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November 26, 2008

Some Good News to Start Your Thankgivings

This Thanksgiving, there is alot of bad news.  People are worried about their jobs and homes.  Food banks and charities struggle to meet growing needs.  Amid all of that, how about some good news as you sit down for your turkey dinner and give thanks for all we have in this great nation?

Here it is. AWB sponsors the Holiday Kids Tree Project at the state capitol. We have for the last 19 years. It centers around the state's Christmas Tree which is a stately 30-foot noble fir standing in the rotunda of our capitol for all citizens to see.

While the tree, this year provided by Port Blakely Tree Farms, is the centerpiece of the project, AWB sends out just one letter to our members asking for donations to pay for the tree and its decorations, and provide rural firefighters with money to buy gifts and food for need families who live outside cities.  The response is amazing.

I was bracing for a shortfall in donations because of the economy, but to my surprise, our donations not only have exceeded expectations but top what we've received in better times.  So when Gov. Gregoire officially lights the Christmas Tree on Dec. 5, we have the money to pay for the tree and provide those rural firefighter the funds for needy families.

This is one of the things I will give thanks for this year as our family sits down for our traditional turkey dinner.  Again, I am amazed at how Americans respond to helping people in need when they are struggling themselves.  That inherent cultural value alone is a source of enormous national pride and makes me proud to be an American.

Finally, while you are giving thanks tomorrow, say a little prayer for those less fortunate and those patriotic Americans in uniform around the world protecting us.  Remember especially those who died serving our nation and the families they left behind as well as those in military hospitals and VA centers struggling to deal with their wounds.  They really are America's finest.

The fact is this Thanksgiving, God continues to bless America and we will overcome whatever challenges ahead of us. Happy Thanksgiving!

Don C. Brunell, President (DonB@awb.org)  

Don Brunell on November 26, 2008 | | Comments (0) | TrackBack (0)

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November 24, 2008

Olympia Business Review - Episode 11: M&E exemption

In episode 11 of Olympia Business Review, host Don Brunell (president, Association of Washington Business) and Richard Davis (coordinator, Washington Alliance for a Competitive Economy (WASHACE)) discuss the importance of the M&E exemption to Washington's manufacturing sector and to the state's economy as a whole.

Issues covered: M&E exemption, manufacturing

To download the podcast, click here.

Dan Brunell on November 24, 2008 | | Comments (0) | TrackBack (0)

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Supreme Court's Wind Farm Ruling Right on the Money

Last Thursday, the Washington Supreme Court released its eagerly-awaited decision on the viability of the $150 million Kittitas Valley Wind Power Project, the 65-turbine wind farm proposal along highway 97 near Ellensburg.  The project has been held up in a legal dispute between Kittitas County, some landowners, the state Energy Facility Site Evaluation Council (EFSEC), and Governor Gregoire.

As we detailed in this month's edition of Washington Business Magazine, the project -- and in some important ways, the permitting process for future alternative energy facilities -- has hung in the balance while the high court hashed out the issues in the case.  

Largely at stake was whether the EFSEC law permits the council and the Governor to preempt local land use laws in order to site a power project.  The court unanimously said yes.

AWB supported this project and the decision by EFSEC and the Governor to approve it.  Joined by the Northwest & Intermountain Power Producers Coalition, we filed an amicus curiae ("friend of the court") brief urging this outcome in the court case. 

Decisions like this rile local governments and property owners who ordinarily, and understandbly, expect local control in land use planning matters.  But the Legislature has long decided that in order to be timely and viable, large energy projects need an expedited, "one stop shop" for permitting decisions.  With our state's push toward renewable energy mandates (I-937) and recent legislative initiatives regarding climate change, the ability to quicky and efficiently site these kinds of projects are key. 

We think the Supreme Court got this one right.

Kris Tefft on November 24, 2008 | | Comments (0) | TrackBack (0)

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Callaghan: State’s red mess already mimics family budgets

Over the weekend, Gov. Chris Gregoire (D) told media sources in Pullman that she is bracing for more bad news on the revenue front.  She believes the revenue shortage may actually hit $6 billion by the time the lawmakers starting writing the 2009-11 state operating budget.  That would be roughly a 20% revenue shortfall just to keep government operating as it is today.

That is serious money! The interesting point is Washington's tax collections are anticipated to be 5% higher in the next two years despite the severe economic doldrums.  The problem comes from the fact Washington needs 8% more money to keep pace with spending--therefore the crevasse.

The Morning News Tribune columnist Peter Callaghan had an interesting take on the state's budget mess.  Callaghan, who has been around state capitol politics for at least 30 years, says the state manages its budget just like most families do these days.

Here are the cogent points he made in his column which was published in the Sunday (Nov. 22) edition:

In fact, the way residents managed their money is directly related to how the state does so. And it isn’t a positive relationship. During the boom times of the last several years, Washington was flush with cash because its residents were spending more than they could afford to spend.

Both the real estate excise tax and the sales tax were producing gobs of money as more people bought houses and more people spent money based on the rapidly increasing value of those houses. At the height of the boom, Americans had a negative savings rate – spending more than we earned and depleting savings – for the first time since the Great Depression.

At the same time, property tax collections increased, partly due to those increased values and partly due to all of the new construction that was going on, both residential and commercial.

Lawmakers knew such spending wasn’t sustainable. They knew it would end at some point. But no one wanted to stop spending. Gov. Chris Gregoire even suggested in 2006 that it was somehow immoral to save when there were so many needs to be met.

The moral to the story is save more, spend less and live within your means.

Don C. Brunell, President (DonB@awb.org)

Don Brunell on November 24, 2008 | | Comments (0) | TrackBack (0)

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November 21, 2008

Governor Focusing on Cuts--Considering Tolls for Transportation Projects

Gov. Chris Gregoire (D) told reporters Washington State is facing the largest revenue shortfall in state history and she is developing a plan to deal with it.  The Governor plans to release her plan in mid-December which is expected to cut state jobs and programs without raising taxes. 

The Governor unveiled her strategy while talking to reporters on Thursday.  Her discussion came on the heals of the latest revenue forecast showing our state has a record $5.1 billion shortfall.

From KOMO news, the Governor said: 

However, the governor says one thing she will not consider is raising taxes. But she's also not willing to cut plans for construction on the Alaskan Way Viaduct or the Highway 520 floating bridge. Those projects, the governor says, will have to be funded by tolls.

"There's no question. The 520 cannot be built without tolls, no question. There isn't any other source of money," she said.

A new cost estimate for the 520 bridge released on Thursday quoted the new total at $4.5 billion -- a $500 million increase from the previous estimate. Even with a $10 round-trip toll on the bridge, the state still does not have enough to cover the new estimate.

A new cost estimate for the Alaskan Way Viaduct range from $800 million for a surface road to $3.5 billion for the tunnel option.

The Governor and legislature have a monumental task ahead of them.  AWB has pledged our support to help resolve this unprecedented problem in  way which will help stimulate the private, tax paying, and job-producing sector. 

Stay tuned....seriously, Tune in--this is important to every employer and working family in this state!

Don C. Brunell, President (DonB@awb.org)

Don Brunell on November 21, 2008 | | Comments (0) | TrackBack (0)

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November 20, 2008

WashACE's Take on the State Budget and Revenue Shortfall

For a more complete, comprehensive look at the Washington state budget and revenue shortfall, go to the Washington Alliance for a Competitive Alliance (WashACE). Dick Davis has several good posting which give the scope and perspective of the situation.  (AWB is a founding partner in WashACE).

Don Brunell on November 20, 2008 | | Comments (0) | TrackBack (0)

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State Tax Revenue Growing, But So Is Shortfall! Huh? The Governor is Right Calling for Cuts

Washington's state tax revenues continue to grow, yet there is the shortfall and state government is cash-strapped.

Huh?  How can that be?

Yesterday (11/19), the state released the updated revenue forecast and it was bad news again.  Although Washington's tax collections are growing, they are not growing fast enough and the gap between operating state government as we know it is $5.1 billion.

In September, the state's projected deficit for the 2009-2011 biennium was pinpointed at $3.2 billion. Now, not only has that deficit ballooned to $4.6 billion, but the state's cuRevenuerrent budget (which runs through June 30, 2009) is also suffering a $500 million shortfall.

In other words, the state will be a half-billion short of the revenues necessary to meet the obligations set forth by the 2007 legislature for the two-year period.  Just to meet the current ongoing expenditures, unless deep cuts are made by the Governor and legislature, it will need $4.6 billion more in the next two years.

That $4.6 billion does not include new demand to fund paid family leave, climate change programs and additional money for Puget Sound nor does it include added premiums for unemployment insurance or workers compensation, if they are needed.

From the front page of today's Seattle PI:

"Technically, revenue will grow between this biennium and the one that starts in July -- it just won't grow fast enough, said Arun Raha, the state's chief revenue forecaster. Eight percent growth between this budget cycle and the next was predicted in September, and now that growth looks more like 5 percent."

Washington's unemployment rate hit 6.3 percent last month -- the highest it's been since 2004. But jobs aren't the only force at work on the state's economy.

"It's not just income -- it's the confidence," Raha said Wednesday. "People are not spending money, and that's the problem."

"State government is going to have to sacrifice and make hard choices just like Washington families," Gregoire said Wednesday in a statement.

Already, the governor is slashing spending this year by hundreds of millions -- including a statewide hiring freeze and across-the board spending cuts. And state agencies -- maybe most notably higher education -- have been asked to start planning for cuts as high as 20 percent.

The cuts she's already made would translate into $605 million in savings for the next biennium. But that's not enough.

With high unemployment, growing tax revenue shortfalls and a sagging economy, lawmakers and elected officials will have to put partisan differences aside, forget about the 2008 elections, and prioritize what the federal, state and local governments should fund so that they spur the private, job-producing and taxpaying sector into recovery mode.

Don C. Brunell, President (DonB@awb.org)

 

Don Brunell on November 20, 2008 | | Comments (0) | TrackBack (0)

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November 19, 2008

As the Economy Worsens, Jobs Become a Higher Priority

Moore Information just released its "Jobs vs Environment" public opinion.  Here are the latest Moore Information Survey numbers: 

As economic conditions have continued to worsen throughout 2008, voters have grown more concerned about protecting jobs than protecting the environment.  Asked which issue they are more concerned about today, 65% of U.S. voters say they are more concerned about protecting jobs, while only 27% are more concerned about protecting the environment.  This is a notable change from six months ago, when concern about jobs was higher than concern about the environment, but to a lesser degree than today. 

This is just a snapshot of how the public feels as of Nov. 18. 

Don C. Brunell, President (DonB@awb.org)

Don Brunell on November 19, 2008 | | Comments (0) | TrackBack (0)

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Let There Be Peace at the State Capitol....Amen!

This editorial was written by Mike Oakland, editorial editor, The Olympian.  When I first met Mike, he was a capitol reporter for Gannett, which owned The Olympian at the time AWB initiated the Capitol Christmas Tree or Holiday Tree Project.  His editorial hit the nail square on the head. Thanks, Mike!

"What started as a spectacular Christmas tree display under the ornate rotunda of the state Capitol has evolved into an out-of-control struggle for religious superiority.

Will the religious wars continue this year? Stay tuned.

Nineteen years ago, the Association of Washington Business launched a tradition of erecting a Christmas tree under the dome. The tree -- sometimes a 25-foot noble or at other times a 30-foot Douglas fir — usually is donated by a timber company. Businesses throughout the state contribute financially to the Christmas tree project and the money raised by the AWB is distributed to rural fire departments to buy food and gifts for needy families. More than $300,000 has been raised by the association over the past 18 years.

For years, the brightly decorated tree has been the centerpiece of the Capitol during the holiday season. The annual tree-lighting ceremony has become a tradition for many South Sound families.

Perhaps, in this day of political correctness, it was too much to hope for that the Christmas tree project continue unsullied for another 18 years -- raising even more money for needy, rural families.

Isn't it time for General Administration officials to rethink their policy and stop this escalating nonsense?

The magnificent Capitol must not be the setting for holy wars"

Amen,  Mike.....or is that not politically correct today? Oh well, what the heck!  Amen! AMen!! AMEN!!!

Don C. Brunell, President (DonB@awb.org)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Don Brunell on November 19, 2008 | | Comments (0) | TrackBack (0)

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November 14, 2008

Brunell Tells Mason County EDC That Lawmakers Need to Prioritize Programs and Not Add to Employer and Family Expenses

Today, I spoke to the Mason County Economic Development Council (EDC) in Shelton. My message included the following points:

  1. State and local elected officials must recognize the economic slump is deep and they must prioritize government programs and spending.  Like struggling families, they must pay for essential programs and eliminate payment for programs we cannot afford. Raising taxes on families and businesses would be counterproductive and only delay economic recovery. Meanwhile, families and businesses would be faced with prolonged hard times.
  2. The Governor and lawmakers should not add more costly programs on to families and businesses. "We are concerned about new taxes and fees to fund the state budget and pay for paid family leave, climate change programs and the Puget Sound Partnership.  It is not to say we ignore those important programs.  We just have to find better ways to accomplish these goals and we need to look at the total costs before we put them in law because the costs all come out of the same pocketbook or checking account."
  3. Everyone must come together to identify common ways to resolve issues and set aside party and election differences.
  4. Washington lawmakers need to amend I-937, the renewable energy initiative passed two years ago.  They need to include hydropower generation as a renewable electricity and expand the area from which utilities can purchase wind and solar power.
  5. Finally, costs matter and there have to be new approaches to cutting the costs of unemployment insurance (paid totally by employers) which are second highest in the nation and workers compensation rates without damaging safety programs or harming truly injured people and their families.

These are big and expensive tasks.  They are difficult but unless they are addressed in a way which sets us up to recover faster and in a sustained way, Washington will hobble along and people, families and employers will suffer.

Don C. Brunell, President (DonB@awb.org)




Don Brunell on November 14, 2008 | | Comments (0) | TrackBack (0)

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