Monday, October 7, 2013

Public Hearings on L&I Worker's Comp Rate Increase Proposal


The Department of Labor & Industries will hold six public hearings on a proposed 2.7% average increase to workers' compensation premium rates.  Employers will receive a rate notice in early December, and the new rates will go into effect January 1, 2014.


Public hearings on the proposed rates will be held in:
  • Tukwila, Oct. 22, 10 a.m., Tukwila Community Center
  • Bellingham, Oct. 23, 10 a.m., Central Library Lecture Room.
  • Spokane Valley, Oct. 24, 10 a.m., CenterPlace Event Center.
  • Richland, Oct. 25, 9 a.m., Community Center Activity Room.
  • Tumwater, Oct. 28, 10 a.m., L&I Auditorium.
  • Vancouver, Oct. 29, 10 a.m., Northwest Regional Training Center Rainier Auditorium. 
Comments about the proposed rates can be made at the public hearings or in writing to Doug Stewart, Employer Services Program Manager, P. O. Box 44140, Olympia, WA 98504-4140, or email to Doug.Stewart@Lni.wa.gov.

More information can be found at www.Rates.Lni.wa.gov

Friday, October 4, 2013

Lakewood Chamber Opposes Tacoma Utility Tax Prop 1

Lakewood Chamber of Commerce's Board of Directors Policy Position:  OPPOSE CITY OF TACOMA PROPOSITION 1

The City of Tacoma will ask its citizens to approve an additional 2% gross earnings tax on revenues earned by the city’s utilities in the November 5 general election ballot to mitigate costs associated with road improvements. This tax will be in addition to the current City of Tacoma 6% gross earnings tax charged Tacoma Power and its ratepayers. In addition, there is a state public utility tax of 3.873% on the gross earnings of Tacoma Power.

When Proposition 1 was first announced, Bill Gaines, the director and CEO of Tacoma Public Utilities, said that if voters approve a 2 percent tax on TPU’s earnings, the utility would be forced to cover its costs by raising consumers’ rates by a similar amount.

The vote on the tax will go to Tacoma residents, but TPU serves 160,000 customers - nearly half outside Tacoma.  If the tax is passed along, it would be passed along to customers in Lakewood, Fircrest, University Place, Fife, parts of Steilacoom, Joint Base Lewis-McChord and unincorporated Pierce County, as well.

Our argument against Proposition 1 as presented is that it unfairly taxes ratepayers outside the city limits of Tacoma.  The current 6% gross earnings tax goes to the city’s general fund and thus (arguably) provides all Tacoma Power ratepayers the benefits associated with funding the City of Tacoma’s general government functionality. This tax goes specifically to maintain the streets of Tacoma and does not provide non-residents or businesses any benefit.

Wednesday, October 2, 2013

Tacoma-Pierce County Chamber Opposes State I-517

The Tacoma-Pierce County Chamber’s Board of Directors voted to oppose State Initiative 517 which intrusively expands the initiative process.

The Chamber’s Government Affairs Committee’s recommendation to oppose the initiative derived from the following reasons:

•    Infringes on private property rights by allowing signature gatherers inside your business/school/sports stadiums on signature-gatherers' terms.

•    Businesses already receive numerous complaints of aggressive signature gatherers.

•    Impedes businesses’ ability to deal with aggressive signature gatherers.

•    Local governments and businesses will expend significant resources in court addressing illegal and unconstitutional local ballot initiatives.

Is Your Business Impacted by the Federal Government Shut-Down

Has your business been impacted by the federal government shutdown?

Some have.  It goes beyond the question of procurement and payment for goods and services.  There are certifications and reports from federal sources that are in due diligence and other documentary requirements.

Let Gary Brackett, 253-682-1720 know if your business is impacted in any way.

Tacoma Council Endorses its Tax Increase



Tom Pierson, Pres./CEO of the Chamber, testified last night against the Tacoma City Council’s Resolution 38748.

The Resolution proposed for the Tacoma Council to endorse the ballot issue they unanimously passed onto the Nov. 5 election ballot.

Speaking in opposition to Resolution 38748 and in opposition of Prop 1 which is a 33% tax increase and results in $10 Million+ tax that will hurt new jobs and local businesses, Pierson said the resolution was put on the public’s view with less than a days’ notice (actually it was closer to nine hours of notice), just as was the original ordinance which placed Prop 1 on the ballot. 

Pierson said the City Council needs to be collaborative, transparent and a council that will work with the community, with business, with labor for reasonable solutions to our transportation needs. He noted:

           This tax is unfair for our fixed income individuals in our community and it is unfair for locally owned businesses adding another layer of costs in an economic time that is very
           Tacoma residents are only now beginning to be charged the license-tab fee adopted last year by the City.  These dollars could be used to fund road repair.
           Allow the new Fiscal Sustainability Task Force to complete its work examining the City's revenue structure and structural budget deficit.
           Allow the new Transportation Commission to advise the City on short-term and long-range transportation planning.
           City Council has not prioritized spending on roads and current funding is four times less than most other cities—the council needs to prioritize city funds to match the needs of the community.  According to the city data we spend $7 per capita versus the average of $26…nearly 4 times less, no wonder we have a problem, the solution might lie in the prioritization of funds

In summation, Pierson said that we need to move Tacoma Forward together, and again asked the Council to work in a collaborative, transparent way with all its the partners in the community – which includes business and labor, for reasonable solutions to our transportation needs.

The Council voted 8 for, zero against and one abstention (kudos to Council member Joe Lonergan), to endorse the Prop. 1 tax issue it placed on the Nov. 5 ballot.

Tuesday, October 1, 2013

Council Proposes to Endorse Its Own Unanimously Adopted Ballot Proposition

This morning, Tom Pierson, President & CEO of the Chamber, emailed members of the Tacoma City Council about their proposed endorsement of Tacoma Prop. 1, the Utility Tax Increase.

His email:

Mayor Strickland and members of the Council,

Just this morning the City Council’s agenda for this evening’s meeting was posted online.  Buried in this agenda is a new Resolution, No. 38748, expressing support for the Council’s Proposition 1 to raise an additional $10M in tax revenues.

As you are aware, the Chamber's Board of Directors voted to oppose this proposition.  This means we are also in opposition to Resolution No. 38748.

If passed, these taxes will be passed on to the end users resulting in higher consumer costs across the board.  While maintaining streets are important to the City, Tacoma currently spends a far smaller portion of its budget maintaining roads than similar jurisdictions.  Allocation of resources should be addressed before simply asking the public for more money.

If you have any questions on this issue, please don’t hesitate to contact me.