Association of Washington Business – Updated Weekly
💲Budget analysis: Legislature faces shortfall “of its own making”
When state lawmakers return to Olympia in January, they will face an estimated budget shortfall of $5.1 billion. The projected deficit is the result of a series of decisions by lawmakers and was “entirely foreseeable,” the Washington Research Council writes in a new analysis.
Seeds were planted in 2021: Lawmakers knew as early as February 2020 to expect slower revenue growth in the 2023-2025 biennium, the analysis notes. Yet they opted to increase spending above ongoing tax collections.
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Between 2001 and 2023, tax revenues grew on average 10.7% each biennium. Revenues are expected to increase by just 2.7% in 2023-2025 and 7.7% in 2025-2027.
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In 2021, lawmakers drained the state’s rainy day fund and adopted a capital gains tax, a volatile revenue source that is causing budget uncertainty and may be repealed by voters this election.
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Legislators also relied on Covid-era federal funds to start a new child care and early learning program, setting up future budget challenges.
The bottom line: The state’s current budget shortfall isn’t a revenue problem — tax collections continue to grow, albeit more slowly. The shortfall is the direct result of spending choices by the Legislature.
What comes next: As the Legislature convenes, expect to see discussions over possible tax increases and program cuts. It’s time for legislators to hold themselves accountable for the unsustainable pace of budget growth — instead of asking taxpayers and employers to make up the difference.
Questions or comments? AWB Government Affairs Director Max Martin is your resource for tax and fiscal policy issues.
Political experts to share post-election insights in webinar Nov. 7
Election debrief: The Nov. 5 election is almost here. Join AWB at 9 a.m. on Thursday, Nov. 7 via Zoom to learn about the biggest takeaways from statewide and legislative races and what the results mean for employers.
Bipartisan analysis: Hear from former Republican legislator Paul Graves and Democratic strategist Sandeep Kaushik in a discussion moderated by AWB Vice President of Government Affairs Dave Mastin.
Register now: Click to register for the webinar.
Interested in sponsoring? Contact AWB’s Carly Michael.
Paid Family & Medical Leave premiums to increase to 0.92% in 2025
Premiums going up: Washington employers and employees will pay higher premium rates for Washington’s Paid Family & Medical Leave program in 2025. Starting Jan. 1, the rate will increase to 0.92%, up from 0.74% in 2024.
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Employers will pay will pay 28.48% of the total cost and employees will pay 71.52% — a ratio similar to 2024.
Demand rising: The higher premium rate is due to increasing use of the program. The state has paid out a record $1.35 billion in benefits to more than 175,000 Washington workers so far this year, according to the Employment Security Department.
How it works: The program provides up to 12 weeks of paid family or medical leave to nearly all workers in Washington. Businesses with fewer than 50 employees are not required to pay the employer portion of the premium.
Learn more: AWB Government Affairs Director Lindsey Hueer is there for employers with questions on Paid Family & Medical Leave and other employment law issues.
Explore new milestones on AWB120 timeline
The turn of the century was an exciting decade for Washington businesses and AWB as an organization. Check out the latest milestones on our timeline including:
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T-Mobile’s evolution spans nearly the entire decade
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Amazon is founded by young Princeton graduate Jeff Bezos
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The Washington Water Power Co. changes its name to the Avista Corporation
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AWB expands its Olympia offices and publishes the first issue of Washington Business magazine
Stayed tuned: There are just two more decades to go in AWB’s year-long celebration of 120 years of advocacy for Washington businesses.
Fall employer survey closes Wednesday
Give input: AWB’s fall survey is open through Wednesday. Don’s miss the opportunity to share your thoughts on Washington’s economy, the biggest challenges facing your business, and your public policy priorities.
Your voice matters: AWB’s quarterly employer surveys provide useful data points on how Washington businesses are experiencing inflation, workforce challenges, supply chain issues and more.
Data dive: Explore data from the summer survey or see our full reports and data library.
📽 New 2024 Manufacturing Week spotlight videos out now
Seattle’s Lighthouse for the Blind provides employment, training and support for people who are blind, DeafBlind, and blind with other disabilities. Watch how employees use 100% accessible machines to build airplane parts in this spotlight video presented by Boeing.
“If you are completely blind and cannot hear, you can run a machine and make airplane parts in this facility,” said Pat O’Hara, COO of Lighthouse for the Blind.
Also new: Check out videos of Altium Packaging, presented by DTG Recycle; Jubilant HollisterStier, presented by Impact Washington; PACCAR, presented by Walmart; and McKinstry and SAFE Boats International, presented by Banner Bank.
Check back: We will upload the final video spotlights of the 2024 Manufacturing Week bus tour, co-presented by Premera Blue Cross and Banner Bank, later this week. See the full list.
$51M grant awarded to Hood Canal bridge project
Washington state will receive more than $51 million in federal funds to make major repairs to the Hood Canal bridge. The funding comes from the Infrastructure for Rebuilding America Grant Program.
The project will replace 55 reinforced concrete beams and 216 prestressed concrete girder lines along 3,400 linear feet on the west half of the Hood Canal Bridge.
“This federal funding is a major step toward improving the safety and reliability of the bridge, helping ensure that it will remain open, accessible and resilient for years to come,” said U.S. Rep. Derek Kilmer, D-6th District.
Washington agricultural production hits record high
Washington farmers and ranchers generated nearly $14 billion in agricultural production — a new record — in 2023, up almost 6% from the previous year.
Apples remained the most valuable commodity, followed by cattle and calves, milk, potatoes and hay. Washington is the nation’s leading producer of seven commodities: apples, sweet cherries, pears, blueberries, hops, spearmint oil and dry onions.
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Business & The Environment Conference set for Dec. 10-11
The Northwest Environmental Business Council will host its annual Business & the Environment Conference on Dec. 10-11 at the Holiday Inn Portland Columbia Riverfront.
The conference covers the latest information and best practices in environmental protection and compliance, new technologies and services, sustainable business practices, and policy issues. AWB Government Affairs Director Peter Godlewski will be a guest speaker.
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Essay submissions open for 2025 National Civics Bee
The 2025 National Civics Bee is seeking essay submissions from civic-minded middle school students in Washington state. Students are asked to submit an essay sharing their ideas for how to improve their community, the first round of a year-long competition to inspire civic engagement in young people.
The top essay writers will advance to local and statewide contests in 2025 to compete for recognition and cash prizes. Essay submissions are due by Feb. 4, 2025. Click for details and the essay submission portal.
🏆 Celebrate Washington's top employers — hotel room block closes Thursday
AWB’s annual Evening of Excellence awards program, presented by Banner Bank, is less than a month away. Join us Nov. 21 in Seattle as we announce the winners of the Washington Excellence Awards and Manufacturing Excellence Awards.
Best of the best: Washington’s top employers and manufacturers will be recognized across 11 categories. See the full list of finalists, including the top contenders for our two new awards:
Washington Diversity Award finalists:
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Himalayan Pet Supply
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Cascade Enrichment
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SMAK Wines
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dom+bomb
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The Mule Cocktail Bar
Workplace Safety Award finalists:
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Ash Grove Cement
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MacCoy Home Solutions
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TransAlta Centralia Mining
Elegant evening: The celebration at the Fairmont Olympic Hotel will include dinner, music and the awards ceremony. Book your spot. All are welcome to attend, but seating is very limited, so register today.
Book your room: AWB has set aside a discounted room block at the Fairmont Olympic Hotel for attendees. Reserve your room before the room block closes this Thursday.
HealthChoice offers affordable health insurance options for employers
Taking care of employees: Dan Tapani Excavating is one of the first Clark County companies to take advantage of AWB’s HealthChoice, now available statewide after expanding to Clark County this year. Read more.
“The coverage is great,” said co-owner Andy Tapani. “Looking for a health care plan for employees is very challenging. There are not a lot of options out there. We’re very happy with AWB coming into Clark County with another option.”
Comprehensive coverage: AWB’s HealthChoice provides access to health care and competitive offerings on ancillary benefits such as dental and vision coverage that businesses may not be able to get on their own. It also offers streamlined administration and customer service support.
Get your free quote: For more information, please visit propointservices.com/healthchoice, and for a free, no-obligation quote, contact Billy Sangster at billys@propointservices.com.
“When it comes to the most popular candy purchased in every state, Reese’s Peanut Butter Cups dominated the map, claiming the top spot in a jaw-dropping 40 states, including California, Texas, and New York (and Washington).” ~Instacart, in a data-driven look at the most popular Halloween candies by state.