or raised in Canada or Mexico as well as the United States. These meat products benefit from high-quality American agricultural practices and the contributions of U.S. producers. The law's "Product of US, Canada, Mexico" label reflects this as well as the fact that the livestock may not have been exclusively from the United States. All meat products sold in the United States must meet the same high legal standards for food safety, regardless of where the livestock was born or raised.
Q. Why are some produce bins labeled with more than one country of origin?
A. The retail food industry sources produce from all over the world to ensure a wide variety of the freshest possible product is available in our stores, year-round. All produce in our stores is required to meet the same standards for food safety and quality, regardless of its country of origin. Accordingly, the law permits retailers to combine produce from multiple countries in the same bin.
Q. Where can I get more information on the country of origin labeling requirements?
An all-day meeting to discuss identity theft has been scheduled for Oct. 22, from 9 a.m. to 4 p.m., at the SeaTac Red Lion Hotel.
The meeting of law enforcement officials and business, government and non-profit partners is sponsored by the Washington Law Enforcement Group Against Identity Theft (LEGIT).
Meeting highlights will include reviewing the latest in identity theft trends and meeting with crime victims' advocacy groups. The agenda is pending. Registration will be limited to 100 participants.
For more information, contact Lisa Erwin at the Attorney General's Office, at 206-587-4289 or click here.
G.R.O.W. program encourages voter turnout, registration
The G.R.O.W. Program (Growing Roots for Our Workforce) is encouraging unregistered state residents to register to vote in time for the Oct. 4 registration deadline. The national, state and local elections will be on Nov. 4.
The program's Website at www.growwa.com includes links to register to vote and information on candidates' backgrounds and positions on issues. The site functions as an online voters' pamphlet. The site also allows you to find your King and Pierce County district voting location if you will not be receiving an absentee ballot in the mail.
WRA director nominations announced
Nominations have been announced for membership on the Washington Retail Association's Board of Directors.
Nominations to date include Bob Lane of J.C. Penney Company; Kevin Groff of Safeway Stores; Ed Hildreth of Sound Janitorial Supply; Louis Meunier of Macy's; Jerry Alder of Alderwood Mall; Roy Beets of Best Buy; Linda Heinin of Target Corporation; Tom James of Opus Law Group; Adam Jaffe of Walgreen Company; and Jennifer Spall of Wal-Mart.
WRA members are encouraged to apply for Board positions at any time during the year and may be appointed to any open seat. If you have interest in serving on the board, contact Jan Teague, President/CEO, at 800-754-9552, Extension 19 or by e-mail at jteague@retailassociation.org
Service on the Board is a voluntary position.
Nominations this year must be received by October 10. Otherwise, the slate as presented will be declared elected at the Board of Directors' November 12 meeting.
Seattle voters to decide fate of shopping bag tax
Seattle voters will get the final say on a 20-cent shopping bag tax the City Council approved in July to go into effect in January.
Opponents of the tax gathered enough signatures on a petition to schedule a repeal election, possibly in August, the Associated Press reported. The Seattle City Council could schedule the vote earlier than August, but the proposed tax cannot take effect until election results are known, the news service reported.
In a stance separate from the petition drive, The Washington Retail Association has promoted recycling as opposed to a tax to curb the discarding of disposable bags. The association believes the tax would be an unfair financial burden on consumers and has warned of the possibility for the unhealthy transfer of certain food germs if consumers do not clean reusable shopping bags.
If upheld, the tax would apply on each plastic and paper bag used at grocery, drug and convenience stores.
Washington Retail Association | 618 Quince St SE, STE A | PO Box 2227 | Olympia | WA | 98501
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.
