Pierce County Economic Index Report Releaesd

This morning, about 550 concerned business and civic leaders heard both the annual Pierce County Economic Index Report and an economic outlook from departing Dr. Arun Raha.

Professors Dr. Bruce Mann and Doug Goodman, University of Puget Sound, presented the 24th annual PCEI, a forecast of the economic well-being of Tacoma-Pierce County.  Their report is available here.

In one sentence:  Expect continuing, although slow economic recovery and growth, better than the national experience.

You are encouraged to share with us your responses to a survey about the Horizons economic forecast event and your company's or personal expectations about the 2012 economic future at this site.

Followers of Twitter can reference #Horizonsforecast and #Horizons.

For those who wish to view the Horizons 2012 economic forecast event as a TV broadcast, Waste Connections has sponsored the program on TV Tacoma.  TV Tacoma is carried on both the Click! and Comcast Cable systems.

On Click! TV Tacoma can be seen on Channel 12 in the Tacoma City limits and in Pierce County, with the exception of University Place, where we are found on Channel 21.  On Comcast, TV Tacoma can be seen on Channel 12 in the Tacoma City limits and on Channel 21 in Pierce County.  TV Tacoma is NOT carried on the Comcast system in University Place.

TV Tacoma is also streamed on the Internet a www.tvtacoma.com

Replay times 
Monday, January 23 – 4am, 2pm & 8pm
Tuesday, January 24 – 4am & 11pm

Wednesday, January 25 – 9am & 8pm

Thursday, January 26 – 1pm & 9pm

Friday, January 27 – 2pm & 10pm

Saturday, January 28 – 8am & 5pm

Sunday, January 29 – 1am, 3pm & 8pm

Monday, January 30 – 4am, 2pm & 8pm

Tuesday, January 31 – 4am & 11pm

Chamber Partners Up With Tacoma School of the Arts Internship Program

You may have noticed a new contributor on the Chamber’s blogs, The Live Wire and the BIA blog. Well, that’s me, Livey Beha, a student at Tacoma School of the Arts (SOTA). As a junior in high school at SOTA, which is right here in the heart of downtown Tacoma, I am truly ecstatic and honored to be able to join the Chamber for the month of January as a short-term intern. I am looking forward to learning about the programs and events offered through the Chamber to support the local economy and community.

The SOTA internship program is a chance for high school students to gain a new perspective of occupations they may be interested in pursuing following the completion of their educational careers. I see the internship partnership between the Chamber and SOTA as an opportunity for me as a student to gain knowledge of and contribute to the Chamber and the South Puget Sound community in a unique and positive approach.

If your business is interested in mentoring and working with a Tacoma School of the Arts intern as apart of “The Next Move” program, you can find more information here.

Information on job and internship opportunities at the Tacoma-Pierce Chamber can be found here.

The Upcoming 2012 Regular Legislative Session - What's in Store

What is in store for the upcoming 2012 Session of the Washington State Legislature can be summed up in just two words – budget deficit.

How many cuts and where? Are new taxes (and/or a new tax package heading to the voters) on the table to help solve the problem? What are the State’s top budgetary priorities? These will be the questions on most everyone’s mind.

The 2011-2013 biennial budget that was adopted earlier this year by the Legislature totaled $32.2 billion and took effect July 1, 2011. Since then however, revenue projections fell to $30.5 billion in mid-September. And an additional $122 million revenue shortfall was added by the most recent forecast, bringing the total revenue projection to $30.4 billion.

Governor Gregoire put forth her first recommended cuts in October. The Governor released her revised proposed budget based upon the November revenue forecast and the caseload changes. They can be found at this link. She worked with agency directors to identify expenditure reductions in addition to the 5% and 10% reduction options submitted by agencies last month.

As the Special Session ended in mid-December , legislators cut an estimated $480 Million from the $2 Billion starting point. A summary of these budget changes can be found at this link.

Those who participate in the legislative process will be earnestly looking toward the 60-day 2012 Regular Session, which begins on January 9^th to make up the additional deficit of $1.5 Billion. The Special Session in December provided and the Regular Session, which runs from January 9 through March 8^, 2012, will provide the Legislature with its opportunity to further respond to the Governor’s proposed budget changes. Legislators will address the estimated $1.5 billion deficit from their points of view and with their priorities in mind.

By Guest Author, Michael Transue, Attorney at Law, Governmental Affairs and Lobbying Services

Horizons 2012 Economic Forecast Event

CLICK HERE TO REGISTER

ESA Suit Threatens Flood Insurance

As suspected, the National Wildlife Federation has filed suit against FEMA.

Today, NWF moved for a preliminary injunction against the sale of flood insurance in the Puget Sound region pending the outcome of the lawsuit

FEMA may be prevented from issuing FLOOD INSURANCE .  This could have severe impacts on all types of real estate and countless businesses that operate in any floodplain in the Puget Sound region.

Why:  Because the suit against FEMA seeks an injunction to prohibit the sale of flood insurance policies in Washington State .

Immediate action needed:

Support a coalition of real estate organizations, owners, property professionals and businesses who have organized as “Property Owners for Sensible Floodplain Regulation” (POSFR) in an effort to Protect Property Rights in the Floodplain.

On November 30, 2011, Property Owners for Sensible Floodplain Regulation (POSFR) held a meeting at Renton City Hall to discuss pending changes to the floodplain maps and development regulations applicable to floodplains in the Puget Sound region.  During that meeting, it was  highlighted that the National Wildlife Federation had submitted a 60-day Notice of Intent to sue to FEMA in September 2011, asserting that FEMA has not done enough to enforce the very restrictive development standards set forth in the Biological Opinion issued by NOAA-National Marine Fisheries Service to FEMA in September 2008 regarding FEMA’s operation of the National Flood Insurance Program in the Puget Sound region.

On December 8, the National Wildlife Federation filed their lawsuit against FEMA.  They assert that FEMA has violated several sections of the Endangered Species Act by failing to require the 122 Puget Sound jurisdictions participating in the National Flood Insurance Program to enforce the most restrictive provisions of the Biological Opinion.  Those restrictive provisions include, but are not limited to:

§         A 150-250 foot “no adverse affects” buffer around all rivers and streams in the region;

§         A restriction on new impervious surface to no more than 10% of the lot area;

§         A requirement to provide compensatory storage to offset any floodplain fill;

And there is more …..

The impacts to ongoing property operations and future development could be severe.

The National Wildlife Federation has filed a Motion for Preliminary Injunction.  They are asking the federal court to suspend the sale of flood insurance for any new development or substantial redevelopment until FEMA implements the Biological Opinion as the National Wildlife Federation would like.  If the Court issues the injunction – which could occur as soon as February 2012 – it will halt most development and substantial redevelopment in the floodplain areas of our region for several months, if not years.  The NWF was successful in getting an injunction against the sale of flood insurance in Monroe County, Florida – which has been in effect since 2005.

Over the past year, POSFR has attempted to focus property owners and businesses located in and near the floodplain on the substantial risks facing their properties and business operations from the Biological Opinion and corresponding changes to local floodplain development regulations.  POSFR’s efforts have also included a parallel FEMA project, floodplain remapping, that in many cases is resulting in expanded floodplain area encompassing properties never before shown in the floodplain.  With the filing of this lawsuit by the National Wildlife Federation, the risks to real property in the floodplain have become very real.  You may not be able to buy flood insurance when you most need it.  And you may have no voice in the design and imposition of extreme restrictions on development and redevelopment in the floodplains going forward.

Your help is needed.  Your participation and financial support are critical to enable POSFR to continue working to protect the property rights and development potential for properties in the floodplain or at risk of being mapped into the floodplain. 

In the next month, POSFR would like to file an amicus brief to counter the National Wildlife Federation’s Motion for Preliminary Injunction.  Our brief would highlight the vast development regulations that already exist in the region and that protect endangered species, and also the enormous economic harm that would result from a ban on the sale of flood insurance for new development or substantial redevelopment in the region.  You may support its efforts by becoming a member of POSFR (see attached) and also by making a contribution to its litigation efforts.  If POSFR does not participate in this suit, property owners will not have a voice when it is needed most – and they cannot file unless your support it.

You may send the attached Commitment Form (click on image for a larger view) and your contribution made out to GordonDerr to:

Molly Lawrence

GordonDerr, LLP

2025 First Ave., Ste. 500

Seattle, WA 98121

Please note in the “RE” line for any check:  Deposit in trust for POSFR. 

This issue is truly urgent.  POSFR needs to raise funds NOW to ensure a defense against the National Wildlife Federation’s request for a preliminary injunction.  POSFR is the only entity prepared to make some of the key arguments that should stave off the injunction on the sale of flood insurance.  If POSFR does not participate, many of the key arguments simply will not be made.

POSFR is supported by real estate owners, managers, management companies, business owners, trade associations such as BOMA, Washington REALTORS, Master Builders, Association of Washington Business, Etc.

GUEST Blogger: Molly A. Lawrence |  GordonDerr LLP | 2025 First Avenue, Suite 500, Seattle, WA  98121-3140 | mlawrence@GordonDerr.com | Phone: 206-382-9540 | Fax: 206-626-0675 | www.GordonDerr.com

Tacoma Budget Woes Continue

It's been nearly two months since the City of Tacoma noticed a massive hole in its biennial budget.  In that time, City Council has directed staff to trim about $11M from non-public health & safety departments; passed new taxes, fees & fines totaling $1M; proposed another $11M in cuts to police and fire, pending further financial review; and is considering several million dollars more in additional taxes.  However, these do not total the $31M projected hole. 

While the Council continues to discuss impacts of potential cuts, there is little discussion on how to make the City a more efficient organization - something many businesses have gone through during the current economic crisis.  Instead, the City's drawdown of a $47M reserve fund over three years helped them avoid cuts.  As the Tacoma Weekly noted:

"'Rather than make the early cuts, the city used its reserves and didn't address the underlining losses in revenue.  Using the reserves saved jobs then but compounded the deficit spending that not only led to the current budget gap, but also put the city in tougher financial shape for the years to come,' [Steve Marcotte, former Tacoma Finance Director] said.  What should have happened was that Tacoma should have made small cuts in 2008 and 2009 at levels tied to the dropping tax incomes and revenues rather than continue to operate beyond its means."

Once the City has refined its expenses to refocus on its core mission, there may need to be additional revenue sources - however, this should only come after an honest evaluation of how to make the City more efficient.  As discussed here, the Chamber has encouraged the Council to focus on sources of revenue that do not unfairly target one business or business sector.

The News Tribune recently featured an article in which ordinary citizens were developing ideas on how to save public health and safety jobs.  These ideas ranged from "a thrift store mentality" focused on second hand office furniture and supplies to a $25 per person tax to avoid all cuts to the Tacoma Police Department.  These across the board changes are welcomed to distribute the impacts throughout the community while helping the City become leaner.

As the Council moves towards a balanced budget, we encourage Chamber members to let their elected representatives know what services are important to them.

Alaska-Tacoma Trade on TV

Harry McDonald, CEO of Anchorage-based Carlile Transportation Systems and Gary Brackett, Tacoma-Pierce County Chamber's Business & Trade Manager are featured in a South Sound Business Report TV segment entitled "Alaska and the South Sound."

Brackett shares the deep extent of commerce connection between Puget Sound ports and the economy of Alaska, which must import most of its supplies and equipment needs.

McDonald talks about the family- and employee-owned logistics company with terminals in Houston, Minnesota, Alberta and its largest outside of Alaska at Port of Tacoma. He also has observations on the economy in the 49th state, which may soon be seeing a rebirth of energy-providing growth.

Watch Alaska and the South Sound on PBS. See more from South Sound Business Report.

The program will also air on Tuesday, Dec. 27 at 6:30 p.m. on KBTC PBS-Tacoma after the station's December pledge campaign preemptions end.