Olympia Business Watch

Spokane mayor: with the right attitude of service, government can be a partner

Spokane Mayor David Condon has had to do some explaining about his statement that the job of City Hall is not to create jobs.

Spokane Mayor David Condon speaks at the AWB's Spring Meeting in Spokane on May 8, 2013.

“Our job is to create the environment so you can create jobs,” Condon told a group of the state’s business leaders during a breakfast meeting of the AWB’s board of directors Wednesday in Spokane. “Quite frankly, a city government growing jobs is the wrong answer, folks.”

Condon, in his second year as mayor, came from a career of military service and running a variety of family businesses. As a result, he's had to adjust to the meaning of “R&D” in city government. For mayors, it’s not research and development – it’s rip-off and duplicate, he joked. In that vein, he admits to stealing the best ideas from other cities as he works to make Spokane the “city of choice” for people and businesses.

Condon said his most humbling moment so far as mayor was when a Tri-Cities official (Condon declined to say which city) asked for details to give to his own mayor about how Spokane has improved its city services.  

The city has reduced the average time for permit approval from 52 days to 30, Condon said. City regulators have moved out from behind counters and now sit at desks with those they regulate. Major projects have a dedicated project manager as a point of contact, rather than having applicants bounce from person to person.

Regulations are necessary, he said, but efficient and responsible city government can be a partner rather than an obstacle.

“We realize any delay in time is cost,” he said. “We went back to the values of the city of being affordable, being flexible.”

Cities, like businesses, he said, have to look at their revenue stream –- taxes –- and their costs. Cities might be tempted to think that citizens and businesses have no choice but to pay increased fees and taxes, but Condon said they do have a choice. They can leave, or choose not to locate in his city.

“We facilitate economic opportunity, but opportunity is not a guarantee,” Condon said, noting that while not every business will succeed, that risk is the American way. “I am humbled by those of you who take that risk every day.” 

AWB honors Sonntag, Conant and Vander Pol during Spring Meeting

As state auditor, Brian Sonntag could make government officials nervous. He introduced performance audits to state government, saving money for taxpayers but also shining a light on problem areas.

So it was easy to select him as the recipient of this year's C. David Gordon Award, given annually in recognition of Washingtonians who distinguish themselves in service to the citizens of the state of Washington.

C. David Gordon served as AWB president from 1955-64 and 1966-79, and is AWB’s Honorary President for Life.  

"As we looked around, we said, 'You know, the one we really miss in state government is Brian Sonntag,'" AWB President Don Brunell said Tuesday as he introduced Sonntag and his wife, Jann, to the audience at AWB's Spring Meeting in Spokane.

Sonntag, who retired earlier this year after two decades as state auditor, thanked Brunell and AWB, saying the organization was one of the few that he could trust when he arrived as "the new guy" in Olympia in 1993.

"I don't need to tell you what a great organization this is," Sonntag said. "You don't just support the communities of Washington, you are the communities of Washington."

AWB also honored Don Conant, general manager of Valley Nut & Bolt in Olympia, and Ed Vander Pol, co-owner of Oak Harbor Freight Lines.

AWB honors 11 members with 2013 Community Service Awards

The AWB recognized 11 businesses and organizations Tuesday that have established strong, ongoing ways of improving and giving back to their communities. 

The 14th annual presentation of the Community Service Awards was part of AWB's Spring Meeting in Spokane. Fluor Federal Services, Inc., sponsored the awards.

"We recognize our members for volunteerism and their contribution to their communities," said AWB President Don Brunell. "We honor members of all sizes and types statewide from our more than 8,000 members."

The recipients of the awards are:

Revitalization & Development

The McGregor Company, Colfax

The best employers encourage their workers to give back to the community. It’s a rare case, however, when such a volunteer commitment actually puts a community back on the map. And yet that’s what happened in tiny LaCrosse, a farming community 30 miles south of Colfax, Whitman County. The town suffered a series of setbacks starting with the loss of its only grocery store in 2009. In 2011, its only bank closed. Its only restaurant closed a year later. And a fire destroyed its hardware store. Now, thanks to an extraordinary voluntary effort led by McGregor Company owner Alex McGregor, the town has a new grocery store, a Sterling Savings Bank branch and a new restaurant. McGregor, along with several of his employees and other concerned citizens, formed a non-profit organization called LaCrosse Community Pride to spearhead the effort — and prove wrong anyone who thought LaCrosse was dying.

Education

Artitudes Design, Inc., Issaquah

Artitudes Design has taken what its employees are passionate about — art — and use it in a way that meets a growing need in local elementary school classrooms. Beginning in 2007, employees from the Issaquah-based design agency started volunteering their time as art docents, going into classrooms and teaching art to students. Team members create sample art projects, write lesson plans, purchase supplies or use recycled materials, coordinate with an elementary school and then go into the class and teach the lesson. Since the program started, they have reached more than 20 classrooms and 600 students.

Tyson Foods, Pasco

The people of Tyson Foods understand that their actions and decisions have an impact, and that serving the global community is consistent with the company’s core values. That’s why Tyson employees work with hunger relief organizations, help with disaster recovery and contribute to organizations that invest in young people. In Pasco, the team at the Tyson Fresh Meats processing plant is a contributor to the Boys & Girls Clubs of Benton and Franklin Counties, giving both time and money to the clubs throughout the year, and cooking and serving hamburgers at the end-of-the-year picnic. Employees also support Junior Achievement, typically through monetary donations and staff contributions in local classrooms. This year, however, a member of the management team will teach entrepreneurial skills to elementary students.

Say hello to three new state agency directors

 

Carol Nelson, Department of Revenue director, left, Dale Peinecke, Employment Security Department commissioner, center, and Joel Sacks, Department of Labor & Industries director, speak Tuesday at AWB's Spring Meeting in Spokane. Photos: Dan Brunell/AWB 

The recently appointed directors of three state agencies -- Employment Security, Labor & Industries, and Revenue -- introduced themselves Tuesday to AWB members.

Dale Peinecke (Employment Security), Joel Sacks (Labor & Industries), and Carol Nelson (Revenue) joined in a Q&A panel led by Gary Chandler, vice president of government affairs, that touched on a variety of areas where government and business intersect, including taxes, workers' compensastion and workforce training.

Peinkecke and Nelson both emphasized their extensive business credentials -- Peineck spent the first 20 years of his career with Alcoa and another 17 years with aerospace companies, and Nelson had a long career in banking -- while Sacks spoke about the early part of his career attempting to reinvent government at the federal Occupational Safety and Health Administration.

All three pledged to work on ways to make government more efficient and to work together with business.

Ecology director reveals what makes her lose sleep at night

Washington Department of Ecology Director Maia Bellon discusses her perspective on environmental protection and working with the business community as AWB Director of Governmental Affairs Gary Chandler looks on Tuesday afternoon in Spokane.

The directors of Washington’s departments of Ecology and Commerce pledged continued work to streamline permits and improve regulatory processes during a talk Tuesday afternoon at the AWB’s annual Spring Meeting in Spokane.

Gary Chandler, AWB's director of government affairs, held a panel discussion with Maia D. Bellon, director of the Washington state Department of Ecology, and Brian Bonlender, director of the state's Department of Commerce.

Both directors said Gov. Jay Inslee has made it clear that jobs and working cooperatively with the business community are priorities.

“I will tell you that he, in no uncertain terms, has told me that I must partner with you and your community,” Bellon said.

Bellon, appointed in February as director of the Department of Ecology, said although she is an attorney and enjoys the courtroom, she always prefers to broker agreements that help everyone understand one another’s concerns and move forward rather than resorting to litigation. Not everyone will get everything they want, she said, but sometimes that’s the best outcome possible.

She said one of the biggest worries she had when offered the director position, one that kept her up at night and almost prevented her from accepting the post, is the issue of modifying the state’s longstanding water quality standards. Bellon said the federal Environmental Protection Agency had given her a deadline of this Christmas, but that she pushed for more time to hold a full public process. As a result, the state now hopes to have a new rule in place by the end of 2014. AWB has been working with other member companies on that rule, which stands to affect not only businesses but every municipal water system in the state.  

Here are 7 Washington businesses doing right by the environment

Just after Jim Hanna, director of environmental impact for Starbucks, got through telling AWB members that businesses will solve the world's environmental challenges, AWB handed out awards to seven companies that are already proving him right.

The 21st AWB Environmental Excellence Awards were presented to:

Sustainable Communities & Green Building

Saint Martin’s University, Lacey

 The ground below and the sun above both help keep Cebula Hall energized and comfortable at Saint Martin’s University. This new $7.5 million engineering building, which was crafted from recycled materials, pulls energy from the soil using geothermal heat exchange coils. The three-story building has rooftop garden space and 2,500 square feet of photovoltaic solar panels that produce 15 percent of the building’s electricity. Thanks to its LEED Platinum design, the building uses 64 percent less power and 40 percent less water than the baseline. Some of the duct work, pipes, beams and insulation were deliberately left exposed in the 27,000-square-foot facility to give students in the School of Engineering a glimpse inside the heart of this truly green building.

Green Enterprise & Technology

Liberty Bottleworks, Union Gap

When REI, LL Bean, Willie Nelson and the Dave Matthews Band want an environmentally friendly, toxin-free aluminum bottle, they turn to the high-tech Liberty Bottleworks factory near Yakima. In just three years this company has churned out a half million bottles that are part fashion statement, part reusable container and all-American. The outsides are decorated with high-resolution textural art that you can feel as well as see. The insides are powder coated without use of phthalates or BPA in a closed-loop process, part of the company’s zero-waste philosophy. Water is retreated and reused on site. The infrared lamps that cure the powder are 800 percent more efficient than conventional curing ovens. Since Liberty’s are the only American-made metal bottles in the marketplace, they are the first housewares product that Whole Foods NW has been able to promote as “locally made.”

Starbucks makes the business case for sustainability -- and whipped cream

 

Starbucks' Jim Hanna, director of environmental impact, addresses the winners of AWB's 2013 Environmental Excellence Awards Tuesday.

It's time for business to redefine the conversation about sustainability, Jim Hanna, director of environmental impact for Starbucks, told AWB members Tuesday during the keynote address at the 2013 Spring Meeting.

The conversation has gone off track in the last decade, Hanna said, often turning into a political issue when it shouldn't be.

Business leaders can change the tone, Hanna said, by focusing on what matters for their particular business.

For Starbucks, climate mitigation is the company's primary focus. That's because the company relies upon high-quality arabica beans for its main product -- and the beans only grow in certain conditions. Already, Starbucks is encountering changing soil conditions, increasing pest infestations, soil erosion, and other threats to the bean.

"From a business perspective, it's impacting the longevity of our company," Hanna said. "We need to make sure the bean still exists."

Starbucks is addressing climate issues in a variety of ways, including some that make a significant difference -- and some that are mainly issues of perception.

Gov. Inslee signs bill to aid AWB-supported scholarship program

Kids' Chance of Washington, the AWB-supported group that gives scholarships to the spouses and children of workers who die or are permanently disabled on the job, will have an easier time spreading the word about their efforts thanks to a bill signed Friday morning by Gov. Jay Inslee.

AWB President Don Brunell, right, joins other advocates for the Kids' Chance charity as Gov. Jay Inslee signs a bill allowing L&I to cooperate with this nonprofit scholarship provider.

House Bill 1863 allows Kids Chance, a charitable nonprofit founded by business, attorneys, doctors and labor organizations in 2001, to access information from the Washington Department of Labor and Industries about children who might be elibible for these need-based scholarships.

"These scholarships have made a difference for many families," said AWB President Don Brunell, "and this bill will make it easier for Kids' Chance to connect with people who might not have known they were eligible for the program."

Spreading the word about the scholarships has been an ongoing challenge, especially for high school-age children whose parent might have died or become disabled on the job many years before. HB 1863 will allow Kids' Chance to access information from L&I, which will allow the charity to send brochures and scholarship application information to people they might not have known about, according to Debbie Guillot of the Washington State Council of Fire Fighters, who is secretary for Kids' Chance.

"We have money," Guillot said. "We just need applicants."

Anyone wanting to donate to Kids' Chance can learn more here. There are also a few seats still available for a benefit dinner on June 6, "Dreams Take Flight" at the Museum of Flight in Seattle. Conact Jan Donley of J Donley Associates at 206.441.4020 or email Jan@JDonley.com for more about the fundraiser.

AWB joins ceremony honoring fallen workers

A solemn ceremony in Tumwater Tuesday honored the 66 people who died in Washington last year on the job or from workplace injuries or illness. AWB joined Gov. Jay Inslee and representatives of organized labor in pledging to keep improving workplace safety until there comes a year when no one dies on the job.

Speaking to the families and friends of those who went to work and never came home, Inslee said the state honors their loss. "You need to know we embrace you today," Inslee said, noting that he has personally felt the loss of a family member -- a cousin who died while working for the King County Sheriff's Office.

AWB President Don Brunell reads the names of some of the 66 people who died from workplace injuries last year, including Christopher Rudolph, 30, a marketing director for Stevens Pass. Rudolph died in a Jan. 17  avalanche.

The governor called for a renewed culture of safety. He thanked the business community for its work in making workplaces safer. "We're not perfect yet," Inslee said. "We're ahead of the curve, but we have work to do."

This was the 20th annual memorial for those who died on the job. AWB President Don Brunell, who attended Washington's first such ceremony in 1993, noted that his upcoming retirement means this will be his last. As he addressed a packed room at L&I headquarters, he offered condolences to the families of those who died. 

"At the end of the day, we want a safer workplace where people come home every night to their loved ones," Brunell said. His own father, a volunteer firefighter, nearly died after being hit with a live wire during a call in Montana, Brunell said, adding that recent events have shown that even school teachers can be in the line of fire. 

Jeff Johnson, president of the Washington State Labor Council, told the crowd that every worker's compensation claim is a missed opportunity for injury prevention and said we all have "a moral obligation to make work as safe as it can possibly be."

Four members of the Washington State Patrol in formal blue uniforms -- one with a ceremonial sword -- honored the workers who died. Bagpipers played "Amazing Grace" as firefighters from Tumwater rang a silver bell in honor of those who died.

L&I Director Joel Sacks said the ceremony is a reminder that we can never take workplace safety for granted. Sacks noted that Washington's ceremony is unusual in that it includes wide represenatation -- from labor, business and government. 

"Each and every day we have to recommit ourselves to preventing workplace safety," Sacks said.

Peterson: Act now on CRC or wait at least 10 years

 

Lynn Peterson, Washington's transportation secretary, speaks Thursday at AWB's Lobby Lunch meeting. Photo: Dan Brunell/AWB

A change in any element of the plan to build a new Interstate 5 crossing over the Columbia River will result in at least a 10-year delay, Lynn Peterson, Washington's new transportation secretary, said Thursday.

That's because removing any element of the proposed Columbia River Crossing  -- such as the controversial light rail line -- will require a new environmental impact statement, Peterson told AWB members at the weekly Lobby Lunch meeting.

The EIS alone would add millions to the cost of the project, Peterson said, and construction costs would likely double during that time.

Her comments came a day after U.S. Transportation Secretary Ray LaHood visited Olympia to lobby state lawmakers on behalf of the project, which has run into opposition from Vancovuer lawmakers who oppose extending light rail from Portland and putting a toll on the crossing.

If Washington state doesn't come up with its $450 million share of the $3.4 billion crossing, hundreds of millions in federal funding earmarked for the project will likely go to other projects LaHood said.

"It's time to fish or cut bait," he said.

Democratic state treasurer says Wash. business taxes are too high

Washington state Treasurer Jim McIntire speaking at the March 21, 2013 Lobby Lunch. Photo: Dan Brunell / AWB

Washington's tax system isn't working for anyone, according to state Treasurer Jim McIntire.

The regressive system over-taxes working families, McIntire said Thursday at AWB's weekly Lobby Lunch gathering, probably to the surprise of no one in the room.

But McIntire said he also believes businesses are over-taxed, a comment that he knew would raise an eyebrow or two.

"You don't often hear a Democrat say we over-tax business, but we do," McIntire said. "I want to be really clear that it's a problem in the state."

Gary Chandler, AWB's vice president of government affairs, asked McIntire to repeat the statement. He did.

And, McIntire said, you can add education and local government to the list of groups that are ill-served by the outmoded tax structure.

The problem, he said, is that Washington's system -- which includes a regressive sales tax, a complicated B&O tax and a property tax -- was created in the 1930s when the state had a goods-based economy.

Washington now has an information-based economy.

Lack of money isn't what ails state budget, Baumgartner says

Sen Michael Baumgartner (R - Spokane) addressing the crowd at AWB's Mar. 7, 2013 lobby lunch. Photo: Dan Brunell / AWB

Washington state will have approximately 7 percent more money to spend in the next two-year budget than it had in its last budget, Sen. Michael Baumgartner, vice chairman of the Senate Ways & Means Committee, said Thursday at AWB's weekly Lobby Lunch meeting.

Many businesses would be pleased with that kind of growth, Baumgartner said.

But not state government.

Despite the growth in revenue, lawmakers could still be about $2 billion short of the amount they would like to spend.

And that, Baumgartner said, is the problem.

"It just speaks to the challenges of how our state government has grown and what this edifice has become and how it decides to spend money that even at a time when we have $2 billion more than we had -- that we spent -- last biennium, we're looking at a budget that on the books is probably $2 billion short of what some folks would like to spend," he said.

Lobby Lunch: Is transportation package and DOT reform either-or proposition?

Rep. Judy Clibborn (D - Mercer Island) speaks to the AWB lobby lunch crowd on transportation issues as Sen. Doug Ericksen (R - Ferndale) looks on. Photo: AWB / Dan Brunell

Before she formally announced her $9.8 billion transportation funding proposal, House Transportation Chairwoman Judy Clibborn, D-Mercer Island, said she was hearing from all sides that it wasn't large enough.

Business, labor, and environmental groups all wanted more, Clibborn said Thursday at AWB's weekly Lobby Lunch meeting. But they all wanted more of different things.

After the proposal was unveiled, and the public found out that it included a 10-cent-per-gallon gas tax hike, the discussion changed.

"One of the reasons I wanted to roll it out is have the public say '10 cents! Oh my God!'" Clibborn said. "So now we're tempering our conversation around 'What can you really do?"

The public reaction may have brought the talk back to earth in Clibborn's view, but it was clear that Republicans see it differently.

Rep. Ed Orcutt, R-Kalama, said the reaction from his constituents has been, "Oh my God, no!"

Supreme Court delivers 'sharp rebuke' to voters on tax limit

Yes. Yes. Yes. Yes. Yes.

Five times, Washington voters gave their approval to measures requiring a two-thirds vote of the state Legislature to raise taxes.

One time, a majority of nine state Supreme Court justices said "no," issuing a 6-3 ruling today that overturns Initiative 1053, the two-thirds tax measure that voters approved by nearly 64 percent in 2010.

And that's the opinion that prevails, at least for now.

The irony in the decision was not lost on Justice James Johnson who wrote in his dissenting opinion that the court's majority members claimed a "fear of tyrannical minority control" as a result of the two-thirds threshold.

And yet through a single decision, "a court of nine people (actually only six votes) is imposing their policy preferences over that of the 1,575,655 voters who passed Initiative 1053 and the millions who qualified and passed similar tax protections."

If the irony is noteworthy, so too is the fact that the court decided even to take up the issue.

Justice Charles Johnson observed in his written dissent that by doing so, the court had abandoned its longheld practice of staying above the political fray.

Video Rewind: Rodney Tom, Ann Rivers and Richard DeBolt

Last week, our weekly Lobby Lunch series featured Senate Majority Leader Rodney Tom, D-Medina, Sen. Ann Rivers, R-La Center, and Rep. Richard DeBolt, R-Chehalis.

Transportation figured prominently in the discussion, which came the day after Rep. Judy Clibborn, D-Mercer Island, unveiled a $10 billion transportation funding proposal.

Also, as noted in a previous blog post, Tom suggested that Gov. Jay Inslee's choice to lead the state Department of Transportation may encounter a difficult confirmation hearing.

Here are some video highlights of the rest of the meeting, starting with DeBolt's observations about the 2013 session so far -- a session that he believes sees a "chasm of philosophies" in the House of Representatives that's as deep as he's ever seen.

Washington wines finding new markets, fans in Hong Kong

As it turns out, that nice glass of Washington state cabernet sauvignon on your table might also be on the table of a consumer in mainland China or Hong Kong.

U.S wines -- especially those from Oregon and Washington -- are increasingly popular in Hong Kong and neighboring mainland China. And with any luck, they'll gain even more traction thanks to special meetings like the one held earlier this week at AWB.

Joining AWB President Don Brunell for lunch Tuesday were Hong Kong Commisioner Donald C K Tong, along with Hong Kong Economic & Trade Office Director Subrina Chow (L), Deputy Director Wendy Au and Barnard Griffin Winery Co-Owner Deborah Barnard.

U.S. wine, particularly Oregon and Washington wine products, are highly regarded in Hong Kong and China. Consider that in 2008, Hong Kong imported just $9 million worth of U.S. wine, but in 2011, that figure jumped to $75 million.The market dipped slightly last year -- just $67 million -- but Tong says this was a temporary fluctuation.

With about 7 million people, many of whom thirst for quality wines, Hong Kong represents an exciting new market for the state's wine community. The U.S. is currently the third largest wine exporter to Hong Kong. Red wines account for 96 percent of all wine sales in the one of the world's leading financial centers, according to Tong, and 81 percent of all wines sold in Hong Kong stay in Hong Kong. The rest find their way to mainland China.   

Wines are primarily purchased by Hong Kong consumers through supermarkets, specialty stores and restaurants. And since Hong Kong is also known for its multicourse meals, Tong said, that's "good news for the wine business."  

Tong noted two key advantages for Washington wineries exporting into Hong Kong. First, a 2010 wine memorandum of understanding with Washington and Oregon encourages wine-related trading, tourism, investment and education between the Special Administrative Region of China and the two U.S. states. Hong Kong's

Hong Kong also has an agreement with Chinese customs that ensures that products shipped into Hong Kong bound for mainland China are distributed within one to seven working days. Hong Kong has a specific memorandum of understanding with China on wine, giving the country a free trade pact with the mainland.

"We would like to see more Washington wine in Hong Kong," said Tong, a sentiment many AWB member wineries, like Barnard Griffin, would gladly cheer.

Lobby Lunch: Transportation secretary pick won't receive a rubber stamp

Sen. Rodney Tom, D - Medina, speaking at the Feb. 21, 2013 AWB Lobby Lunch. Photo: Dan Brunell / AWB

Lynn Peterson, the Oregon highway engineer chosen by Gov. Jay Inslee to lead Washington's Department of Transportation, won't necessarily cruise into the position, Senate Majority Leader Rodney Tom suggested Thursday at AWB's weekly Lobby Lunch meeting.

"You will see a confirmation hearing that is not a rubber stamp," Tom, D-Medina, said in response to a question from Larry Ehl, publisher of Transportation Issues Daily.

Peterson is known as an advocate for public transit and her selection has raised concern among those who believe Washington's economic health requires investment in things like highways, bridges and ports.

Tom said he wants to learn more about her background and her vision for the job.

"If the sole focus is on carbon reduction, that's probably not going to work as transportation secretary," he said, noting that the position has wide-ranging responsibilities and requires somebody who can take a "balanced approach."

That's particularly important, Tom said, if lawmakers hope to pass a major transportation funding package this year.

Video Rewind: Democratic Caucus leaders deliver Valentine's Lobby Lunch remarks

Our Valentine's edition of Lobby Lunch featured guests from the House and Senate Democratic Caucuses: Sens. David Frockt, D-Seattle, and Nick Harper, D-Everett, and Reps. Jim Moeller, D-Vancouver, Tami Green, D-Lakewood, and Kevin Van De Wege, D-Sequim.

Our blog post on the meeting focused on Moeller's comments regarding transportation, a subject that will be in the news this week if Rep. Judy Clibborn, D-Mercer Island, releases a funding proposal on Wednesday as expected.

But the legislators also touched on education, health care, and Gov. Jay Inslee's jobs plan.

Check out the full video below:

2013 Lobby Lunch Series: House and Senate Democratic Caucuses. from Association of WA Business on Vimeo.

#awbday13 rewind: issue panel videos

Thanks to all who took time out of their busy schedules to attend AWB's 2013 Legislative Day Wednesday in Olympia.

We were grateful to have the support of TVW, Washington state's very own public affairs television network, at this event. Their team joined us for two issue panels and the governor's luncheon keynote remarks. We also blogged these sessions, plus others throughout the day, so if you missed out on the trip to Olympia, you can get caught up on things online.

Transportation Panel (blog post here)

 

Tax & Fiscal Panel (blog post here)

 

Gov. Inslee Remarks to 2013 Better Workplace Awards Luncheon (blog post here)

 Other issue area panels (video not available):

• Legislative Leadership (blog post)
• Employment Law Panel (blog post)

Is workers' comp reform an endgame bargaining chip?

Don't rule it out.

That's coming from three legisaltors who should know: Sen. Steve Conway, D-Tacoma, Rep. Mike Sells, D-Everett and Rep. Mike Manweller, R-Ellensburg. The trio of lawmakers who serve on the Commerce and Labor committees in the Senate and House all conceeded today the very real possibility that key workers' reform bills may not be dealt with until the very end of session this year.Their remarks were delivered during the final policy panel of today's AWB Legislative Day in Olympia.

The panel was sponsored by Littler in Seattle and moderated by Littler's Doug Smith, chair of the AWB Employment Law Committee. (The chairwoman of the Senate Commerce & Labor Committee, Sen. Janea Holmquist Newbry, R-Moses Lake, was invited to attend but did not participate due to other legislative commitments.)

Sells, chair of the House committee, has seen many a legislative session come and go and understands the machinations of the legislative process as well as anyone.

"Workers' compensation reform will always come up and be an issue," said Sells. "I think transportation is a bigger issue this session. We need to be looking at higher education -- if we don't have trained workers, if we don't have strong middle class families, if we don't look at education funding, doing some of this other stuff is almost cosmetic," he said.

Inslee says best thing he can do for economy is improve education

Gov. Jay Inslee giving the keynote address at the 2013 AWB Legislative Day.

Gov. Jay Inslee touted clean energy, education spending and health care reform Wednesday during his first address as governor at AWB's annual Legislative Day. His keynote remarks were delivered during the day's luncheon, honoring the winners of AWB's 2013 Better Workplace Awards.

"The best way I can help the economy in the state of Washington is education," Inslee said during his keynote luncheon address at the Red Lion Hotel in Olympia.

"Human capital in the new economy means everything," Inslee said.

Some of the ways that Inslee wants to improve education include realigning programs offered by colleges and universities so they meet the needs of industry, and increasing the emphasis on science, technology, engineering and math in K-12 schools.

In order to free up money to spend on education, Inslee said he wants to reform the health care system.

"There's no way to satisfy education needs unless we reform health care demands," he said.

Inslee also reaffirmed his commitment to promoting "disruptive change" in the way state government delivers services, and he held up Virginia Mason Health System and Boeing as role models for the use of Lean Management to boost efficiency.

Budget panel: Bipartisan spirit key to 105-day session

You can't say the budget voices in Olympia lack enthusiasm for their work. It's arriving at a consensus on the budget that's the challenge. 

Speaking before AWB's Legislative Day crowd, four legislators central to the state's budget writing process shared their views on the current challenges they face trying to bring their colleagues together around a budget this session.

State Sen. Andy Hill, R-Redmond, his Democratic colleague Sen. Jim Hargrove, D-Hoquiam, Rep. Gary Alexander, R-Olympia and Rep. Ross Hunter, D-Medina, served as panelists for today's AWB Tax & Fiscal Policy session, sponsored by Peterson Sullivan LLC. And while none could promise a tidy conclusion to things in 105 days, all four did offer some hints as to what drive them in their budget decisions.

Thanks to the leadership shuffle in the Senate with the new Majority Coalition Caucus, Hill now serves as the chair of the powerful Senate Ways & Means Committee  -- unseating his colleague Hargrove from the spot (for all of two weeks, Haragrove joked). For Hill, getting to "yes" on the budget by April is doable without a special session and it has to focus on outcomes rather than just funding programs.

"No one's really talking about the outputs and what we're buying," said Hill of previous budget processes. "When you 'fund' things, you get the money but you're not sure what you're buying.You're not really sure what you're going to get."

Hill said his work as Ways & Means chair is driven by four numbers:

• 0 - for the deficit he hopes to achieve after working on this budget in order to avoid another budget crisis next January; 
• 4 - the number of years for which the budget will be balanced. Last year, Washington lawmakers approved a measure requiring a four-year balanced budget, the first state in the nation to do so;
• 21 - representing their efforts to fund education (early learning, K-12 and higher ed) for the 21st century; and
• 105 - that magical number for completing the budget in the 105-day regular session.

Lawmakers differ over when to seek new transportation dollars

Rep. Ed Orcutt, R - Kalama, (left) and Rep. Judy Clibborn, D - Mercer Island, speaking at AWB Legislative Day.

No one is arguing about whether Washington needs to spend more money to maintain and expand its network of roads, bridges, ferries and ports.

But the leaders of the Legislature's transportation committees aren't yet united on the question of when to ask voters to raise taxes to pay for improvements to the state's transportation infrastructure.

Speaking at the opening panel of AWB's 2013 Legislative Day, Sen. Tracey Eide, D-Federal Way, and Rep. Judy Clibborn, D-Mercer Island, said they believe lawmakers should move this year on a bipartisan transportation funding request.

But Sen. Curtis King, R-Yakima, and Rep. Ed Orcutt, R-Kalama, aren't so sure.

King, who serves as co-chair of the Senate Transportation Committee along with Eide, said he worries that such a request would fail this year. 

And Orcutt, the ranking Republican on the House Transportation Committee that's led by Clibborn, said he wants to place an emphasis on getting people back to work before seeking new tax revenue.

Orcutt also said he wants to see officials make better use of under-utilized rural roads before spending money to increase vehicle capacity in the congested Puget Sound region.

"I'm not saying 'no' to a transportation package forever," Orcutt said, adding, "I'm not sure right now is the right time."

Video Rewind: Heuschel, Sturdevant kick off AWB Lobby Lunch series

Mary Alice Heuschel, chief of staff for Gov. Jay Inslee, and Ted Sturdevant, the governor's policy director, spoke last week at our first Lobby Lunch meeting of the year.

As we noted in a blog post, they focused their remarks on job-creation and how the new governor intends to achieve his top priority.

We've rounded up a few video clips of the lunch session, beginning with Heuschel talking about the four "buckets," or areas of focus related to job-creation: education, health care, economic development and efficient, effective and transparent government.

Next up is Sturdevant discussing this year's legislative session priorities, including transportation, education (specifically science, technology, engineering and math, or STEM), health care, and clean energy.

And finally, Heuschel -- the former superintendent of the Renton School District -- explains how she ended up serving as Inslee's chief of staff. "You don't plan these things," she said.

Lobby Lunch: Gov. Inslee's priority is 'jobs, jobs, jobs'

Mary Alice Heuschel, chief of staff for Gov. Jay Inslee, speaking Thursday at AWB's first Lobby Lunch meeting of 2013. Photo: Dan Brunell/AWB

In case there were any doubts about where Gov. Jay Inslee intends to focus his energy during the next four years, Mary Alice Heuschel sought to erase them Thursday.

"Jobs, jobs, jobs and, by the way, did we say 'jobs?'" Heuschel, the governor's chief of staff, said when she spoke at AWB's inaugural Lobby Lunch meeting of the 2013 Legislative session. "That is the over-arching goal for the next four years."

To achieve the goal, Inslee's administration will bring "fierce focus" to four areas that Heuschel referred to as buckets:

• Education
• Health care
• Economic development
• Efficient, effective and transparent government

Ted Sturdevant, the former Departmentof Ecology director who now serves as Inslee's policy director, accompanied Heuschel at the meeting and elaborated slightly on how Inslee intends to create more jobs.

"What can state government really do to impact the economy in a good way?" Sturdevant asked. It can, he said, influence the education system, and shape the regulatory environment.

Regarding the regulatory environment, a topic of keen interest to most employers, Sturdevant expressed optimism that Inslee's fresh approach might produce some breakthroughs that have eluded officials for years.

Sturdevant, a veteran of state government, said it can feel like problems are insurmountable, and that some regulatory hurdles are simply the cost of doing business.

Ted Sturdevant, policy director for Gov. Inslee. Photo Dan Brunell/AWB

But Inslee's faith in the power of innovation has the potential to change that, he said, and he invited business leaders to work with the new administration to solve problems.

"Obviously, we are not always going to agree about what it means to improve the economic climate or improve the regulatory climate," Sturdevant said.

Business leaders should nevertheless engage in the discussion, he said.

Inslee's selection of Heuschel, the former superintendant of the Renton School District, is evidence of the new governor's desire to bring about change, he added.

"He's hoping that by bringing the right tools and the right leaders, the opportunity for change is real," Sturdevant said.

At barely two weeks into the new administration, neither Heuschel nor Sturdevant offered much in the way of specifics about what to expect. 

Heuschel did tell the audience not to expect a budget proposal from Inslee's office until after the next revenue forecast.

Sturdevant joked that he would be playing the "newbie" card for quite some time.

When asked about the timeline for filling key leadership jobs, Heuschel said Inslee's staff is working hard to make the right choices rather than "meet a deadline of yesterday."

On a personal level, Heuschel said she was surprised when Inslee asked her to be his chief of staff, and that it's been an exciting few weeks adjusting to the "firehose" of information that comes with the new territory.

"It's been quite an adventure," she said. "My definition of success has changed not only daily, but almost hourly." 

Workers' comp reform was a good start, but more work is needed

Kris Tefft, AWB's general counsel and government affairs director for workers' comp, testifies before the Senate Commerce & Labor Commitee Wednesday with Scott Dilley, left, from the Washington State Farm Bureau. Photo: Dan Brunell/AWB

The series of workers' compensation reform bills that lawmakers approved in 2011 brought some badly needed relief to Washington employers by slowing what had been a meteoric rise in industrial insurance rates.

But the 2011 reforms didn't solve all of the problems plaguing the state's workers' comp system.

Unless lawmakers take the next step, employers are facing a $110 million surcharge for each of the next 10 years as the state Department of Labor & Industries attempts to rebuild its depleted reserve fund, Kris Tefft, AWB's general counsel and government affairs director for workers' comp, told the Senate Commerce & Labor Committee on Wednesday.

Department of Labor & Industries officials are doing the best they can to rebuild the fund, Tefft said, but they are constrained in what they can do.

"We need the Legislature's help as employers if we are to avoid paying $110 million per year in higher taxes," he said.

Tefft's testimony came at the end of a hearing on a series of five bills that range from simple tweaks to the system to more substantive changes. They include: 

• Senate Bill 5112 - Allows claims representatives for retro employers and groups to schedule independent medical examinations and vocational rehabilitation assessments, subject to certain condidtions
• Senate Bill 5124 - Streamlines the way time-loss benefits are calculated for injured workers by replacing the current formula, which varies based on the worker's marital status and number of children to a standard two-thirds percent. 
• Senate Bill 5126 - Addresses a recent Supreme Court ruling by reaffirming that the state and self-insured companies can reimburse their benefit costs when a third party outside of the employment relationship causes a workers' injury on the job.
• Senate Bill 5127 - Removes the arbitrary age limitation on structured settlement availability, making it a voluntary benefit option that's open to anyone, not just workers age 55 and older.
• Senate Bill 5128 - Also deals with structured settlements, the bill streamlines the program in keeping with the legislation that passed in 2011 with a strong bipartisan vote.

The lead sponsor of all five bills is Sen. Janea Holmquist Newbry, the Moses Lake Republican who is also serving as chairwoman of the committee as a result of the shift in power from the Democrats to a coalition of 23 Republicans and two Democrats.

KIRO radio spots tell the story of business, AWB

 

Have you heard our new radio ads?

Judy Coovert and Lisa Janicki, two of Washington's most articulate and tireless ambassadors for business, are featured in a pair of spots currently running on KIRO 97.3 FM.

The ads are part of AWB's "We Mean Business" campaign, which seeks to build support for private employers and job-creation throughout Washington.

In one of the 60-second ads, veteran Seattle radio host Dori Monson talks with Coovert, co-owner of Printcom in Burien, about the disconnect between government and business, and how AWB brings business together to give employers a stronger voice in Olympia.

By themselves, each new regulation or tax might not seem like a big deal, Coovert says. "It's only" this much, or "it's only" that regulation.

"All of those 'it's onlys' add up to a sum total that makes it nearly impossible for small businesses to grow and create jobs," Coovert says.

Listen to the ad:

In the other spot, Janicki, chief financial officer of family-owned Janicki Industries, tells Monson about the toll that taxes and regulations take on the Skagit County manufacturer.

"The best thing our company can do is to hire more peole and pay their benefits," Janicki says. "Regulations and taxes reduce the number of people that we can hire."

Because Janicki and her colleagues don't have time to go back and forth to Olympia, she says they rely on AWB to be their voice.

Listen to the ad: 

The radio spots mark the latest in a series of "We Mean Business" ads that began with direct-mail post cards and first-person appeals in business news publications, and later expanded to include ads in Horizon and Alaska airlines' inflight magazines.

Each ad features a Washington business person telling their story about trying to survive and grow in a challenging business environment. A full list of the ads is available here. 

To find out more about contributing to our statewide media campaign to build greater support for Washington businesses and job creation, check out our "We Mean Business" page.

 

Employers urge Inslee to focus on four legislative priorities

Prioritize spending. Invest in education. Fund a statewide transportation investment plan. And make Washington more competitive with other states.

Those are the four most pressing issues facing state leaders during the 2013 legislative session, according to the leaders of three of the state's leading business organizations.

AWB, the Washington Roundtable and the Seattle Metropolitan Chamber of Commerce sent Gov.-elect Jay Inslee a letter last week laying out the legislative priorities, calling them the most urgent issues impacting economic growth and competitiveness.

Together, the three groups represent a diverse range of small, medium and large employers, all seeking an end to the sustained economic downturn.

"We believe these priorities are an integral part of what must be addressed this session as they are critical to job creation, quality of life and long-term economic recovery and growth," the letter states.

The leaders of the business groups pledged to work with lawmakers to:

• Prioritize spending: That means developing a sustainable biennial budget that prioritizes funding for services critical to economic recovery and growth.
• Invest in education: Employers hope to advance system-wide education reforms designed to increase overall student achievement, improve graduation rates and increase postsecondary participation and graduation. Washington ranks 37th in the nation for students graduation from high school, and 38th for the number of bachelor's degrees awarded per capita.
• Fund transportation: It's time for lawmakers to support a statewide transportation investment plan that funds the most critical maintenance, operations and preservation needs of our state highway system and completes projects underway in critical transportation corridors.
• Reduce cost: Lawmakers must take steps to foster a competitive business climate and encourage job creation. This includes retaining incentives, reducing duplicative or unnecessary regulations, and continuing to implement reforms in the workers' compensation and unemployment insurance systems.

What employers need to know about legalized marijuana

A few days after Washington voters said 'yes' to legalized marijuana, the Seattle Police Department drew nationwide attention -- and a few grins -- with the release of "Marijwhatnow? A Guide to Legal Marijuana Use In Seattle." 

The handy guide answered questions for curious and potential pot smokers, but it didn't attempt to address any of the questions facing employers, such as: How does Washington's new law change a company's human resources policy? And what happens if an employee shows up at work high?

Greg Hendershott, a partner at Davis Wright Tremaine, provided some of those answers Wednesday during AWB's seminar, "Decriminalization of Marijuana and the Workplace."

(A webinar on the same topic will be held Jan. 15. Registration is available online.)

The short answer, Hendershott said, is that little has changed in the workplace as a result of the November vote.

Marijuana still is illegal under federal law. Employers can still test workers for drugs, including marijuana. They can still enforce drug-free workplace policies. And there is no duty for employers to accommodate medical marijuana use under Washington or Oregon law, or the federal Americans with Disabilities Act.

"Fundamentally, if you want to say nothing has changed, that's a pretty accurate statement," Hendershott said.

AWB Holiday Kids' Tree Project raises more than $23K for rural families in need

Left to Right - South Bay Fire Department Fire Chief Brian VanCamp with Gov. Chris Gregoire, First Gentleman Mike Gregoire, and AWB Board Chair Doug Bayne.

As if on cue, the temperature dipped Friday evening and a light fog hung over the Capitol building in Olympia.

Inside the rotunda, hundreds found warmth amid the marble walls and the tradition of an annual tree-lighting ceremony that marks the end of another AWB Holiday Kids' Tree Project.

This year's project raised more than $23,000 for rural families in need. More than 100 AWB member businesses and individuals contributed funds that will be spent by representatives from 14 fire departments in seven counties to buy food, clothing and gifts for families in their communities. 

As is tradition, the ceremony included musical performances by Kids in Koncert and introductory remarks from AWB's board chair.

"At AWB, we truly believe that the Holiday Kids' Tree Project is one of the best things we do each year," AWB Chair Doug Bayne said.

The tree-lighting fell on Dec. 7 this year, and Bayne took note of it.

"Today is a memorable day for World War II veterans, both those deceased and living," Bayne said. "For all of us veterans, my fellow veterans that have served, we would ask you to keep them in your thoughts and your prayers. Perhaps in a very near season, they can truly celebrate world peace during the holidays."

AWB President Don Brunell spoke briefly, introducing outgoing Gov. Chris Gregoire, who helped light the tree for the last time as governor.

She had an assist this year from  First Class Boatswain's Mate Shane Abold of the U.S. Coast Guard, his wife, Erin, and sons Trenton, 4, and Taylor, 2.

After reading an official proclamation, Gregoire invited the young Abold boys, wearing vests and ties, to light the tree.

Moments later, Santa Claus arrived and took his traditional seat at the base of the tree, a 25-foot noble fir donated by AWB member Rayonier.

And another holiday season was in full swing.

TVW streamed the ceremony live on the web. Check it out below if you missed it.

 

AWB Holiday Kids' Tree Project is underway!

The tree arrived this morning in Olympia, just like it has every year since 1989 when the AWB Holiday Kids' Tree Project began.

Only this year, there was a twist: The arrival was tweeted.

TVW's Anita Kissee and KING 5's Tom Tedford were both on hand for the arrival, and in a nod to the 21st century social media world in which we now live, they both snapped pictures of the event and sent them to their followers on Twitter. And of course, AWB had to get in on the fun, as well.

Once the tree was inside the Capitol Rotunda, workers spent the rest of the day decorating it in preparation for Friday's lighting ceremony, set to begin at 6 p.m.

Just before the lighting, Gov. Chris Gregoire will join with AWB in presenting donated money to representatives from 14 rural fire departments in seven counties.

The fire officials will use it to buy food, clothing and gifts for families in need in their communities.

We hope you can join us Friday for the lighting ceremony.

More information about this year's event is available in our media advisory, and a timeline history of the event is available below.

Donations may be made online. Donations received after Dec. 7 will count toward the 2013 Holiday Kids' Tree Project.

 

 

AWB Holiday Kids' Tree Project on Dipity.

 

 

 

Voters send loud and clear message on tax measure

It wasn't even close.

That was the first sentence in a blog entry we posted on this site in November, 2010, after voters approved a supermajority tax measure by a wide margin.

Two years later, with essentially the same measure on the ballot, the result was remarkably similar.

It wasn't even close.

Initiative 1185, the latest in a long series of measures requiring either a two-thirds vote of lawmakers or a vote of the people to raise taxes, was passing this morning with nearly 65 percent of the vote, a slightly higher margin than 2010's 63.75 percent victory for Initiative 1053.

State lawmakers, especially majority Democrats, complain that the supermajority requirement ties their hands and thwarts democracy.

But they should by this point have no doubt about the will of the people: Voters want the supermajority in place -- even voters in left-leaning King County, where I-1185 is leading with a comfortable 54.48 percent of the vote.

Opponents of the supermajority requirement -- consistently and resoundingly unable to win at the polls -- are not done fighting. They have taken the battle to the courts, where they are arguing its constitutionality. The case is pending before the state Supreme Court.

But no matter what the court decides, lawmakers cannot ignore the consistent, clear message of the voters.

They want a supermajority requirement. They don't think it should be easy to raise taxes.

What kind of animal is the state Health Benefit Exchange?

Exchange Panel (Left to Right): Steve Neighbors, Terra Staffing; Don Conant, Valley Nut & Bolt Company; Sen. Linda Evans Parlette (R - 12th District); and Rep. Eileen Cody (D - 34th District.) Not pictured: Phil Dyer, Kibble & Prentice and Jeff Gingold, Gingold Law Firm PLLC.

At least they know what to call it.

This week, officials unveiled the new name for Washington's nascent Health Benefit Exchange -- Washington Healthplanfinder -- along with a blue and green logo and the tagline "click.compare.covered."

But judging by the conversation Tuesday at AWB's 2012 Health Care Forum, there is still a fair amount of confusion about what, exactly, the entity is.

Technically, it's a quasi-public organization, not quite a government agency but not exactly private.

The exchange receives government funding and its first employees came from the state Health Care Authority, moderator Jeff Gingold noted during a panel discussion with state legislators, members of the exchange board and small-business owners.

Others pointed out that the exchange receives legal counsel from the state Attorney General's Office and employees receive health and retirement benefits from state programs.

"It looks to me like a government agency," said Gingold, managing partner at Gingold Law Firm.

If it's unclear exactly what the exchange is, it was even less clear to panelists how it will receive funding and whether it will ever be self-sustaining.

Employers face challenges in implementing Affordable Care Act requirements

Neil Trautwein, VP and employee benefits policy counsel with the National Retail Federation.

Neil Trautwein, VP and employee benefits policy counsel with the National Retail Federation, said employers face multiple challenges and will need to figure out how to adapt to requirements in the Affordable Care Act. Trautwein was one of several speakers today at the AWB Health Care Forum in Bellevue.

Trautwein says it’s a tough law to like and understand. The NRF is fiercely opposed to the law and believes it’s punitive, will hurt job creation and be too complex to administer. Regardless, since provisions are quickly coming to bear, employers need to be prepared to implement them.

“While this is the law of the land, we need to do our best to navigate the law,” said Trautwein.

Health care reform law adds cost, bureaucracy

 

Hadley Heath, senior policy analyst at the Independent Women's Forum, speaks Tuesday at AWB's 2012 Health Forum.

The federal health care reform law will cost $1.7 trillion over 10 years, create approximately 50 new agencies, offices or commissions and make it more expensive for businesses to employ workers.

That was part of the message Hadley Heath, senior policy analyst at the Independent Women's Forum, delivered Tuesday during the opening address at AWB's 2012 Health Care Forum.

A sold-out crowd of 200-plus employers attended the forum at the Hilton Bellevue hotel to find out more about how the law will impact their businesses.

The Affordable Care Act, also known as Obamacare, has been one of the most politically charged subjects over the last few years, but Heath -- who is obviously not a big fan -- largely attempted to steer clear of politics and provide a clear-eyed overview of the law and where it's headed.

So far, 16 states -- including Washington -- are moving forward with the creation of health benefit exchanges, which are a centerpiece of the reform, she said. Eight states have said they won't establish an exchange, another eight have made no significant progress toward creating one, and 16 states say they're studying their options.

Brunell: Sid Snyder: A good politician, a good man

 

Former state Sen. Sid Snyder holds the C. David Gordon Award he received in 2010 at AWB's Spring Meeting in Spokane.

The manner in which the late Sid Snyder approached public service is a model that today's politician's should emulate, AWB President Don Brunell writes in his weekly column.

By the time Snyder died Oct. 14 at age 86, his legacy as a true citizen legislator was already secure. Just a few years after he retired as Washington Senate majority leader, elected leaders from both parties voted to honor him by re-naming the street leading to the Capitol in Olympia as "Sid Snyder Avenue," Brunell writes.

Snyder, he said, bridged differences and fashioned compromises. He genuinely like the people he worked with in the Capitol, and he respected the process by which laws are made.

"In future years, people will walk down Sid Snyder Avenue and some young child may ask who Sid Snyder was," Brunell writes. "For those of us who knew, admired and worked with him, the answer is easy. He was a gentleman who liked people and worked tirelessly to do his best to help them"

How can Washington colleges do a better job of educating students for the workforce?

From left to right: Cal Christensen, Wagstaff Manufacturing; John Gardner, former Washington State University business liaison; Rich Cummins, Columbia Basin College;  Dan Butler, The Riverpoint Academy; and Domenic Giandomenico, ICW.

A panel of education and business representatives discussed that question Wednesday during a forum hosted by the AWB Institute and the Institute for a Competitive Workforce (ICW), a nonprofit arm of the U.S. Chamber of Commerce. The panelists included Domenic Giandomenico, ICW; Dan Butler, The Riverpoint Academy; Rich Cummins, Columbia Basin College; John Gardner, former Washington State University business liaison; and Cal Christensen, Wagstaff Manufacturing. 

The panelists focused on an ICW report that gave mixed results to Washington’s postsecondary education system. Earl Hale, the former executive director of the Washington State Board for Community & Technical Colleges, led the discussion.

Giandomenico: WA has a solid higher education system but there’s room for improvement

By 2018, more than two-thirds of the 47 million projected job openings will require some level of postsecondary education or training.

Domenic Giandomenico, the director of education and workforce programs with the U.S. Chamber’s Institute for a Competitive Workforce, gave this telling result from the Bureau of Labor Statistics data. Giandomenico was in Seattle today for a panel discussion on an ICW report that gave mixed results to Washington’s postsecondary education system.

Washington scored best in the area of student access and success where the state outperforms the national median for two-year schools. But the state didn’t do as well in areas like efficiency and cost-effectiveness, policy environment, and meeting labor market demand. He said there’s a disconnect from what employers need and what colleges are producing. He encouraged businesses to be involved in the process so that colleges are meeting labor market demand. There’s also a barrier for students entering college.   

What can the Legislature do to help business?

Lisa Janicki, AWB's new secretary-treasurer, gave lawmakers a list of her recommendations last week, starting with retaining the sales tax exemption for manufacturing.

Retaining the research and development tax credit is also a good idea, Janicki said, along with consolidating the state's numerous workforce development programs, shifting eduation dollars away from administration and into classrooms, and finally -- restoring common sense to regulatory agencies.

Janicki, chief financial officer for Sedro-Woolley-based Janicki Industries, offered the suggestions Friday at a meeting of the Legislative Committee on Economic Development & International Relations.

The meeting focused on ways that Washington can use the development of composite materials to boost the economy.

Janicki Industries is one of Washington's carbon fiber success stories, so her suggestions bear consideration. The family business has evolved from a wood fiber company to a carbon fiber company, developing products for aerospace, alternative energy, marine and transportation markets.

It's also grown sharply over the last 10 years, going from 103 employes in 2002 to 605 today.

If you're pressed for time, check out Janicki's summary of her remarks below, which includes a reminder for lawmakers to review the AWB Institute's report, "2012 Challenges & Opportunities for Manufacturers in Washington State."

Her full remarks, including details about products the company makes and its history of growth, can be seen here: 

 

Passing the Gavel...

Each fall, AWB hosts the traditional passing of the gavel between its outgoing and incoming officers at its annual Policy Summit.

Last week, Doug Bayne (left) of Walla Walla Community College assumed his new role as AWB Chair of the Board for 2012-13 year. Bayne succeeds Tom Hosea (right) of KeyBank, who remains an officer of the organization as the immediate past chair.

Other AWB officers for the 2012-13 year include Mel Russell of Aldercreek Vineyards (vice chair), Lisa Janicki of Janicki industries (secretary /treasurer), and Don Brunell (AWB president).

Brunell: There is a better way to help convicted felons find a job

If a person with a criminal record is committed to changing his or her life, it's true that having a job will help pay the rent and put food on the table.

But a proposal from Seattle City Councilman Bruce Harrell that would essentially make convicted felons a new protected class of workers is fraught with problems, AWB President Don Brunell writes in his weekly column.

For starters, it jeopardizes any hope of establishing a trusting relationship between employer and employee by prohibiting employers from looking into a job applicant's criminal record until late in the hiring process and not allowing them to reject an applicant solely on criminal history.

It raises other questions, too, such as what happens if a felon hired pursuant to the law commits a crime on the job or with information gained through their employment. Will the city of Seattle grant employers immunity from liability?

And what happens when a convicted burglar applies for a job as a locksmith? A convicted sex offender wants a job installing home carpet? Or someone convicted of vehicular manslaughter wants a job driving a truck?

Harrell must answer all of the questions that his proposal raises before it moves forward, Brunell writes. 

Lieutenant governor candidates spar over spending, ethics

The final debate of the AWB Policy Summit began on a light note, with moderator Peter Callaghan noting the musical ties of incumbent Lt. Gov. Brad Owen, a Democrat, and his Republican challenger, Bill Finkbeiner.

Owen is the frontman in a band that plays in front of school children, while Finkbeiner recently released a music video with Nirvana co-founder Krist Novoselic.

"This is actually not a debate," Callaghan said. "This is Lieutenant Governor 2012: The Musical."

The debate later turned testy, though, when Finkbeiner made an issue of Owen's use of surplus campaign funds to pay for alcohol and lunch for his staff.

It drew an angry response from Owen, who said he bought alcohol to entertain officials guests at his home and he treated his staff to special meals as a reward.

"That's a legitimate use of surplus funds and he knows that," Owen said referring to Finkbeiner. He added, "Bill is making a big deal that some people used (surplus funds) for suits and fixing their car, but I didn't."

Accusations fly during auditor debate

The race for Washington state auditor, which began to heat up last week when candidate James Watkins launched a website chronicling a history of past civil litigation involving his opponent, state Rep. Troy Kelley, reached a full boil Wednesday during a debate at AWB's Policy Summit.

"This race got kind of interesting last week," moderator Peter Callaghan, columnist for The News Tribune, said at the start of the exchange.

With that, Watkins, a Republican, and Kelley, a Democrat, spent the better part of an hour questioning the fitness of their opponent to serve as the state auditor.

Watkins returned frequently to the website his campaign launched -- factchecktroykelley.com -- and allegations he first leveled at Kelley during a taping of the TVW program "Inside Olympia," including tax evasion and misappropriation of funds.

The website has attracted attention from voters, Watkins said. He said a man stopped him over the weekend and asked, "Are you the thief or are you the other guy?"

How can business help change federal health care law? Speak out

Grace-Marie Turner, president of the Galen Institute and an outspoken opponent of President Obama's health care law, was blunt: "This law is going to be changed," Turner said Wednesday during AWB's Policy Summit. "It can't work."

The question for business leaders, she added, is figuring out what they can to make sure the changes end up helping employers and their workers.

The best thing employers can do is speak out to anyone and everyone about what the law is going to do to their business, said Turner. When they passed the law two-and-a-half years ago, Congressional leaders didn't know what was in the law and they still don't know how it will affect businesses, she said.

"A lot of members of Congress just don't have that information," Turner said.

 Some of the things that congressional leaders should know:

Luntz calls on business leaders to improve their message

 

How many of you believe you are better off now than your parents were at the same age? How many believe your children will be better off when they are the age you are now?

Pollster and communications expert Frank Luntz posed those questions to a room full of Washington employers Wednesday during the opening address of the 23rd annual AWB Policy Summit at Suncadia Resort.

A fair number of hands went up in response to the first question, but considerably fewer to the second question.

"Is that America?" Luntz said. "Is that the American dream? If the answer is yes, something is wrong."

Luntz spent the next 90 minutes challenging his audience to help change the direction of the country and the state by changing the words they use to communicate with employees and the public.

Does America have a 'quasi-parliamentary' system of government?

Ron Brownstein, one of the speakers at next week's AWB Policy Summit, thinks so.

Crosscut's David Brewster heard Brownstein speak recently in Seattle on the subject of political polarization, and he wrote about it this week.

Brewster lays out Brownstein's "sobering" perspective on the history of bipartisanship in Congress, its post-1988 demise and what it means for the future.

It's not an uplifting read. 

Brownstein believes that a purging of moderates from both major parties plus the end of the seniority system in Congress -- replaced by a system in which the party caucuses elect chairs -- contributed to a drift into a quasi-parliamentary system of government in which members are required to stand with their parties.

The good news is that this type of hyperpartisanship has occurred before in America and the country has broken out of it.

The bad news is that one time it took the Civil War to end it, and the other time Teddy Roosevelt bolted from his party and created a new one.

On a lighter note, Frank Luntz, another speaker at next week's Policy Summit, was quoted yesterday in a Washington Post article that took note of the way both political parties used deeply personal stories during their conventions.

"It humanizes and personalizes the politics, that it's not just about policy, it's also about people" Luntz said. "Whenever policy is put in people terms, that's when it succeeds."

Supreme Court says gas-tax lawsuit can proceed without tribes

The Washington Supreme Court sided with a coalition of gas station owners Thursday, ruling that a lawsuit the group filed over compacts between the state and some American Indian tribes can move forward even though the tribes are not a party to the suit.

The coalition filed suit in Grays Harbor Superior Court in 2010, arguing that the compacts -- which require the state to refund 75 percent of taxes collected at tribe-owned gas stations -- are unconstitutional.

But state attorneys argued successfully to have the case dismissed, saying it couldn't move forward without the tribes -- and the tribes could not be named as defendants because they have sovereign immunity.

AWB filed an amicus brief last year, urging the court to take up the case. The state, the brief argued, shouldn't be allowed to hide beyond the issue of tribal sovereignty.

"As representatives of one of the most taxed and regulated communities in Washington, AWB finds offensive the notion that state officers might act contrary to the constitution or contrary to state with respect to taxpayer money, but be insulated from any judicial check on that action simply because the illegality is with a sovereign entity within the state," wrote Kris Tefft, AWB's general counsel.

The court agreed, ruling 5-4 that the case should proceed.

"Sovereign immunity is meant to be raised as a shield by the tribe, not wielded as a sword by the State," Justice Debra Stephens wrote in the majority opinion.

The Washington Policy Center, which also filed amicus brief urging the court to review the case, blogs on the decision here.

Erik Smith at the Washington State Wire called the ruling a "major blow" to the deals that Gov. Chris Gregoire struck with the state's tribes.

The Associated Press covered the decision here, and The News Tribune's Jordan Schrader blogged on it here.

AWB files brief backing I-1053 supermajority to raise taxes

The Association of Washington Business filed a friend of the court brief Monday in support of Initiative 1053, the voter-approved measure requiring a two-thirds vote of the Legislature or a vote of the people to raise taxes.

The measure is under attack from an assortment of opponents who claim it prevented lawmakers from raising taxes during the 2011 legislation session in order to fund schools.

But the brief, written by Kris Tefft, AWB's general counsel, argues that neither I-1053 nor any of the three supermajority requirements that preceded it actually prevent lawmakers from raising taxes when there is sufficient support to do so.

In fact, lawmakers raised the very tax at issue in the I-1053 legal challenge with a two-thirds vote earlier this year.  

Instead, I-1053's opponents are merely "seeking an easier political environment in which to enact tax increases," the brief argues.

Three previous legal challenges have failed to overturn the right of the people to impose a supermajority requirement on the Legislature.

The Washington Supreme Court, which is scheduled to hear hear arguments next month on the latest challenge, should toss this one, as well, the brief argues.

In addition to calling out lawmakers for wanting an easier way to raise taxes, the brief highlights the tortured exchange on the House floor that was aimed at setting up the court challenge.

Opponents of I-1053 cite the failure of a specific piece of legislation, Substitute House Bill 2078, in their argument. But majority Democrats in the House were apparently more interested in orchestrating its failure than they were in making sure it passed, the brief argues.

"Rather than take actions that would have led to the passage of the measure, effort was instead invested in an elaborately choreographed set of colloquys preceding the floor vote, all evidently designed to tee up this specific legal dispute over the predestined failure of the measure," it states, adding that the website PubliCola confirmed that Democrats took the vote in order to set up the court challenge of I-1053.

"This is not a constitutional crisis," the brief states.

Oral arguments in the case are scheduled for Sept. 25, and it's on "expedited review," giving rise to speculation whether the court will render a decision prior to the Nov. 6 vote on Initiative 1185, whcih seeks to pick up where I-1053 left off, or prior to the start of the 2013 legislative session.

Jason Mercier of the Washington Policy Center blogs on the AWB brief here.

To view the orchestrated colloquy, click on the video below.

Media rewind: A round-up of gubernatorial, AG debate coverage

In case you missed the debates Tuesday, there are plenty of ways to catch up on the news.

Approximately three dozen print, television, radio and online reporters converged on the Bing Crosby Theater in Spokane this week to cover the first debates of the 2012 campaign for Washington governor and attorney general.

It was the sixth time since 1992 that AWB has hosted gubernatorial debates -- co-hosted with Greater Spokane Incorporated -- and the first time they were held in the spring.

Here's a look at some of the reports they produced:

• KREM: McKenna, Inslee meet in 1st debate in Spokane
• The Seattle Times: McKenna, Inslee meet in 1st gubernatorial debate in Spokane
• Associated Press: Inslee, McKenna face off in 1st gubernatorial debate
• The Spokesman-Review: Inslee, McKenna square off at Bing
• KXLY: Inslee, McKenna hold first gubernatorial debate in Spokane
• KOMO: McKenna, Inslee meet in Spokane for first debate
• Seattle P-I.com: Inslee vs. McKenna: Big differences revealed in debate
• The Politics Blog (The Olympian): Duh: Inslee backers think he won debate
• Washington State Wire: No Kayo in Round One, But First Inslee-McKenna Debate Offers Plenty of Contrast

Attorney general debate coverage:

• The Seattle Times: Dunn, Ferguson come out slugging in attorney-general debate
• Political Buzz (The News Tribune): Attorney-general candidates take gloves off in debte: Jay Inslee, Rob McKenna up next
• The Up Front Blog (KING 5 News): Spokane Warm-up Act Steals the Show

TVW's The Impact examines both debates:

 

Q13 Fox's C.R. Douglas reports from Spokane:

Governor, AG candidates meet on stage at AWB-GSI debates

Voters had their first chance Tuesday to see Washington's governor and attorney general hopefuls go head to head in a pair of debates sponsored by AWB and Greater Spokane Incorporated.

The first debate, between attorney general candidates Reagan Dunn, a Republican King County Councilman, and Bob Ferguson, a Democrat on the King County Council, was regarded by reporters as a lively contest.

Dunn emphasized his experience as a prosecutor, saying he was the only candidate with experience prosecuting criminals. Ferguson said Dunn frequently missed votes on the King County Council.

In the second debate of the day, Inslee and McKenna answered questions on everything from education and transportation to taxes and jobs.

The candidates agreed that more money should be spent on education, and they agreed that taxes shouldn't be raised to fund the increased spending.

But they disagreed on many other issues, including the federal health care law and whether the Legislature should need a two-thirds supermajority to raise taxes.