Washington Employers Need to Send Elected Officials a Message: Change the Way Government Operates and Prioritize Programs

Speaking to the Ellensburg Chamber of Commerce today, Association of Washington Business (AWB) President Don Brunell told business and community leaders that state and local governments are going to have to become more efficient in order to provide essential services.

ELLENSBURG (PRWEB) November 16, 2002 ---Speaking to the Ellensburg Chamber of Commerce today, Association of Washington Business (AWB) President Don Brunell told business and community leaders that state and local governments are going to have to become more efficient in order to provide essential services.

Brunell said the states $2.3 billion revenue shortfall is a daunting problem for the job providers in the states private sector because Washingtons tax system relies heavily on business.

Over half of the state and local taxes are paid by employers who employ workers in the states private sector, and during down economic times, it is particularly punitive," Brunell said.

The AWB leader was referring to the states two primary taxes--- business and occupation (B&O) and sales taxes-which are collected on gross sales and have no relationship to profitability. In contrast, Oregon, which has no sales or B&O tax, receives only 27 percent of its revenues for business.

Brunell said employers in Washington are hurting and cannot afford a repeat of 1993. During that session, lawmakers raised employer taxes and fees by over a billion to balance the state budget.

Nineteen-ninety-three was different in that employers were not faced with an average 41 percent increase in workers compensation premiums and an average 15 percent increase in unemployment taxes," he said.

If the legislature balances the budget on the backs of business like it did in 1993, it will be a triple whammy that will drive many employers and jobs either out of state, offshore or out of existence," Brunell added. Were rapidly moving beyond the point of competitiveness and heading into a survivability mode."

Brunell said AWB members are hopeful that work currently underway by AWB members and other business and government leaders will help restore voter confidence in government and make it more efficient. For example, AWB supports the efforts of Governor Gary Lockes Competitiveness Council and the Price and Priorities of Government (POG) effort launched last summer.

Prioritizing state spending and making government more efficient is the key to long-term competitiveness," Brunell said. We must jettison programs and agencies, which are out of state and have a low priority. Likewise, we must eliminate overlapping and duplicative regulations. And, those in government agencies are going to have to learn from the private sector to do more with less."

Brunell admits restructuring government is painful and people may lose their favorite program or subsidy.

But if we are going to fund education and essential services and keep our state competitive, we must make the hard choices now," he said. Otherwise, well see an exodus of businesses, jobs and tax revenues."

Finally, Brunell said, Gov. Locke and lawmakers need to go back to the drawing board on transportation.

It is clear the voter confidence in how the transportation dollars are currently being spent is not there," he said. That confidence needs to be restored in order for the state to have the funding necessary to make vital transportation improvements to relieve congestion and improve highway safety."

Brunell has been AWBs president since 1988. AWB has 3,700 members across Washington who are mainly small employers like Jerrols Book Store in Ellensburg. Local chambers of commerce, like the Ellensburg Chamber, affiliate with AWB as do more than 120 trade and professional organizations.

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AWB is Washingtons oldest and largest statewide business association. It was formed in 1904. Its 3,700 members employ over 600,000 workers. AWB also is the states Chamber of Commerce and umbrella organization for more than 125 trade and professional organizations. While AWBs membership includes the states major employers like Boeing, Microsoft, and Weyerhaeuser, more than 85 percent of AWB members employ fewer than 100, and one-third of our members hire fewer than 10.