business backgrounder | legislative
Amid this background , AWB Government Affairs Director Mike Ennis spent the fall conducting a virtual tour of the state to meet with AWB members , local leaders and others to prioritize transportation needs and determine which revenue sources make the most sense for the Legislature to pursue and which are the most problematic .
A potential transportation infrastructure package could boost the economy at a time when it ’ s especially needed , but what would it look like ? Would it include a gas tax increase , or would lawmakers look toward charging drivers per mile ? How might a carbon-reduction policy be included ? And how could transportation funding priorities best serve communities of color and others that have historically been left out of critical policy and budget decisions ?
child care
Child care is another issue the pandemic has made more difficult — and more urgent . Before the pandemic , an economic analysis found that the lack of affordable child care cost Washington employers more than $ 2 billion annually and the overall impact to the economy was $ 6.5 billion in lost revenue and growth . Working parents often left the workforce or missed opportunities for career advancement because of the lack of child care .
Since the pandemic , the child care crisis has worsened as many child care providers have been forced to shut down . Allocations of state and federal emergency funds have helped many child care providers stay open , but more help is needed .
Congress can help with additional funding , but state legislators will also need to address the growing child care crisis in order to help parents get back to work .
employment law
As lawmakers debate tax and budget policy , an important consideration is the impact the pandemic has caused on the state ’ s unemployment insurance ( UI ) trust fund .
Washington entered the pandemic recession with a strong UI trust fund , which will allow it to pay out an estimated $ 5.3 billion in benefits by the end of the year .
But the fund will need to be replenished , which could lead to dramatic increases in UI taxes on employers at a time when many businesses are still struggling to survive . Next year ’ s taxes could rise as much as 500 %.
That should prompt lawmakers to be cautious about any additional tax increases — and it should cause them to provide significant relief to avoid another spike in layoffs .
Another potential labor and workforce issue is workers ’ compensation reform . This is a perennial issue for lawmakers and the pandemic could drive discussion around some kind of a rate holiday to boost struggling businesses .
STRONG COMMUNITIES ARE BUILT ON COMMITMENT
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Schools were among the first places to close when the pandemic began to spread in Washington , and most students have not returned to classrooms for in-person learning .
At the same time , the pandemic is underscoring the importance of workforce development and the need to solve the skills gap .
As Washington attempts to recover from the pandemic recession , it will need post-secondary and higher education graduates who are prepared to enter the workforce with relevant , marketable skills that align with the needs of Washington employers .
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