House Bill 2123, the workers' compensation compromise bill, which passed the Legislature yesterday, and is on its way to Governor's desk, is the result of extreme heavy lifting by the business community, the Governor, and reform-minded legislators. Congratulations are due all around. See this morning's Seattle Times and the News Tribune for the most recent update. AWB reports in its Fast Facts yesterday that House Bill 2123 is expected to prevent double-digit rate increases next year for most employers, in part by allowing for voluntary structural settlements. Organized labor denounced the plan, even though everyone from Gov. Chris Gregoire to... Continue reading

Make no mistake, the main thing holding the Legislature in Olympia is Speaker Frank Chopp who, in lock-step with organized labor, is setting the stage for double-digit increases in workers' comp rates. The increases will primarily hit small, locally based businesses in Washington, and the current stand-off in Olympia threatens to require a second 30-day special session. Here are some of our regulars on the current status of work compensation reform and a budget for the upcoming 2011-13 biennium: House should allow vote on crucial reform, Everett Herald, and House should allow vote on workers’ comp reform, The News Tribune,... Continue reading

...but, says Seattle Times Kate Riley, you wouldn't know it because Speaker Chopp won't let the issue come to a vote. In her editorial opinion today, Riley says Speaker Chopp needs to begin representing "all working families" (emphasis in the original) by supporting workers' compensation reforms that spur job creation and economic recovery, not just organized labor interests. She concludes, Citizens need lawmakers to step up and make difficult bipartisan decisions that put the state in better stead for a recovery. Continue your calls and letters to House Speaker Chopp and urge him to bring ESH 5566 to the floor... Continue reading

Partnership for Learning and Stand for Children have sponsored a radio ad in support of HB 1443 that is running on radio stations across the state starting today, Wednesday, April 20. Listen to the ad here and read the text below. Also, read an op-ed in Publicola by Washington Roundtable President Steve Mullin. Most important, call your legislators and tell them to stand for children. Urge a yes vote for HB 1443. Here's the text of the radio ad: Our schools face some difficult choices: budget cuts and teacher layoffs. What do you think matters most when deciding which teachers... Continue reading

The Washington Research Council posted its comparison of the house and senate budget proposals, concluding that the senate version makes many of the same reductions as the House-passed bill, but it cuts $326.7 million more. The need for deeper cuts is a consequence of not assuming that $300 million would be raised by privatiz- ing the distribution of liquor. On the education front, the Partnership For Learning evaluates each of the budget proposals and provides a budget breakdown chart comparing the governor, house and senate's budgets on PFL priorities. Similarly, the Workforce Training and Education Coordinating Board compares the three... Continue reading

Senate leaders from both parties released their budget yesterday. It's all still under review, but early reports appear optimistic. The real debate now begins. Here are several stories to get you started: Senate budget cuts teacher pay, raises tuition (The Olympian) Senate Rolls Out Bipartisan Budget With a More Conservative Tone, But Has Same Big Pitfall (Washington Wire) Senate releases bipartisan budget with $4.8 billion in cuts (The Capitol Record) State Senate proposes even deeper cuts to education (The Seattle Times) And for those wanting the real deal, here's the technical detail from: Senate 2011-13 Operating Budget Proposals (Legislative Evaluation... Continue reading

Since higher education is unprotected by constitutional provisions (like basic K-12 education) or by federal program matching (like Medicaid) it is often a prime target for budget writers looking to cut spending. AP reporter Molly Rosbach writes about it here. Among the changes currently in play for legislative consideration are tuition increases and tuition-setting flexibility at the state's 4-year institutions; accepting more out-of-state students, who pay higher tuitions yet; programs cuts; both cutting and increasing various state aid programs supporting tuition assistance for middle and low-income students; as well as fashioning better systems for moving students more smoothly and more... Continue reading

A new study from the U.S. Chamber of Commerce, The Impact of State Employment Policies on Job Growth, reviews all 50 states for the effects of 34 key state labor and employment regulations on the unemployment rate and new business formation. States, like Washington, that received a "poor" rating "have [labor and employment] policies that inhibit job creation in most categories...," according to the study. On the upside we have the greatest "potential to substantially increase job growth by adopting less burdensome policies." According to the study, laws and regulations that inhibit the ability of workers and firms to negotiate... Continue reading

The Washington Research Council's Kriss Sjoblom appeared on Up Front with Robert Mak on Sunday to discuss Washington's tax preferences and explain their purpose and complexities. Here is a link to the program. The tax preferences segment begins 9 minutes in to the 20-minute program, following a discussion with the Pierce County Assessor. In response to questions from Mak and assertions from Mak's other guest, Adam Glickman-Flora of SEIU Healthcare 775 NW, Kriss explained the importance of tax certainty to business and the complexity of the tax exemptions in question, and pointed out that there is a system in place... Continue reading

The Washington Roundtable has launched a new system for evaluating Washington's standing as a world-class state. Called Benchmarks for a Better Washington, the Roundtable uses 12 criteria that provide clear, independent, state-by-state measurements of how we’re doing in providing quality education, creating a climate of innovation that attracts investment and encourages job growth, and building a transportation infrastructure that is safe, reliable and efficient. The Roundtable will evaluate Washington's progress against these metrics annually and develop year-by-year strategies for advancing or maintaining Washington's position in each category. Go here for the Benchmarks for a Better Washington Fact Sheet. Continue reading

The Seattle Times Sunday urged House Speaker Frank Chopp to "unstick" ESB 5566, the workers' compensation reform bill backed by the governor, a bi-partisan coalition in the Senate and by the business community, saying This is the bill organized labor and the trial lawyers portray as an attack on workers. It is not. It is more protective of the workers than the law in most other states, and it protects all workers by stabilizing the state fund. Keep your calls and emails letters coming to your state representatives in support of this legislation. Continue reading

Bi-partisan workers' compensation reform (ESB 5566), which was passed by the state Senate a couple of weeks ago, is stalling in the House Labor and Workforce Development Committee. The House should not let union opposition block progress of this important legislation. According to the fiscal note for ESB 5566, "...liabilities in the accident and medical aid funds will be reduced by $1.716 billion over the first two fiscal years, while payments will increase $987.7 million, resulting in a net savings of $727.8 million over two years." Associated Press reporter Manuel Valdes says that the, "settlement option for the state's workers... Continue reading

There's a lot of ink being devoted to yesterday's revenue forecast and what it means for the state's 2011-13 biennial budget. Here are links to reports around the state: AWB's Olympia Business Watch - Don Brunell says: In light of the forecast, AWB President Don Brunell renewed his call for fundamental change in the way the state provides services to citizens. "What this is really telling is us how fragile our recovery is right now, and that we can't make budget decisions that could potentially hurt our long-term recovery efforts," Brunell said. Brad Shannon and Katie Schmidt of the Olympian... Continue reading

Chief state economist Arun Raha announced this morning that estimated revenues available for the 2011-13 biennium are down an additional $700 million from earlier forecasts. Governor Gregoire, responding to Raha's report, urged the Legislature to develop long-term budget solutions, avoiding one-time fixes. “We can’t rely on short-term solutions,” Gregoire said. “Short-term solutions may cause less pain now, but we need a budget that is both sustainable and long-term.” WRC President Richard Davis wrote in January that the earlier $4.5 to $5.5 billion budget deficit should more accurately be understood to be about $2.5 billion. This is because the higher deficit... Continue reading

Washington's education community is receiving some help from U.S. Education Secretary Arne Duncan, who was in town yesterday. The Seattle Times reports on his visit yesterday where he said: ...the state's education system is illogical and has an organization plan that isn't a viable business plan. Duncan spoke in support of Governor Gregoire's plan for consolidation of the state's education system. Her plan, although receiving only lukewarm reception in Olympia, is still alive because it is considered Necessary To Implement the Budget (NTIB). Echoing Gregoire's earlier messaging on the plan, Duncan said: ...there have been enough studies. "We have to... Continue reading

The News Tribune nails it in its editorial on workers' comp. It says: Year after year, Washington’s workers’ compensation system has lurched closer to financial collapse – even as the payroll taxes that fund it have escalated relentlessly. Year after year, the Legislature has done nothing about it. It explains the voluntary settlement provision that labor finds so deplorable: This proposal came from a Democratic governor, Chris Gregoire, and is supported by Lisa Brown, the Senate’s Democratic majority leader. Forty-four other states, blue and red, already offer the lump sum option; Washington is an outlier in denying workers a choice... Continue reading

Now that we've past the first legislative cut-off, the pace in Olympia promises to quicken. Lawmakers will be in their districts tomorrow conducting townhall meetings. Labor is mobilizing its supporters to turn out at these events. They want to kill workers comp reform and to increase business taxes in order to continue the unsustainable spending practices that have gotten us into this mess. Here are labor's talking points. Business owners need to turn out for these meetings, too. Tell you legislators that higher taxes and employer costs work against economic recovery and job creation. Here's the Legislative Townhall Schedule as... Continue reading

"This year lawmakers have an opportunity to adopt reforms that will restore balance to the system." So concludes the Washington Research Council in its policy brief, released today, in which it describes the three important workers' compensation system reforms before the legislature. Richard Davis also blogged for the WRC today on the workers' comp bill that passed out of the Senate this weekend (SB 5566) saying there was "Nothing radical here. Just good public policy." Continue reading

As AWB President Don Brunell encouraged in his message earlier today, "we need a strong vote out of the Senate to dislodge the House, which is not budging on reform legislation. So far, they seem more inclined to respond to the unions. We need your contacts to offset the union “kill” campaign aimed at the Senate." As you'll see below, his call for your help and action is more important now than ever. The following message is from the public labor's Federation Hotline. As you'll read, they are sharpening all their old arguments. CALL TO ACTION 1: MOBILIZE AGAINST TERRIBLE... Continue reading

The editorial board at the Spokesman Review provides a clear statement of Washington's workers' comp system -- why and how it needs to change. Itemizing a number of changes that are not in play in legislative reforms this session, the ed board says of the Governor's reform proposal, "...it's a start." Continue reading

The following verbatim message is from AWB President Don Brunell: Senators Lisa Brown, Janéa Holmquist and Derek Kilmer have worked out a compromise workers compensation reform agreement which is currently being drafted into legislative language. We met with Sen. Holmquist early this morning and were briefed on the legislation. While not perfect, it is an agreement we should support. As I indicated the language is being drafted as I write and we will provide it to you as soon as possible. It is expected to come onto the Senate floor for a vote tomorrow. ACTION: Please contact your legislators and... Continue reading

As the legislature closes in on its Monday cut-off for consideration of bills in their house of origin, things are moving so fast in Olympia that what we write here on workers' comp may well be different by the time this blog posts. Gary Chandler and Kris Tefft briefed business leaders this morning on AWB's regular Friday call (below there is more info on these calls and how you can participate). They delivered good news, saying that the important issues facing Washington's workers' compensation system are finally receiving the legislative attention and hearings that they have deserved for years. Unfortunately,... Continue reading

Erik Smith has posted another thorough piece on the status of workers' comp reform discussions in Olympia. Of reception to the Governor's reform proposal he says: The unions say it goes too far. Business interests say it doesn’t go far enough, and if labor’s going to draw the line, they will, too. If you squint a little you can almost see the trenches on the House and Senate floors. Smith exclaims about a Democratic governor leading the charge for reform and said: The striking thing about it is that now even Gregoire is echoing the arguments that business has made... Continue reading

Keep your calls coming to legislators regarding workers' comp reform...it's working. Here's the latest from AWB's Kris Tefft: Last Thursday, SB 5801, the Governor’s statewide provider network/COHE expansion bill, passed the Senate unanimously without any unfriendly (i.e., trial lawyer) amendment. Saturday night, HB 1869, which left committee including the trial lawyer amendments, was amended on the House floor to conform to SB 5801 (i.e., take out the trial lawyer provisions) and passed 95-1. Rep. Condotta ran the striking amendment that fixed the bill and deserves our thanks. These are good developments. Manuel Valdes reports on the on-going workers' comp reform... Continue reading

In a long look at Wisconsin Gov. Scott Walker's proposals to balance that state's budget, New York Times columnist David Brooks summarizes the important differences between public and private sector unions that help explain and offer context for the current ferocity of public labor: ...public sector unions and private sector unions are very different creatures. Private sector unions push against the interests of shareholders and management; public sector unions push against the interests of taxpayers. Private sector union members know that their employers could go out of business, so they have an incentive to mitigate their demands; public sector union... Continue reading