Rules are falling but the sky isn’t

Can state leaders protect the public interest while slashing regulatory costs for Washington’s businesses? You bet they can! In 2011, for example, lawmakers enacted huge Unemployment Insurance reforms (SB 5135) that helped unemployed workers while saving businesses nearly $300 million.

Lawmakers also added real teeth to the Regulatory Fairness Act (SB 5500) and insisted that state agencies give businesses more time to fix problems before issuing fines (HB 1150). This year’s ongoing reform-work included strengthening the state Office of Regulatory Assistance (SB 6359) and revamping industrial storm-water permitting rules  (HB 2651).

But the big regulatory-relief news this week is the terrific success of a pair of Gov. Chris Gregoire’s Executive Orders (10-06 and 11-03) that directed state agencies to help businesses (and save state tax dollars!) by suspending non-critical rule-making. A new report shows the governor wasn’t kidding when she ordered agencies to curb all non-essential rulemaking:

• 75 rules were eliminated

• 483 rules were put on hold

• 186 adopted rules were required by law

• 118 adopted rules were requested by the regulated communities

• 69 adopted rules were related to managing budget reductions and related government reforms

• 28 rules were adopted to address public health or safety concerns

• 5 rules were necessary due to court order

• 30 rules were adopted after negotiated or pilot rulemaking

In short, as Gary Smith, president of Independent Business Association, was quoted as saying in a recent press release from our governor, “They have proven to be successful.”  Of course, there’s always more that can be done, and House Democrats are already working on reform ideas for next year. Have any ideas? If you do, please share them with one of our HDC lawmakers You might be the inspiration for the next great state reform!

To read this story in Spanish, click here.

State reforms lead to reduced business costs in 2012

Rep. Mike Sells

Thanks in part to legislation passed by the House and Senate last year, most businesses in Washington will see not only their workers' comp premium stay steady, but also a significant drop in unemployment insurance costs.

This would be the first time since 2007 that L&I rates have not increased, saving businesses $150 million next year. It is important to remember, however, that some businesses still might see premium increases based on their recent claims history and risk class. For example, restaurants and retail stores will see a 3% drop, but construction and forest products could see a slight increase due to the injury claims.

As far as unemployment insurance costs, most employers in the state will receive a lower tax rate in 2012, and all rate classes will drop. In fact, tax rates for employers that had no layoffs in the past four years will plummet by 71 percent, to an all-time low for that rate class (side fact: 91% of employers in rate-class 1 are small businesses with fewer than 5 employees).

In total, the tax-rate reductions will equal about $207 million, in addition to the $300 million in savings sponsored by Mike Sells, Chair of the House Labor & Workforce Development Committee, and passed by the Legislature last year. "Without the actions we took last year to bring relief to business owners still struggling through an economic slump, these rate reductions wouldn't have been possible," said Sells. "This news, combined with yesterday's 737 MAX announcement, show that the recent steps we've taken, and reforms we've implemented to respond to our businesses' needs, are paying off." 

Kris Tefft, AWB general counsel and government affairs director on employment law and workers’ compensation, agrees: “Today’s announcement reflects the value of the reform measures passed in 2011, without which employers would surely have seen rate increases next year. We’ve appreciated the opportunity to make our case that this is not the time for any sort of rate increase on business,” said Tefft.


Here's a handy fact sheet and FAQs from ESD's website on the adjusted rates.

To read this blog post in Spanish, go here.

Employers love workers with skills.

You know, like nunchuck skills, bow hunting skills, but most of all, computer skills.

In an effort to help unemployed workers update their computer proficiency skills, Washington's WorkSource career development program within the Employment Security Department teamed up with Microsoft to allow free access to their e-learning computer courses.

But they want you to spread the word: Registration is free until October 31. After that, you'll have to pay big bucks for this kind of training.

The courses cover basic computer literacy, Office and Windows products, and training for IT professionals. Upon request, access codes are sent by email through local WorkSource centers.

To learn more and to register online, log in to Go2WorkSource.com and click on the “Wow! Free Microsoft E-learning” icon on the right. Information and registration assistance also are available at local WorkSource centers listed on the website.

WorkSource is a statewide partnership of Employment Security, local workforce development councils, other state agencies, colleges and nonprofit organizations that work together to provide free employment and training services to job seekers and employers. WorkSource also can help employers recruit and screen for qualified workers, apply for employment tax breaks and qualify for subsidized employee training.

Unemployment still high, but Washington job growth gaining steam

The state Employment Security Department just released their latest data on job trends in Washington and the news, while mixed, is pointed in the right direction.

Washington added a seasonally adjusted estimate of 1,100 jobs in March, while the unemployment rate edged up from 9.1 percent to 9.2 percent.

Industries that posted gains in March were professional and business services, up 2,700; wholesale trade, up 1,900; manufacturing, up 1,600; financial activities, up 1,300; mining and logging, up 200; and leisure and hospitality, up 200.

Dragging those gains down, however, were job losses primarily in government, education, health services, and construction, as well as retail, transportation, and warehousing, for a combined loss of 6900 jobs.

Still, the line slowly arcs upwards - Washington has added an estimated 33,100 jobs since March 2010.

“We’re picking up a little steam,” said Employment Security Commissioner Paul Trause. “The consistent job growth we’re starting to see now is really encouraging.”

An estimated 340,325 people (not seasonally adjusted) in Washington were unemployed and looking for work, and 228,911 people received unemployment benefits from Washington in March.

Employment Security is a partner in the statewide WorkSource system, which offers a variety of employment and training services for job seekers, including free help with interviewing skills, résumés and job referrals. WorkSource also can help employers recruit and screen for qualified workers, apply for employment tax breaks and qualify for subsidized employee training.

Click here for more information, locations, and job listingsat your local WorkSource office. Assistance also is available by phone at 877-872-5627.

Rep. Reykdal on the impact of unemployment benefits for local business

We catch up with Rep. Chris Reykdal at his local Tumwater bowling alley to talk about the benefit of unemployment insurance for laid-off workers. Chris spent some time there with the owners and operators talking about state government, its effect on the local economy, and what we can do to help small businesses like theirs survive tough times and thrive in the better ones.

And no, he doesn't go bowling in a suit. That would be weird.

House gives businesses a break and workers a bump

The House today passed part of Governor Gregoire’s priority legislation, a $300 million tax break for state businesses and added benefit and training opportunities for laid-off workers.

“With an Unemployment Insurance Trust Fund of $2.5 billion, it became very clear that we needed to do something that benefits the businesses that have paid into it, and the workers who are unemployed,” said Rep. Mike Sells who Chairs the Labor and Workforce Development Committee and sponsored HB 1091. “We’re One Washington, we’re working together and we’re going to do what we can in this House to move this economy forward.”

The key components of the legislation:

• The bill caps unemployment insurance rates for 90% of employers, especially small businesses that haven’t experienced any layoffs, keeping the rates at 2010 levels. This reduction could mean hundreds less in taxes per employee in 2011.
• For those struggling to find work, the bill makes training programs more accessible, allowing more workers to learn new skills and build better resumes for their job search in high-demand fields.
• With some adjustment to the formula for calculating claims, Washington’s unemployed workers will qualify for the extended benefits passed by the majority Democrats in Congress during the lame-duck session in December.
• Workers who are laid off for the rest of 2011 will receive a $25 bump in their weekly benefits.
  

“Members of both sides of the aisle worked hard together for the past couple of weeks to make a better plan. We took a good idea that started out as a temporary tax decrease for businesses and a small increase for workers and we made it better,” said Rep. Larry Springer “We worked together and recognized that there’s not an employers’ Washington and there’s not a workers’ Washington, there’s just One Washington. We decrease taxes, we increase benefits and we come out with a win.”

“Every $1.00 paid in unemployment benefits returns $1.64 to the local community,” said Sells. “So this will strengthen local economies and increase activity for businesses in every community in the state.”

39 Luftballons

Yesterday we described how the unemployment system is pumping billions into our state economy via the families struggling to make ends meet.

Using the internets for our internetting of news is cool and all. But it's right about then when we're feeling cool, that we see someone doing something actually cool with the news. And that person today is Niki Reading over at TVW's blog, The Capitol Record. Niki took the breakdown of dollars allocated to each county and floated little blue balloons across the state, totally visible in this satellite shot at Google maps. See for yourself here.

Billions from state government bolstering families and businesses across Washington

The House Commerce and Labor Committee got an update this week from the state Employment Security Department. As you can expect, the unemployment rate is too high, but there are some important details to point out about our state’s system. Namely, its health and the boost to families and businesses the UI system provides us.

ESD reports they paid out a record $3.967 billion in unemployment benefits in our state last year.

Even with the lowest tax rates in 40 years (an average of 1.55%), the number receiving unemployment benefits is about 264,000 a week currently.

Due to our well-managed system, Washington will not trigger solvency surcharge, even at lowest forecasted balance: 10.2 months of benefits in 2011. Our UI system is still solvent and, at $2.6 billion, it has the ability to pay out 13.2 months of benefits.

This system is arguably the envy of the nation – the Washington Post reports: “According to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks.”

“Currently, 26 states have run out of unemployment money and have borrowed $24 billion from the federal government to cover the gaps. By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami.”

We wish all those states the sincerest best of luck in getting out of that mess, and consider ourselves fortunate to live in Washington, the first and only state in the nation to reduce unemployment insurance rates for employers during this economic downturn.

It’s important to note here that the ability to provide this economic security not only benefits families, it benefits the businesses that rely on those families to stay open. Even conservative analysts agree, the quickest, most effective subsidized shot in the arm to the economy comes from putting money directly into the pockets of consumers through programs like unemployment insurance.

As our own Rep. Steve Conway wrote in a News Tribune op-ed last year:

“Let’s remember that the greatest stimulus to our economy is one that puts money directly into the pockets of our consumers. A business can’t survive and keep employees without customers, who seem absent from your formula for economic stability. In reality, the direct assistance to families on the brink … will provide a much-needed shot in the arm to our economy.”

That said, up to 277,210 will reach the maximum allowable amount of benefits by December 1 here in Washington. Those folks, and their families, will thus rely on other state services to provide for them. And, unless something is done, the businesses that relied on them will struggle even more.

Labor Day marks start of expanded benefits for many unemployed workers seeking retraining

In 2000, the Legislature established a Training Benefits Program to help workers who have been laid off and unable to find work because of a declining demand for their occupation. The program essentially provides extended unemployment benefits while a worker is going back to school.

This past session, the Legislature approved Rep. Steve Conway's legislation that expanded the program to help more people as they seek retraining and new job skills. Starting Monday, September 7, these benefits will now be available to more people: workers who are disabled due to illness or injury, low-income workers who need training to qualify for a higher-paying job, and current or recently-discharged members of the Washington National Guard.

The additional benefits provide 26 weeks of unemployment benefits while the worker is in training. You can find out more information about the program here.

How does the UI bill story end?

The debate on the unemployment insurance bill started last night and just ended today at 4 p.m. The final verdict? Lawmakers in the state House voted to provide employers a tax break worth hundreds of millions, while offering a modest increase and better protections for unemployed workers.

Washington is the first and only state in the nation to reduce unemployment insurance rates for employers. Many other states are facing bankrupt UI trust funds brought on by skyrocketing unemployment, forcing them into tax increases for employers to sustain their benefit levels.

The bill was prompted by a non-conformity issue with federal law, which could have led to higher tax rates for businesses. This bill as passed by the House:

• Uses the ample funds in the UI trust fund to mitigate the cost of federal conformity - a $452 million price tag – so employers are not forced to pay that cost.
  

• Provides a permanent tax break for businesses in the form of lower tax rates. Over the next six years, businesses will see their tax rate decrease, saving them an estimated $224 million.

• Includes a modest increase to the weekly benefit amount given to unemployed workers in Washington, and authorizes greater discretion to the commissioner of the state Employment Security Department to grant benefits in situations when a worker voluntarily quits.

You can read the full story here.

Now on the floor - the transportation budget.

The UI saga, to be continued today

As predicted, yesterday was a long day. Anyone watching the action on TVW saw lots of starts and stops as lawmakers went to the floor, ran a couple bills then returned to caucus.
Lawmakers adjourned at 12:30 this morning after starting, (and then rather abruptly ending) debate on the contentious unemployment insurance bill. (The Seattle Times has a short write-up of the bill, though it has morphed a bit as it's moved through the House and continues to change even now as amendments are added and removed then added back... oh, democracy.)
It's expected that the UI debate will continue today. It's also possible that we'll take up the House Transportation Budget on the floor, another lively debate to look forward to.

Lawmakers are scheduled to be back on the floor at 10 and it's uncertain just how late we'll go today.