Olympia Business Watch

Gov. Gregoire's Keynote Remarks at AWB's 2011 Legislative Day

(Recorded: Feb. 03, 2011) Gov. Chris Gregoire’s keynote remarks at AWB's annual Legislative Day luncheon. Topics include unemployment insurance, workers' compensation, state employee pensions and education.

AP legislative preview offers glimpse of the challenge facing lawmakers

Are taxes really off the table? And what does government reform really mean?

The leaders of the state's legislative caucuses answered questions from the state's press corps this morning during the annual Associated Press legislative preview, and their comments helped illustrate the challenges that lie ahead for them during the 2011 session.

The bipartisan panel seemed to agree that government reform is essential if lawmakers hope to address the estimated $4.6 billion shortfall in the 2011-13 budget, but they showed a reluctance to address some major elements of the budget.

When asked whether state employees should give up more and whether lawmakers should discuss doing away with collective bargaining, Sen. Lisa Brown, D-Spokane, said that wouldn't solve the problem. "Collective bargaining is not the fundamental cause for the situation we're in," Brown said.

Regarding the Basic Health and Disability Lifeline, the social service program formerly known as General Assistance - Unemployable, House Speaker Frank Chopp, D-Seattle, strongly defended the programs, saying thousands of people are depending on them.

On the Republican side, Walla Walla Sen. Mike Hewitt and Chehalis Rep. Richard DeBolt spoke up for levy equalization, which helps less affluent school districts. "This is one we know we will fight to the death on," DeBolt said.

Newspapers overwhelmingly oppose I-1098 income tax

Ballots are going in the mail this week which means that some early voters may be sitting down at the kitchen table as soon as this weekend to begin filling them out.

Anyone who consults a local newspaper for help researching the issues will find little in the way of confusion when it comes to Initiative 1098, the proposal to bring a state income tax to Washington.

As the Defeat 1098 campaign noted earlier this month, nearly every newspaper in the state is opposed to the initiative, as is AWB.

Some of the highlights from the editorial boards:

• "Initiative 1098, the state income tax, runs counter to the idea of government adjusting its appetites downward. It takes current government programs as given and seeks to maintain them by adjusting taxes upward." - The Seattle Times

• "The measure has several strikes against it: It may be illegal, it would target wealth-creation in the middle of a recession, and it would enact an income tax with no constitutional limits or corresponding constitutional caps on other state taxes." - The News Tribune

• "This proposed tax will fall heavily on the owners of small businesses, who will invest less, hire fewer workers, or simply move away. Businesses that rely on highly skilled workers will find recruiting more difficult." - The Wenatchee World

Longtime ABC News pollster says November mid-terms are all about the economy

In case it wasn't already obvious to political observers, the upcoming November mid-term elections are all about the economy, pollster Gary Langer told AWB members Wednesday night at the annual Policy Summit in Blaine.

Langer, who recently left ABC News to form his own company, Langer Research Associates, backed up the conventional wisdom with polling data documenting the decline in President Obama's popularity since he took office. It's closely correlated with the poor economy, and it's strikingly similar to the decline of President Reagan's approval rating during the first year and a half of his presidency.

Reagan's approval rating bottomed out at 42 percent during his second year in office and only recovered when the economy improved, Langer said.

The problem for Obama: The number of people who are unemployed, and the length of time they have been out of work. Unemployed may be hovering around 10 percent, but the U-6 index, a figure that includes discouraged workers who have given up looking for work, is more like 16.5 percent.

Alaska Air listed among notable recession survivors

Sea-Tac-based Alaska Airlines is one of 10 companies labeled "Back From the Brink" by U.S. News & World Report.

"It's been a bumpy decade for most airlines," the article notes, citing spikes in fuel prices and a plunge in travel. But after suffering losses in 2006 and 2008, Alaska turned a profit last year and its stock price is up 135 percent over the last two years thanks to cost-cutting and other measures.

Alaska, an AWB member, is the only airline and the only Northwest company to make the list of notable recession survivors. Others include Ford Motor Co, E-Trade (the online brokerage with the talking baby television spots), Corning and Jo-Ann Stores.

The list identified companies that "stared into the abyss -- and backed away from it on their own power."

Specifically, the magazine looked for companies that ranked near the bottom on Standard & Poor's long-term debt ratings and quality rankings over the past two years, but whose quality or debt rating has improved recently.

It cast a dim view on companies that survived only because of a government bailout.

The listing is only the latest bit of good news for Alaska. The company is also winning praise for turning around its on-time performance, going from dead last a few years ago to among the top performers, according to The News Tribune.

And the airline was recently named one of the greenest in the country thanks to its fuel-efficient fleet and recycling efforts.

Putting Together a Social Media Policy

Jason Hagey posted this morning about some of the risks and rewards of business embracing social media, with some thoughts and recommendations derived from a seminar earlier this week by attorneys at AWB member law firm Perkins Coie in Seattle.  

Recommendation number one is "develop a social media policy and enforce it."  What should a social media policy say?

Here is one HR professional's take, writing at the social media wesbite Mashable.com: 10 Must Haves For Your Social Media Policy.  It includes as examples social media policies from a couple different companies.

Take a look.

Social media offers businesses potential profits - and pitfalls

Sure, your company is experimenting with social media.

But does it have a social media policy? And are you taking steps to minimize the potential public embarrassment -- and worse, legal liability -- that it could bring?

To help make sense of the social media phenomenon from a business perspective, three attorneys from the Seattle office of Perkins Coie law firm put on a seminar this week entitled “Critical Legal Questions for Companies Participating in Social Media.”

The program included practical suggestions for how to make the most of the various social media while still protecting your business.

 “Social media is changing the way we do business,” attorney Tom Bell said.

Among the suggestions:

In era of rapid change, local media remains key to community

Working in the television industry now, during an era of unprecedented change, feels a little like Indiana Jones running from the boulder in "Raiders of the Lost Ark," said Colleen Brown, CEO of Fisher Communications, in remarks to AWB members Tuesday night at the Spring Board Meeting Dinner and Awards in Spokane.

Technology is the boulder, Brown said. It has led to a proliferation of media choices, and with it the erosion of mass media and the rise of "personal media," Brown said.

"Not since the printing press has technology so impacted media," Brown said.

Gone are the days when the country came together to watch a single television show, and when a television network could influence the national debate with its documentary programming. In the world of new media, people can consume media when they choose and on the device they choose, ranging from television and radio to computer and mobile phones.

Even so, Brown said she is not pessimistic about the future of television, noting that the top 100 television shows are still over-the-air broadcast shows.