Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

tammie@retailassociationservices.com  

Jim Szymanski

ACTION ALERT!

Contact your legislators to defeat state tax increases

WRA members are strongly urged to contact their state legislators and ask them to defeat House Bill 2038, which would repeal several tax and investment incentives and extend other taxes scheduled to expire. The Legislature is adjourned until May 13, when a special session of up to 30 days will begin.

The sales tax exemption for non-residents, upon which some retailers depend for a significant portion of their annual sales, is among the targets of the bill sponsored by Rep. Reuven Carlyle, D-Seattle. Another part of the bill objectionable to WRA is a repeal on a sales tax exemption on bottled water.

These ideas would raise prices, threaten sales and slow the economic recovery from the most severe state economic slowdown since The Depression.

If you know your legislator, please leave a message at the Legislative hotline, 800-562-6000. Or, contact the legislature  and type in your address to learn who represents you and how to contact them by telephone or e-mail.

Thank you for your prompt attention to this matter. 

Bill Bishop talks about the loss of the middle ground in his book, The Big Sort

By Jan Teague, President/CEO

Last night at the Washington Research Council's annual meeting, author Bill Bishop spoke about how people are clustering into like-minded communities that are far to the right or left, with the middle ground disappearing. 

Now this isn't a revolutionary idea.  You know the saying, "birds of a feather flock together."  But Bishop did have some valuable observations about how our culture has re-organized since the 1960's when, he argues, the entire population of the world began to think differently about the future.  People grew less inclined to stay ingrained with their family's ways, their family's philosophy or to live in their family's area. 

Bishop noted that those who attended universities became the most isolated from their larger communities.  Their jobs and their friends offered a narrow perspective on life and resulted in groups of people who thought alike the more that time passed.  Again, this makes sense for us all because our work world takes so much of our time.  I hadn't really given in to the idea that I was isolated, but I do recognize that there is only a small amount of personal time left in a day to think about participating in other interests and meeting people who might not think the way I do.

Bishop's book, The Big Sort, explains in greater detail how this trend has changed our country.  From my desk there is the question of how we view those who have not moved to the left or the right in their political views, the "undecided voter." 

Bishop believes this group that has been the talk of the media and the campaign focus in recent years is becoming less important. He explained that as people move into like-minded groups, they become more radical in their thinking.  They do that to be accepted by their group and to be known as someone the group can trust.  Undecided people in the middle have a hard time belonging, Bishop maintains.  They read these polarizing pieces of information that don't provide the clarity they seek.  They tend to stay home, they tend to not act on information and not vote.

This seemed like a fresh observation with political implications. 

How do you develop the best campaign strategy to win a race?   Bishop said that phone calls don't work and mailers don't work.  Getting your friends out to vote does work, which is what President Obama did in his last two campaigns.  The best influence comes from those like-minded individuals willing to talk to their friends and encourage them to vote. 

Forget about the undecided.  Voter turnout is the name of the game now and personal contact is the most effective way to achieve results. 

What Bishop didn't address was that the business of politics was made easier with the clear philosophical distinctions between the two political parties.  Each party's ability to express its views to its constituents became easier.  The campaign information helped people align with the information they wanted to trust.  It became easier to craft what a candidate would say and not say.  On this point Bishop did say that now it's hard to find a candidate willing to run from the middle.  There just isn't the campaign support out there to fund those types of candidates.  Bishop said that if a candidate says, "I would like to be myself," there just isn't the party support there. 

Public television station TVW taped the interview and it should soon be available to watch.  It's worth watching.  At the end of the presentation, I learned the book was published in 2008, so it doesn't consider the recession or its impacts on our culture. 

I do think that we continue to be polarized, which is why we can't get our leaders to come to agreements any more.  If you come to the middle, it's a sign that the group no longer can't trust you. It no longer fits the model where talk is on the more radical side of the policy under debate.  Bishop added that in modern politics, it doesn't matter what one side says because the other side will simply oppose it. 

We've lost the middle ground.

One week of special session remaining, and no state budget

As the Legislature approaches adjournment of its special session next Tuesday, uncertainty reigns as circumstances have raised the possibility that a second 30-special session may be required to pass a new state budget.

Republicans scrambled to appoint a successor to Republican Senator Mike Carrell, who died last week from complications of pre-leukemia treatment. On Tuesday afternoon, the Pierce County Council unanimously voted to appoint Rep. Steve O'Ban, (R-Tacoma) to fill Carrell's seat in the Senate.

O'Ban's appointment now opens a seat that must be filled in the Democrat-controlled House.

This is expected to guarantee the Republican coalition including two conservative Democrats and holds out hope that the Legislature will approve a new state budget without tax increases.

There were fears the Democrat-controlled House would quickly pass a budget, including tax increases that Republican oppose, and that Lt. Gov. Brad Owen, a Democrat, might break a Senate tie vote on a budget including tax increases. Even more complicated, there were questions as to whether Owen could legally break a tie vote and the possibility that a lawsuit would be the only way to answer the question and give Republicans a shot at approving a budget with no tax increases.

State government, with no legal authority to spend money, would have to begin shutting down if the Legislature fails to approve a new budget because the state fiscal year begins on July 1. Gov. Inslee said this week that his staff has begun exploring contingency government operating plans if no budget is approved by next week.

Budget negotiations are occurring with a skeleton Legislature staff meeting privately. At the beginning of this week, there was talk that Senate Democrats might introduce a budget proposal including $400 million in new revenues from tax increases.

In summary, Democrats favor increasing taxes to spend more for state education, something the state Supreme Court has mandated. Republicans are arguing against a tax increase because the state expects to collect $2 billion in new state revenues without new taxes.

Please look to this newsletter in the coming days or weeks to read how the legislative deadlock is solved.

Speakers at IRS small business forum explain health care reform

Speakers from the Washington Health Benefit Exchange and U.S. Labor Department outlined health care reform for small businesses at a forum hosted last week by the Internal Revenue Service.

The speakers aimed to explain how consumers will shop for health care beginning next year and how to begin preparing in advance.

Enrollment is expected to begin in October of this year, said Mike Jackling, a spokesman for the Washington Health Benefit Exchange. He said a toll-free call center was expected to be announced soon to assist consumers with questions about how to shop for coverage.

The exchange expects to operate statewide for individual consumers, but will launch only as a limited pilot program for small business, contrary to original plans by the state. Details are still being worked out regarding where the exchange will be available for small businesses this fall. The state said it needs more than the involvement of  just one insurer, Kaiser Foundation Health Plan, to make the small business exchange fully functional and will wait for more companies to participate before operating the small business exchange statewide.

Meanwhile, Jackling urged consumers to sign up for e-mail or text updates by visiting www.healthcare.gov. In his overview, Jackling said the Health Benefit Exchange will be a central place for consumers to shop online and compare health plans before making a selection. He referred the audience to www.wahbexchange.org. to learn more. The exchange also has posted information about webinars to help employers prepare for changes coming to health care beginning in January.

Jane Wines, Benefits Advisor for the Labor Department's Employee Benefits Security Administration, also referred her audience to her agency's website to address myriad questions about healthcare reform. The site allows the visitor to subscribe for information updates from the Department of Labor and includes answers to frequently asked questions.

The state has begun a series of webinars aimed at educating consumers regarding the upcoming changes in health care shopping and coverage. To review the lineup of webinars and register, visit the Countdown to Coverage website.

Watch tributes to Sen. Mike Carrell

Earlier this week, the Senate took an hour to share memories of Sen. Mike Carrell, (R-Lakewood), who died last week from medical complications of pre-leukemia treatment. Please watch the discussion here.

WRA commentary on Inslee's new taxes published online

WRA President/CEO Jan Teague has authored an opinion piece calling into question Gov. Jay Inslee's proposal to repeal a non-resident sales tax exemption currently offered in Washington State.

Teague wrote that a repeal is bad policy that would damage economic development and threaten retail jobs prior to the retail industry recovering from the recession. State Employment Security data show there are approximately 6,200 fewer retail jobs in the state compared with January, 2008.

In some cases, repealing the exemptions would add hundreds of dollars of cost to the price of more expensive items and discourage sales in Washington State, particularly for small Southwest Washington businesses along the border with Oregon, Teague wrote.

Visit Washington State Wire to read Jan's article. The Washington Research Council also posted Jan's article on its website. 

Teague featured in e-fairness article

WRA President/CEO Jan Teague is featured in this week's South Sound Business Examiner article reviewing the impact if Congress passes the Marketplace Fairness Act.

The act would require online retailers to collect sales taxes and end their unfair price advantage with brick-and-mortar retailers. Like many retail organizations, WRA supports the Marketplace Fairness Act.

"Consumers are price-sensitive," Teague told the newspaper. "So if they're going online only to avoid sales tax, a law like this just might change behavior."

Teague goes on to comment that the act would preserve sales in Washington State and be the most help to small businesses that suffer from shoppers who see their merchandise on display, but buy it online to save taxes.

The Senate has passed the act, and now it is before the House of Representatives for further consideration.

Visit Business Examiner (subscription required) to read the article.

It quotes several regional small businesses that would be helped by the act including Marty Pluth, CEO of Old Town Bicycle, who added that online shoppers now can save up to $300 on the cost of buying some of the high end bicycles he sells.

WRA co-sponsors free social media webinar on June 27

WRA is offering members a free webinar this summer in cooperation with the Council of State Retail Associations.

To register ahead of time, click on the following links:

*Intermediate Mobile and Social Media Marketing, on June 27 -  6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or  9:30 a.m. MT / 8:30 a.m. PT (Webinar 2).

Please contact Jan Teague, WRA's President/CEO, if you have questions at 360-943-9198, Ext. 19 or a jteague@retailassociation.org.

Policy Center announces June 27 business, health care conference

The Washington Policy Center will host its 11th health care conference and biennial small business conference on June 27 at the SeaTac Hilton hotel.

Speakers will address the state of health care reform and the state's small business climate at the policy center's first-ever dual conference event. The keynote lunchtime address will be by MSNBC and Fox News analyst Avik Roy, who will address free-market solutions to the health care crisis. Roy also writes about health care for Forbes magazine.

WRA is a co-presenter of the event. To register, click here. For more information, contact Stephanie True at 206-937-9691 or strue@washingtonpolicy.org.

Workers' comp reform bill remains in limbo

As lawmakers struggle to pass a state budget, an important workers' comp reform bill that could save money also remains in limbo.

The WRA-supported Senate bill 5127 would lower the eligibility age for case settlements from 55 to 40. This holds the potential of greatly saving state pensions costs with workers willing to accept a cash settlement and either begin retraining or move to another job.

WRA members are encouraged to contact their legislators and urge them to approve Senate Bill 5127. You can leave a phone message on the legislative hotline, 1-800-562-6000. Members who don't know their representatives can visit Legislature, type in their address and zip code, and obtain their legislators' contact information.

Revenues, employment up from liquor privatization

The state projects that private liquor sales the past year will generate $425 million in spirits taxes, up from the $309 million the state collected in 2011, when the state operated liquor stores.

Passage of WRA-endorsed Initiative 1183, which resulted in private liquor sales beginning June 1 of last year, has helped to boost the overall performance of retail statewide, according to the Economic Revenue Forecast Council. Visit ERFC to read the council's latest entire monthly state revenue update.

In the month period ending in mid May, total retail tax payments this year were up 9.1 percent compared to the same period a year ago, ERFC reported. Payments from food and beverage stores were up 24.1 percent, the council reported.

Other retail trade sectors that showed strong growth in payments were building materials and garden equipment (up 19.7 percent), drug and health stores (up 13.6 percent), and sporting goods, toys, books and music (up 7.0 percent). One retail trade sector, electronics and appliances, saw a year-over-year decrease in payments of 6.5 percent.

The arrival of new liquor store chains in the state also has improved the employment picture. For example, a spokesman for the Total Wine & More chain told The Seattle Times his company has added 200 jobs in the state since privatization went into effect.

Sources: ERFC, The Seattle Times

Revenue director urges Congressional approval of sales tax fairness

The state's Revenue Department director has joined retailers statewide in urging Congressional approval of the Marketplace Fairness Act that would require online retailers to collect sales taxes.

In her essay, Carol Nelson notes that the state would lose $1.1 billion in revenue the next two years due to the current inequity of online retailers not collecting sales taxes as their brick-and-mortar competitors do.

"The facts don't lie." Nelson writes. "Here in Washington, we've found out the hard way that being able to buy 'tax-free' on the Internet is no bargain. In fact, it comes at a tremendous cost to our local retailers and neighborhood services."

Click here to read more from Nelson's Wenatchee World opinion piece. WRA also favors approval of the Marketplace Fairness Act. WRA's President and CEO, Jan Teague, traveled to Washington, D.C. early in May to advocate for approval of the act.

Sources: ERFC, The Seattle Times

Obamacare could cause health plan cancellations

Minimum coverage standards and a tax associated with Obamacare could force cancellations of existing health care plans in the coming months, according to a new Associated Press report.

The story estimates that 400,000 people in Washington State who buy coverage on the private market could receive cancellation notices because their plans don't meet minimum standards set in the Affordable Care Act. Further, high cost health plans already are being compromised by a so-called Cadillac tax that goes into effect under Obamacare in 2018. The New York Times reports that most health care plans could eventually be affected by the tax designed to make workers feel the true cost of medical care and prompt employers to better control it.

The National Retail Federation, with support from WRA, is currently working in Congress to achieve amendments to lessen the negative impacts of the Affordable Care Act on businesses and customers. NRF and WRA opposed passage of the act and instead favored promoting more competition in the private marketplace to achieve health care reform. Obamacare is scheduled to go into effect in January, 2014.

Attorneys general join opposition to swipe fee settlement

Attorneys general from across the nation joined retailers this week in formally opposing a proposed settlement of a federal antitrust lawsuit over credit card swipe fees charged by Visa and MasterCard.

The attorneys said the settlement's ban on future lawsuits over swipe fees and credit card rules would violate their authority to sue over actions that harm their states' citizens. Visit The Wall Street Journal (subscription required) to read the entire story.

The WRA, National Retail Federation and several other business organizations oppose the settlement on grounds similar to the attorneys general. The suit was brought because the rapidly rising fees pose financial burdens on retailers and customers alike.

Visit Business Week to read the latest lawsuit brought by retailers against the terms of the settlement.

McKenna resurfaces on website

Former Attorney General Rob McKenna, who carried 48.5 percent of the vote in the last election for Governor, has resurfaced publicly on the website smartergovernmentwa.org this week.

McKenna has gone to work for a private law firm since the fall election.

Though McKenna often has said he is not interested in running again for Governor, The Everett Herald has labeled him a potential repeat candidate for the job.

The new website includes updates on McKenna and a blog and pledges to address various issues facing the state. In launching the website, McKenna addressed the state's response to the Skagit River bridge collapse.

WRA's shipping vendor presents price, value  advantages

PartnerShip, WRA's third-party shipping provider, offered a few reasons this week for business to try the service.

As a third-party vendor independent of regional and national shipping carriers, PartnerShip acts on behalf of customers to negotiate discounts and other advantages.

Four possible advantages include:

*Routing management. Based on an analysis of shipments, PartnerShip will recommend the best shippers for particular routes. The recommendation is based on a carrier's cost effectiveness and customer service.

*Bill auditing. Vendors such as PartnerShip say they often find invoices with rate errors of up to 10 percent in favor of the freight carrier. Corrections are made before the third-party vendor sends the bill to the customer.

*Improved inbound shipping. By relying on vendors to control your inbound shipping, it can be difficult to learn how and when your orders will be shipped and delivered. You can gain that knowledge by arranging shipping through a third party partner such as PartnerShip.

*Consolidated invoices. For frequent shippers, this can mean paying only one bill weekly or monthly as opposed to paying for each shipment.

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining PatrnerShip free of charge.

And considering annual shipping rate increases from major carriers, it's a good time to check out WRA's agreement with PartnerShip, a national freight management company committed to reducing shipping costs particularly for small businesses.

Savings from the new shipping program can, of course, help you to offset the cost of your WRA membership dues.

The program is available to all WRA members with no minimum shipping requirements or obligations. Enrolled customers can save up to 27 percent on select FedEx services and at least 70 percent on less-than-truckload freight shipments arranged through PartnerShip.

"The new WRA Shipping Program makes a great addition to our menu of services designed to save our members money," said WRA President/CEO Jan Teague. "This program is clearly advantageous to all WRA members."

To learn more, visit PartnerShip's website and its improved, separate shipping website.

Safety tip: (one in a series)

Listen when someone says "be careful"

The following three true workplace accident stories, courtesy of www.toolboxtopics.com, include convincing evidence for committing to working safely.

Together, these stories emphasize the need to wear protective equipment and to remain mentally focused on safety while on the job.

*Two mechanics were working on a step van and repairing the rear roll-up door. In order to fix the door, they had to alternately "tension" the large spring that assists the door's upward movement. As they took turns tightening the spring by inserting 3/8-inch metal rods into the spring catches, the front mechanic's rod slipped out from the catch. The rebound motion and force made the rod, still in his hand, fly back and strike the other mechanic in the eye. The mechanic struck in the eye, who was not wearing eye protection, needed immediate emergency medical attention.

*A construction superintendent was observing project operations when a piece of heavy equipment ran over a piece of concrete with its rear tire. The object became a flying projectile when it "shot out" from under the tire, missed a small stock pile, sailed past a back-hoe and struck the superintendent in the head. The blow could have been fatal had the superintendent not been wearing a hard hat.

* An employee was using a bench grinder to polish a piece of metal on the wire wheel. When he turned to talk to another employee, and took his eyes off his work, the piece of metal he was holding became caught between the wheel and the tool rest. His finger was pulled into the wire wheel which instantly shaved off part of his finger.

At least one of these workers, perhaps all of them, may not have believed they could become injured or threatened with injury when they started the job, but accidents often happen when they're least expected. These experiences are a good reminder to take your company's safety messages to heart.

WRA employs Maria Justin as a safety advisor who is available to make workplace safety visits, help in organizing a safety plan or to suggest safety meeting topics. WRA members can contact Maria at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.

Breakfast for Heroes set for June 27

A military Breakfast for Heroes has been scheduled on June 27 at the Hilton Bellevue Hotel, 300 112th Avenue S.E.

The event is sponsored by Heartbeat, an organization that provides therapeutic services, emergency assistance and morale building programs for active and discharged service men and women in Washington State.

Featured speaker for the 7:30 a.m. will be Katherine Theresa Platoni, an Army Reserve clinical psychologist with experience teaching patients methods of reducing suffering from chronic pain and terminal illnesses. Col. Platoni's assignments have included four wartime deployments.

To register, click here . 

State will advertise job openings, help with recruitment

Employers looking to advertise job openings or find job candidates can get online help from the state Department of Employment Security.

Employers who have scheduled job fairs or are looking to hire should contact ESD's calendar. Employers are encouraged to submit information at least two weeks in advance.

Also, WorkSource representatives in more than 30 offices around the state are willing to help recruit job candidates from a bank of resumes for interested employers. Contact recruitment services to learn more about this service. According to Employment Security, its website attracts more than 1.2 millions hits per month.