washington business
Much has changed since lawmakers left Olympia last spring , for better and worse . Employers look for progress in creating a more competitive environment through positive action in fiscal , transportation , energy , and workforce development policies . While lawmakers must ” do no harm ,” they can also do a lot of good .
Lawmakers return to Olympia in January as the state economy remains buffeted by inflation , supply-chain disruptions and labor shortages unanticipated last spring . Covid-19 no longer represents the paramount challenge , though it continues to influence the recovery . Even in the midst of economic uncertainty , the state treasury has swelled with cash : It ’ s now projected to hold billions more than state economists estimated less than a year ago . But economic headwinds still challenge those positive projections .
Taken together , inflation , supply-chain disruption , and labor shortages mean higher costs and greater uncertainty for producers and households . The three factors feed into each other in an unhappy cycle that shows little sign of stabilizing quickly . It ’ s also a cycle over which state lawmakers have limited control . That does not mean that the Legislature is without influence . Policies adopted this year can advance the state ’ s commitment to achieve “ the goal of doubling the state ’ s manufacturing employment base ,” as stated in legislation adopted last session .
According to a recent report commissioned by AWB , “ In 2019 , the manufacturing sector employed 305,300 workers in Washington state , equal to 9 % of Washington ’ s entire nonfarm employment base ,” accounting for more than 11 % of gross state product . Nearly two additional jobs are created in the state for every manufacturing job .
Dave Mastin , AWB vice president of government affairs , recognizes the issues facing lawmakers and employers in the coming legislative session .
“ First , as we ’ ve said before , we think the Legislature should be guided by the principle of ‘ do no harm .’ That means not raising employer costs , either through direct taxation or by taking actions that increase energy costs or regulatory burdens ,” Mastin said .
Beyond that , there are affirmative steps lawmakers can take in 2022 that will help grow the economy .
“ We ’ d like to see the Legislature take action to address supply-chain and labor shortage issues ,” he says . “ Prepare for the next round of essential transportation investments , for example , and strengthen support for child care and career education that will allow workers to re-enter a job market that desperately needs them .”
That ’ s a good lens through which to view the business community ’ s priorities for the coming session .
“ so much money .”
Even before the close of the 2021 legislative session , the infusion of federal cash and the resilience of the state economy meant lawmakers did not need to raise taxes to support the state budget . With the November revenue forecast , the Legislature has $ 7 billion more to work with through 2025 than expected when lawmakers left last spring . Further , lower-than-expected caseloads — particularly public school enrollments — have reduced spending requirements in the current biennium by nearly $ 650 million .
In the short 60-day session , the challenge for legislators will be to avoid overcommitting .
“ There ’ s just so much money ,” says Emily Makings , senior analyst with the Washington Research Council . Makings points out this would be a good opportunity for legislators to rebuild reserves tapped last session .
At A Glance
Although state lawmakers don ’ t hold the keys to addressing the persistent national and global threats of inflation , labor shortages , and supply-chain disruptions , they can create a policy environment that works better for Washington employers , households and taxpayers .
“ In 2022 , by building labor capacity , avoiding increases in taxes and energy costs , and setting the stage for essential infrastructure investment , lawmakers are well positioned to do a lot of good .”
— Dave Mastin , vice president , government affairs , AWB
30 association of washington business