Washington Business Winter 2021 | Page 29

business backgrounder | legislative to $ 434 billion . If a federal plan for assisting the states is approved , that plus a continued trend of improving revenue collections could reduce the need for budget cuts or higher taxes .
Even if both of those things happen , though , the pandemic is still with us , and there ’ s still a long road ahead toward recovery . AWB will be urging lawmakers to look for every possible way to help employers recover from the recession , particularly small businesses and manufacturers .
In addition to tax and budget policy , other big issues lawmakers are expected to take up during the 2021 session include transportation , child care , education and workforce development , and climate policy .
budget and taxes
Gov . Jay Inslee will introduce a proposed 2021-23 operating budget in December , kicking off the back and forth that will continue in the Legislature . This is a 105-day session , meaning lawmakers will need to write a new two-year budget before adjourning .
Before the pandemic , Washington was on a roll with record spending growth since the end of the Great Recession . Even then , there were lawmakers proposing new and higher taxes in addition to the growth in spending fueled by economic growth . Since the pandemic , proponents of new taxes are calling for new revenue to avoid cutting services or to remake the state ’ s tax system to make it more progressive . They point to the last recession as evidence , arguing the state relied too heavily on budget cuts rather than tax increases , and ended up slowing the recovery as a result .
However , the Washington Research Council found no evidence that budget cuts during the Great Recession hurt the state ’ s recovery , noting that from 2007 to 2019 Washington ’ s real GDP grew 45 % — the second highest in the country . Privatesector employment over the same period grew 18.4 %.
Regardless , if the improving revenue collections continue as they have since the spring — and if federal assistance does come — it will relieve pressure on lawmakers to choose between increasing taxes or making steep budget cuts .
transportation
Transportation infrastructure is another issue that was facing lawmakers prior to the pandemic . Washington ’ s total infrastructure needs are estimated to be more than $ 222 billion , according to a report published by AWB and the associations representing the state ’ s cities , counties and ports .
Initiative 976 , which would have reduced transportation revenue by $ 421 million in the current budget , was struck down by the state Supreme Court , but the pandemic and subsequent lockdown have caused substantial economic disruption . Highway traffic was down 10 % statewide according to a September report from the state Department of Transportation . Ferry ridership was down 37 % and passenger rail decreased by 91 %.
Meet the Team
AWB ’ s experienced government affairs team advocates year-round for employers and will be on the front line during the 2021 legislative session beginning in january .
Gary Chandler vice president , government affairs Chandler is AWB ’ s chief lobbyist and directs its legislative and regulatory programs .
Dave Mastin , assistant vice president , Government Affairs Mastin leads the association ’ s education and workforce development efforts .
Amy Anderson , government affairs director Health care , child care and federal policy issues
Bob Battles , general counsel and government affairs director Employment law
Mike Ennis , government affairs director Transportation , air quality , land use policy
Tommy Gantz , government affairs director Tax and fiscal policy
Peter Godlewski , government affairs director Environmental policy , water quality and resources fall / winter 2020 29