Gov. Chris Gregoire called on the business community Tuesday to help pass her final legislative agenda, which includes an element designed to help small businesses: tax simplification.
Gregoire flatly disputed claims from the state's largest cities that they will lose millions of dollars in revenue if the state takes over collection of business and occupation taxes, comparing her proposal to the sales tax.
The state currently collects sales taxes and apportions money to local governments.
"These horror stories of how they're losing money? No they're not," Gregoire said. "We will give it back," she said, adding "I think it's the right thing to do for the small businesses of the state of Washington."
Gregoire also asked business leaders to support her proposed half-cent sales tax hike and to help persuade lawmakers to pass her education reform agenda, which she called a prerequisite for raising taxes. And she highlighted one way that her administration trying to lessen the regulatory burden imposed on business.
Specifically, the state is partnering with the Washington Restaurant Association to identify how many regulators, from all levels of government, visit a restaurant in the course of a year. She suspects there are currently "too many regulators in the kitchen."
Because Gregoire is not running for re-election, the address marked the last time she will speak at AWB's annual Legislative Day. Although the governor and AWB have not always agreed on issues, "we have always listened to each other," she said. She called the partnership over the last seven years "a good one."
For the last few years, Gregoire has presided over a state beset by one budget shortfall after another, but she began her address by emphasizing positive economic news, including record-setting years for major ports and a series of Boeing successes, from the contract extension with the Machinists Union that secures jobs building the 737 MAX and the delivery of the first 787 Dreamliner to last year's victory in the long-fought competition for Air Force tanker contract and record order from Southwest Airlines.
"Things are looking up," she said.
She noted the relative health of the state's unemployment insurance trust fund, last year's workers' compensation reform, public pension reform and the state's healthy bond rating.
Gregoire argued her case for a sales tax hike by saying that Washington can't afford more cuts to education, health care, social services or public safety. The last time the state raised the sales tax was 1983 under Republican Gov. John Spellman, she said.
Finally, Gregoire attempted to sell her proposed transportation maintenance package, which would raise $3.6 billion over 10 years primarily through a $1.50 fee on every barrel of oil produced in the state.
Gregoire acknowledged that legislators will have to take difficult votes this year. But fi they do what needs to be done, she said, "she sky is the limit for us."
