Olympia Business Watch

Why Mess with Initiative Process Now?

Among the things that puzzle me is why this legislature would want to spend time "reforming" the initiative process. I wonder about it in this column.

Coincidentally, today's Seattle Times editorial makes some similar points.

Here's some background in today's Columbian and TNT.

Former Governor Booth Gardner Calls for WASL Moratorium

In The News Tribune's "inside the editorial page blog" David Seago has former Gov. Booth Gardner's call for a moratorium on the state WASL. The crux:

I urge the legislature to place a moratorium on the WASL graduation requirement and to expand the work of the Washington State Institute of Public Policy to evaluate other assessment systems that have proven themselves in high standards states elsewhere and could be quickly instituted here instead of or as a supplement to assessments developed by the state.

Other WASL stories in the Olympian, The News Tribune,the Seattle P-I, the Everett Herald, and the Tri-City Herald, which also runs a WASL editorial. 

Zarelli on Rainy Day Fund

Last week, AWB testified in support of a constitutional rainy day fund. State Senator Joe Zarelli has been one of the legislature's strongest rainy day fund champions. He looks closely at the governor's proposal in his third issue of Budget Tidbits.

MORE: This story from the Columbian describes how Zarelli is working with Senate Majority Leader Lisa Brown to craft a good rainy day fund bill.

In the Olympian, Brad Shannon provides background and context.

Brunell Column Examines Health Care

Don's column in the Columbian today looks at health care policy. He finds reason for both concern and optimism.

Today, people everywhere are struggling to find accessible and affordable health care. The problem is that elected officials tend to try to hit game-winning home runs rather than playing "small ball" as Lou Pinella would say. In other words, politicians often devise grand strategies to replace the entire system rather than making incremental improvements.

That's a risky strategy and cause for concern But ...

... there are signs that incremental improvements are working.

For example, association health plans authorized by Gov. Lowry and the 1995 Legislature for very small businesses now cover approximately a half-million people in our state. They are affordable and flexible for people, families and employers. So, the Legislature and insurance commissioner ought to build on association plans as a model for what works.

Second, the American Electronics Association estimates that by investing $7.7 billion nationwide in electronic medical records, we could reduce prescription errors, enhance efficiency, and improve management of chronic diseases, saving a whopping $81 billion a year.

Third, lawmakers should encourage private-sector efforts to eliminate medical errors that not only kill and injure patients but are very costly to correct or resolve in court.

Finally, lawmakers should help people take responsibility for their own health care. According to a recent study by Braden Benefit Strategies, half the health insurance claims filed in this country are for preventable problems caused by lifestyle choices. The top three health risks are obesity, smoking and a sedentary lifestyle.

Lawmakers can't force people to quit smoking, eat healthier foods, or exercise more, but they can support health plans that reward responsible customers with lower premiums.

Business Raises Questions About Family Leave Proposal

Kelly Kearsley reports today in The News Tribune on a proposal by Rep. Mary Lou Dickerson (D-Seattle) for paid family and medical leave. The headline stinks. "Business vs. worker in family leave bill" completely misses the point. This isn't about pitting employers against employees. The vast majority of  businesses try to work with employees facing difficult personal or family situations. Imposing a new state mandate, raising costs and increasing regulatory burdens, creates more hassles than it's worth and damages the business climate.

Here's how Kearsey describes the legislation.

Under proposed House Bill 1658 workers would pay a premium of 2 cents per hour worked up to 40 hours a week. Workers could then claim up to $250 per week for up to five weeks to replace wages they might lose while caring for a sick family member or staying home with a new child.

AWB has questions.

... the Association of Washington Business and the National Federation of Independent Business, which represent small businesses, oppose the program and have concerns about how it would affect their thousands of members.

Gary Chandler, AWB’s vice president of governmental affairs, questioned whether the 2-cent-per-hour premium would support such a program and said such bills make the state less competitive for business.

Carolyn Logue, NFIB director in Washington, said many small businesses already work with their employees to grant sick or family leave when it’s needed.

Kearsley interviews the owner of a small electronics store in Tacoma who does just that.

“Employees are our company, and if we abandon them in a time of need, then it doesn’t bode well for the relationship,” Senner said.

AWB lobbyists are working to keep the state competitive for businesses of all sizes. The bill may be heard in committee as early as next week.

UPDATE: Today on KUOW's "Conversation," Jennifer Lambert, vice president of Talentum Search Partners and chair of AWB's Human Resource committee, discussed business's concerns with Rep. Dickerson.

JLARC Report on Competitive Contracting

When the Legislature passed comprehensive civil service reform, contracting out, and collective bargaining legislation in 2002, many in the business lobby were skeptical, believing that the competitive contracting provisions would not be implemented. The packaging made little policy sense, as each of the three provisions could be considered and adopted independently. There may have been some political sense to it - public employee unions wanted the right to bargain over compensation; businesses wanted the right to bid for state work - but the deal lacked balance. Labor vowed repeatedly to oppose contracting out and the Act tilted in unions' favor.

Now, the Joint Legislative Audit and Review Committee has released the first thorough review of competitive contracting. Unsurprisingly, they found little implementation.

This JLARC audit found that few agencies have competitively contracted for services in the 16 months since receiving authorization to do so. Agency managers reported two main reasons for not competitively contracting. First, managers perceive the process itself to be complicated and confusing, providing a disincentive to pursue competitive contracting. Second, competitive contracting is a subject of collective bargaining,
which creates additional challenges by requiring labor negotiations. Managers must bargain, at a minimum, the impacts of competitive contracting. Additionally, some agency collective bargaining agreements include provisions which prohibit agencies from competitively contracting.

Given the state's current focus on management improvement, efficiency, and accountability, not to mention the present unsustainable rate of state spending, lawmakers might want to give the report some attention. A little competition can be a good thing.

Unintended Consequences as Smokers Butt Out

When the voters kicked smokers out of bars and taverns, outdoor smoking picked up. But outdoor smokers, apparently, do not pick up, littering streets and sidewalks. That's according to this story by Brian Miller in the Seattle Weekly. Miller paints a bleak picture, an urban nightmare:

Cast out of restaurants and bars to huddle in alcoves, crouch under awnings, and shiver in the rain, Seattle smokers have to do something with the remnants of their last drag. Before, there were ashtrays inside. Now, unless standing next to a convenient steel garbage bin known to be free of potentially flammable debris (funny how hard those are to find), even the most environmentally sensitive of smokers revert to a familiar strategy: Drop butt to sidewalk, grind with foot, and walk away.

How soon before we see an initiative mandating outdoor ashtrays?

More Incentives for Biofuels

The sun never sets on efforts to push renewable energy, which is a good thing, I suppose, for solar power. This year, we'll also seeing efforts to boost biofuels, again. The News Tribune carries an AP story by Nicholas K. Geranios on legislative proposals for new incentives for producers and users of biofuels. As Geranios writes, folks like the idea of biofuels, but

The trick is making it all pencil out.

Enivornmental lobbyists are backing the bill.

A key provision calls for spending $5 million to help local governments replace 700 aging diesel school buses with newer models. It also provides money to retrofit other buses so they run more cleanly.

The bill would encourage the creation of production plants and the growing of crops, including canola, to make biofuels. It would allow the state to contract with fuel producers to purchase their product for the state motor fleet, and it would allow public utilities to produce and distribute biofuels created from state products.

It would also require the state to reduce its fossil fuel use by 25 percent below 2006 levels by the year 2020.

Farmers are cautious.

Wheat farmers are going to take some convincing before they convert many of their acres to canola, said Glen Squires, vice president of the Washington Wheat Commission.

This from the Gristmill blog provides some additional context.

And the Seattle Times welcomes President Bush's commitment to reduce global warming.

Sen. Keiser and Speaker Chopp at Lobby Lunch

Yesterday's Lobby Lunch featured Sen. Karen Keiser (D-Kent) and House Speaker Frank Chopp  (D-Seattle). Sen. Keiser stood in for Senate Majority Leader Lisa Brown, who was unable to attend. The two reviewed Democratic priorities before a large and interested AWB audience of business lobbyists.

To listen to Senator Keiser's Lobby Lunch podcast, go here.

AWB Supports Rainy Day Fund

Yesterday, AWB lobbyist Amber Carter testified before the House Appropriations Committee in support of a constitutional rainy day fund. AWB president Don Brunell submitted this letter to the committee, underscoring our support for sound fiscal policy.