Main Street businesses: Close tax loopholes, invest in future

It’s not every day that a business group calls on legislators to resist budget cuts, raise revenue and invest wisely to boost the economy and fuel consumer demand, but Monday was one of those days.

“We need customers – not cuts!” a coalition of small-business owners from across the state said in a letter hand-delivered to Rep. Reuven Carlyle of Seattle in the Legislative Building. “We believe it’s time to refocus our political debate on generating revenue to create the investments we need to support small businesses,” the letter said.

The letter called for closing tax loopholes for big corporations or adopting new revenue measures in order to raise money for health care, education and infrastructure. It was signed by more than 170 members of the Main Street Alliance.

“We believe that an economy works best when everyone pays their fair share,” the letter said. “When essential public services are cut, our economy suffers, people lose their jobs and small businesses lose our customer base.”

The letter was delivered by Consuelo Gomez of Marty K Comprehensive Facilities Maintenance in Bellevue, Tiffany Turner of Adrift Hotel and Inn at Discovery Coast in Long Beach and Don Orange of Hoesly Eco Automotive in Vancouver.

Carlyle has long advocated for increased accountability for tax loopholes granted to businesses and industry sectors. As chair of the House Finance Committee, he is working this session to make sure that the exemptions are linked to measurable economic benefits.

Read this story in Spanish.

Going on a hike? There’s an app for that

The Washington State Parks and Recreation Commission turned 100 yesterday, and to celebrate the occasion, it launched a smartphone app with information on more than 100 state parks, historic sites and campgrounds.

The free Pocket Ranger ® Smartphone App is available for both iPhone and Android phones. It'll help outdoor enthusiasts plan their trips to any of the parks and also provides these useful features:

• educational information, amenities, maps and directions
• real-time calendar of events
• news, advisories and weather alerts
• social networking and photo sharing
• potentially life-saving alert service
• advanced GPS mapping

On March 19, 1913, the eighth governor of Washington, Ernest Lister, signed House Bill 509 into law, creating the State Board of Park Commissioners. The law gave the board authority to accept donations of lands for state parks purposes.

Click on the image for a larger picture

In 1919, State Parks had 26 acres, and by 1929, it had grown to 8,000 acres. The state park system currently includes 117 developed parks and other properties, altogether totaling more than 110,000 acres.

According to the Commission's news release, most Washingtonians live within a one-hour drive from a state park. The new app will make finding and visiting our state parks easier and will support our parks system by attracting more visitors:
 

The new app is part of a Commission strategy to expand the use of technology to provide   meaningful visitor services and to market the park system. Technology advancement is one component of a larger Transformation Strategy being considered by the Commission to guide the park system in the next few years. The strategy includes exploration of new revenue sources to respond to a dramatic, recession-driven change in State Parks funding. State Parks financing is shifting away from primary reliance on general fund and toward greater reliance on revenues from use fees such as the Discover Pass. The new app is an example of State Parks working to ensure people continue to choose state parks for their recreation. Meanwhile, the Commission also is advocating for the park system to receive a "right mix" of funding that includes use fees, donations and general tax dollars so that the park system can meet its broad mission and ensure a legacy of parks for the future.  

Honoring the centennial, the House of Representatives adopted House Resolution 4630 sponsored by Rep. Frank Chopp, the Speaker of the House.

Read this story in Spanish.

The leading innovation hotspot of the world?

The Washington Economic Development Commission (WEDC) says Washington can accelerate job growth and become a global leader in innovation. The WEDC's report, "Driving Washington's Prosperity – A Strategy for Job Creation and Competitiveness," released last week, identifies five key drivers for ensuring job creation and competitiveness:

• Make talent a top priority
• Invest in entrepreneurship
• Connect through reliable infrastructure
• Regulate in the smartest ways
• Expand international business

The report also includes an analysis of the State's competitive strengths (research & development, patent production, technology jobs growth, venture capital investment, manufacturing and exports) and weaknesses (rate of jobs recovery, in-state production of scientists and engineers, workforce skills, household income, investment in transportation infrastructure and foreign direct investment).

Rep. Jeff Morris and Sen. Maralyn Chase serve in the WEDC, which provides the governor and the legislature with leadership and guidance on long-term economic development strategies to benefit all of Washington's citizens.

Read this story in Spanish.

Tourism in Washington slowly regaining ground

Guemes Island tide flats

Back in 2010, AOL Travel listed Guemes Island as one of the top top-secret beaches in the nation. According to this New York Times story, that was also the year Washington attracted 30 percent more international tourists than in 2009, and annual visitor spending increased 7.4 percent.

Now, we're not saying that those impressive figures were due to the Guemes Island secret getting out, but we're not ruling it out either.

All kidding aside, tourism in our state hasn't done as well as in good old 2010, and that may have something to do with the fact that in the summer of 2011, due to budget cuts, Washington became the only state in the nation to close the doors of its tourism office.

However, the Kitsap Peninsula Business Journal reported yesterday that we did better last year than in 2011. According to figures released by the Washington Tourism Alliance, which held its summit earlier this week in Olympia, Washington's tourism growth was 2.1 percent. Our state received $16.9 billion in overnight visitor tourism spending, which is 4.4 percent more than the previous year.



Leavenworth (photo by Dmmaus via
Wikimedia Commons)

This past January, the Huffington Post included Leavenworth in its top 20 great small towns for a weekend. Not that it's a secret, mind you, but more news about lederhosen and beer steins can't hurt. 

Read this story in Spanish.


Sequester on your street corner

Last week, Senator Patty Murray visited with House Democrats and discussed some of the effects of sequester - the looming automatic cuts to the federal budget that will be triggered if Congress fails to strike a budget deal by March 1st.

This week, the White House released more detailed information on what these automatic cuts would mean for Washington state.

Among the low-lights:

• Washington will lose approximately $11,606,000 in funding for primary and secondary education, putting around 160 teacher and aide jobs at risk. In addition about 11,000 fewer students would be served ad approximately 50 fewer schools would recieve funding.
• Washington will lose about $3,301,000 in environmental funding to ensure clean water and air quality...
• About 440 fewer low income students in Washington would recieve aid to help them finance the costs of college.
• In Washington, approximately 29,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $173.4 million in total.
• Washington will lose approximately $1,053,000 in funds that provides meals for seniors.

For the complete list of potential cuts, follow this link.

Read this story in Spanish.

Top market for contractors, oh yes we are!

And you don't have to take our word for it.

Take Ken Simonson's when he said that if he were a contractor looking at where in this country to open up operations, he would look at Puget Sound. As chief economist for the Associated General Contractors (AGC) of America, Simonson knows his business.

His quote comes from a February 4 story in the Daily Journal of Commerce focused on construction jobs and the economy around the nation. Turns out that last year 24 states added construction workers, 24 shed them and two had no change — but Washington state posted strong results.

According to the AGC, our state ranked third in construction jobs added over the year, with 9,000 people finding work. And we were tied for fourth in the percentage of new jobs added, at 6.5 percent. 




SR 520 bridge.  Photo: Wash. State Dept. of Transportation

And who's creating many of these jobs? Well, what do you know, it's the state!
That's right, with big projects like the Alaskan Way Viaduct replacement and the new State Route 520 floating bridge.

So the next time you hear someone saying that government doesn't create jobs, invite them to read the Daily Journal of Commerce story for the facts. 

Read this story in Spanish.

We're No. 6!

​And that’s not bad at all: Forbes magazine ranks us –actually, the Seattle-Tacoma-Bellevue metropolis – as the sixth fastest-growing city in the United States.

The magazine took a nationwide look at the 100 largest “metropolitan statistical areas” -- a federal definition that groups cities with their suburbs and other nearby urban centers – and ranked them by growth in population, employment and economic production, with some other measurements factored in.

 

Three Texas cities – Austin, Houston and Dallas –topped the list, and a fourth, San Antonio, ranked ninth. Behind Seattle, another Pacific Northwest city, Portland, rounded out the top 10, while Boise, Idaho, came in at No. 15.

Read this story in Spanish.

Homeless student population now over 27,000

As of yesterday, there are 1,397 more reasons the “fund education first” plan isn’t as great as it may sound.

Washington state now has 1,397 more homeless students bringing the total to 27,390.

Those numbers come from the Office of the Superintendent of Public Instruction (OSPI), who says homeless students increased by 5.1% increase compared to the 2010-11 school year.

Why the increase? Job loss, unforeseen illness, increased housing prices and foreclosures.

Here’s an excerpt from the OSPI news release:

Districts cite many reasons for the increase. The overall job market is still struggling, in addition to local economic factors, such as the closing of a paper mill in Everett and the decline of the logging industry in Shelton and elsewhere. More students are living on their own. And funding for services that help prevent homelessness is being cut.

In the proposed Fund Education First plan, how much funding would go towards:

• Job creation and worker retraining: $0
• Health care for low and middle-income families: $0
• Housing assistance: $0

Sick, hungry or homeless kids can’t learn.

Read this story in Spanish.

Easing the transition for our troops, veterans, and their families

​They put their civilian life on hold, standing ready if need be to put their very lives on the line.

So back here on the home front, military men and women have a right to fair and functional opportunities in transitioning to peacetime.
The very timely issue of “counting military training for college credit and professional-licensing requirements” was discussed in a meeting of the House Community Development, Housing & Tribal Affairs Committee, chaired by state Rep. John McCoy, earlier this week. McCoy is sponsoring a measure in the 2013 legislative session to strengthen protections for the parental rights of deployed military dads and moms. He said that our state's "policies and procedures should provide assistance for military men and women in their transition to safe, high-quality civilian lives and careers."

House Democrats two years ago championed successful legislation to make sure that military training and experience counts toward licensing-requirements in a wide array of professions. The Washington State Department of Veterans Affairs provides a great deal of employment assistance. Likewise, the U.S. Department of Defense and the commander in chief is also emphasizing employment-programs for veterans.

So far this year, a pair of other proposals to help support our servicemen and women are working their way through the legislative process. One bill would send financial help to veterans and active members of the military who are pursuing a higher education. A second bill would direct targeted colleges and universities to set up early-course registration for veterans and National Guard members. Both bills are in the House Higher Education Committee: HB 1011 is set for a vote in the 8 a.m., Tuesday, Jan. 29, committee meeting, and HB 1109 is set for a vote in the 10 a.m., Thursday, Jan. 31, committee meeting.

Read this story in Spanish here.

When it comes to taxes, we’re one of the best and one of the worst

On the one hand, the Tax Foundation consistently says that Washington has one of the top ten best business tax climates. We rank sixth in their 2013 index. But the Institute on Taxation and Economic Policy's most recent "Who Pays?" report says Washington is the state with the most regressive tax system.

So who's right?

They both are. One of the reasons the Tax Foundation has Washington in a privileged spot is because we don't have a state income tax.

And what makes our state's tax system uber-regressive is best explained in a brand new study prepared by the Office of Financial Management, where we found that:

The state's poorest 20 percent pay 9 percent of their personal incomes in state and local taxes, while the richest 20 percent pay just 2 percent. You read correctly, the reality in our state is that the poor pay 4.5 times as much, percentage-wise.

This Crosscut story has more information on how poor folks are stuck with a larger chunk of the bill.

The OFM study was presented to the House Finance Committee on Monday. Click this TVW link to watch it online.

Read this story in Spanish here.
 

Got broadband?

We sure do. In fact, not only do we have it, we're at the top of the list on broadband infrastructure. That's according to the fresh-from-the-oven TechNet 2012 State Broadband Index. TechNet is a network of CEOs and senior executives that promote the growth of technology-led innovation.

What puts us at the top are high rates of broadband use, a broadband-connected economy and better-than-average network speeds. Other tech states, like California and Utah, trail behind us ranking 5 and 9 respectively.

Upon hearing the news, the Washington State Broadband Office (WSBO), which is part of the Washington State Department of Commerce, issued this press release. It quotes Will Saunders, WSBO program and policy director, on the issue: "The state's ranking reflects state broadband planning going back to 2008 and more than $2.3 billion in public and private investment in infrastructure and training during that period. The study also confirms that we are ideally positioned for economic growth based on this work."

Saunders is right; one of the reasons we're leading the pack in 2012 is that in 2008 the legislature passed SB 6438, regarding high-speed internet services and community technology opportunities. The measure required the then Department of Information Services to come up with a statewide high-speed internet deployment and adoption strategy to:

• develop geographic information system maps and inventories of public and private high-speed internet infrastructure

• address management of proprietary and competitively sensitive data

• spur development of high-speed internet resources across the state

• track residential and business adoption of high-speed internet

• use local technology planning teams to help with internet deployment to disenfranchised or unserved areas.

Access to broadband means your morning paper loads quickly and you can watch the latest viral video in a snap. Being the best at access to broadband means it will be easier for the state to attract and grow companies, which means more jobs.

Graphic courtesy of Technet

Big Bertha Blossoms and Brings Business

Photo credit: WSDOT

Back in September, the Washington State Department of Transportation (DOT) was boasting—with reason—about its humongous, colossal and insanely gigantic 300-foot-long, five story-tall Tunnel Boring Machine (TBM). Its 57½-foot diameter front-end will make it the world's largest machine of its kind… Heck, the universe's largest!

With its own Flickr page and animated YouTube video, the only other thing this machine needed was a name.

The Department figured the best people to ask for suggestions were our very own school-aged kids (K-12), who had until 5 p.m. Tuesday, Nov. 13, to propose a name along with a 200-words-or-less explanation of their choice.

The contest's rules were that, in keeping with the tradition of naming TBMs, the winning name had to be female and should "have significance to Washington State heritage, life, nature, transportation or engineering."

Bertha Knight Landes, 1926 Seattle Mayor

The judges had to make their pick from more than 150 entries. Earlier this month DOT announced the winning name is BERTHA, after the first woman to lead a major American City, Bertha Knight Landes, who was mayor of Seattle in 1926.

The name Bertha was submitted by two entrants: Darryl Elves' fifth-grade class at Poulsbo Elementary School and Elijah Beerbower, a second-grader at Lincoln Elementary School in Hoquiam.

The winners will be invited to Bertha's official dedication ceremony in Seattle next summer, where they will receive special t-shirts and the thrill of seeing the name they chose emblazoned on the world's largest tunnel-borer.

Bertha and her voluminous dimensions are necessary to carry out the ambitious SR 99 Tunnel Project, but workers are also necessary to pull it off. Lots of skilled workers: DOT reports that the viaduct replacement program will sustain more than 3,900 jobs at the height of construction, so there's plenty to look forward to in the near future.

In the meantime, our TBM now not only has a name but also a voice, as Bertha already opened her very own Twitter account: @BerthaDigsSR99. In her latest tweet she laments that she's not on Facebook because DOT limits her social media time.

Learn more about the SR 99 Tunnel Project,

Read this story in Spanish here.

Applepalooza 2012 exceeds everyone’s expectations

How ya like them apples?

We knew this year's apple crop would be big and we're no strangers to big. A couple of years ago our apple crop was massive: We hit a record 109.3 million 40-pound boxes, which had a $7 billion economic impact on the state. So yeah, when growers realized in August that this year's harvest might come close to the 2010 record despite hail damage in July, they said bring it on!

Except, after last year's farm labor shortage, which forced many to leave fruit on the trees, growers were afraid there might once again not be enough workers to pick the expected 4.3 billion (108 million 40-lb boxes) apples.

But wait, there's more.

In early November, the apple crop estimate for 2012 went up to 121.5 million boxes, clearly beating the previous record. That was huge news and a new milestone for the industry.

But wait, there's more.

This week, even Todd Fryhover, president of the Washington Apple Commission in Wenatchee, was taken aback when he learned the latest estimate for this year's apple crop is 129.7 million boxes!

That's an increase of 20.4 million boxes and 18.6 percent from the industry's prior record.

If anything should get credit for this jump in the last month, that would be the weather. According to Dan Kelly, assistant manager of Washington Growers Clearing House Association, thanks to good weather there were more picking days, which meant more fruit could be harvested even with a shortage of pickers. He explained that fruit passed over early was picked later allowing it to grow larger in size, which also contributed to a more bountiful crop.

Read this story in Spanish here.

What it means when the governor said 'a major transportation package'

Photo: WSDOT

Gov. Chris Gregoire made news today by proposing a "major transportation package." (Here's the story: Gregoire to propose major transportation package)

What does that mean?

Let's translate that from Olympia speak to English.

Budgets -- There's a transportation budget every year, but that's different. With the usual budget, you basically keep things moving: fixing highways, running the ferries, funding the State Patrol.

Package -- A "major transportation package" is different, and doesn't happen often. The last one was in 2005, and what it does is fund all kinds of projects, big and small, that the regular transportation budget couldn't fund.

Here's what the 2005 "Nickel Package" funded and how the construction work is ramping up and ramping down.

Folks in Olympia call this The Mt. Rainier Slide, because it shows how the Nickel Package cranked up construction jobs, peaked around 2011 to 2013, then slide down back to normal.

Gov. Gregoire is making a simple point: the state population is growing, and more people are driving on the highways and using ferries, buses and trains. Unless we make plans now to get new projects rolling, there's nothing really in the pipeline after these current projects get finished, and that would mean more traffic gridlock.

Read this story in Spanish here.

I-502 legalized marijuana – so what does that mean for taxpayers?

Now that voters passed Initiative 502 to legalize marijuana, what happens next?

The details about how the new law will work aren't done yet. State officials will draft rules and regulations to figure out who will grow and sell marijuana.

The bigger question, for taxpayers and budget writers, is how much legalized marijuana might mean for Washington state's economy.

As this Seattle Times post explains, there's a lot of debate about the money side, too.
The non-partisan budget people at the Office of Financial Management (OFM) – the ones who crunch all the numbers for the state budget – have done a couple of different reports about the initiative, full of numbers and charts and possibilities.

The budget folks did a fiscal report on the initiative. Click here to read it. Bottom line: by 2015, the initiative might mean $532 million or more per year in tax revenues. Of course, there are caveats, and if the federal government shuts the whole thing down, the financial impact would be zero dollars.
A second OFM report show the estimated impact to different state agencies and such. Click here to read that report.

The Times cites two private sector sources, one of which uses the OFM report to estimate the size of a national marijuana market. One expert quoted is John Gettman, a marijuana researcher from Virginia, who says Washington state's marijuana market could potentially hit $1 billion a year, which would make pot the No. 2 agricultural crop in the state. (Apples are No. 1, milk would be No. 3 and wheat would be No. 4).

To read thos story in Spanish, click here.

Matching skilled workers with aerospace employers

This started in 1916 with one small-aircraft business and has now grown to 740 companies, which currently employ 96,900 workers.

"What is the aerospace industry in Washington state?" is correct!

With almost 100 years of experience manufacturing and assembling the best planes on Earth, it is no wonder Washington is the aerospace capital of the United States.

As of 2011, all commercial aircraft over 100 seats built in the United States are assembled and delivered right here. Yes, even with Boeing's new plant in South Carolina, 90 percent of the company's production is in Washington.

But it's not easy being the best and the largest in the field; it takes lots of highly skilled workers to get the job done well and maintain our outstanding reputation. That's where it gets tricky because thousands of aerospace workers will be retiring in the next few years. Meanwhile, production will continue increasing, which means the demand for a qualified workforce will also be higher.

The Center of Excellence for Aerospace and Advanced Materials Manufacturing, a one-stop resource hub for the industry's education and training needs, created this nifty online tool that will make it easier for aerospace companies to find skilled workers.

The website lists graduates from 18 of Washington state's community colleges, in nine aerospace-related fields, so employers can search for graduates with specific skill sets.

There is plenty of work ahead to satisfy the industry's demand, but Washington is on it. In recent years, we have taken important steps to create and expand aerospace and manufacturing training programs. In fact, just a year ago, during the December special session, the Legislature passed three measures to shore up our aerospace industry.

Want to learn more? Back in April, Mary Kaye Bredeson, director of Everett Community College's Center of Excellence for Aerospace and Advanced Materials Manufacturing, wrote this op-ed on how community colleges are helping aerospace soar.

To read this story in Spanish, please click here.

Education a top priority for House Democrats

"Building strong families"

"Strengthen communities"

"Investing in our youth"

These are just a few of the themes emanating from today's House Democratic Caucus advance. The members are meeting to build the caucus agenda for the 2013 legislative session.

Education is the prevailing topic. House Democrats are working on several ideas that will fully fund education, reduce the high school dropout rate, close the opportunity gap, make college more affordable, and invest in workforce development and training programs that will prepare Washington residents for high-quality, family wage jobs.

The 105-day session begins January 14, 2013.

To read this story in Spanish, click here.

Report: Marriage equality means jobs for Washington

Wedding bells for same-sex couples will bring an estimated $88.5 million to Washington state's economy in the next three years, according to a new report.

The Williams Institute did an analysis to predict the economic effect of the new laws in Maine, Maryland and Washington state, where lawmakers approved marriage equality and voters recently affirmed that decision after an initiative.

The Williams Institute based their estimates on census data and previous experiences in other states that have legalized same-sex marriage. The report predicts that half of all same-sex couples will marry in the first three years under the new law.

The economic projection does not include out-of-state couples traveling to these three states to get married. If you include those weddings, according to the study, it boosts the economic and jobs data even more. In the first year that Iowa had same-sex marriage, about 1,200 couples came to the state to hold wedding there. Such marriage tourism would boost Maine's economic activity from same-sex marriage from $15.5 million to $25 million and create up to 250 new jobs, according to the think tank.

Here's a link to the Williams Institute report: Wedding Spending in Maine, Maryland, and Washington will generate over $166 Million in the First Three Years

And here's the AP story: Wedding trade expects boost from gay-marriage laws

To read this story in Spanish, click here.

Washington called 'enterprising': Folks in the know say we're gonna go 'Boom!'

Photo: Jeff McNeill via Wikimedia Commons 

A recent Seattle Post-Intelligencer article, Washington captures Top 10 ranking, trumpets news that our very own Evergreen State is one of "10 states that will [wait for it!] boom over the next five years."


That's right, folks: No sooner is the ink dry on an admiring certificate celebrating Washington's status as a Job Creator (see this recent HDC Advance blog: Who says Washington is a top state for producing jobs?), then along comes the National Chamber Foundation, a U.S. Chamber of Commerce think tank, with its Enterprising States Report hailing us at No. 6 on a most-laudable list -- indeed, it's a truly estimable cast and compilation of what these erudite think-tankers call "enterprising states." Yes!


No less a periodical than the redoubtable Forbes magazine says Washington's glowing marks owe to our robust aerospace and technology industries and our hearty standing in foreign trade. The widely quoted publication has previously ranked Washington among the five best states in the entire country to do business.


Go ahead, take a minute or two to check the Chamber Foundation's report linked up there a few lines back. You'll see for yourself these sterling qualities that captured the fancy of these observers long enough for them to single us out: productivity, livability, tax structure, trade, infrastructure, and an environment that encourages innovation. Only the most rebarbative of critics would dare question Washington's place among the top rank, the highest order of business-friendly states.

To read this story in Spanish, please click here.

Good news: Workers making more as economy bounces back

Wages went up in Washington state last year,according to the state Employment Security Department.

The average wage grew 3.6 percent as our state, and the nation, recovered from the global economic collapse.

This good news comes on the heels of a U.S. Chamber of Commerce report putting Washington in the Top 10 states for creating jobs, with that report stating, “Led by the software industry, Washington is one of the few states with a growing information sector. Washington moved up five places into the top 10 largely due to its rapid short-term job growth over the past two years. The state’s manufacturing sector – led by aircraft and other transportation equipment building – significantly outperformed the national manufacturing industry since 2001. The Evergreen State added another 65,000 jobs in professional, scientific and technical services; 19,000 in securities and commodity contracts and 12,000 in electronic wholesale markets.”

The average wage grew from $48,162 in 2010 to $49,894 in 2011, according to Employment Security. The total number of workers covered by unemployment insurance increased by 37,764 last year while total earnings by workers got boosted by $6.6 billion.

From the release by Employment Security:

“Month to month,we’ve been seeing strong growth in industries that tend to offer above-average pay, and that seems to be reflected in last year’s earnings,” said Employment Security Commissioner Paul Trause.

The three industries with the highest wage growth in 2011 were the information sector,with wage growth of 9.5 percent; company management, up 7.9 percent; and manufacturing, up 5 percent.

The 2011 numbers stood in sharp contrast to 2010, when the 2.1 percent rise in the average annual wage was caused mostly by the loss of low-paying jobs. The number of insured workers declined by nearly 32,000 that year, and wages grew by just $1.2 billion.

To read this story in Spanish, click here.