Local business leaders are disappointed with the Legislature’s decisions to raise taxes and alter the state’s unemployment insurance program, even as biotechnology won a key victory.
“We have some mixed feelings,” said Steve Neighbors, co-chairman of the joint government affairs committee of the Everett Area Chamber of Commerce, the South Snohomish County Chamber of Commerce and the Monroe Chamber of Commerce. “It wasn’t a particularly good session for business.”
Caldie Rogers, president and chief executive officer of the Greater Marysville Tulalip Chamber of Commerce, said the business community’s frustration over the session, which ended Sunday, could result in more direct political action by chambers, including endorsement of candidates.
“Most chambers of commerce have a long history of being neutral on candidates. We’ve been Switzerland when it came to that,” Rogers said. “But the sense of upset over the budget in this year’s Legislature is great.”
She expects chamber board members to revisit their policy of not endorsing candidates during their annual retreat in June.
“We need people who understand the principles of business,” she said.
Neighbors and Rogers agreed that changes in unemployment benefits for seasonal workers was the biggest defeat for small businesses. The new law, while helping boost benefits for construction workers, agricultural workers and others, cuts benefits overall for workers by 4 percent. Business groups claim the changes will cost them more money.
The law changes portions of reforms made just two years ago at the request of the Boeing Co., which supported the new law along with labor unions.
The overall growth of the state budget and hikes in a variety of taxes also is troubling, Neighbors said.
Chamber officials generally expressed support for the huge transportation package and the accompanying gas tax increase.
“While nobody wants to see a tax increase, at least it’s a tax that affects everyone, not just business,” Neighbors said, adding that the road improvements should help businesses and their workers who commute.
The biotech industry was one of the few to applaud the Legislature, for creating the billion-dollar Life Science Discovery Fund for health and agricultural research. The fund will start with $350 million in tobacco settlement money and grow with grants from the government and private industry.
Jack Faris, president of the Washington Biotechnology and Biomedical Association, said another law passed this year will help streamline regulations governing how technology makes its way from research labs to the commercial market. He had a more positive view of this year’s session.
“I give the Legislature credit for working hard and dealing with some difficult issues,” Faris said.
But a range of issues, from growing health care costs for businesses to union rules, were not addressed this year, Rogers said.
“We said coming into this that this was the perfect storm brewing, and it played itself out that way,” she said.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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