Sen. Ed Murray said he was led to believe the two sides fighting over a plan to streamline collection of state and local business and occupation taxes were coming together.
That's why Murray, chairman of the Senate Ways & Means Committee, scheduled a last-minute hearing Tuesday on a substitute version of Senate Bill 6176, the governor's proposal to make the state the central collection point for B&O taxes.
But the sign-up sheets in the committee hearing room suggested otherwise, Murray, D-Seattle, said at the start of the hearing.
And the testimony from representatives of several cities confirmed it.
"I don't think we are anywhere near a good relationship," Seattle City Councilember Richard Conlin said when Murray pressed him about the nature of the negotiations.
Testimony from Randy Lewis, the Westport city administrator, further confirmed that the cities are more interested in stopping the legislation than they are in making it easier for small businesses to pay their B&O taxes -- regardless of what they may be telling lawmakers in private conversations.
"This bill takes away local control of our tax system," Lewis said -- incorrectly.
Now that the state Senate has voted to legalize same-sex marriage, maybe lawmakers will turn their attention to balancing the budget.
That's clearly the hope of Sen. Mike Hewitt, R-Walla Walla, who began his remarks Thursday at AWB's Lobby Lunch meeting by welcoming everyone "to the first day of session!"
In fact, lawmakers are now four weeks into the session -- seven weeks if you count last year's second special session -- and there has been "very little movement on the budget whatsoever," Hewitt said.
Other issues, he said, have "totally taken time away from what we need to do in a short, 60-day session."
The lunch meeting not only followed the Senate vote on same-sex marriage, but it also coincided with the release of the House Republican caucus's education budget.
Rep. Richard DeBolt, who joined Hewitt and Rep. Joel Kretz, R-Wauconda, at the meeting, said that after years of proposing a separate, stand-alone education budget and getting nowhere, he's pleased to see it finally get a hearing in committee.
Sen. David Frockt and Rep. Larry Springer said Thursday that lawmakers are making progress toward balancing the state budget, despite charges from critics that they've been distracted by other issues such as abortion and same-sex marriage.
Most of the work is occurring behind closed doors at this stage of the 60-day session. But the legislators told AWB's weekly Lobby Lunch meeting that budget writers in both the House and Senate are hard at work.
"Not to be flip, but we actually work on a lot of things," said Springer, D-Kirkland. "We're all segmented. I think it's a misplaced concern to worry about that. Whether we are making significant progress on the budget sort of depends on who you ask, but I can tell you it's not for lack of trying."
Producing the budget will be especially hard this year because all the cutting in previous years leaves lawmakers with no easy choices, Springer said. Even so, the House is committed to producing a balanced budget that does not anticipate any new revenue, he said.
In other words, they won't make cuts with the expectation that programs will be restored later through a voter-approved sales tax hike, as Gov. Chris Gregoire has proposed, or some other plan that emerges from the Legislature.
"You have to assume that a revenue package will not pass," Springer said.
The fallout from Tuesday's State of the Union address continues. Tom Dononhue, president of the U.S. Chamber of Commerce, told the Fox Business channel it was a political speech "full of taxes and taxes, regulations and regulations, stimulus and stimulus. It doesn't address the two fundamental questions at hand and that is how do we drive growth into the United States to the extent that, number two, it creates jobs?"
"I heard a lot about how we were going to regulate things, how we were going to constrain things, how we were going to tax issues. But I didn't hear anybody say 'and here's what we're going to do to move forward, to liberate the free enterprise system in this country to put people back to work.' It was all about what government was going to do and what the president was going to do with the arm of government to see what he could do to put people back to work. But that's not gonna help," Donohue concluded.
Jay Timmons, president of the National Association of Manufacturers, responded: "The President deserves credit for highlighting manufacturing on a national stage, but presidential leadership requires more than speeches. President Obama had a chance to set a bold manufacturing agenda in motion, and he missed it."
"On regulations, for example, the President touted his Administration’s efforts to rein in some regulatory excesses and costs—$10 billion in savings over the next five years. But, Boiler MACT, Utility MACT, Cement MACT and the Cross-State Air Pollution Rule, to name just a few of this Administration’s rules, would impose costs that dwarf the savings highlighted by the President.
"And on labor, the President never mentioned the aggressive actions that the National Labor Relations Board took in the past year. If President Obama wants manufacturing to lead the economy, federal agencies cannot swoop in and tell manufacturers where they can do business."
Timmons concluded: "It’s 20 percent more expensive to manufacture in the United States than it is among our major trading partners — even after excluding the cost of labor. The best way to create an environment to increase manufacturing employment in America is to lower the cost of doing business through pro-growth tax rates, sensible legal policy, reasonable regulations and affordable and secure energy supplies."
The Association of Washington Business is Washington's state chamber of commerce and manufacturing and technology association as recognized by the U.S. Chamber of Commerce and National Association of Manufacturers, respectively.
Too often, it's what's not working in public schools that grabs the headlines or the spotlight.
Today, though, at AWB's Legislative Day education panel, it was all about what is working -- and why we need to do more of it. The panel was moderated by AWB Education Committee Chair Natalie McNair-Huff of True Blue, Inc. and sponsored by K12 Virtual Academies.
Representatives from Tacoma's Science and Math Institute (SAMI) and the Delta High School in Richland shared with AWB members how they've been successful in moving students of all backgrounds and education levels to success in their unique schools.
SAMI, a partnership between Tacoma Public Schools and Tacoma Metro Parks that began in 2009, capitalizes on one of the state's largest parks (Point Defiance Zoo and Aquarium), as well as partnerships with local universities, to help students focus on science and mathematics through experiential learning. The school is modeled after the district's other successful innovative school, the Tacoma School of the Arts. Students apply during their eighth-grade year to attend SAMI. School days are a little longer, and students are encouraged to apply for internships, participate in seminars and travel regionally or internationally, as part of the school's focus on applied learning.
Jon Ketler, principal of Stewat Middle School, spoke to the progam's power to catpture the attention of students for who school and/or homeowrk is not a priority at home, or for whom traditional K-12 environments have not been successful.
"How do you get those students engaged in their own educational experience? That's the question," said Ketler. "As the adults, we have to help them see those learning opportunities that they may not have."
The Delta High School, a joint partnership of the Richland, Pasco and Kennetwick school districts, was developed around the fields of science, technology, engineering and math (STEM). The school relies heavily on partnerships with area businesses and government entities -- such as Batelle and Pacific Northwest National Labs -- to provide professional guidance, mentors and advisors.
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.
Partisan divide was clearly on display as AWB's annual Legislative Day began this morning in Olympia. Members of the first panel, Tax & Fiscal Policy, agreed that lawmakers in Olympia will produce a balanced budget that does not include new taxes.
But once they have done that, the talk will turn to taxes. And the disagreements will begin in earnest.
Sen. Joe Zarelli, R-Ridgefield, one of four panelists, began by noting that the recession isn't the only reason the state finds itself in a budget hole. Years of overspending also contributed to the problem, he said.
He also reminded the audience that despite the dire straits the state budget is in, there is actually more money than there was in the last biennium.
"It's very important that we balance the budget, as difficult as it may seem to some, within available revenue," Zarelli said.
If there's one (24-foot tall) bright spot in the grumbling over special session, perhaps its that more people are available to see the beautiful Noble fir tree in the rotunda of the Washington State Legislative Building.
Donated by AWB member company Port Blakely Tree Farms to the state, this tree serves as the official holiday tree for Washington and a reminder of the true spirit of the season.
If you can't make it to Olympia to see the tree in its glory, the team at TVW was there Dec. 2 to capture the tree lighting ceremony. Special thanks to them and to all who contributed to the AWB Holiday KIds' Tree Project, which has ensured a merrier Christmas for children and families in seven rural counties.
If it seems a little early for the AWB Holiday Kids' Tree to go up in the state Capitol, it is.
With a special session of the Legislature starting Monday, Department of Enterprise Services volunteers and the coordinating staff at the Association of Washington Business had to shift into overdrive to get the tree up and decorated.
"We just needed to get it done prior to Monday," said Department of Enterprise Services volunteer Kari Moes while taking a break from handing ornaments up to another volunteer on a ladder.
About eight events are scheduled for the first day of the special session and security issues dictate there be no packages under the tree this year. "Everything's toned down a little bit for special session," said Moes. With the expected crowds and activity, an effort was made to keep the tree inside a relatively small footprint.
The 24-foot Noble fir tree was donated by AWB member Port Blakely Tree Farms. AWB also donated 5,000 new LED lights for the tree.Gov. Chris Gregoire will light the tree at 6 p.m. next Friday with the help of Senior Airman Samuel Lovelady, a Patrol Leader from the 627th Security Forces Squadron/Joint Base Lewis-McChord, along with his wife Dana, their daughter Kaydance (age 4) and son Samuel (age 2). And no holiday tree ceremony would be complete without a special visit from Santa Claus.
For nearly a quarter century, the event has marked the end of AWB's annual Holiday Kids' Tree Project, which has raised a total of more than $320,000. So far this year, businesses and individuals have given more than $20,500.
Monies are distributed to representatives from rural fire departments to buy and distribute gifts and food to families in their communities.
"AWB has sponsored the Capitol's Christmas tree since 1989 and it is one of the best things we do each year," said AWB President Don Brunell.
If you would like to contribute, consider going online to make a donation. Monies accepted after Dec. 2, 2011 will go toward next year's program. A visual history of the tree program is available online.
As he travels around the country talking about health care reform, it's common to hear expressions of frustration and even depression, Joseph Rago said Tuesday during the keynote address at our Health Care Forum in Seattle.
And yet Rago, who won the 2011 Pulitzer Prize for his series of Wall Street Journal editorials challenging the federal health care bill that eventually became law, said there are some good things that have come from the debate.
If nothing else, it has focused attention on an issue that has dogged businesses and the economy for a long time, Rago said during an informal keynote discussion with Jeff Gingold, a partner with Lane Powell and moderator for the forum.
Rising health care costs have wiped out any wage growth above inflation, and until America fixes the problem the country will not fully recover from the recession, he said.
Unlike some opponents of the Patient Protection and Affordable Care Act, Rago said he believes states would be smart to move ahead with establishing their own health insurance exchanges. If nothing else, they will collect federal money.
