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Lawmakers Miss Opportunity to Rein in Spending
Dave Mastin AWB Vice President , Government Affairs
Although lawmakers accomplished some good things during the 2022 session , including passage of a transportation package and reducing the cost of unemployment insurance , this session is likely to be remembered more for the many missed opportunities .
State lawmakers had $ 15 billion in new revenue in the 2022 legislative session — a record surplus — providing them with opportunities to invest in the economy , help employers reinvest and create jobs , and prepare for the next economic downturn .
The surplus came from federal Covid relief funds , and a healthy economy , thanks to employers who battled their way through the pandemic into a strong recovery . There was no tax relief of any significance — no sales tax relief , no significant business and occupation tax relief .
On the plus side , AWB worked with lawmakers to get some relief to employers on unemployment insurance taxes . We welcomed the investment in the state trust fund , but unfortunately that ’ s not enough to make up for the tax increases many are facing . We hoped lawmakers would have invested even more in the trust fund , and permanently lower the tax rates .
Likewise , lawmakers passed a transportation funding package that will make progress on some major projects , and also invest in maintenance and preservation and culvert replacement . Unfortunately , it favored one part of the state , and includes $ 2.5 billion in new fees .
We saw success protecting one of our most affordable and reliable energy sources – natural gas . Some lawmakers would ban it altogether . AWB worked to defeat the most extreme energy bills this session .
In mixed news , lawmakers delayed implementation of a new payroll tax to fund the state ’ s long-term care program , known as WA Cares . This is good , but it only postponed dealing with the significant issues surrounding the program , so expect this one to come back next year . We will continue to advocate for a system that allows people to opt out if they have secured long-term care insurance on the private market .
Some notable failures include so-called “ middle housing ” legislation , which is needed to help address the housing crisis , as well as data privacy , legislation to limit emergency powers and a high school nurse certification pilot , which was aimed at addressing the critical need for nurses .
But the big one was the failure to use the extraordinary budget surplus to provide significant tax relief for Washingtonians .
Since the end of the legislative session , inflation has soared , and employers have grown increasingly worried about the possibility of a recession .
The supply chain is also a major concern . Manufacturers still cannot get the parts they need , either on time or at all . And employees are still in short supply . Each of these issues are tough enough on their own . Together , they mean a time of unprecedented challenges for employers .
Investments in the economy are a smart bet on Washington ’ s future . Tax relief , infrastructure , workforce development and a well-rounded energy policy — these are the areas where lawmakers can make a difference in people ’ s lives .
Next year , AWB will continue to advocate for the right conditions so all employers can thrive .
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