Olympia Business Watch

How best to save Puget Sound?

Everyone agrees that Puget Sound is worth saving. The economy depends on it. Recreation depends on it. It's what makes the region unique.

But figuring out how to imrpove the health of Puget Sound is fraught with challenges and tension, points that were underscored Tuesday by a four-member panel that discussed work underway to update the Puget Sound Partnership's original action agenda. The document was developed in 2008.

The panel consisted of Martha Konsgaard, chairwoman of the Puget Sound Partnership's Leadership Council; Gerry O'Keefe, the partnership's executive director; Sam Anderson, executive officer of the Master Builders Association of King and Snohomish Counties; and Sandy Mackie, a land use attorney at Perkins Coie and chairman of AWB's Land Use Committee.

Part of the problem, Konsgaard said, is raising awareness of the issue. "People want to save Puget Sound," she said. "But the challenge is they say, 'Is there a problem?' Many people don't know there is a problem."

The source of the problem isn't what it used to be, either. "The era of the bad guy and one chimney stack is over," she said. "It's really how we're living on the land."

Raha: Don't panic, economy will improve by year's end

When you see bad news from the second quarter economic reports, don't panic, Arun Raha, Washington's chief economist, told AWB members this morning.

Things will improve by the third quarter and especially by the fourth quarter of the  year, he said. That is provided there isn't another high-impact, low-probability shock to the system along the lines of this spring's Middle East unrest and the earthquake, tsunami and nuclear crisis in Japan.

"Right now, we're still recovering but at a slowing pace," he said.

Some positive signs:

• For the second month in a row, home prices rose in Seattle. (Raha quipped that he doesn't care about home prices in Seattle, just New York -- where he still has a house for sale.)
• Auto sales, which were recovering before the supply chain interruption in Japan led to a drop, should bounce back when the supply recovers. Americans are driving older cars on average than they have in years, and there is growing pent-up demand. "We are driving around in old cars," Raha said. "That, historically, has always corrected itself as us going out and buying new cars."
• Employment is poised to pick up as labor productivity growth begins to decline. "We've squeezed everything we can out of our existing workforce," Raha said.

Even though the economy is at a point where it ready to break free, it's being held back by weak consumer confidence. "Demand has come back really slowly," Raha said.

Justin: Education, transportation top 2012 priorities for governor

The 2011 legislative session was, in many ways, a success for Gov. Chris Gregoire, according to Jim Justin, the governor's legislative director.

Fifteen of Gregoire's 20 legislative priorities passed the Legislature this session, including workers' compensation and unemployment insurance, two big issues for Washington businesses.

The record is even more remarkable considering the late start that Gregoire's administration got developing the agenda because of the focus on the budget, Justin said during the annual meeting of AWB's Government Affairs Council at Alderbrook Resort.

According to Justin, the biggest disappointment was the failure of legislation dealing with "education governance." Gregoire does not intend to let that drop, he said, even though she has announced she is not running for a third term. Education and transportation will be at the top of the governor's 2012 legislative priorities, Justin said.

Brunell: Poland's rise as a bastion of free enterprise offers a July 4th lesson

Plenty has changed since 1975, in Poland and America, AWB President Don Brunell writes in his weekly column.

The same year that Business Week began at Central Washington University saw the Polish people impoverished with no right to free speech. Lech Walesa, the founder of the Solidarity movement, was in prison, Karol Jozef Wojtla was archbishop of Krakow and Ronald Reagan was governor of California.

A few years later, Archbishop Wojtyla became Pope John Paul II and Walesa went on to win the Nobel Peace Prize and in 1987, President Reagan challenged Soviet leadership to tear down the Berlin Wall.

Since the fall of communism, Poland has embraced the free enterprise system and three years ago, they brought the Business Week program to a high school in Gdynia, Seattle's sister city.

Ironically, the United States is going in the opposite direction, Brunell writes. An increasing number of regulations are stifling innovation and  forcing jobs and operations offshore.

"As we celebrate our independence on July 4, we should remember what the Polish people know all too well," Brunell writes. "The key to a better life for all citizens is to protect the people's freedom to innovate and create."

Washington Business Magazine wins big with Magnum Opus awards

When most people hear the words "Magnum Opus" -- depending on their vintage -- they either think of this guy:

 

 

 

 

 

 

 

Or this guy:  Or in some cases (like me), both.

But in the three years I've worked here, I can now add a third visual reference when I hear that term:

It's been a banner month for the staff of AWB.

Two weeks ago, we learned that AWB again garnered Accreditation with Distinction from the U.S. Chamber of Commerce. This is an honor earned by just four state chambers in the United States this year, and the second consecutive Accreditation with Distinction for AWB. 

So forgive us if we were again a little giddy when on Monday, we received the news that our magazine, Washington Business, took home three gold awards and two silvers from the ContentWise Magnum Opus Awards Competition. This international contest for exceptional work, in print, online, in traditional media and social media is judged by leading industry professionals, including the faculty at the prestigious Missouri School of Journalism.

Although AWB has won honors each year we've entered, achieving gold and silver against lmuch larger organizations (including some AWB member companies) such as Walt Disney, Costco, American Airlines, Holland America, Acura, Sara Lee, PATH and World Vision is exceptionally gratifying. What's more, these awards reflect the quality of the content and writing in this publication, as well as on our blog, Olympia Business Watch.  In fact, it's the first time we've been recognized for our work on this blog -- and gold's a nice place to start!

If you missed the publications initially, AWB earned awards in the following categories in this year's competition:

2011 PRINT MAGAZINE WINNERS

• SILVER – BEST CEO/EXECUTIVE LETTER:  Greece 2: Greece is Still the Word (Don Brunell)
  
• GOLD – BEST NEWS STORY: Saving Workers’ Comp (Jason Hagey)
  
• SLIVER – BEST NEWS STORY: Alternative Routes Advised (Daniel Brunell)
  

 2011 INTERACTIVE PRODUCT WINNERS

• GOLD – BEST TOPIC-SPECIFIC VIDEO: Washington Business Week Video (Coldiron Communications)
  
  
• GOLD – BEST TOPIC-SPECIFIC BLOG: Olympia Business Watch (AWB)

Frankly, we run a small shop here, and thanks to the work and collaboration of Jason Hagey, Daniel Brunell, Paul Schlienz, J-Anne Nepomuceno, contributing writers Don Brunell and Richard Davis, and our partners at Daniels-Brown Communications, Print NW, The Silver Agency and immedia, we can truly say we have an award-winning publication!

Washington state ranks 10th for entrepreneurship and innovation

A new study by the U.S. Chamber of Commerce ranks Washington among the top states in the country for entrepreneurship and innovation.

A tax credit that's due to expire in 2015 was noted as one of the main reasons for the high ranking, a fact that should nudge lawmakers to renew the credit sooner rather than later.

The report, entitled "Enterprising States," is an update of a 2010 report that measures how well states are responding to the challenges of the recession.

Since the initial study, 29 new governors have begun their terms of office, and the governors in all states are coping with budget challenges made worse by declining federal aid.

"This presents a new, and perhaps unprecedented, challenge for the states," according to the executive summary. "With Washington effectively forced to the sidelines, states will now have to address fundamental economic issues relating to growth and employment on their own. Most will have to do so without significantly increasing their own spending."

The 2011 Enterprising States study highlights state-driven initiatives to redesign government, and implement forward-looking, enterprise-friendly initiatives aimed at creating jobs.

Washington tied with California as the 10th best state in the country for entrepreneurship and innovation, behind New Mexico, Colorado, Utah, Montana, Texas, Arizona, Maryland, Virginia and Idaho.

Measurements included:

Brunell: Under siege from the unchecked federal bureaucracy

Partisan wrangling has brought gridlock to Congress, but federal bureaucrats are finding ways to implement President Obama's programs without congressional approval, AWB President Don Brunell writes in his weekly column.

One example is the National Labor Relations Board, which is carrying out organized labor's agenda after Congress failed to approve union-backed "card check legislation.

Another example is the Environmental Protection Agency, which is systematically implementing its own version of cap-and-trade after the Senate rejected the president's plan.

The end-run around Congress by federal bureaucrats is costing taxpayers and employers trillions of dollars and adding to the national debt, which now stands at $14.3 trillion.

Congress needs to wake up, and regardless of party affiliation, take back control of the legislative branch of government, Brunell writes. "Congress sets policy and federal agencies enforce it -- at least that's how our separation of powers is supposed to work."

Governor signs workers' comp reform bill - will rates go down?

That's the question the Associated Press leads off with this morning, noting Governor Gregoire's signing Wednesday of HB 2123, the second of two major workers' compensation reform bills passed during the 2011 legislative sessions. 

Taken together, SB 5801, which establishes a statewide medical provider network for the treatment of injured workers, and HB 2123, which trims costs and improves several long term disability structures within the system, are projected to lower the state's workers' comp costs by $519 million in 2012, and just over $1.1 billion between 2012-2015.  The Department of Labor & Industries hailed the bill signing as "historic" on the agency website. 

Washington employers, stung by a disturbing trend of annual high rate increases the last few years, are eagerly anticipating the rate relief this new legislation promises.  I am quoted in the AP piece saying we hope the implementation of these reforms leads to years of more stable workers' comp rates for employers and the workers who pay into the system. 

It's not that rates will go down or won't necessarily go up in 2012 -- the Department of Labor & Industries hasn't embarked on the rate-setting process yet -- it's just that if rates increase, it should be much more mild than the high double-digit increases that were assured had the Legislature done nothing this year.

L&I Director Judy Schurke put it very succinctly in this comprehensive interview with TVW's Austin Jenkins shortly after the legislation passed, speaking specifically to savings from the controversial "claim resolution structured settlements" component employers backed in HB 2123:

"I think we would have in perpetuity had double digit rate increases without this change."

This graphic shared Monday with members of the state Workers' Compensation Advisory Committee shows L&I's timeline and various inputs for adopting the 2012 rates.  The agency expects to propose the rate on September 20 and adopt the final rate after public hearings on November 30.

For more information on the 2011 workers' comp reforms, take a look at this short powerpoint presentation.

The Value of Accreditation

Last week, AWB learned that it had again earned the honor of Accreditation with Distiction from the U.S. Chamber of Commerce.     

This is the second time in 10 years that AWB garnered this title,  the result of a near yearlong process of documenting, measuring and quantifying everything that happens at the state's largest and oldest business organization. Of the 6,936 chambers in the U.S., only 230 are accredited. AWB is one of just four accredited state chamber this year, earning top marks along with the Michigan Chamber of Commerce, the State Chamber of Oklahoma and the South Carolina Chamber of Commerce.  

Accreditation through the U.S. Chamber occurs every five years. It is the only national program that recognizes chambers for their effective organizational procedures and community involvement. In order to receive accreditation, a chamber must meet minimum standards every five years in their operations and programs, including areas of governance, government affairs, communications and technology.

Like any professional certification or credentialing process, accrediation from the U.S. Chamber is a way of demonstrating excellence. For AWB, the process of preparing for accreditation is both painstaking and meticulous, requiring hundreds of hours of documentation about our government affairs programs, member events -- even our building safety procedures.

While earning the distinction is a true honor, the resulting process leaves the association in a better operating position: All procedures and policies have been documented so that if there was ever a catastrophic event, backups exist so that service to members can continue. Going through the accreditation process is essentially a good lesson in crisis preparedness.

“To be Accredited with Distinction is great news and a testament to our entire staff’s hard work and professionalism," said AWB President Don Brunell. "It also underscores the value to our 7,500-plus employer members who look to us to represent their voice in the halls of Olympia, along with the U.S. Chamber back in Washington, D.C.” 

Brunell: Jobs for college grads growing at a snail's pace

The nation's ongoing struggle with high unemployment is hitting recent college graduates particularly hard, AWB President Don Brunell writes in his weekly column.

He notes a recent New York Times report that just over 55 percent of 2009 graduates younger than 25 are working in a field requiring a college degree, and nearly a quarter of them are not working at all.

At the same time, there is evidence that America's unemployment rate may not be cyclical, but rather a sign of a new "structural joblessness," Brunell writes. In other words, the number of people unemployed indefinitely is up irrespective of economic times.

One answer to the problem is for government to unshackle the private sector and let it create new jobs. Brunell quotes Martin Regalia, the chief economist for the the U.S. Chamber of Commerce, who says that new government regulations and mandates are stifling job growth.

 "Regalia is correct," Brunell writes. "Unless America empowers the private sector to invest and create new products and jobs, our nation will continue to deal with an anemic job market."