Current Legislative Agenda
2010 Greater Yakima Chamber of Commerce Legislative Agenda
To Our Legislators and Business Members,
We would ask that our legislators consider our positions and vision for a strong economy as a whole when making policy decisions this year. The end of this recession, and a return to prosperous times, may come quickly or it may arrive slowly. Either way it will not come without the hard work, ingenuity and dedication of businesses in south central Washington. The question this Legislative Session is whether those businesses will be encouraged or hampered by the actions of our Legislature. This will truly determine which path to recovery we take. We hope that you will take the time to understand how the following issues will either help or hinder our efforts to succeed. Our goal remains the same; to expand, create jobs, and improve life for our citizens. We look forward to working with you.
OUR TOP PRIORITIES FOR 2010
Worker's Compensation System Reform:
L&I cites declining receipts, and rising wage and health care costs as justification for their 7.6 % rate hike in 2010. This is the largest increase employers have faced since 2003, and amounts to $117 million tax increase at a time when most businesses are just struggling to survive. The Yakima Chamber urges legislators to reject the rate hike and instead take this opportunity to demand significant changes to the state's archaic and flawed system as the best way to curb costs and assist those who rightly deserve coverage.
What's wrong with our system and why is the fund losing money?
- Currently, injured workers who miss work are off work for an average 266 days, more than three times the national average. Oregon, by contrast, has an average of 70 days of work loss.
- Since 1990, claims have dropped 55%, but in the last 10 years worker's compensation taxes paid by employers have increased by more than 50%.
- Administration costs at L&I alone have increased $39 million in just the last year.
- Nearly half of injured workers never go back to their jobs. Washington has the highest pension rate in the nation. In fact, pension rates have increased more than 300% since 1996.
- Washington's system has the second-highest cost per employee in the nation and provides the second-highest benefit package in the country. Multi-state employers routinely say their costs here are among the highest they face.
- Washington is one of only four states with a government monopoly that forbids private competition for industrial insurance coverage. Competition works. Nevada's L&I program privatized in 2000 reducing that state's liability by $2 billon dollars.
The Greater Yakima Chamber urges legislators to incorporate the following reforms for employers and employees:
- Allow workers, employers and L&I the option of settling claims for a lump sum.Washington is in a minority of states that forbids this option for resolving claims.
- Sharpen definitions for occupational diseases, for example, ruling out non-work-related conditions such as aging. Washington has one of the nation's broadest occupations disease definitions.
- Re-evaluate wage inflation rates. Base wage levels at the national standard of 52 weeks prior to the date of injury and adjust for 100 percent of inflation, not the current 120 percent.
- Allow private competition for industrial insurance that current law prohibits.
- Establish medical provider networks as allowed in 42 other states. This would allow injured workers to obtain treatment from medical providers who specialize in treating specific injuries and increase the likelihood of reducing the time employees miss work.
Summary:
Rising premiums put jobs at risk and diminishes our state's ability to attract new investment. Policy reform is critically important to getting benefits costs under control and helping injured workers become gainfully employed. Simply put, tax and fee increases in 2010 will hurt our economic engine, delay recovery, and could result in less jobs, not more.
Budget Policy Strategies
Understandably, lawmakers face a huge challenge trying to balance the list of needs with declining revenues. However, we ask you to keep in mind that this is an exercise taking place in nearly every home and business across the state.
Since the bulk of state revenues come from taxes on business, the true road to recovery and a sustainable economy will come with business growth and expansion. Given the heavy toll this deep recession has taken on business and families, we urge lawmakers to avoid raising taxes, hiking permit fees or adding more regulatory burdens onto struggling businesses. Nor do we think it wise to enact laws that would deter companies wanting to invest in new products, expand their production or modernize their operations in Washington.
Solutions:
- Enact policies that encouraging the private sector to create jobs in Washington. For example, the sales tax exemption on manufacturing machinery has added $81.5 billion to state coffers in its first 10 years and created almost 285,000 jobs.
- Use the POG process as the standard method for deciding where budget cuts can and should be made. This process will get us back to the core functions of government, education, public safety and protecting our economy.
- Avoid using one-time money transfers from dedicated accounts to put a Band-Aid on our budget problem. Consider the unprecedented raid on the capital budget last year; it will only get us further in debt.
- Take additional steps to eliminate redundancies to make government more efficient. For example, the Governor's 21stCentury Initiative has already eliminated 17 boards and commissions.
- To boost business expansion, lawmakers must lower costs to employers through reforming worker's compensation. (See Issue Number One).
- Finally, lawmakers must look at compensation for state workers by following the example of the private sector with adjustments to worker's hours, freezing wages and requiring people to pay a higher share for their benefits.
Public safety Policies
Greater Yakima Chamber of Commerce
In 2008, according to the US Department of Justice, Washington State had 28% more property crime committed per 100,000 residents, than Idaho, Oregon or Montana. For the number of violent crimes committed in 2008, our number was 331 per 100,000 residents, or 26% higher than our neighboring states. Meanwhile, when you consider the amount Washington State invests in law enforcement per resident, you will find that we are dead last among fifty states. (Source: Crime in the United States, US Department of Justice, FBI reports).
The Greater Yakima Chamber of Commerce believes the first and foremost responsibility of government is the safety of those it serves. This should be especially true when it comes to our youth. Gang membership and gang-related crime continue to grow throughout this community and across the state. With that in mind, the Chamber asks our state lawmakers to take the following steps during the 2010 legislative session:
- Adopt laws that would provide local law enforcement and prosecutors with the tools they need to more aggressively combat the problem of gang violence. Among these tools should be the creation of a "Criminal Gang Intimidation" law covering situations wherein a person is coerced or threatened should he or she refuse to join a gang or wants to withdraw from a gang membership. This crime should be rated as a seriousness level IV, class C felony.
- Provide local government with the authority to establish civil gang injunctions or "gang free" zones to prevent certain known gang members from engaging in criminal or other precursor activities in high crime areas as an effective and innovative tool to combat street gang activity and to reduce the strangleholds that gangs can have on their communities. Impose tougher penalties on convicted criminal gang members and authorize local governments to enact civil gang injunctions.
- Support legislation to allow for seizure of private property when used to support gang activities similar in nature to the drug seizure laws now in effect.
- Close loopholes that allow juveniles to escape detention for illegal gun crimes.
Education Funding Policies
Human capital and innovation are fundamental to gaining a competitive advantage in restoring our state's economy. The success of companies increasingly depends on an educated, job ready workforce, their access to new technology, and their ability to rapidly recruit qualified employees.
The state constitution mandates that K-12 education be adequately funded. We urge our lawmakers to...
- K-12 Education
Retain the Levy Equalization Funding:
- Eliminating levy equalization would absolutely devastate rural and property-poor school districts, many of which serve the poorer regions in south Central Washington. A survey of school districts from Zillah to Naches showed that our valley would loose approximately $26 million in school revenue. Without the levy equalization funding, by May 15, 2010 (State Law) approximately 360 educators would have to be released. We have to protect the core priorities of out state, starting with education. We cannot deny students adequate education just because they live in a less prosperous neighborhood.
- Higher Education
Adequately fund our Community Colleges and Technical Schools to accommodate the increase in enrollments brought on by job loss. Base funding for FTEs on the actual cost of instruction in fields that are critical to the State's economic growth and employers needs.
- Early Childhood Education
The loss of Early Childhood and Full Day Kindergarten would be going backwards. Full Day Kindergarten has resulted in 85% plus students able to read going into the first grade compared to 14% for Half Day Kindergarten.
Agricultural Policies
Farmers in the Yakima Valley compete with many other nations and states and have led the nation in the development of new technologies and varieties of fruit. However, farmers are struggling just as much as any other business in the state. Unlike Boeing, they cannot pick up and leave Washington for greener pastures.
There is agreement among economist that a strong and vital agriculture industry will help our trade-dependent state recover from the recession faster than other states in the country. But to achieve this goal, we must keep our costs at a minimum. Less than 2% of our commercial products are consumed in the state while 98% are shipped into other competitive markets. Washington's farm exports have been the mainstay of our economy.
We strongly urge the legislature to:
- Add no new fees and keep the existing tax exemptions in place to help farmers stay competitive. Do not eliminate the business and occupation tax exemption.
- Ease the regulatory burdens on those engaged in agriculture.
- Support our port facilities, good roads, and minimal fees to access markets.
- Ensure an adequate supply of water for agriculture by eliminating impediments to efficient water usage, continuing to develop new supplies, and removing legal uncertainties related to current and future water use.
- Allow the federal government to deal with immigration reform while creating a farm worker recruiting program that protects farmers and complies with federal rulemaking.
- Continue or expand research at WSU directed at solving the bee colony decline.
- Foster sound environmental outcomes by recognizing the benefits derived from retaining agriculture operations on the landscape and incentivizing producers who voluntarily employ additional stewardship measures.
Priority Policies Impacting on Business
Health Care Reform.
The cost of health care has nearly tripled since 2000, from $3,600 a year for a family of four to almost $12,000. Congress is proposing reforms that will drive up the cost for most families, while creating mandates that will increase the cost of doing business. Meanwhile, the cost of enrolling millions of additional people in Medicare is a program that will be subsidized by taxpayers. To lowers costs, provide more choices and increase access to quality care...
- Allow people to purchase health care across state lines. Families will have more choices and increased competition will lower costs.
- Reduce costs borne by service providers and the practice of ordering unnecessary medical tests through tort reform reducing the practice of defensive medicine.
- Create no new state mandates and allow insurer's the flexibility to customize policies to fit the specific needs of the insured.
- Focus on private-sector solutions that give Americans more choices, more independence and more control over their own health care.
Policies Involving Energy.
Low energy costs, due primarily to abundant hydropower, remains one of Washington's most critical competitive advantages in attracting new investment. Protect our sources of energy to drive business growth by...
- Making Hydro-power a defined green energy source in all legislation.
- Opposing strict cap and trade legislation until the economy recovers.
- Support continued independence of the Freight Mobility Strategic Investment initiative and the funding of its unbiased priority projects.
- Supporting legislation for the restoration and redevelopment of nuclear power projects for the purpose of creating energy parks for the generation of electricity.
Economic Development Policies:
Washington's economic recovery will be tied directly to our ability to expand existing companies and attracting new ones to our state. Lawmakers can help make this happen by...
- Continuing to expand the LIFT Program to a full tax-increment-financing Program (TIF) to encourage new development and investment.
- Expanding the use of the M&E tax incentive as a primary economic development tool to other business enterprises.
- Preserve, protect and grow Aerospace industry in Washington.
- Tourism creates $74.9 million in local/state tax revenues in Central Washington and provides 10,620 direct jobs. Legislation that hinders this industry should be avoided at all costs, and policies that promote tourism in Washington should be encouraged.
Transportation Policies:
Maintaining and improving the state's infrastructure and freight-mobility will play a critical role in our economy's recovery. Studies have identified nearly $50 billion in transportation investment needs throughout the state. The following legislative actions will secure our competitive advantages...
- Tolls are an appropriate long-term financing mechanism for major transportation projects.
- Uphold the commitments of the 2003-2004 gas tax to allow our regional projects to stay funded and on schedule.
Immigration Reform Policies:
Yakima growers and shippers need the ability to recruit and retain the talented workers that they need to stay in business. Workers they can legally employ and afford. To ensure the continued success of our agriculture sector lawmakers need to...
- Reform the employee verification process by establishing clear, consistent standards that promote a legal workforce while protecting employers from undue costs and unrealistic demands.
- Adopt an essential worker pilot program that will help employers obtain a legal and stable workforce on the basis of labor market needs.
Wage and Hour Reforms:
At the state level, labor is attempting to pass legislation that would significantly limit the ability of employers to communicate with employees about union matters and subject the state's smallest businesses - currently to small to be covered by federal law - to collective bargaining obligations enforced by the state Public Employment Relations Commission. Increasing labor costs and the diminishing employer rights are hurting our economy. Employers need lawmakers to support struggling businesses by...
- Resisting efforts to eliminate or restrict employee choice and privacy with respect to secret ballot union elections.
- Not imposing state-level collective bargaining obligations on the state's smallest employers.
2010 Chamber Government Relation Division
Schedule of Events and Activities
January 6
Legislator's Pre-Session Reception and Send-Off
4:00 p.m. - Chamber Office
"Members and Legislators from the 13th, 14th and 15th Legislative Districts network, Chamber
presents its top 2010 legislative priorities and provide lawmakers with their "Olympia Survival Kit".
January 27th
Legislator's Weekly Conference Calls
7:30 a.m. - Every Wednesday morning through the end of the session.
"A 30-minute conference call where members can discuss on-going issues and current bills
with Legislators from the 14th Legislative District".
February 2-3rd
Chamber Day in Olympia
Depart Yakima on Tuesday, 2:00 p.m. - Return Wednesday, 6:00 p.m.
"Yakima Chamber delegation, joins other Chambers from across the state for a day in Olympia featuring issue briefings, AWB lunch and appointments with legislators". Reservations required".
Weekly, January - April
Legislative Issue Alerts
"Members receive timely e-mail alerts about legislative actions impacting on their businesses
featuring an easy to use internet tool "Voter's Voice" to contact their representatives".
Contact Information:Greater Yakima Chamber of Commercewww.yakima.org (509) 248-2021 or e-mail: Mike@Yakima.orgTo Access Voter's Voice...Log onto www.Yakima.org and click on Voter's Voice to see issue briefs and follow simple prompts to access your legislators.