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INSIDE: JUDICIAL
SCORECARD AND
GUIDE TO THE
WASHINGTON
SUPREME
COURT
www.awb.org
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September / October 2004
WASHINGTONBUSINESS
Association of Washington Business
Washington Business Magazine
EDITORIAL
MAGAZINE
FEATURES
18
REGULATIONS IMPACT RURAL TELEPHONE COMPANIES
22
SPECIAL SECTION: ELECTION 2004
25
26
27
28
29
CAMPAIGN FINANCING RULES
AUTOMATIC INCUMBENT ENDORSEMENTS
KERRY / EDWARDS VOTING RECORD
AWB JUDICIAL SCORECARD
SUPREME COURT JUDICIAL ENDORSEMENTS
30
WIRELESS REVOLUTION IN FLUX
32
BELLINGHAM: WASHINGTON’S CITY BY THE BAY
36
SUCCESS STORY: DORSING FARMS
40
MADE IN WASHINGTON: AIR FORCE ONE
42
COMPANY USES “SMART PIGS” FOR PIPELINE SAFETY
44
DAYTON: SMALL TOWN WITH A BIG FUTURE
45
2005 WASHACE COMPETITIVENESS REDBOOK
46
LEAVENWORTH: A TOWN REINVENTED
53
HEAVY LIFTERS AWARDS
COLUMNS & DEPARTMENTS
6
FEEDBACK: LETTERS TO THE EDITOR
8
MIKE BERNARD: CHAIR’S CORNER
10
DON C. BRUNELL: PRESIDENT’S MESSAGE
12
CHARTING WASHINGTON’S ECONOMY
Publisher . . . . . . . . . . . . . . . . . . . . . Don C. Brunell
Executive Editor . . . . . . . . . . . . Alexis Nepomuceno
Managing Editor . . . . . . . . . . . . . . . . . Paul Schlienz
Art Director . . . . . . . . . . . . . . . . . . . Kim A. Fowler
Photo Editor . . . . . . . . . . . . . . . . . . . Daniel Brunell
Copy Editor . . . . . . . . . . . . . . . . . . . . Bonnie Bollig
Contributing Writers . . . . Richard Davis, Carly West
Mike Hudson, Earl Roberge
Charles Henry Thomas
Association of
Washington Business
P.O. Box 658
1414 Cherry St. SE
Olympia, WA 98507-0658
Phone: (360) 943-1600
Fax: (360) 943-5811
www.awb.org
AWB Officers
Mike Bernard . . . . . . . . . . . . . . . . Chair of the Board
Madison Cooke, Bellevue
Tom Lemly . . . . . . . . . . . . . . . . . . . . . . . Vice Chair
Davis Wright Tremaine, Seattle
Creigh H. Agnew . . . . . . . . . . . . . Secretary/Treasurer
Weyerhaeuser, Federal Way
Heidi Stanley . . . . . . . . . . . . . . Immediate Past Chair
Sterling Savings Bank, Spokane
Don C. Brunell . . . . . . . . . . . . . . . . . . . . . President
C. David Gordon . . . . . . Honorary President for Life
BUSINESS
AQP Publishing, Inc.
Washington Office
3100 Bucklin Rd., Ste. 246
Silverdale, WA 98383
Phone: (425) 379-9417
Fax: (866) 562-9311
debAQP@awb.net
President . . . . . . . . . . . . . . . . . . . . . .Robert R. Ulin
VP Sales . . . . . . . . . . . . . . . . . . . . .Chris Kersbergen
Account Executive . . . . . . . . . . . . .Deborah Haydon
Traffic Manager . . . . . . . . . . . . . . . . . . .Julie Holser
ADVISORY BOARD
AWB Senior Staff
Don C. Brunell . . . . . . . . . . . . . . . . . . . . . President
Gary Chandler . . . . . . . . . . V.P. Governmental Affairs
Debra Brown . . . . . . . . . . . . . . V.P. Member Services
Alexis Nepomuceno . . . . . . . . . V.P. Communications
Dick Walter . . . . . . . . . . . . . . . . . . . V.P. Operations
AWB Governmental Affairs Staff
Amber Carter . . . . . . . Governmental Affairs Director
Kris Tefft . . . . . . . . . . Governmental Affairs Director
Grant Nelson . . . . . . . Governmental Affairs Director
Kristen Sawin . . . . . . . Governmental Affairs Director
Tom McBride . . . . . . . Governmental Affairs Director
Cody Benson . . . . . . . . . . . . Regulatory Coordinator
Shannon Garland . . . . . . . . . Administrative Assistant
●
14
PROS & CONS: INITIATIVE 892
16
Q&A: TERRY BERGESON ON EDUCATION
24
RICHARD S. DAVIS: LOOKING BEYOND ELECTION DAY
49
INSIDER PERSPECTIVE: TOM MCBRIDE
50
AWB LEGENDS: C. LEE COULTER
52
PEOPLE ON THE MOVE
●
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WASHINGTONBUSINESS
●
●
Editorial Disclaimers
Articles written by outside authors do not necessarily
reflect the views or positions of the Association of Washington
Business (AWB).
Letters to the editor are welcome but must be signed, or be
verifiable, to be considered for publication.
Reproduction of articles from Washington Business Magazine is
authorized by permission, with credit given to AWB.
The advertising of products and services in Washington Business
Magazine does not necessarily represent endorsement of the
product or service, or reflect the opinion of AWB.
AWB's Washington Business Magazine is published every other
month with a subscription price of $24.00 per year. Individual
copies can be purchased for $3.95. Subscription requests and magazine purchases should be made to the Association of Washington
Business, P.O. Box 658, Olympia, WA 98507-0658; or e-mail
alexisn@awb.org.
Commentary
About this issue...
Elections are the Bottom
Line for Job Providers
by Alexis Nepomuceno
A
fter all the smoke clears on Nov. 3,
Americans will still have to go back to
work and private sector employers — the job
providers — will still have to make a profit.
But the future of job security and business
profitability will depend on what happens
the day before — the Nov. 2 elections.
Washington state is ranked by the Milken
Institute as the eighth most expensive state to
conduct business. In a state where employers
already pay the nation's highest average
unemployment insurance tax per employee,
the potential costs of the 2004 elections may
be too much for business to handle.
Any additional tax or regulatory burdens
resulting from actions of elected officials affect
a company’s bottom line as much as any other
fixed or variable costs. Unfortunately, government costs are neither predictable nor
accountable. For this reason, the Association of
Washington Business (AWB) has taken a more
proactive role during the 2004 election cycle.
Last year, AWB voted to initiate an
endorsement process for legislative and
Washington State Supreme Court races.
Many issues of importance to the state’s
business climate are decided in the courts,
Legislature and regulatory agencies. The
endorsement process allows employers to
have a direct say on who best represents job
providers.
Deciding on who to vote for in the State
Supreme Court race is a dilemma many
voters face due to the lack of information
and guidance. Yet, the courts are having
more of a say regarding business issues than
the Legislature or agencies. This year, AWB
assembled a legal team to review the records
of incumbent judges and challengers. The
results of this hard work can be found in
the 2004 Judicial Scorecard (inserted) and
Judicial Endorsements (page 29).
For statewide races, candidates attended
AWB’s annual Policy Summit. Through
debates between Democrat and Republican
statewide candidates, members were given
firsthand exposure to potential office holders. AWB board members were then given
an opportunity to vote on their preferred
candidates. Candidates for statewide office
had to receive 60 percent of the votes from the
board members present to be endorsed. If the
candidate failed to receive 60 percent
approval by the board, all AWB members
present were asked to vote (60 percent of that
vote had to be in favor of that candidate
before AWB’s endorsement was issued). These
results are be made available online at
www.awb.org/elections.
If a company has never been involved in
politics or elections before, this is the year
to start. Employees, vendors, investors and
other partners need to understand that the
2004 elections WILL HAVE long-term
repercussions on the way of life of private
employers. The results at the local, state and
federal levels will determine the types of
policy-makers making decisions over the
next several years.
Will we have a Legislature that succumbs
to labor interests, which have been driving
businesses away from this state?
Washington ranks sixth in the nation for
union members as share of employment,
according to the WashACE Redbook 2005.
Will we have a governor who believes in
putting an end to the state’s ever-increasing
costs of labor? Manufacturing wages in
Washington are the second highest in the
nation, according to the U.S. Census
Bureau.
Businesses can have a tremendous say in
the answers to these questions, but only if
they exercise the right to mobilize and
VOTE!
SEPTEMBER / OCTOBER 2004
5
Letters to the Editor
Dear Editor
People Don’t Say “Thank You” Anymore
Editor’s Note: Last spring, AWB President Don Brunell wrote a weekly column lamenting the fact
that people don’t say “please and thank you” anymore. The following is a response to that column
which appeared in the July 20 issue the North Seattle Herald-Outlook. For copies of all Brunell
columns, go to www.awb.org.
I
totally agree with you. It's a sore spot with me that when I go into a store and spend
maybe $100 on groceries, for example, and no one says thank you. Nor do they say
"please" when asking for the money.
I feel that the fault lies in the management — they obviously don't have training sessions
to teach their employees how to treat their customers. It wouldn't take much to remind
employees to use phrases of common courtesy, and also to remind them that they have jobs
because there are customers. If the customers are treated rudely, they quite likely will not
return and they'll tell their friends how badly they were treated.
Diana Smith
Seattle
C. David Gordon
Was a Happy Warrior
Washington Business Maturing
Into Confident Young Adult
In response to the Legends article on C.
David Gordon carried in the last issue of
Washington Business Magazine, former AWB
staffer Bill Garvin wrote:
Dave hired me at AWB in 1978 shortly
before his retirement. He was a great boss who
created a great work environment during very
challenging times. He was a happy warrior and
it rubbed off.
Editor’s Note: We asked former Potlatch Corp.
Senior Vice President George Cheek to critique
Washington Business Magazine. Cheek, who is a
noted journalist, solid editor and has an eye for
layout and design, now lives in Camas. He also
served on AWB’s Board when he was Washington
Public Affairs Manager for Kaiser. In a nutshell,
this is what he had to say.
Bill Garvin
Washington Forest Protection Association
Olympia
Encourage Your Friends
to Register and Vote
Editor’s Note: Laura Recko responded to last
issue’s President’s Message urging employers to
encourage their employees to register and vote.
I just wanted to thank Don for this very
thought-provoking article. I just forwarded it
to several friends and encouraged them to vote
and register as many people as they can.
Thanks for the words.
Laura J. Recko, Chief Operating Officer
Washington Workforce Association
Vancouver
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WASHINGTONBUSINESS
The first three issues, which I read a year
ago, seemed to be in search of an identity —
which I’d say you’re sure of now, but that
you’re still perfecting. What I first saw was
almost a newborn; this time I’m looking at a
confident young adult. It will be interesting to
see what happens when the magazine fully
matures.
The writing is much more even and coherent, the editing surer. Articles seem relevant to
me, and you have a good balance of information the reader needs to know and material he
enjoys knowing.
George Cheek, Camas
Brunell Hit Nail on Head
with Anti-SUTA Dumping Piece
Editor’s Note: In August, President Bush signed
an anti-SUTA (State Unemployment Tax Act)
Please send
your letters to:
Association of
Washington Business
P.O. Box 658
Olympia, WA 98507-0658
Or e-mail them to:
alexisn@awb.org
dumping bill. Kelly Services, Inc, an AWB member, pushed for passage of the bill and AWB is
assisting with the state implementation. AWB
President Don Brunell covered SUTA dumping
in a weekly column. Go to AWB’s Web site at
www.awb.org to read the complete column.
Congratulations on your prompt column
on the SUTA dumping topic. Early education
on the issue is essential. Your piece positions
the issue in a positive light for the great majority of ethical employers who will benefit from
the closure of this loophole. Your decision to
be proactive on the issue is absolutely the right
one for all. Thank you.
Jim McIntire, VP Government Affairs
Kelly Services, Inc.
Troy, MI
Schools Will Improve When
Parents Care About Their Kids
Editor’s Note: Jennifer Delgadillo is an
advanced placement language arts teacher at Ft.
Vancouver High School. She and her husband,
an advanced placement math instructor at
Hudson Bay High School, have three children.
I’ve read a good deal about the WASL, “No
Child Left Behind” and ways to improve our
schools. The bottom line is schools will change
and students will learn when parents decide
raising their children is their “Number One”
priority. And, that means parents will have to
sacrifice many of the things they want to do.
Jennifer Delgadillo, Vancouver
Going Down the Wrong Road
For all practical purposes, we do no business
in this state, we just happen to be located here.
Washington, in my view, is going down the
wrong road. While our business is doing fine,
it's all out of state, so we are doing well in spite
of the state government.
Let's put it this way. I certainly will not consider adding any more employees in this state.
We can add them out of state much less expensively. If we were to gear up this company I
would probably do it in Idaho or Texas (where
one of our companies already has a presence.)
I would even consider states like Montana ,
which are considered business friendly, but are
much less expensive to operate in than
Washington.
Traffic gridlock in the Puget Sound area is
almost complete. The state is doing nothing to
fix the roads that really need fixing, like the
interstates. They keep waiting for more federal funding to fix them. When is the state going
to wake up to the fact the federal government
hasn't the funds to fix them either? We need to
bite the bullet and resurface some stretches of
freeway.
The alternative is for the state to offer some
serious tax incentives for larger companies to
move some of their operations to the suburbs.
That's inconvenient for the company and
costly, but it can remove a lot of cars from the
roads.
Tom Ferree, President
Ferree & Associates, Inc.
Gig Harbor
I-892 Levels the Playing Field
While I'm not a business owner, I am
involved in Initiative 892 (I-892) and have
been outspoken via letters to the editor in the
Seattle Times, Seattle Post-Intelligencer, Tacoma
News Tribune, King County Journal and the
Puget Sound Business Journal.
I am employed at Skyway Park Bowl &
Casino in the Renton area, and the passage of
this issue obviously will have a positive effect
— not only on my future — but on thousands
of small business owners and non-profit
groups.
Continued on page 54
SEPTEMBER / OCTOBER 2004
7
Chair’s Corner
It’s Time to Change the Political Debate
and Solve Problems with Common Sense
I
MIKE BERNARD
CHAIR
BOARD OF DIRECTORS
MIKE BERNARD
IS A PARTNER IN THE
TAX CONSULTING FIRM
OF MADISON COOKE,
BELLEVUE
t is time to change the nature of our political
debate! As a pivotal election looms, there has been
much discussion about AWB’s role in the election.
One thing is clear: With our expanded endorsement
process, we will play a much larger and more active
part in races for the Legislature, Supreme Court, and
statewide offices.
But by stepping up our involvement, the question
remains: Will we be informing voters and educating
candidates or will we simply be another angry voice
in an increasingly polarized and partisan process?
The goal needs to be the former. We need to be
constructive and measure candidates on where they
stand on issues important to employers and what
they have done to support those of us trying to earn
a living and create more jobs.
AWB is officially non-partisan, but that often
means little to many outside our headquarters. Some
view us as the lapdog of the Republican Party, while
others say we are too independent to be true
Republicans. Some say we “kowtow” to the
Democrats, while others say we don’t work hard
enough to elect “business-friendly Democrats.”
What a great position! It means AWB can inject
some common sense into the debate. “AWB: The
Common Sense Party” has a nice ring, but what do
we stand for?
AWB Needs to Bring
Common Sense to the Debate
First and foremost, government must provide only
the critical services that it can best provide and do it
efficiently and at a price taxpayers can afford to pay. A
tall order to be sure. The good news is that AWB has
a common sense approach to creating good government — it’s called POG — Price of Government,
Priorities of Government. POG needs to be a key part
of management in every part of state and local government from state agencies to cities, counties and
school districts.
Second, we could really use a good dose of common sense in health care. Few things are a bigger
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WASHINGTONBUSINESS
threat to the long-term economic health of this state
and to our families than the costs and availability of
health care.
The emotionally-charged and lengthy California
grocery worker strike is just the tip of the iceberg of
what’s to come if we don’t solve the health care crisis.
Irrespective of the enormity of the challenge, we need
a common sense, non-partisan process that brings
the affected parties to the table. We need to dig into
the root causes of the problem and quit arguing
about the symptoms. Let’s just do it!
Finally, no issue is more divisive than reforming
our legal system to stem lawsuit abuse. Bogeymen
can be found under every rock — personal injury
lawyers, faceless corporate titans, heartless doctors,
HMOs — you name them. They make great sound
bites, but are nothing more than empty rhetoric.
To deal with the crisis, as with health care, we need
to bring people together and get serious about
solutions.
Political Tone Needs to
Change to Solve Complex Problems
The bottom line is we have a choice. We can go
with the status quo — lobbing political bombshells at
one another as if we are all mortal enemies — or do
something different. Departing from the current
approach may be dull, but with hard work and
understanding it can be effective. We all have to
choose to solve the problem.
Frankly, I don’t think we have a choice. AWB and
the employer community must engage in a common
sense process and offer our resources to solve problems. If we don’t engage, someone else will determine
the battlefield and solve the problem for us. Guess
what? We may not like the solution.
So, is this approach wishful thinking or pie in the
sky? Maybe, but wouldn’t it be great if we actually
accomplish something together? Then we can truly
look back and tell our grandchildren we made
Washington a better place for them to live, have
careers, and raise their children.
President’s Message
Election Time is “The Time” To
Call a Halt to Lawsuit Abuse
L
DON C. BRUNELL
AWB PRESIDENT
“Lawsuits cost
a family of four
an extra $3,236
each year...
costs buried in
the price of
goods and
services.”
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WASHINGTONBUSINESS
itigation is out of control in our country, and
election time is “The Time” to call a halt to lawsuit abuse. Those of us who provide jobs, manufacture products, and sell goods and services need to
elect people to Congress and the state Legislature
who will restore fairness and balance in our courts.
Lawsuits are so pervasive in the United States
today that they consume 2.2 percent of our Gross
Domestic Product (GDP). In 2002 that was $233
billion and of that total, business forked over half of
that money — some $129 billion.
That amount is substantially higher than any
other country in the industrial world and, according
to the American Tort Reform Association (ATRA),
lawsuit costs are on average 2.5 times higher here
than in other countries — nations we compete
against.
And, personal injury attorneys like Democrat vice
presidential candidate John Edwards make millions
suing people. They get 40 percent of the money right
off the top.
Litigation Killing Small Business
While some may believe it is big business and
insurance companies — the so-called “deep pockets”
— which pay the tab to settle lawsuits, a new report
shows tiny companies are hit the hardest.
Now, the U.S. Chamber of Commerce Institute
for Legal Reform has found that 68 percent of
those business costs — $88 billion — are paid by
firms with one employee and revenues of less than
$10 million a year. That translates into an average
of $150,000 per employer — money that would
otherwise be available to hire additional workers,
expand operations, develop new products, or
improve health coverage for their employees and
their families.
The importance of this new study is that it breaks
down the legal costs by who pays. For example, Jim
Mickelson of Northwest Embroidery, a small busi-
ness in Fife, has a $14,000 unpaid bill from a manufacturer bankrupted because of asbestos lawsuits. But
in addition to this lost income, Mickelson has to pay
more each year for his liability insurance, raw materials and transportation because his vendors are being
sued. It is an endless cycle!
Families Hit By Hidden Lawsuit Taxes
Consumers are feeling the bite as well through the
so-called “hidden tort taxes” buried in the price of
goods and services. It averages $809 per person annually. Can you imagine what a family of four could do
with an extra $3,236 banked each year for their children’s college education? If allowed to accrue interest
over a decade, that money would cover a year’s
tuition, books, board and room at an Ivy League college for one of their children.
Keep in mind none of these costs include the additional taxes we pay because school districts, parks districts, and city, county or state governments are sued
every year for billions as well.
The question is: When will lawmakers stand up
and reform our legal system? That’s a great question
to ask those running for office this year. Every consumer, job-provider and worker should support only
those candidates who are willing to stand up to the
politically powerful personal injury attorneys to
restore fairness and balance to our courts.
No one, whether they are a small business owner,
a school director, hospital administrator or doctor,
wants to take away a person’s right to recover legitimate damages and be fairly compensated if they have
been injured or treated unfairly, but our legal system
is out of whack.
It is up to the voters to initiate change on Nov. 2.
Otherwise, the personal injury lawyers will continue
to get richer while the small business owners watch
overseas competitors uncut them in the marketplace.
That just isn’t fair, and it is not good for our country or our children.
CHARTING WASHINGTON’S ECONOMY
Average Hourly Earnings
at Washington Manufacturers
Source: Bureau of Labor Statistics
Source: PricewaterhouseCoopers/Venture Economics/NVCA
Moneytree Survey
Venture Capital Investments in Washington
After falling dramatically in the wake of the dot-com bust, venture capital investment has recently turned upward.
Two Washingtons: Per Capita Personal Income
as a Percentage of the National Average
Five-Year Appreciation in
House Prices: 1999 to 2004
Source: Freddie Mac
Source: U.S. Dept. of Commerce
Manufacturing jobs pay well. Hourly earnings in manufacturing,
however, are below the peak set in early 2002.
Over the last five years, home price appreciation in Washington
has lagged the national average.
Inflation-adjusted Index of the
Dollar’s Value Against Major Currencies
State and Local Taxes on Business as a
Share of Gross State Product Fiscal Year 2003
Source: Federal Reserve Board
Source: Utah State Tax Commission
The central Puget Sound region’s per capita income exceeds the
national average, while the balance of the state falls short.
The value of the dollar has fallen recently, making Washington
state products more competitive on international markets.
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WASHINGTONBUSINESS
The Utah State Tax Commission regularly compares the business
tax burden in seven western states. The commission’s most
recent study shows that taxes on Washington’s businesses
exceed 4 percent of gross state product.
SEPTEMBER / OCTOBER 2004
13
Pros & Cons
CON
Initiative 892
RALPH MUNRO
Ralph Munro served as
Washington’s Secretary
of State from 1980 to
2000 as a Republican.
He is a life-long
resident of Washington,
raised on Bainbridge
Island, and educated at
Western Washington
University. He is now
retired but remains
active in many civic
causes.
Gambling Hurts Small Businesses,
Washington Families and Government
L
egalized
gambling in Washington has doubled
e
since 1997 and, if Initiative 892 is approved by
voters in November, it will double again. More than
$2 billion in consumer spending would then be
diverted away from local businesses. And most of the
gambling profits would leave the state.
Don’t be fooled by the baloney about new state tax
revenue, fairness or how it’s a “win-win” idea. The
truth is this initiative is about big time gambling that
would be operated by out-of-state and foreign companies. And the gambling would be in your neighborhood and competing for consumer dollars with
your business.
I-892 would legalize more than 18,000 electronic
scratch ticket machines (basically video slots) at more
than 2,000 locations in neighborhoods throughout
the state. The initiative may override the bans that
more than 50 cities and counties currently have on
most types of gambling within their jurisdictions.
Video slot machines would appear in restaurants,
bowling alleys and bingo halls as well as card rooms.
Gambling Hurts Businesses
Gambling expansion hurts business, especially
restaurants, retailers, car dealers and entertainment
venues. Gambling doesn’t create any new spending, it
just moves it around. The money that would have
been spent in your shop or restaurant, for example,
would be spent instead on slot machines. For every
increase in the amount of gambling, there is a corresponding decrease in spending elsewhere. And it’s big
money. If I-892 passes, another nearly $1 billion a
year will be sucked away from spending at legitimate,
tax-paying businesses.
“Gambling is also a lousy
idea for raising revenue for
government programs.”
Gambling is also a lousy idea for raising revenue
for government programs. It’s typically embraced by
politicians who don’t have the guts to raise taxes or
cut spending. Gambling proponents, including those
who advocate for I-892, prey on this weakness and
offer more gambling as an alternative. They only talk,
of course, about how much revenue can be raised
from gambling. They never talk about the public
costs associated with gambling expansion. But there
are real, hard-dollar costs, especially related to problem gambling. Government gets stuck with a myriad
of new expenses: Unemployment, welfare, drug and
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WASHINGTONBUSINESS
alcohol addiction, domestic violence, child neglect,
theft and homelessness.
Card room operators say there isn’t significant
crime at their casinos. That’s because the crimes often
don’t occur at the card rooms, they occur in the home
after a spouse comes home without the weekly paycheck that is needed for the family’s rent, food, electricity and health care. Or they occur in the work
place when a desperate problem gambler steals from
his or her employer.
Gambling expansion also hurts low income people
by enticing them to wager away their meager incomes
with cruel, false promises of lifting them from poverty. Their chances of becoming “lucky for life,” as one
current state game promises, are virtually nil.
I-892 is Misleading
Initiative 892 cynically offers voters a big property
tax break if they will just hold their collective noses
and accept video slot machines. But what promoters
don’t say is the slot machines would cannibalize state
Lottery programs and result in a $33 million annual
reduction in the revenue to the Lottery’s Education
Construction Account. The property tax savings is
estimated at just $13 a year on a $100,000 home
during the first full year, rising to $33 annually after
several years.
Most citizens in Washington do not want more
gambling. The Legislature has rejected private video
slot machines during each of the past three sessions.
In response, a dozen or so big card room operators
paid more than $600,000 to consultants and signature gatherers to buy their way onto the ballot.
Gambling is a major public policy issue and
should be debated as such, not as just a neat way to
increase government revenue. But more gambling
comes with consequences. We need a discussion
about the policy implications, including: Does more
gambling help keep families together? Does it help
build a solid economic foundation? Would
Washington be a better place to live, work and play?
Does state-sponsored gambling inspire young people
to study hard and plan for their futures?
Card room operators argue this initiative is about
fairness. My question is fairness to whom? Fairness to
the half-dozen big card room operators in the state
that are already making tons of money? Or fairness to
the citizens of Washington state who care about the
quality of life here today and in the future? Or fairness to the businesses of our state that would see $1
billion in sales disappear? Fairness to the citizenry —
to us — means no more gambling expansion!
Initiative 892 is a bad bet. A bad bet for business,
families and government.
Pros & Cons
Passing I-892 is About Doing Something Right
W
hen it comes to citizen activism, criticism is
the ultimate compliment. Elitists in the government and media do not spend their time sputtering and pontificating about ineffective activists; they
only attack those making a difference. The fact that
our taxpayer-protection efforts this year earned so
much hyperventilation is an obvious sign that we
must be doing something right.
In this election cycle, we decided that our state’s
property tax problem was the number one issue that
needed fixing. Politicians have allowed this pernicious problem to escalate for decades. Families and
senior citizens are struggling under, and our economic growth is depressed by, our state’s crushing property tax burden. We found Washington’s property tax
problem so obnoxious that we put forth two initiatives this year, one that reduced state property taxes
and the other that reduced local property taxes. By
the deadline, one of two had garnered the necessary
signatures.
Now, I’m a glass-is-half-full kind of guy. I’m simply thrilled that thanks to the voluntary signatures of
274,293 citizens, the electorate will finally get the
chance to improve our state’s out-of-control property
tax problem in November.
According to the Dept. of Revenue, citizens paid
$1 billion in property taxes in 1980. We paid $6.25
billion in 2003. That six-fold increase is obscene and
unsustainable. With the help of the Washington
Policy Center, we learned that property taxes, since
1980, have nearly doubled per citizen after accounting for inflation and population growth. Taxpayers
don’t need to be convinced that property taxes are
skyrocketing; they only want to hear about the solution. This fall, the only tax relief available to voters is
Initiative 892.
I-892 Lowers Property Taxes
I-892 is the most unique tax initiative we’ve ever
offered because it substantially lowers property taxes
for citizens but doesn’t cost the government a penny.
How? I-892 imposes a 35 percent user fee on electronic scratch ticket machines, using that $400 million per year in new revenues to substantially lower
property taxes. Currently, these machines aren’t taxed.
I-892 simply allows the non-tribal establishments to
compete with the tribes (who don’t pay taxes), levels
the playing field and substantially lowers property
taxes without costing government a penny. I-892 is a
win-win, revenue-neutral, tax-cutting initiative.
Opponents’ main objection is that I-892 “expands
gambling.” Wrong. I-892 only allows EXISTING
non-tribal establishments (NOT grocery or convenience stores — only gambling licensees whose customers are 21 and over) to compete with the tribes
who already offer these same machines. So I-892
authorizes nothing new, it just gives the fixed number of people who play these machines a different
place to go. I-892 doesn’t “take away” from the tribes
— it only requires them to compete.
And since the tribes pay no taxes to federal, state,
and local governments, they’ll compete just fine.
John McCoy (D-Marysville) said that I-892
involves “economic racism.” He’s got it backwards.
Right now, the tribes are receiving preferential treatment by the politicians by being given a governmentprotected monopoly. Initiative 892 is called “Just
Treat Us The Same” because it advocates a principle
we all believe in, equal treatment. Government
shouldn’t discriminate against or grant preferential
treatment to citizens based on their group affiliation.
I-892 requires equal treatment of non-tribal and tribal establishments. That’s fair. Governmental policy
that treats some people better than others is divisive,
discriminatory and just plain wrong.
Every tax initiative we've ever qualified for the ballot has been approved by the voters. Why? Because
the voters know that our initiatives are their only
opportunity to limit their crushing tax burden.
Skyrocketing property taxes, job-killing business
taxes, sky-high utility taxes, and hundreds of taxes
and fees on virtually every government service.
Politicians in Washington apparently believe they can
tax us into prosperity.
Opponents Like to Beat Up On Eyman
Washington is the seventh highest taxed state in
the nation. Opponents of I-892 say it isn’t fair to tell
voters about that ranking because it includes federal
taxes. But looking at the overall tax burden is the
only reasonable way to look at taxes because all taxes
are paid from the one family budget.
Opponents are using their laughably ineffective
attack-the-messenger strategy again this year. “Don’t
support I-892 because Tim Eyman is a bad guy.” This
kind of rhetoric simply illustrates how intellectually
bankrupt our opponents have become.
Voters care about the message, not the messenger.
They passionately support principles, not personalities.
In the privacy of the ballot booth, voters ask themselves a very basic question: Is this initiative reasonable? I believe that I-892 passes that test. It offers
lower property taxes for citizens, no revenue loss for
government, while allowing competition and a more
level playing field between the non-tribal and tribal
establishments. I-892 simply ensures a governmental
policy of equal treatment. I think a majority of voters
agree that treating everyone equally is the best
approach.
I’m thrilled that average taxpayers will have the
chance to have their voices heard in November on
this unique tax cutting initiative.
PRO
Initiative 892
TIM EYMAN
Tim Eyman is sponsor of the
“Just Treat Us the Same”
Initiative 892 and the head
of Voters Want More
Choices, a grass roots
taxpayer-protection
organization.
“I-892 requires
equal treatment of
non-Tribal and Tribal
establishments.”
SEPTEMBER / OCTOBER 2004
15
Q&A
Terry Bergeson:
Shepherding Standards in Washington Schools
Q
A
You started as a former classroom teacher. What are the biggest challenges facing teachers today?
When I started my career as a junior high teacher, I was handed a textbook and told to “go as far as you
can.” There were no learning standards, no school mission, no one holding me accountable for actual
learning results with my students. Today, we have common learning goals across the state and we’re
holding schools accountable for reaching those goals. Teachers no longer work in isolation; to succeed, they must
work as part of a team in their schools. This is a major shift in the way we’ve traditionally taught students, and
it’s putting a lot of added pressure on teachers. They’re also dealing with a far more diverse student population.
Students in our schools speak more than 180 languages, and the population of students dealing with challenges
from poverty to physical disabilities continues to grow. Teachers have to find a way to help each individual student meet our learning goals. It’s a far more challenging job than it used to be, but for all the right reasons — to
raise learning expectations and outcomes for all of our kids.
TERRY BERGESON
Terry Bergeson was elected as
Washington’s Superintendent
of Public Instruction in 1996,
and re-elected in 2000. She is
seeking a third term.
A 42-year educator, she
previously served as chair of
the Washington Commission
on Student Learning, president
of the Washington Education
Association, and as a school
administrator, teacher and
counselor.
She began her career as a
public school teacher and
counselor in her home state of
Massachusetts. In 1969, she
earned a master’s degree in
counseling and guidance and
moved to Washington state
where she became a counselor
at Lincoln High School in
Tacoma. At Lincoln, she
created a successful program
for at-risk students.
Bergeson earned her
doctorate from the University
of Washington and became
active in the Washington
Education Association and was
elected president in 1985. In
1993, she was appointed
executive director of the
Washington State Commission
on Student Learning,
developing statewide standards
for students, and a series of
tests students must pass prior to
graduation.
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WASHINGTONBUSINESS
Q
A
You also served as president of the Washington Education Association (WEA). Do you have ideas on
how parents, employers and those elected to office can find ways to meet the needs of teachers in a less
confrontational way?
The most important thing we can do is to remember who we all are serving — the more than one million students in our public schools — and to make a conscious decision to always put them first. Policymakers have made important decisions these past few years about increasing student expectations and
school accountability. Those same policy-makers have not provided the state resources needed to fully achieve
those expectations. That puts enormous pressure on local districts to make up the difference. It creates undue
pressure on local levies and becomes a potential source of conflict. All of us who care about the future of our kids
need to sit down, determine what we need to do to accomplish our education goals, and tell each other what
we’re willing to put on the table and what we’re willing to commit to.
A good example of this kind of partnership exists in the schools currently participating in our school improvement program. My staff works with the entire school team to conduct an audit of the school’s performance and
learn where the real improvement needs are. Then we create a “performance agreement” that outlines each team
member’s responsibility at the school, district and state level as we work together toward the shared goal of
improving the school. Those responsibilities include providing the resources the school needs to meet the goals.
We need to use this kind of model statewide, and have some honest conversations about the real needs of our
education system and what each of us is willing to do to meet those needs.
Q
A
What is the Washington Assessment of Student Learning (WASL) and why is it so important?
When we developed state learning standards back in the 1990s, we also had to develop a way to measure student progress toward meeting those standards. That’s what the Washington Assessment of
Student Learning is — a once-a-year check on whether students are learning the skills we expect of
them. This is not your typical standardized test. Most questions require students to explain, to persuade, to show
how they got their answer. In sum, they’re required to think and apply what they know. The WASL gets a lot of
attention because aggregate scores are made public and there’s added accountability riding on the results, but
what’s truly important are the skills those scores represent. The WASL is by no means the only, or even the most
important, way to measure student achievement. But because the WASL tests are carefully developed to measure
learning standards we are asking our kids to reach, the results are an excellent barometer of how students are
doing — and how we adults are doing in providing our kids with the help they need to meet those standards.
Q
A
What was the basis for the 1209 education reforms passed in 1992? Are they working?
In the early 1990s, there was a real consensus in this state from educators, parents and business and
community leaders that too many students were graduating without the skills they needed to succeed
in today’s world. In the past several decades, the kinds of skills workers need have changed dramatically. The vast majority of jobs now require some kind of post-secondary training or education. There’s much more
need for workers who have strong math, science, communication and critical thinking skills in our fast-moving,
high-tech, global economy. Memorizing facts and formulas isn’t good enough. Students have to be able to apply
their learning to real-world situations.
Our new learning standards and accountability system were created
with these realities in mind. And 10 years after starting this journey, we’re
truly seeing strong results. Washington students, as a group, are now consistently among the top scorers on both the SAT and ACT, the primary
pre-college tests in the country. Four times as many advanced placement
exams are being taken by Washington students than were taken 10 years
ago, and significantly more ethnic minority students are taking these tests.
Scores on our statewide assessment, the WASL, have been rising every
year in all age groups and ethnic groups. Even more important, I can send
you to hundreds of schools in our state that are closing the achievement
gap between ethnic and socioeconomic groups. We need to make those
gains in every school. Poverty and race are still the greatest predictors of
whether a child will do well in school. We should not be able to predict
the achievement of children based on the color of their skin or the income
of their family. If we want to strengthen our economy and preserve our
democracy, we can’t tolerate these inequities in achievement.
ward in spite of significant problems with their reading, writing and math
skills. Getting a 10th-grader who reads at the fourth-grade level to meet her
graduation requirements will take far more individualized support than we’re
currently providing. I firmly believe that students will rise to the expectations
we set for them if we provide them with all the support needed to get there.
Money isn’t the answer to everything, but there are some things we need to
buy, like good instructional materials, better training for teachers to effectively use those materials and more one-on-one help for struggling students.
Teachers must have confidence that if they’re going to jump in and take on
this challenge, the rest of us will be there to support them in getting the job
done. To me, we really have no option but to keep moving forward. The
alternative — continuing to give diplomas to many students who don’t have
the skills they need to pursue their dreams — is just not acceptable.
Q
I think many public school educators are worried that charter
schools are the first step toward privatizing public schools and
moving to a voucher system. There already are a lot of choices
available to students within the Washington public school system. Think
of the many alternative schools and magnet schools we have operating in
the state. You don’t necessarily need to operate under a separate charter,
outside of the management of your local school board, to innovate and
create new learning and teaching options for students. However, I know
there are many people, including some public school educators, who
want the choice of charter schools for very legitimate reasons.
Washington voters will get to make the final decision this fall. Whether
we decide to move forward with charter schools or not, our public
schools need to be more open to innovative approaches that help meet
the needs of our diverse learners.
Some parents, school administrators and educators are concerned that students won’t be able to obtain their certificate of
achievement by passing the Washington Assessment of Student
Learning tests in high school. Is that just “opening night jitters” or are
there some changes which need to occur?
A
It’s a mixture of both. Parents and educators have a right to be nervous, because the stakes are higher for students. But they also need
to know we’ve made the necessary policy decisions to support students in meeting the new graduation requirements. WASL retakes, some
kind of alternative assessment, and special options for students enrolled in
special education and those struggling to master English will offer important
flexibility. I think the biggest challenge we face in these next few years is helping students in middle and high school who have been allowed to move for-
Q
A
As a supporter of charter schools, why is there so much opposition, particularly from WEA?
SEPTEMBER / OCTOBER 2004
17
Regulations Impact Rural
Telephone Companies
by Carly West
T
elecommunications as an industry has grown accustomed to dealing with regulatory hurdles and changes. While these regulations
are designed to help the industry and keep things fair, they sometimes
create more challenges to work around. Overseen by the Federal
Communications Commission (FCC), but still greatly affected by local
and state governmental bodies, rural telecommunications companies
are typically more affected by the layers of regulations.
In 1915, the Washington Independent Telephone Association
(WITA) formed in order to bring the rural telephone companies
together so they could work as one to solve common problems and be
heard as a larger whole in legislative arenas. In 2004, working together
has become even more important as regulations are increasing and are
coming from different angles. Gail Long, vice president of WITA, said,
“The industry is changing at a tremendous speed, which often means
regulations start at a state level and go to the federal level and come
back full circle to the state level.”
This waiting game of sorts makes it difficult to plan for the future.
One issue facing the industry right now is how to figure out the dollar
amounts needed to subsidize what are defined as high-cost areas (generally rural areas) to make services to these customers affordable. Right
now these subsidies come in large part from the Universal Service
Fund, which is administered by the Universal Service Administrative
Company (USAC). The USAC administers funds to Eligible
Telecommunication Carriers via the high-cost support mechanism,
which “ensures that consumers in all regions of the nation have access
to and pay rates for telecommunications services that are reasonably
comparable to those services provided and rates paid in urban areas,”
(www.universalservice.org). The debate is whether or not to switch to a
cost-based model and move away from the actual-cost forecasting that
is used now. The Universal Service Fund provides a base for much
18
WASHINGTONBUSINESS
needed subsidies and by switching to a model (versus using actual costs)
there is the possibility of losing part of this base. Currently, those in the
industry, including those at WITA, are waiting for the FCC to rule on
which system will be put in place. “This leaves a lot of uncertainty. It
is difficult to make investment decisions because the base we use might
be going away,” said Rick Finnigan, legal counsel for WITA.
In addition to the waiting game centered on regulations, there is, as
Terry Stapleton of the WITA said, “the intrusion of government entities in telecommunication,” over the past couple of years. Specifically,
there is the issue of Public Utilities Districts setting up networks of
their own and wholesaling their services to retail providers who then
pass it on to the customer. Regulations require that the PUDs do not
provide a retail service thus requiring them to use another company,
but it is difficult to sell this service to companies because the profit margins experienced by the PUDs are so low. The PUDs often find it easier to build their networks because they use funds from other utilities,
such as electricity and water, to build their fiber optic networks. The
main issue here is the government/public sector entering the private
sector, where they can often out-bid the private sector, while not necessarily doing a better job.
Finally, while there is an endless list of other issues facing the
telecommunication industry right now, two top the list: the use of
voice-over Internet technology, and the advancing broadband technology. With voice-over technology, it is now possible to bypass the telephone companies to make toll calls and thus bypass the fees associated
with toll calls. The issue at stake for the telephone companies is that
people are still using their networks to make voice-over connections but
not paying for it. As for broadband, the technology has been advancing
for years now, but those in the industry anticipate that broadband will
be available over electric wires, thus making another route, another
price and even more regulations to wade through.
SEPTEMBER / OCTOBER 2004
19
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20
WASHINGTONBUSINESS
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SEPTEMBER / OCTOBER 2004
21
Election 2004
Think this election doesn’t matter?
Think again.
by Paul Schlienz
T
Illustration by Owen Freeman
he 2004 General Election is shaping up to be a pivotal contest for
Washington state. Although both Democrats and Republicans are
stressing the need for economic growth, voters are being offered strikingly different choices in how to go about achieving this goal.
“Candidates are talking about jobs and investment,” observed Richard
Davis, president of the Washington Research Council. “They’re talking
about making this state a place where business can feel comfortable locating and expanding.
“That said there are different strategies in play. On one hand, you have
gubernatorial candidate Ron Sims’ discussion of changing the tax code to
include a personal income tax while reducing or scrapping the B&O or
retail sales tax. Other candidates are talking about a total scrub of all the
tax exemptions and repealing those that can’t be demonstrated to be effective as a way of creating more money for public investment.”
Taxation is Central Concern to Washington’s Businesses
“Employers in the private sector pay about 54 percent of the state’s tax
load, all taxes included,” said Gary Chandler, AWB’s vice president of
Governmental Affairs. ”We’re not being competitive when those who provide jobs pay a higher portion of taxes in Washington than in any of the surrounding states.”
Looming on the horizon of 2005 is a potential $1.5 billion budget
shortfall that could lead to tax increases, depending on who gets elected
in 2004. Pressures to raise taxes could come in the form of spending
requests from the Legislature for increased health care costs, the increased
funding for pensions, and the financial impact of the state employees’ collective bargaining agreement. In turn, tax increases could slow or even
stop Washington’s modest economic recovery.
Taxes, however, are not the only way to plug a budget hole. When
Washington faced a deficit in 2003, Governor Locke reacted by adopting
the Priorities of Government (POG) model of budgeting, which reduced
much spending while preserving essential services. Thus the Legislature
was able to avoid raising new business taxes.
“I believe that the potential deficit we’re facing for 2005 to 2007, even
though it’s pretty big, isn’t nearly so big as the one we were facing at the
beginning of 2003,” observed Irv Lethberg, chief of forecasting for
Washington’s Office of Financial Management. “There are a number of
ways to deal with a projected deficit. You don’t have to increase taxes, necessarily. If you are going to increase taxes, there are some types of taxes
that would have a bigger effect on the economy than others.”
According to Kristen Sawin, AWB’s political director, Washington’s
businesses could be impacted in a major way if Olympia’s partisan balance
of power were to shift as a result of the 2004 election.
“Of interest to the employer community are regulatory certainty, tax
policy and employment rules that make sense,” Sawin stated. “If we end
up with something similar to what we have now — a Democrat controlled
Governor’s Mansion, a Democrat controlled House and a Republican
controlled Senate — I don’t think there’s going to be a great deal of impact
on the economy. This would be a stay-the-course scenario.
“However, if there are dramatic changes in either direction —
Democrat or Republican — I think there would be significant changes for
business.”
While both Democrats and Republicans speak of making Washington
more competitive for business, there are significant differences in their
approaches.
“The big issue for our agenda would be the budget, making sure that
we invest in higher education and training opportunities, but at the same
time avoiding putting ourselves into the position where taxes are
increased,” Senate Majority Leader Bill Finkbeiner (R-Kirkland) commented on the Republicans’ legislative agenda.
“I have some concern that we’ll continue to have a downturn in the
revenue coupled with the increase in services we’ll need for education,
especially higher education,” said House Majority Leader Lynn Kessler
(D-Hoquiam). “So, we have some problems we need to deal with. If we
can do that without raising taxes, great. If not, then we probably have to
look at what should we do, what can we do and what will the public be
willing to pay for.”
Get Out the Vote
on November 2!
Go to www.awb.org for more information.
AWB Endorsing Candidates
In response to the critical issues facing Washington business, AWB is
endorsing candidates for the Legislature and the Supreme Court.
Incumbents who have an 80 percent or better record of supporting AWB’s
agenda over a biennium are automatically endorsed. Challengers and legislators who do not have an 80 percent record may also be endorsed, but
they will only receive their endorsements after meeting with members and
discussing the issues in detail.
“By getting our members more involved in the endorsement process,
they’ll get to know who their legislators are,” Chandler concluded. “We’re
hoping our members will feel free to pick up the phone and call their legislators when we are pushing a particular issue. Those calls will be more
effective because our members will have been in contact with the legislators throughout the campaign.
“Regardless of who controls the Legislature, we will push the issues
that are important to the business community. One of the first things
we’ll be looking at is missed opportunities, including lawsuit abuse
reform, workers’ comp reform and small group insurance.”
SEPTEMBER / OCTOBER 2004
23
Election 2004
Looking Beyond Election Day
Transportation, Education, Energy and Governance are Long-Term Challenges
C
RICHARD S. DAVIS
PRESIDENT
WASHINGTON
RESEARCH COUNCIL
“Business leaders
laud the Priorities
of Government
(POG) process
used to balance
the current state
budget without
raising taxes.”
24
WASHINGTONBUSINESS
ampaigns trade on the timely — the latest employment numbers, the morning headlines, the
overnight polling data. Caffeinated cyberpundits and
campaign spokespeople (the bloggers and the foggers),
the 24/7 news cycle, and the immediacy of communications technology accelerate the topspin.
From carpe diem to the “first mover advantage” of the
dot-com heyday, the need for speed sometimes causes
leaders to embrace the tactical at the expense of the
strategic. Long-term thinking gets short shrift. As economist John Maynard Keynes famously declared, “In the
long run, we’re all dead.”
Successful enterprises, however, plan beyond the next
horizon. So this summer, the Washington Alliance for a
Competitive Economy (WashACE) asked business leaders about the long run, the issues often overshadowed by
the various crises du jour.
Infrastructure considerations such as transportation,
energy and higher education topped the list. It’s not that
no one is talking about these things. To the contrary,
there’s plenty of talk, but not much more.
Business leaders laud the Priorities of Government
(POG) process used to balance the current state budget without raising taxes. Continued, POG can provide
the discipline necessary to confront regional and
statewide infrastructure challenges. That will also
require changes in the way we make decisions. Our
inability to act decisively stems, in part, from the state’s
governance structure.
TRANSPORTATION A few years ago, the Legislature
gave governments in the metropolitan Puget Sound area
the chance to adopt a regional transportation plan and ask
voters to approve taxes to finance it. After months of wrangling, discussions fell apart. The region with the problem
and the wealth to solve it couldn’t agree on priorities and
feared voters would not pick up the tab. A Seattle executive told me, “I get tired of harping on transportation,
tired of arguing about it. Now I’m just adapting.”
For those with choices, adapting means going and
growing elsewhere. To retain business, roads must be
built and maintained. “We’re not going to put a lot of
freight on a monorail,” says a trucking firm executive.
Mass transit has its place, certainly, but failure to provide
adequate highway capacity dooms the state to congestion
and economic decline.
ENERGY Similar short-sightedness plagues efforts to
meet the state’s energy needs. Sacrificing the aluminum
industry bought us time during the last energy crisis, but
growth has absorbed most of the capacity gained from
the smelter shut down. In a few years, we’ll again face a
shortfall. Blaming Enron is not a strategy. Future shortages are not inevitable. Private investment can solve the
problem, but for investors to step up government must
provide streamlined permitting and protection from frivolous litigation. We cannot let parochial interests dictate
our energy future. And utilities must be allowed a reasonable return on their investment. Renewable energy
sources are analogous to mass transit — elements of a
solution, not the answer.
HIGHER EDUCATION The state’s research universities provide the intellectual infrastructure that will support future economic growth. And, like other infrastructure investments, they will determine this state’s longterm competitiveness. Within the POG, higher education should be a high priority. The executives we interviewed cited the critical role played by post-secondary
institutions in fields ranging from biotechnology to
winemaking. But they also wanted to see educational
spending targeted to high-demand programs and more
business-like administration of the system.
GOVERNANCE Sometimes, things don’t happen for a
reason. Our governance structure is one reason infrastructure
problems don’t get fixed. The populist tradition has given us
initiative and referendum; a weak executive branch, with
authority divided among nine statewide elected officials; a
web of boards and commissions; and an obsession with
process that prefaces every decision with stakeholder groups,
allows multiple appeals of regulatory decisions and nurtures
an extraordinary number of governmental units— from
counties and cities to mosquito and weed control districts.
Our populist founders so distrusted government that
they did everything in their power to render it ineffective.
While this has not prevented an incremental expansion of
regulation and taxing authority, government has been
lumbered with a system of jurisdictional and procedural
hurdles that frustrate action.
The often-decried lack of leadership cannot be separated from our governmental framework, which
inevitably shapes how leadership evolves. Regions must
be more than confederations of local governments.
Without regional platforms, we’re unlikely to see political solutions that transcend jurisdictional (and electoral)
boundaries. As metropolitan population mushroomed,
the governance challenges magnified. “People are behaving regionally,” says a Seattle CEO, “but governmental
entities are still acting back in the days when there was
space between them.”
There’s too much fragmentation, too much deference
to consensus and too little consideration of the long-term
consequences of inaction. The resulting inadequacies in
our physical infrastructure are visible daily. Higher education faces similar challenges. University administrators
contend with multiple tiers of policy-makers and planners, often with competing interests. The tension
between institutional governance, statewide planning
and political control creates an unacceptable stasis.
This election, like most, may turn on the challenges of
the moment. But we should look for candidates who will
refuse to subordinate our long-term infrastructure
requirements to short-term political exigencies.
Election 2004
Campaign Finance Rules:
How Much Can a Business Contribute?
E
veryone knows that you can’t win an election
without votes. Most know that attracting and
retaining votes requires constant voter outreach.
Many understand that such outreach, whether in the
form of television, radio, or print advertising, travel,
mailings, etc., costs money. But few — outside the
world of candidates and lobbyists — understand the
complex and overlapping system of rules that govern
the financing of political campaigns, including the
limitations set on donations to political candidates.
The purpose of this month’s column is to summarize some of the most pertinent rules relating to contributions that businesses may make to political candidates in the executive, legislative, and judicial
branches at the state and federal level. This complicated area of the law is rife with traps for the unwary,
and this column is too short to spot all of them. Your
legal counsel should always be consulted if puzzles
arise in the course of making political contributions.
State Contribution Limits and Rules
Under state law, businesses and individuals can
contribute $1,350 per election to state executive candidates and $675 per election to legislative candidates. By saying the limit is per election, that means
a business or individual can contribute $1,350 to a
state executive candidate for the primary election and
$1,350 to the same candidate for the general election, for a total of $2,700. Likewise for legislative
candidates, two $675 contributions would allow a
total $1,350 contribution for the election. For judicial races, such as Supreme Court Justice, there is no
contribution limit. There is also no limit to the contributions businesses or individuals can make to
Political Action Committees (PACs).
Businesses can contribute up to $3,400 per calendar
year to a state party, and up to $675 per calendar year
to a political party’s caucus political committee. For
individuals, there are no such limits for calendar year
contributions to a state party or caucus committee.
To say that a business or individual may contribute
up to these limits means that if a business, such as
Bob’s Plumbing, contributes the maximum $2,700 to
an Attorney General campaign, Bob, the owner, can
still contribute $2,700 to the same campaign. Bob’s
wife, who does his bookkeeping, can still contribute
$2,700 to the same campaign. And Bob’s three
employees can each still contribute the maximum
$2,700. Just because the business contributes, it doesn’t mean that an owner or employee can’t contribute.
An area where this gets tricky, however, is in the
area of “bundling.” A business, its owners and its
employees may all contribute, but must do so indi-
vidually. In general, a business or its owner cannot
collect contributions from employees or others and
put them together and forward them on to a candidate or political committee. That is called “bundling”
and is prohibited under state law.
Another area to be aware of is the in-kind contribution. A “contribution” is anything of value, not
only money. If a company spends any valuable time
toward a candidate’s election, for example, use of its
facilities, mailing an announcement or use of staff
time, it may be an in-kind contribution, which not
only must be reported to the Public Disclosure
Commission as to its fair market value, but which
counts against the contribution limit.
Federal Election Limits and Rules
Federal election law adds another layer of complexity for businesses seeking to contribute to federal
candidates and committees. Federal law actually prohibits corporations from making contributions or
expenditures on federal campaigns. However, corporations may set up what election law refers to as “separate segregated funds” (SSFs), more commonly
known as PACs, in order to hold money in a separate
bank account and make political contributions.
A company’s SSF or PAC not only makes contributions, but receives them as well. A corporate PAC
can only receive $5,000 per year from individuals
and other PACs. How much a PAC can contribute
depends upon whether or not it is a multi-candidate
PAC. A multi-candidate PAC is a political committee that has been registered for at least six months,
has received contributions from more than 50 contributors and has made contributions to at least five
federal candidates.
Multi-candidate PACs can contribute up to
$5,000 per election to candidate committees; $5,000
per year combined to state, district and local party
committees; and $15,000 per year to national party
committees. PACs that are not multi-candidate can
contribute $2,000 per election to candidates;
$10,000 per year combined to state, district and local
party committees; and $25,000 per year to national
party committees.
To win, your chosen candidates need contributions. With these rules in mind, happy giving!
by Kris Tefft
AWB General Counsel
AWB members with questions about
political contributions or campaign
participation should contact Kris
Tefft at (360) 943-1600 or at
krist@awb.org.
The information presented above is intended for
general educational purposes and should not be
considered legal advice; any questions concerning the
application of campaign finance rules to specific
situations should be referred to the Public Disclosure
Commission or legal counsel.
SEPTEMBER / OCTOBER 2004
25
Election 2004
AWB Announces “Automatic” Incumbent
Legislator Endorsements for November Election
Complete List of AWB Endorsements
Coming After Policy Summit
I
n 2003, the Association of Washington
Business (AWB) Board decided to
endorse candidates for the Legislature starting this year. In addition, the Board determined that incumbents with 80 percent or
higher on AWB’s combined voting records
for the 2003-2005 biennium will be automatically endorsed.
While the following legislators are automatically endorsed for re-election, the
Association is conducting a round of candidate interviews and questionnaires to
determine which other incumbents and
challengers will receive AWB's support. At
Washington Business Magazine press time,
those interviews were not completed.
The interviews are being conducted by
AWB members throughout the state and
their recommendations will be presented
to the Board for its approval at the Policy
Summit on Sept. 24. Shortly after the
summit, AWB will send its members a
complete list of legislative candidates
which it endorses.
“These endorsements send a clear message to our members and our state’s job
providers which legislators are working to
keep Washington competitive and create
jobs,” said Kristen Sawin, governmental
affairs and political director with AWB.
Editor’s Note: This is a partial list of
AWB legislative endorsements. The
complete list will be sent to AWB
members after our Policy Summit and
will be posted on our Web site at
www.awb.org.
* AWB Combined 2003-04 score
† Washington State Labor Council
‡ Washington Conservation Voters
26
WASHINGTONBUSINESS
Representatives
John Ahern (R)
Gary Alexander (R)
Glenn Anderson (R)
Mike Armstrong (R)
Barbara Bailey (R)
Jim Buck (R)
Jack Cairnes (R)
Bruce Chandler (R)
Jim Clements (R)
Cary Condotta (R)
Don Cox (R)
Larry Crouse (R)
Richard DeBolt (R)
Doug Ericksen (R)
Bill Hinkle (R)
Janéa Holmquist (R)
Fred Jarrett (R)
Dan Kristiansen (R)
Joyce McDonald (R)
Lois McMahan (R)
Daniel Newhouse (R)
Toby Nixon (R)
Ed Orcutt (R)
Kirk Pearson (R)
Skip Priest (R)
Dan Roach (R)
Jay Rodne (R)
Lynn Schindler (R)
Mark Schoesler (R)
Jan Shabro (R)
Mary Skinner (R)
Bob Sump (R)
Gigi Talcott (R)
Rodney Tom (R)
Beverly Woods (R)
City
Spokane
Tumwater
Fall City
Wenatchee
Oak Harbor
Clallam
Covington
Granger
Selah
East Wenatchee
Colfax
Spokane
Chehalis
Ferndale
Cle Elum
Moses Lake
Mercer Island
Snohomish
Puyallup
Gig Harbor
Yakima Valley
Kirkland
Kalama
Monroe
Federal Way
Bonney Lake
Bellevue
Spokane
Ritzville
Sumner
Yakima
Republic
Lakewood
Medina
Poulsbo
AWB *
90%
90%
92%
90%
90%
92%
86%
92%
88%
88%
89%
89%
90%
94%
92%
88%
80%
94%
81%
90%
94%
84%
92%
94%
80%
85%
86%
88%
85%
88%
88%
92%
86%
86%
86%
WSLC †
8%
8%
8%
25%
8%
8%
25%
8%
25%
25%
17%
17%
8%
25%
8%
8%
33%
17%
25%
8%
17%
17%
8%
17%
25%
17%
17%
8%
17%
25%
27%
17%
8%
17%
17%
WCV ‡
11%
22%
56%
11%
33%
44%
22%
11%
11%
11%
11%
22%
22%
11%
22%
22%
67%
11%
33%
22%
22%
67%
11%
11%
67%
29%
75%
11%
38%
44%
13%
11%
22%
67%
33%
Senators
Don Benton (R)
Don Carlson (R)
Mike Carrell (R)
Alex Deccio (R)
Jerome Delvin (R)
Mike Hewitt (R)
Jim Horn (R)
Bob McCaslin (R)
Linda Evans Parlette (R)
Cheryl Pflug (R)
Val Stevens (R)
Dan Swecker (R)
Joseph Zarelli (R)
City
Vancouver
Vancouver
Lakewood
Yakima
Richland
Walla Walla
Mercer Island
Spokane Valley
Chelan
Maple Valley
Snohomish County
Rochester
Camas
AWB *
89%
92%
86%
94%
89%
95%
95%
91%
95%
90%
93%
93%
95%
WSLC †
27%
27%
17%
10%
17%
18%
18%
18%
18%
18%
18%
18%
18%
WCV ‡
36%
64%
22%
15%
22%
21%
21%
21%
21%
40%
14%
21%
21%
Election 2004
Senator Kerry and President Bush:
Different as Night and Day on AWB Votes
by Charles Henry Thomas
P
resident Bush and his Democrat challenger Sen. John Kerry are as different as night and day when it comes to issues AWB is concerned
about at the federal level. Based on their 2003 voting records, Kerry and
his vice presidential running mate Sen. John Edwards failed to support
AWB once, while Bush supported the Association nine out of 10 times.
Then again, it is a little difficult to tell precisely because Kerry
missed seven of 10 votes AWB measured while Edwards did not vote
six out of 10 times. Their Washington Democrat colleagues, Patty
Murray and Maria Cantwell, scored 17 percent and zero respectively.
In contrast, Murray’s opponent George Nethercutt was an 88 percent
AWB supporter.
AWB
U.S.
Chamber
NAM
AFL-CIO *
SEIU
Sierra
Club
0%
0%
0%
15%
7%
6%
91%
96%
100%
100%
80%
100%
U.S. Senate
Kerry
Edwards
While President Bush only differed with AWB on national association
health plans, Kerry and Edwards voted against Alaska oil exploration and
Medicaid prescription drug coverage and were absent when the critical
votes on class action lawsuit reform and maintaining healthy forests were
brought to the Senate floor. Murray supported the President’s Healthy
Forests bill as it finally emerged from Congress.
In 2003, AWB tracked the votes in which we contacted Washington’s
two Senate and nine House members. We then compared our votes with
the U.S. Chamber, NAM, the Sierra Club and the AFL-CIO. AWB went
a step further to compare how Kerry and Edwards scored on the Service
Employees International Union (SEIU).
“These votes are important to employers and jobs,” AWB President
Don Brunell concluded. “It is important to look at how the candidates
for the presidency and each seat in Congress voted on issues important
to job providers and take that information into account when voting
on Nov. 2.”
Editor’s Note: If you would like more details about the votes, check AWB’s
Web site at www.awb.org. The 2004 legislative voting record was published
in the July / August issue of Washington Business Magazine, while our
congressional voting record appeared in the May / June 2004 issue.
* Second session 108th Congress. First session AFL-CIO voting record not available.
Alaska Oil
Exploration
Ban
Comp
Energy
Policy
Class
Action
Fairness
Death Tax
Repeal
Medical
Liability
Reform
Assoc.
Health
Plans
Medicaid
Medicaid
Medicaid
Prescription Prescription Prescription
Drugs (1)
Drugs (2)
Drugs (3)
AWB Position
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Bill Number
HR 6
Amend
HR 6
S.274
Cloture
HR 8
No Vote
No Vote
HR 1
HR 1
HR 1
HR 1904
Healthy
Forests
AWB
Score
U.S. Senate
Sen. Kerry
Yes
Absent
Absent
No Vote
——
——
No
No
Absent
Absent
0%
Sen. Edwards
Yes
Absent
Absent
No Vote
——
——
No
No
No
Absent
0%
SEPTEMBER / OCTOBER 2004
27
Election 2004
AWB Rates Judges for First Time
by Daniel Brunell
E
mployers are finding out the hard way that courts
have a tremendous impact on their business. Even
though our attention focuses most often on the president, Congress, state Legislature, federal and state agencies, and the governor, the power of the judicial branch
is on the rise and is becoming a new political battleground. Nowhere is that more evident than in the pitch
battle between the president and Congress over appointments to the federal bench. Today more than ever, the
decisions courts make have a huge impact on our society
and businesses.
At the federal level, judges are appointed, but in
Washington state, we elect the judiciary. AWB members need to know the candidates before we vote, so
your Association believes the best way we can help you
become more involved and knowledgeable in judicial
elections is to introduce our new judicial scorecard and
to endorse candidates for the Washington Supreme
Court.
Many business leaders may not realize the judicial system has as big an effect on business as the Legislature, state
agency directors and the governor. The judicial branch
might not write the laws we fight for in the Legislature or
carry them out like the governor, but the judicial system
decides how the laws and rules are to be interpreted. Since
most business leaders are not attorneys or legal afficionados, they do not always grasp what this power really means.
Courts Have Impact on Employers
“The judicial system has a greater impact than most of us
realize,” said Wes Uhlman, an attorney and owner of Wes
Uhlman and Associates. Uhlman is a former state legislator
and past Seattle mayor who chaired AWB’s Board and now
is current chair of our Governmental Affairs Council.
Uhlman worries that employers ignore the judicial
races. “It is off most of our radar screens, but the decisions the Supreme Court makes can be life or death for a
business.”
Examples of Washington Supreme Court decisions
that have dramatically impacted businesses include:
• Cockle v. Dept. of Labor & Industries. By a 6-3 decision, Cockle held that employer-provided health
insurance benefits constitute “wages” under the workers’ compensation statute, and so they must be included in the calculation of workers’ comp payments. The
Cockle decision changed existing law and added millions of dollars to Washington’s already over-strapped
workers’ comp system. Reversing Cockle has been a
centerpiece of AWB’s wage simplification legislative
proposals for the past three sessions.
• Avundes v. Dept. of Labor & Industries. By unanimous decision, Avundes held that seasonal workers
28
WASHINGTONBUSINESS
wages for workers’ compensation purposes must be
calculated based on the workers’ current monthly
wage, rather than an average wage. This ruling treated
seasonal workers as full-time workers and, like Cockle,
has resulted in tremendous cost increases for the workers’ compensation system. Addressing Avundes is
another AWB primary legislative objective.
• Drinkwitz v. Alliant TechSystems, Inc. By a 5-4 decision, the court held that Washington employers cannot conclusively rely on the provisions of the federal
Fair Labor Standards Act for wage and hour rules
when Washington’s Minimum Wage Act is silent. This
ruling creates great uncertainty for employers who
must comply with both state and federal wage and
hour laws, even though subtle differences exist
between the two authorities. Employers unsuccessfully pushed for a “Drinkwitz fix” that allows employers
who act in good faith to rely on federal standards in
the absence of state standards in employment law for
the last three legislative sessions.
AWB Tracking Judges
Kris Tefft, AWB’s general counsel, said, “With the
Judicial Scorecard and Guide to the Washington
Supreme Court in this issue, we are providing a document that members can use to better inform themselves
about the candidates for the State Supreme Court in this
year’s elections.
“Members may also want to review the 2004 Judicial
Scorecard of our partner in fighting lawsuit abuse, the
Liability Reform Coalition. Our scorecard differs
slightly from LRC’s in that we select additional cases
over a longer time frame and across more business
issues,” Tefft continued, while noting that “the liability
cases we each look at are very similar and reach similar
results.”
For the first time in AWB history, we have endorsed
candidates in the Supreme Court races recommending
incumbent Justices Barbara Madsen and Richard Sanders
for re-election, as well as Olympia attorney Jim Johnson
for election.
“AWB established the endorsement process to advise
our members which Justices and judicial candidates
might be likely to appreciate a business perspective on
the myriad of issues that come before the Court,” said
Jean Leonard, a principal in Leonard and Jacoy, an
Olympia law firm. Leonard chairs AWB’s Legal Affairs
committee. “We're hopeful that these tools will be of use
to AWB members as they go to the polls this fall.”
For more information on important upcoming legal decisions, pressing business issues, our political endorsements
and election coverage, check our Web site at www.awb.org.
Election 2004
AWB Endorses Madsen, Sanders and Johnson
for the Washington Supreme Court
Compiled by AWB Staff
I
n its first-ever endorsements for state Supreme Court races, the Association of Washington
Business (AWB) has officially gotten behind Barbara Madsen, Richard Sanders and Jim Johnson.
Madsen and Sanders are seeking re-election while Johnson, an Olympia attorney, wants to fill the
vacancy left by retiring Justice Faith Ireland.
“Today, court decisions often have more impact on employers than government regulations or legislation,” AWB President Don Brunell said. “That’s why it’s more important than ever for job providers
to educate themselves on the issues and legal philosophies of those who hope to make the decisions.”
AWB’s announcement caps a thorough process whereby candidates for the Supreme Court
responded to questionnaires and were interviewed by AWB’s Legal Affairs Committee. The committee’s recommendations were then approved by the association’s Executive Committee and ultimately the entire AWB Board of Directors. “With the exception of a few dissents, the Board voted
overwhelmingly for the endorsements,” Brunell added.
The records of incumbent Supreme Court justices on issues of interest to the employer community were also scrutinized in AWB’s 2004 Judicial Scorecard and Guide to the Washington Supreme
Court, which will be published in this issue of Washington Business Magazine (see insert).
“What we were looking for in evaluating candidates was predominately a sense that the candidate’s judicial philosophy showed a sensitivity to the way in which our legal climate impacts our
business climate,” said AWB General Counsel Kris Tefft, who directed the endorsement process. “In
addition, we looked for a strong, viable campaign and ultimately, a sense that the business community could get a fair hearing before this person.”
Justice Barbara Madsen Scores Highest in AWB Ratings
Justice Barbara Madsen was endorsed for re-election largely on the strength of her 68 percent
ranking on AWB’s 2004 Scorecard. “She is the highest ranking Justice on the Court,” noted Tefft.
“Although we’d like to see Justice Madsen be more sensitive to our legal concerns in environmental
law cases, her record shows even-handedness and restraint on a number of issues critical to us, like
civil liability and employment law.”
With respect to Justice Richard Sanders, AWB would agree with its partner in lawsuit abuse (tort)
reform. The Liability Reform Coalition does not support Sanders because of his record on liability
cases. In AWB's Scorecard, Sanders scores 36 percent in liability reform cases and has a 14 percent
mark on workers' comp cases. “His record in these two important areas is very problematic and causes us a great deal of consternation,” Brunell stated.
Yet AWB endorses Sanders because of his overall record on employer issues. He has a 63 percent
overall rating making him the third-highest ranked justice. “Sanders, who campaigns as a champion of civil liberties and individual rights, has exhibited a judicial philosophy very consistent with the
views of the employer community in areas such as property rights and taxation,” Tefft said. In those
areas, Sanders has a 100 percent and 88 percent rating respectively on AWB’s Scorecard.
While Supreme Court judges cannot be lobbied like legislators, AWB frequently weighs in with
amicus curiae (“friend of the court”) briefs in important cases before the Supreme Court to showcase
the concerns of the employer community. “By putting together our scorecard, it shows those on the
Supreme Court how important those issues are to those who provide the jobs and tax revenues to
our state,” Brunell said.
Olympia attorney Jim Johnson was endorsed over a crowded field of candidates seeking to replace
retiring Justice Faith Ireland. Many of the candidates in that race, like Johnson, are extremely well
qualified to sit on the Court.
“If elected, Johnson will bring a fresh perspective and needed experience to the Court,” remarked
Tefft. “He has tried cases in every county in the state and been in every level of court in our state
and federal system. His long-standing and usually successful representation of business issues and
interests shows he has an excellent grasp of the dynamic interplay between our legal and business climates,” Tefft said.
Brunell concluded that AWB hopes its members and those looking at the Association’s judicial
scorecard will be more informed when they vote this year.
BARBARA MADSEN
RICHARD SANDERS
JIM JOHNSON
SEPTEMBER / OCTOBER 2004
29
Wireless Revolution in Flux
I
t might be hard to believe, but there was a time when all phone messages were written long hand, phones that weren’t wired into a wall
didn’t work and phones didn’t have numbered buttons but had a strange
circle device that you had to rotate in a certain way for a given number.
As a matter of fact, there was a time when you actually talked with a
human operator instead of being on hold for a customer service representative or shuffled to a computer with a disturbing voice.
So much has changed in the way we communicate in the last 25 years it
is hard to imagine the wired world we lived in. Who would have thought
then when Motorola introduced the first mass-marketed cellular phone that
the popularity would reach these heights? Who would think that the “bricks
and suitcase telephones” would turn into the palm phones of today? The
change has been drastic. In 1984, there were 92,000 cell phone subscribers
in the United States. By the beginning of this year, there were more then 259
million subscribers. In 1984, the wireless communication industry was a
half-billion dollar business employing about 1,000 people. In 2003, the
industry had grown into an $87 billion business and over 200,000
employee juggernaut. The constant flux of improvements and competition
has dropped the average monthly bill from $96.83 in 1987 to $49.91 in
2003. Instead of one or two phone companies dominating a market, now
there are more than a dozen wireless companies in Washington state alone
fighting for subscribers.
For the meteoric rise of the wireless industry, there have been some bumps
along the way. In some ways it has been a victim of its own progress. What
we are experiencing is a transitory period when most people have wireless
phones as their primary phone instead of their wireline phone. However,
many government regulations still reflect a time when wireline communications and local monopolies ruled. “Continued application of regulations
designed for a monopoly era has left our wireline business extremely vulnerable to competitive pressures from the wireless industry,” said Kirk Nelson,
30
WASHINGTONBUSINESS
by Daniel Brunell
president of Qwest. “For example, many of the older rules such as giving the
customer 60 days to terminate service without a penalty drives up the cost
of doing business and runs totally counter to market-driven competition.”
Also, the explosion of phone numbers has led to a proliferation of new area
codes and mass confusion in the realm of phone number portability.
However, with the problems have come a lot of progress. The wireless
industry’s rapid growth can also be attributed to not being regulated.
Innovations such as text messaging, mobile e-mail, personalized ring tones
and integrated PDA features would probably not have occurred if the wireless industry had been burdened with lengthy regulatory periods. The
improved service has allowed for crystal clear conversations from areas once
thought inaccessible to wireless phones. One of the few areas that government has been very proactive is in the public safety realm. “Governments
have done a lot to further the development in wireless development, in part
to public safety,” said Dave Mellin, communication manager with Sprint.
“They coordinate disaster relief efforts and also have been instrumental in
helping ensure that services such as e-911 (location-based 911 services for
the wireless industry) are implemented today and in the future.”
The increasing competition for consumers has made the industry hotly
contested. Most major markets have at least ten companies competing for
subscribership, which has lead to the lower rates, high quality and the constant improvement we see today. Advertising spending for wireless companies has exploded in the attempt to bring a larger number of customers.
Each company touts their plans — offering things such as free weekends,
free limited text messaging, free and discounted phones, discounted
evening rates and even a free number of downloads to one’s phone. This has
led to a very vibrant and colorful sector of the new economy.
With the sector still growing rapidly, many in the industry are afraid of
obtrusive government regulations that would hinder the progress the
industry is making. The response that industry has received from
Washington state has been receptive, so far. “In general, Washington state seems to be
supportive,” said Michael Bagley, executive director of public policy for Verizon
Wireless. “However, we do not want Washington to go down the road of California
where regressive taxes on communications has really hindered innovation and services.” This fear is amplified throughout the industry. Many states are seeing the wireless
industry as a new source of revenue. For example, Rhode Island and California have
added surcharges and taxes to consumers which have severely added to the cost of
doing business in those areas. With the current budget situation in Olympia, many
fear that the wireless industry may see obtrusive taxes on their service.
On top of this fear of taxation, local, city and state governments have set up road blocks
on improving infrastructure. The prime example of this is cell tower placement. Cell towers are antennas 50-100 feet high that act as relay stations between one’s wireless phone
and the phone network. These towers are essential for the network to work.
“Governments have historically erred on the conservative side in permitting cell tower siting in attempts to balance environmental and aesthetic concerns with the need for reliable, high-quality wireless services,” said Lauren Garner, spokesperson with Cingular
Wireless. “The science of wireless dictates that cell towers and antennas be placed at optimal geographic intervals to effectively carry wireless radio signals. When local ordinances
or state/federal regulations prevent or delay our ability to place antennas in optimal locations, it invariably impacts the ability to deliver high-quality service in those areas.”
The future of the wireless industry is a real contrast. On one hand, advancing technology will rapidly enhance our way of life. Much of this is increasing the versatility of
the phone. Current wireless phones are already starting their metamorphosis from simple voice communications to one device with which you can surf the Internet at broadband speeds; take one megapixel-plus photos; record and play videos; access all the
functions we now have in PDAs; send instant messages and e-mail; and play your
favorite music. All this along with the ability to call people with crystal clarity. On the
other hand, the rapid growth will at some time become unsustainable, causing a rash
of consolidations and mergers in the industry. Frankly, there are just too many carriers
to sustain current levels. The current proposed takeover of AT&T Wireless by Cingular
might be a sign of things to come. Despite these storm clouds on the horizon, the
industry has never looked better.
SEPTEMBER / OCTOBER 2004
31
Bellingham
Washington’s City by the Bay
by Mike Hudson
he famous British seaman and explorer
Captain George Vancouver recognized the
area’s commercial potential when he sailed into
the bay in 1792 and promptly named it
“Bellingham” after his friend Sir William
Bellingham. This was obviously the good captain’s way of saying, “This is a great place to do
business” since Sir William was the Controller of
the Storekeepers Accounts for the Royal Navy.
While first inhabitants of Washington’s
northernmost corner — the Lummi and
Nooksack Indians — utilized the forests and
water resources to make their living, it didn’t
take long for other entrepreneurs to flock to
the area to make their living in the timber,
mining and fishing industries. In the process,
they established four major communities surrounding Bellingham Bay: Sehom, Whatcom,
Fairhaven and Bellingham. In 1903, the four
towns merged to create the City of
Bellingham.
In the past 100 years, the population, city
limits and the economy have all grown.
Mining is extinct and the timber and fishing
industries continue to feel the effects of dwindling resources and increasing regulation.
However, industries including agriculture
(dairy and farming), light manufacturing, education, retail and health care have all taken
hold, giving Bellingham a very stable economic foundation.
32
WASHINGTONBUSINESS
“Our diverse economy has allowed us to
weather the last few economic storms,” says Tom
Dorr, director of the Small Business
Development Center, College of Business and
Economics at Western Washington University.
“We fared better than most of the state during the
last recession. Education, health care and government are now the three largest employers.”
Western Washington
University Busting at Seams
Western Washington University, with an
anticipated enrollment of approximately
13,000 this fall, is the third largest four-year
university in the state. While students are drawn
to the school for its quality of education, faculty members are drawn to the quality of life.
Photo courtesy of Western Washington University
T
Photos by Daniel Brunell
Bellingham is a vibrant international seaport (top) which attracts recreational boaters
and commerce ships alike. Western Washington University (above) is the third largest
public university in the state and one of the fastest growing.
Perched high atop Sehom Hill, Western has
a commanding view of Bellingham Harbor, the
bay, Lummi, Orcas and several other islands in
the San Juan chain to the west; and Mt. Baker
and the Canadian Cascades to the northeast. It
is easy to see why people would be attracted.
The presence of Whatcom Community
College, Bellingham Technical College,
Northwest Indian College and the Bellingham
School District with its three high schools, four
middle schools and thirteen elementary schools
makes education the largest industry in the city.
As Bellingham’s population has grown (now at
just over 67,000) and gotten older, health care
has emerged as a growth industry. St. Joseph
Hospital is a 253-bed, two-campus medical center and Level II Trauma Center in Bellingham. It
is Whatcom County's only hospital and provides
a full range of inpatient and outpatient services.
The staff of the hospital consists of approximately 1,880 full- and part-time employees.
In 2003, St. Joseph completed phase one of a
facilities expansion project that nearly doubled
its size and now houses the region’s most
advanced heart care center.
While local government employment is
about right for a community its size, and there
are the usual numbers of federal and state
security workers in this northwestern most
outpost, Bellingham benefits from a largerthan-normal contingent of federal Homeland
Security employees — Border Patrol, immigration and others.
Build It and They Will Come
Construction fueled Bellingham’s economy
over the past two years. In 2003, the city issued
1,131 building permits with a total valuation of
$218 million dollars. Forty-four percent of the
permits were for commercial and industrial buildings. This year is shaping up to be another good
one with nearly $103 million in permits issued
through July. To facilitate construction, the city
has just opened a one-stop permit center giving
builders and contractors one convenient place to
go in order to get their projects off the ground.
It’s not just that building is taking place, it
is also what is being built and where. The
commercial section of the downtown is being
revitalized. For example, visitors driving into
town were greeted by the old “Flame Tavern,”
a broken-down, derelict building on one corner of Holly Street and Railroad Avenue. On
another corner was “the pit,” a 25-foot hole
created by a building fire.
“Not much of a first impression for people
coming to town for the first time,” said
Jeannette Brennan with the Bellingham/
Whatcom Chamber of Commerce. That section now is anchored by the City Station and
Marketplace buildings with a restaurant, office
and retail space on the ground floor and moderate-income or market-rate housing above.
SEPTEMBER / OCTOBER 2004
33
In recent years, Bellingham has experienced a renaissance in their downtown area,
with new construction and remodeling of many of the architectural landmarks.
Olympics an Economic Boon
The impact of Canadian commerce on
Bellingham’s economy is directly related to the
exchange rate. While it is mostly seen in the
retail sector, there has been a lot of interest by
Canadian businesses in establishing a presence
in Whatcom County.
“Having an American-based subsidiary corporation allows for greater and easier access to the
U.S. market,” said Mike Brennan, a Bellingham
consultant who works with companies attempting to relocate. Canadian companies receive generous tax breaks from the Canadian Government
if they have a U.S. subsidiary.
In September 2003, the International
Olympic Committee awarded the 2010
Winter Olympic Games to Vancouver, BC.
“We immediately set the wheels in motion,”
said Whatcom County Visitor and Convention
Bureau Executive Director John Cooper.
“We formed a committee and went to Utah
to get an idea of the impact the games will
have on our community. Forty percent of the
visitors to the Salt Lake City games drove
there,” said Cooper. “If people are going to
drive from anywhere in the western United
States, chances are pretty good they will come
through Bellingham.”
A technician installs wiring in a boat at All-American Marine in Bellingham. The firm
is a leader in catamaran ship technology and has built boats for a diverse clientele,
including government agencies and private ferry operators.
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WASHINGTONBUSINESS
What’s Wrong With This Picture?
With an economy that seems to avoid the
inevitable peaks and valleys, a well-trained workforce and a quality of life that local residents say
is second to none, what could be wrong?
While Bellingham’s unemployment rate was
somewhat lower than the rest of the state and
nation in 2003, so was the average wage. Local
business owners also feel the pinch of competition, burdensome regulation and a sense on
the part of some that businesses should carry
the load of public services.
The new catch is in, and Bellingham
Cold Storage (BCS) is fast at work.
BCS’s primary function is to process and
freeze food. BCS is one of city’s largest
employers and the most dependent on
reliable, affordable electricity.
For example, there is a controversial initiative
on the local ballot in November calling for a onetenth of one percent increase in the city’s sales tax.
Proceeds will fund a much needed new jail.
One downtown business owner says, “I’m all
in favor of a new jail, we’ve needed one for quite
some time, but why fund it on the backs of business? We are already losing business to Skagit
County where the sales tax is lower, so I would
have no choice but to absorb the tax. And this is
on top of the state initiative to raise the sales tax
one percent — what if that passes?” She was
referring to I-884 which increases the sales tax
by a penny for additional education programs.
Like people in other parts of Washington,
Bellingham employers are concerned about
the state’s high business taxes. For example, the
Washington Alliance for a Competitive
Economy (WashACE), a partnership of the
Association of Washington Business,
Washington Research Council and the
Washington Roundtable, found that 54 percent of the state and local taxes are paid by the
private sector job providers in our state as
compared to a national average of about 36
percent. In Oregon, businesses pay 27 percent.
Back to the Future
It appears that the future growth and prosperity of the city will be turning back to the bay.
Since 2001, the Waterfront Future Project has
focused on several key elements in the development of the 150-acre waterfront owned by
Georgia-Pacific. If this group is successful, it is
a sure bet that more people will be leaving their
hearts in Washington’s city by the bay.
SEPTEMBER / OCTOBER 2004
35
Dorsing Family Has Built a
Cherry Oasis in Royal City
Story and photos by Daniel Brunell
I
f you drive across the Columbia River on Interstate 90 and
meander along State Highway 26, you will come to Royal
City. To the north are the golden hills of crops and comforting
green of orchards where Dorsing Farms overlooks the town.
It all started in 1961, when Royal City was a drastically
different place than the oasis it is today. The area was a vast dust
bowl with no water or buildings. It was a haven for jackrabbits,
rattlesnakes, sagebrush and tumbleweed.
The current and future family leadership of Dorsing Farms: (L to R) Kevin, Scott,
Curtis, Terri, Les and Bryce Dorsing. Bryce is spending his summer vacation from
WSU to work on the farm, and hopes someday to join in the family business. Much of
the Dorsings’ success is dependent on the sour cherry harvest that is shaken from the
trees every summer (top) and transported to holding bins via conveyor belts (left).
Major dust storms would cripple the
region, causing schools to close and sand
to penetrate everything — your dinner,
your bed and your ears. Residents who
survived there lived in tents or leftover
trailers from the recently-closed Larson
Air Force Base in nearby Moses Lake.
This was one of the last areas to be irrigated by the Bureau of Reclamation’s
Columbia Basin Project.
This is the world Karl Dorsing entered.
A former Oregon logger, Dorsing bought
a section of land in this newly-opened
area. Within a year, he brought his family
of five sons, a daughter, and his wife to
the raw farmland.
The early years were hard. Breaking the
land was labor intensive. Luckily, Karl
had a ready-made work force in his strapping sons. At first, they planted row crops
like sugar beets. By the early 1970s, the
family experimented with apple orchards
but soon settled on cherry trees.
Dorsings Began
With a Section of Land
From their small 160-acre family
farm, the Dorsings’ farm has grown to
more than 2,500 acres, including more
than 1,000 acres of orchards. Today,
their orchards are devoted to cherries,
especially sour (or pie) cherries. This
makes them one of the biggest tart cherry growers in the nation, and one of the
largest operations west of the Mississippi
River.
With all of this success, the family
refuses to take credit for what they have
accomplished. “We have been blessed
with all of this,” said Les Dorsing. “The
bounties of the earth have been very good
to us so we try to do good unto others as
the Lord has blessed us.”
Even after more than 40 years, the family remains strongly united and loyal to
the land and one another. Three out of
the five brothers — Les, Terri, and Curtis
— still jointly manage the family farm.
Each fills a role in managing the evergrowing operation.
Row after row of neatly-planted cherry trees (above) characterize the Dorsing property near Royal City. The present-day Dorsing orchards are a vastly different place
from the featureless, arid land that the Dorsings tamed in the early 1960s (below).
The small 160-acre patch that the family started with has grown to be one of the larger operations in the mid-Columbia region.
Gary Chandler (left) and Les Dorsing discuss the future of agriculture in the state of
Washington. A range of issues from water rights to temporary workers has not dampened the spirit of the eastern Washington agricultural community.
SEPTEMBER / OCTOBER 2004
37
In recent years, they have given their
children the option to come back to work
on the farm. It is their opportunity to
carry on the family tradition. However,
there are some stipulations.
“This isn’t a hand-out. They have to
bring something to the farm and must
prove themselves during a probation period,” Les said. “And that takes dedication
and hard work.”
The Dorsings are not only generous to
their kin, but also to their workers. The
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WASHINGTONBUSINESS
farm was one of the first to provide facilities for their seasonal workers that include
showers, sinks, stoves, bathrooms and
wash basins. The family has invested over
$125,000 of their own money to improve
the lives of their workers. They weren’t
forced to by some government entity, but
did it because it was the right thing to do.
“We try to do things right for our
workers,” Les added. “In turn, I’ve never
had a problem getting enough people.”
The Dorsings have been in the forefront
of many state and federal programs for
agricultural workers including the “Renta-Tent” program that lets farms rent large
canvas tents for their workers.
This compassion has not hindered their
business. The Dorsing family has opened
a cherry-processing plant just outside of
Royal City. The cavernous facility allows
them to sort, package, store and ship their
cherries rapidly to maintain the highest
quality. “We keep very high standards for
our cherries,” said Terri.
“The average time for a cherry from the
tree to being packaged is under three
hours. This really helps sell our product to
foreign buyers.” The plant has been
Kevin’s pet project. He and Scott (who
manages the orchards) are the beginning
of the third generation of Dorsings working on the farm.
In times where families seem to break
apart over the slightest conflicts in running a family business, it is amazing to see
a family work together so closely for over
four decades. The future looks even
brighter with the Dorsings’ third generation taking over the operation. Yet, you
probably won’t hear them bragging about
what they have accomplished. They’ll just
sit on their porch overlooking Royal City
with the desert hills and bountiful harvest
around them, thankful for all that has
been given to them.
Cherries May
Be Good for
Fighting Cancer
I
t might sound strange,
but tart cherries may
contain natural ingredients that fight cancer.
A recent Michigan State
University study shows
that tart cherries are a rich
source of antioxidants that
may stop cancer. Two of
the most potent anti-cancer agents are flavonoids
called isoqueritrin and
queritrin.
The secret of the cherry’s power in
fighting cancer is in its coloring. The pigment is a powerful natural dye called
anthocyanin. According to some
research, this dye might be a “natural
chemotherapy agent.”
Cherries have also been shown to help:
• Fight heart disease.
• Relieve the pain of arthritis, gout and
headaches.
• Ease the symptoms of fibromyalgia
(muscular pain and fatigue).
• Provide a safe and healthy way of
producing melatonin (an agent that
helps the immune system, sleeping and
reducing free radicals in the body).
• Improve physiological and mental
functions.
That is good news for Washington
state growers like the Dorsing family.
They process and bottle a red tart cherry
juice concentrate in Royal City under the
Royal Ridge Fruits label.
While Washington state leads the
nation in growing sweet cherries, it is the
third largest producer of tart cherries
behind Michigan and Utah. Medicinal
applications for tart cherries could
increase our state’s production and help
our family farmers.
Although more research is underway to
better understand the health benefits of
tart cherries, the preliminary findings are
promising for our cherry growers in central Washington farming communities
SEPTEMBER / OCTOBER 2004
39
Made in Washington
AIR FORCE ONE
by Charles Henry Thomas
J
ust mention the words “Air Force One” and people immediately envision
the 747 that ferries the President of the United States around the world.
Few products carry such instant visual recognition as the identical twin
jumbo jets built at Boeing’s mammoth plant near Everett in the late 1980s.
Technically, Air Force One is the call sign for either SAM 28000 or
SAM 29000 — the tail numbers assigned to the aircraft — when the current President is on board, but to anyone who sees either of these two special birds, they are Air Force One.
SAM stands for Special Air Mission, and the most famous illustration
of that point was on Aug. 9, 1974, when President Nixon resigned his
presidency and boarded Air Force One for the trip home to California. As
the aircraft approached the Mississippi River, Gerald Ford was sworn in
as President and the pilot immediately radioed flight controllers with the
new call sign: SAM 27000.
SAM 27000 was the last of the Boeing 707s to serve as Air Force One.
Boeing Becomes Exclusive Presidential Aircraft Provider
Boeing’s entry into the presidential air fleet dates back to the 1960s.
President John F. Kennedy ordered two specially-outfitted 707s in 1961
with the first delivery taken in October 1962. Just over a year later, SAM
26000 would fly Kennedy to Dallas where he was assassinated, have
Lyndon Johnson sworn in on board as President and carry President
Kennedy’s body back to the nation’s capitol — all in one unforgettable day.
It was in the Kennedy era that the presidential aircraft became Air Force
One and First Lady Jacqueline Kennedy was charged with the basic design
of the exterior paint scheme. She, in turn, commissioned noted designer
Raymond Loewy, who created the Studebaker Avanti, devised the paint
scheme for the Pennsylvania Railroad and Greyhound bus, and designed
the Coca Cola and Ritz cracker logos.
The 707s, made in Seattle, served the Presidents well, but when one visits the Museum of Flight at Boeing Field in Seattle and tours the Air Force
One used by Johnson, it is easy to see how cramped the quarters really were.
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During President Ronald Reagan’s term, military planners started the
search for a 707 replacement. At first it considered Lockheed’s L-1011
and McDonald Douglas’ DC-10, but each had only three jet engines.
Their specifications called for four engines, and only the Boeing 747
could meet that requirement.
747 Carried President Reagan’s Body Back to California
Boeing was awarded the $251 million contract for two specially-outfitted 747s and delivery was set for January 1989, just in time to fly
President Reagan home to California after he left office. The deadline was
not met, and President Reagan’s first flight in the new Air Force One did
not occur until June 2004, when one of the same two 747s flew Reagan’s
casket and family to Washington, DC, for a time of mourning and
memorials and then back to California for burial.
No official reason was given for the delivery date being pushed ahead
to 1990, but costs soared to over $400 million because of modifications.
Finally, the first aircraft arrived at Andrews Air Force Base on Aug. 23 followed by the second on Dec. 20, which was about halfway through
President George H.W. Bush’s term.
Presidents from Kennedy to George W. Bush have called Air Force One
the “Flying White House.” While it is a essential requirement of the office
today, it also is a presidential perk which is unequalled. Just as kids dream
of scoring the winning bucket at the horn in the national championship
basketball game, politicians drool at the chance to be the one popping out
the door of Air Force One while a military band plays Hail to the Chief.
Finally, as the Air Force upgraded its fleet, Boeing delivered what has
become known as Air Force Two, the call sign for vice president. In
1998, it delivered a series of four specially-modified 757s built at
Boeing’s Renton plant which have a similar paint scheme as Air Force
One. They are the workhorses of the diplomatic corps, carrying highranking government officials and members of Congress to various parts
of the world.
Pres. Teddy Roosevelt
flew in a Wright Type B
aircraft similar to this
one in 1910.
Pres. Franklin Roosevelt
flew in Boeing Model 314
on loan from Pan Am
Airways in 1943.
Roosevelt was First
President to Fly...
But Which One?
D
id you know that President Roosevelt
was the first president to fly in an airplane? But which President Roosevelt —
Theodore or Franklin? That depends!
On Oct. 11, 1910, Theodore flew in a
Wright Type-B biplane over St. Louis, but
he was not in office at the time. He had
left the presidency in 1909. The first official flight by a sitting President was in
January 1943 when Franklin D. Roosevelt
flew from Miami to Casablanca, Morocco,
for a meeting with British Prime Minister
Winston Churchill. The aircraft was a
Boeing Model 314 seaplane on loan from
Pan American World Airways.
FDR’s official aircraft was a modified
Consolidated B-24D Liberator, although he
never flew in it. It was named Guess Where
II and it flew First Lady Eleanor Roosevelt
in 1943. In 1944, FDR took delivery of a
Douglas C-54 known as Sacred Cow.
President Harry S. Truman retired the
Sacred Cow and replaced it in 1947 with a
Douglas DC-6 known as the Independence.
It was replaced by a Lockheed C-121
Constellation named Columbine II when
Dwight D. Eisenhower took office in 1953.
The name Air Force One was introduced
with the Kennedy presidency, although
the call sign “Air Force One” was adopted
in 1956 when the Columbine II, which
used the call sign “Air Force 610,” was
confused with “Eastern Flight 610” on an
approach to Washington (DC) National
Airport (now Ronald Reagan Washington
National Airport). No mishap occurred,
but thereafter any aircraft carrying the
President was always called Air Force One.
SEPTEMBER / OCTOBER 2004
41
NESCO’s Smart Pigs Protect
People from Pipeline Leaks
by Carly West
F
Independently-owned National Energy
Systems Company (NESCO) is a Kirklandbased company established in 1985. It owns
and operates power plants in the western
United States. One is a natural-gas-fired generating facility known as Sumas 1, operating
near Sumas, WA, near the Canadian border
north of Bellingham. NESCO has sought
approval for a second, adjacent 660-megawatt
facility to be known as Sumas 2.
In 2002, Sumas Cogeneration Company
took a huge step toward protecting the envi-
ronment as well as the public living near its
Sumas power plant. Using what are known in
the pipeline inspection industry as “smart
pigs,” Sumas 1 inspectors constantly check a
3.7 mile segment of eight-inch pipeline that
provides natural gas to the power plant.
Smart Pigs Pick Up Potential Leaks
The term “pig” originated years ago when a
worker cleaning a pipeline noticed that the
chunk of foam used to clean the line resembled a pig. While the foam pigs are still used to
Photos courtesy of NESCO
ive years ago an Olympic Pipeline leak in
Bellingham ignited an inferno in a city
park, turned a stream into a river of fire and
blackened what was a lush green forest. In the
process, three young men perished.
This tragedy struck a community close to
home, not in some far-off place like Iraq or
Saudi Arabia. In reality, pipelines carrying hazardous and flammable materials can leak or be
punctured, but a Washington company is
going beyond what regulations require to prevent future tragedies.
Pigs, like the one above, are used to clean and repair sections of pipeline that people would find impossible to reach. The new “smart
pig” technology can detect weaknesses in the pipeline before they turn into a disaster.
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WASHINGTONBUSINESS
clean pipelines, advanced technology and
increased safety concerns have led to the development of smart pigs similar to the devices
which routinely inspect the 800-mile transAlaska oil pipeline running from Prudhoe Bay
to Valdez in Alaska.
These pigs can do everything from cleaning
to inspecting for cracks and leaks to mapping
the exact placement of the line using a GPS
(Global Positioning System) device. The later
is important for contractors so pipelines are
not nicked or punctured in the excavation
process.
Smart pigs can test for line damage by running powerful magnets through the line to
determine if there is metal erosion. It is called
a magnetic flux leakage metal-loss test, and it
can detect weakness inside and outside the
pipeline. Determining where the metal is thinning allows enough warning to repair the
pipeline before a leak occurs.
NESCO spends a lot of money testing the
short pipeline to ensure its safety. For example,
the company recently brought in Tuboscope
Pipeline Services of Houston, at a cost of over
$500,000, to conduct 11 pig runs over 14 days.
Pig Runs are Pricey But Revealing
During the inspections, tests revealed four
small out-of-round non-metal loss features in
the pipeline. Only one of the small depressions was big enough to be reported, according to federal and state regulations.
Technicians located the dimple in the pipe
and added a fail-safe patch. In addition to
detecting the weaknesses in the line, the testing program also left the Sumas line equipped
to do pigging runs on a more regular basis
with the installation of smart pig launcher
and receiver platforms.
The Sumas 1 testing story becomes even
more impressive considering the company’s
size and the fact that it is not in the gas production or transportation business.
NESCO produces electricity for our
homes, businesses and lights at the football
stadiums and concert halls. “To have a small
power company implementing the type of
testing that NESCO does sets a precedence
for the entire industry,” AWB President Don
Brunell said.
Bruce Thompson, senior vice president of
NESCO, says, “For a long time the gas line
business was not on a par with the energy production. Now things are changing. While still
costly, there is sophisticated technology available and in use every day to decrease people’s
worry about safety.”
SEPTEMBER / OCTOBER 2004
43
Dayton is Steeped in History and Rich in Hospitality
T
o the weary traveler along U.S. 12 in rural southeastern Washington,
it is merely a temporary hiatus along the way; a place where one can
gas up or have a pleasant cup of coffee. It is a pretty, neat little town with
friendly people, an imposing courthouse, tree-lined streets and a very
pleasant business district.
Dayton is home to 2,900 enthusiastic boosters. Its rich history dates
back to when Lewis and Clark camped on the banks of Patit Creek, just
east of town, in 1806. At that time, the town’s main street was a racetrack
for regional Indian tribes.
It is an agricultural community with roots sunk deeply into the rich soil
of Columbia County. In the heart of town is a bank of grain elevators
storing its gold—golden wheat from surrounding dry-land farms.
This town has a lot going for it. Just about the right size, it offers a lifestyle
that combines the best qualities of a small town while offering most of the
amenities that modern life has to offer. There is exceptional hunting in the
adjacent Blue Mountains, and the Touchet River that runs right through town
lets anglers fill their creel with their limit of scrappy rainbow trout.
In winter, the challenging slopes of Ski Bluewood are only a half hour
away and at an affordable price. Just over a couple of hills is the Snake
River where summer boating and water skiing are superb. When day is
done, a weary sportsman can relax at one of several gourmet restaurants,
where good food and fine wine are readily available. Life is good in Dayton
and at a price that will considerably extend a person’s retirement account.
Old-timers and newcomers alike combine to give Dayton a strong
sense of community spirit as evidenced by the restoration of the historic
Liberty Theater. It is a gathering place where neighbors take tickets for a
featured movie and friends sell sodas, buttered popcorn and candy bars at
the concession counter.
Early Settlers Farmed Dayton’s Rich, Fertile Soils
The early settlers started arriving in 1859 and used the land for grazing. By
1861, they turned to farming wheat and other grains. Between 1880 and
1910, prosperous businessmen and farmers built large, impressive homes and
buildings, many of which are on the National Register of Historic Places.
Jacob Weinhard, one of many German-born “brewmeisters” who came
to America, saw Dayton’s potential for barley production. He built the
Weinhard brewery in 1904, which included a saloon and lodge hall.
Today, the “Jolly Green Giant” is emblazoned on the foothills overlooking the town. It symbolized the world’s largest asparagus cannery now
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WASHINGTONBUSINESS
owned by Seneca Foods. The plant is the town’s biggest employer during
the asparagus harvest with up to 1,100 workers canning the premium
spears for grocery shelves on the East Coast, Europe and Asia.
That will all change after next year unless the Washington state Legislature
and Congress act soon—and even then it may be too late. Seneca announced
it will join Washington’s two other canners, Del Monte (Toppenish) and
Chiquita (Walla Walla) in closing its operations and shift production to Peru.
Although Seneca’s decision is a huge blow to the area, Dayton
Chamber Executive Director Jennie Dickinson isn’t nailing its economic
coffin shut. She believes her community will pull itself up by its bootstraps and focus on tourism, grain production and other employers.
For example, Columbia Cut Stock’s 40 workers cut high-quality pine
for window frame manufacturers in the Midwest. Dennis Lockard, who
grew up in Starbuck, runs the plant and sees Dayton as a great place to
live and raise a family. So does Dave Frame, owner of American Line
Builders. His business is a home-grown construction company that
erects cell towers and steel frames for high-voltage power lines across
North America.
Rural Communities Are Washington’s Backbone
The Association of Washington Business believes towns like Dayton
are the backbone of the state. “Too often lawmakers in Olympia tend to
focus on issues affecting the cities,” AWB President Don Brunell said.
“For example, urban voters don’t understand what happens to rural
communities when the minimum wage automatically increases,” Brunell
added. “Few would even look at a $7.16 (federal minimum wage) an hour
part-time job in Seattle, but in rural communities, people value just having the opportunity to work and earn some money.”
AWB has been working to convince lawmakers in Olympia they must
freeze the minimum wage until other states catch up, repeal the automatic annual increases and set up an agriculture and training wage. So far,
those proposed changes have been rejected by the unions, Gov. Locke and
legislators — primarily Democrats.
Despite its challenges, life still can be good in this small town. It’s a step
to a less hurried, more relaxed way of life. And, of course, if you’d like a
connection to a more sprightly way of life, Dayton can still be for you.
The Internet is only a click away ... and Dayton is wired!
Earl Roberge is a Walla Walla freelance writer and photographer.
Photos by Earl Roberge and Daniel Brunell
by Earl Roberge
NAM Adopts 2005 Redbook:
WashACE’s Facts and Figures Spread Across Country
T
he popular fledgling book of facts and figures the Washington Alliance for a
Competitive Economy (WashACE) started just
five years ago has spread across country. The
National Association of Manufacturers (NAM)
contacted the Association of Washington
Business (AWB) about modifying the 2005 edition slightly for use by its members, the national media, Congress and federal agencies.
“NAM is encouraging state manufacturing
associations to also adopt the WashACE publication,” said Barry Buzby, director of NAM’s
National Industrial Council (NIC) in
Washington, DC. NIC is the umbrella group
for state associations like AWB.
“Why reinvent the wheel when AWB has
one that works perfectly well? We’d spend
countless hours and thousands of dollars coming up with a document our folks already tell
us is the best they’ve seen,” Buzby added.
“This is good news for WashACE,” AWB
President Don Brunell said. “It shows that folks
at the national level have confidence in our data
and want to standardize facts and figures.
Accurate information is extremely important.”
WashACE is a partnership of AWB, the
Washington Research Council (WRC), and the
Washington Roundtable. “One of WashACE’s
first projects was to develop a standardized set of
comparisons between states on key competitiveness issues like energy, workers’ comp and taxes to
name a few,” Dick Davis, WRC president added.
Davis and his staff develop the comparative data.
The 2005 Redbook was initially distributed
at AWB’s Policy Summit in late September at
the Semiahmoo Resort. AWB members who
registered for the summit automatically
received the newest document.
“The Redbook has been very helpful as our
various committees develop public policy recommendations,” Steve Mullin, the recently appointed Roundtable president added. Prior to being
named president, Mullin directed the organization’s efforts on state fiscal climate and education.
Mullin, Davis and Brunell worked closely with
Gov. Locke’s Competitiveness Council and the
Priorities and Price of Government process. Those
groups were responsible for recommending many
changes to state laws and regulations that have
attracted jobs, careers and investments in startup
and traditional businesses in Washington.
While WashACE’s collective efforts led to
positive changes in the state’s competitiveness,
much work remains. “Comparisons in the 2005
Redbook indicate our state and local elected
officials ought to worry about the rising costs of
energy, workers’ comp and taxes, for example,”
AWB’s Vice President of Governmental Affairs
Gary Chandler added. As a former state legislator, Chandler used the Redbook to convince his
colleagues of the need for change.
“It is amazing that once accurate information is presented in an understandable way
how people in government respond,”
Chandler concluded. “It didn’t make fixing the
state’s costly unemployment insurance system
any easier, but it certainly convinces them of
the need to act expeditiously.”
Copies of the Redbook may be ordered by
contacting the Association of Washington
Business, P.O. Box 658, Olympia, 985070568 and online at AWB’s Web site at
www.awb.org. The cost is $7.00, and the
price includes taxes and shipping.
by AWB Staff
Competitiveness on the Web
The Web version of AWB’s 2004
Legislative Scorecard is now online at:
www.awb.org/about/ga/voterecord2004
See the results of the
2004 Legislator Pro-Jobs Score at:
www.jobmakers.com
More information on the Washington
Alliance for a Competitive Economy
(WashACE) is available at:
www.awb.org/otherissues/
competitiveness/washace.asp
WashACE 2005 Redbook Partners
Association of Washington Business
www.awb.org
Washington Roundtable
www.waroundtable.com
Washington Research Council
www.researchcouncil.org
Washington Association of Realtors
www.warealtor.com
SEPTEMBER / OCTOBER 2004
45
A Depression-Era Casualty
Rises From the Ashes
Story and photos by Daniel Brunell
eavenworth’s
spectacular scenery and Bavarian charm is well known. Much less
e
known is the town’s phoenix-like rise from the depths of economic depression.
L
Leavenworth was on life support in the early 1960s. The downtown was in shambles.
The store fronts were decrepit, marred by broken glass and chipped paint. The Great
Depression hit Leavenworth hard. Thirty years later, the town had yet to recover from the
blow. The prosperity of the post-war era bypassed Leavenworth. The town’s two great
economic engines — the Great Northern Railway and the lumber industry — had left
long ago, leaving a shattered town with few prospects or possibilities. A mass exodus of
its residents was the result. Indeed, Leavenworth was on the path of many small rural
towns of the day — a route of despair and depression.
The robust residents of Leavenworth would not allow their town to die without a
fight. In 1962, the Leavenworth Chamber of Commence invited the Bureau of
Community Development at the University of Washington to study possibilities for economic development within the area. The program titled LIFE (Leavenworth
Improvement for Everyone) allowed the residents of Leavenworth to meet, debate, analyze, research and finally decide on the future for the town. The most promising and most
controversial idea to come out of the LIFE program was the concept of developing a
theme town. Different themes were kicked around, such as a turn-of-the-century theme
and a western-town theme. However, several of the downtown property owners loved the
idea of turning Leavenworth into a Bavarian village.
46
WASHINGTONBUSINESS
What makes this crisis even more acute are
the area’s skyrocketing housing costs.
“There is not a lot of room left in the valley for development,” said Ken Marson,
owner of Marson and Marson Lumber
Company. “If we are to bring balance to our
community, we need to make it more affordable for families.”
In addition, there are fears of Leavenworth
becoming a playground for the rich, not
unlike Aspen or Jackson Hole. Many in the
community fear that if Leavenworth was to
go down this road, many of the tourists
would stop coming. They also worry that
they may be priced out of the town they love.
Tourism in Leavenworth has just about
reached it potential. What the town wants is
another economic engine in the town.
Leavenworth needs something to offset its
unpredictable tourism economy. Residents
want family-wage jobs. More than anything,
they hope Leavenworth will be able to grow
for the next 40 years.
A potential economic engine might
already be at hand. The Physics Department
at the University of Washington is spearheading an effort to build the National
Underground Science and Engineering
Laboratory under Mt. Cashmere, eight miles
from Leavenworth. The main function of
Photo courtesy of the Leavenworth Chamber of Commerce
The Bavarian theme was controversial.
Several other downtown property owners
hated the idea. Despite this hostility within
the community, a few businesses under the
leadership of Ted Price and Robert Rodgers
decided to take the risk and started transforming their little piece of Leavenworth into
Bavaria.
Forty years after its metamorphosis,
Leavenworth remains one of the most
remarkable economic development stories in
Washington state history. The town is alive.
More than 3.5 million people visit the town
annually, bringing $105 million into the
local economy. Leavenworth has 23 weekends with a major festival and more than 370
events a year. It is regarded by many afficionados as one of the best tourist destinations in the Northwest.
Nevertheless, Leavenworth has no time
to rest on its laurels. “Our goal is to keep
what we have intact while expanding,” said
Bill Taylor, executive director of the
Leavenworth Chamber of Commerce. “We
are constantly diversifying our tourism by
including natural and agricultural tourism
along with more cultural and art events.”
In order to diversify its appeal Leavenworth
started Bird Fest, a weekend in May devoted
to bird watching in the surrounding area. The
town is geographically blessed with hundreds
of thousands of publicly owned wilderness
acres. This surrounding natural wonderland
brings in a large number of ecotourists, hikers,
rafters and skiers.
Capitalizing on eastern Washington’s new
fame as a wine mecca, Leavenworth has added
a number of music and wine oriented festivals
to its mix of traditional German-themed festivals such as Mai Fest and the Autumn Leaf
Festival. This increase in the number and
diversity of festivals shows a town that is trying to keep the tourists coming.
Despite the fact that Leavenworth’s
Bavarian ambience put it on the tourist map,
many in town fear tourists might tire of the
Bavarian theme. This is one of many challenges Leavenworth sees on the horizon.
Leavenworth is a town at the crossroads.
The community has grown to the point
where it has to make some tough decisions
about economic growth and its future. One
of the biggest problems is the lack of familywage jobs in Leavenworth. As a result, the
area is hemorrhaging young people at an
alarming rate.
Most of Leavenworth’s jobs are in service
positions related to tourism. Service work
can be nice for students and retirees, but
most of these jobs cannot support families.
SEPTEMBER / OCTOBER 2004
47
Archive photos courtesy of the Leavenworth Chamber of Commerce
Great Northern Railroad locomotives often had to fight their way
through the heavy winter snowpack on Stevens Pass, west of
Leavenworth. Avalanches were a frequent occurrence along the route.
this lab would be to study neutrinos, interstellar
materials that are collected to study distant stars. If
built, the lab would be the premier research laboratory in the U.S. and only one of four in the entire
world.
Mt. Cashmere provides the access, granite and
space needed for this project. If this proposed lab
was built, it would be a windfall for Leavenworth.
The laboratory would employ 80 full-time staff
with the adjoining visitor center employing 20-25
more. The lab would attract hundreds of visiting
scientists and thousands of visiting students each
year. Not surprisingly, Leavenworth is very excited
at the prospects of this project.
“Not only would it be good for our community,
but also something that is really beneficial to
mankind,” Marson observed. “I can think of nothing more noble.”
The National Science Foundation is studying
Mt. Cashmere and a half dozen other possible
sites around the nation with construction slated
to start in 2008. The lab would be another step
for a town that redefined itself 40 years ago and is
looking to do so again. For a town that has been
through so much to redefine what it is, it might
have to undergo another metamorphosis to keep
its future vibrant. Whatever that path might be,
Leavenworth has shown it has the fortitude to
change and will continue being the little town
that could.
Photo courtesy of the Leavenworth Chamber of Commerce
The photo above was taken in the early 1950s looking west down
Leavenworth’s main street. The photo below shows the same
scene today with Leavenworth’s distinctive Bavarian theme.
48
WASHINGTONBUSINESS
Insider Perspective
Tom McBride is AWB’s New Guy
on Taxes, Roads and Unemployment
by Paul Schlienz
ou may not know Tom McBride yet, but
you will soon.
McBride, the newest member of our
Governmental Affairs team, is the Association’s
point man on tax and fiscal policy, unemployment insurance and transportation. He is putting an impressive background in government
and the private sector to work for AWB.
Born and raised in Bellevue, McBride
moved to Washington, DC, after graduating
from Whitman College in 1988. In the
nation’s capital, he immersed himself in the
political world.
“DC is such a fascinating place if you’re at
all interested in legislation and politics,”
McBride recalled. “I went to work for the
National Republican Senatorial Campaign
Committee.”
Later, McBride moved from his GOP fundraising job to a position with a company that
did research for law firms. While doing legal
research, McBride decided to become an attorney and return to his native Northwest.
“A few years is plenty of time in the other
Washington unless you’re going to make a
career back there,” McBride observed. “Still, it
was fun — a good experience.”
McBride is Gonzaga Law School Grad
In 1991 McBride enrolled in Gonzaga
University’s law school. Once he received his
law degree and was accepted into the bar,
McBride joined the Winston & Cashatt law
firm in Spokane. He specialized in commercial
litigation and bankruptcy.
After moving to Seattle four years later and
joining Cairncross & Hempelmann, McBride’s
earlier interest in politics reasserted itself.
“I came to realize that I wanted to get into
lobbying,” McBride said. “Instead of lobbying
within a law practice, I decided that the only
way to do it right would be to come down to
Olympia and lobby full-time.”
“Practicing law was more dealing with law
at the back end after problems had arisen. If
you go into lobbying, you’re still dealing with
problems, but the problems are at the front
end, and you’re trying to correct them through
the legislative process.”
McBride Joined CTED in Olympia
In Olympia, McBride took a job with the
state’s Dept. of Community Trade and
Economic Development (CTED).
“I was CTED’s director of intergovernmental relations,” McBride stated. “I was the legislative liaison for the agency. I worked with
the cities, the counties, courts, trade associations and other stakeholders to facilitate their
work with CTED, the Governor’s Office and
the Legislature. I prepared the agency’s agenda
and advocated it on the Hill.”
After two years at CTED, McBride came to
AWB last June. He is looking forward to working AWB’s agenda in the 2005 legislative session.
“We’re having a great time down here in
Olympia,” says McBride of his family,
which includes his wife Angela and their
children — 7-year-old Tanner and 3-yearold Lauren. When not lobbying for AWB,
McBride’s life revolves around his loved
ones. In his spare time, he enjoys outdoor
activities, such as playing baseball and basketball with his children.
McBride gives his family a great deal of
credit for his success.
“I am most grateful to my family for their
willingness and courage to support my career
decisions,” McBride concluded. “Without
their willingness to make significant changes,
I would never have been able to have pursued
my professional dreams and done what I
wanted to do.”
Photo by Daniel Brunell /AWB
Y
Tom McBride poses for a family portrait with his wife Angela, 7-year-old son Tanner,
and 3-year-old daughter Lauren.
SEPTEMBER / OCTOBER 2004
49
AWB Legends
C. Lee Coulter
by Charles Henry Thomas
Coulter Was AWB’s Country Lawyer Who
Found His Way Around Seattle’s City Slickers
I
f you ask C. David Gordon, AWB’s president for 22 years (from 1955
to 1965 and from 1967 to 1979), who was his most valued and trusted colleague, without hesitation he says C. Lee Coulter. Since every
good leader needs an accomplished lawyer, Gordon got more than his
money’s worth out of Coulter as both a staff adviser and volunteer
leader.
Like Gordon, Coulter is part of America’s greatest generation—a World
War II veteran. Unlike Gordon who was raised in Seattle, Coulter came
from the Midwest after graduating from Northwestern University. Gordon
was an Army Air Corps officer while Coulter was in the Navy stationed in
the Puget Sound on a top-secret project. After his discharge, he finished law
school at Northwestern, graduated in 1949 and returned to Seattle.
Today, Coulter is retired and living in his waterfront home on Maury
Island, while Gordon has a beachfront place on San Juan Island. Both bought
their property many years ago and enjoy the serenity of the Puget Sound.
Coulter Starts Private Practice
In Washington, Coulter started with Gov. Art Langley’s
Administration in the early 1950s as an attorney and legal examiner for
the Washington Utilities and Transportation Commission. It was during
that time that he met Ed “Deke” Davis, a former eastern Washington legislator who served as AWI (Association of Washington Industries) managing director (same as president) from 1945-55.
Gordon, who lobbied for Weyerhaeuser in the early 1950s, met
Coulter through Davis — sparking a 50-year friendship.
When Gordon was named AWI managing director, he contracted with
Coulter to be the organization’s attorney. At the time, AWI’s offices were
in the White-Henry-Stuart building (present day site of the Rainier
Tower) on Fifth Avenue in Seattle and the organization had but four
employees. Coulter, now in private practice, devoted much of his time to
AWB, especially during legislative sessions.
Admitted to practice before the U.S. Supreme Court, U.S. Ninth
Circuit Court of Appeals and the U.S. District Court of Western
Washington, he immediately took over writing the Association’s Legislative
Digests. That document, which was widely used by lawmakers in Olympia,
outlined the content of each bill and their amendments in lay terms.
“Lee frequently worked beyond 2:00 a.m., only to be back bright and
early in the morning (in Olympia). He seldom betrayed his warm compassion or his lively sense of humor, regardless of how little sleep he got.
Old hands at AWB headquarters remember him for his colorful bandannas and his humble demeanor,” the May 1978 issue of Washington
Business reported.
“It was the document that legislators used almost exclusively,” Coulter
said. “It is something I am very proud of.” The digest was hard, laborious
50
WASHINGTONBUSINESS
work and with proliferation of bills and state investments in staff and
technology, AWB abandoned the service in the 1980s.
GTE Hires Coulter as VP for Northwest Operations
Coulter resigned as AWI’s general counsel in 1967 to become vice president and general counsel for General Telephone Company (GTE) of the
Northwest, now Verizon. Later, Alaska was added to his territory.
Even though Coulter left AWI’s staff, he was instrumental in helping
Gordon transform AWI into the Association of Washington Business
(AWB) in 1971. Like Gordon, Coulter believed AWB should be the state’s
“premiere” business organization and not just represent manufacturers.
At GTE, Coulter became an active AWB volunteer serving as secretary/treasurer, vice chair, and finally chair of the board. He also presided
over the Human Resources Council, which dealt with the contentious
labor relations issues such as workers’ comp, unemployment insurance
and workplace regulations.
In April 1981, Coulter was elected to chair AWB’s Board. During his
tenure, then-Gov. John Spellman, a Seattle Republican, and the GOPcontrolled Legislature faced a number of revenue shortfalls due to a recession and high interest rates. At the time, revenue forecasting was not precise, so lawmakers established the Revenue Forecasting Council at the
Office of Financial Management to give more precise estimates.
Ultimately, Spellman called a number of special legislative sessions to cut
spending and programs and raise taxes and fees. Spellman and lawmakers
finally resorted to temporarily reinstating the sales tax on most grocery
items to balance the budget. That tax was abolished starting July 1, 1978.
Coulter Retired to Maury Island
Coulter often said he was just a country lawyer trying to find his way
around and through the city slickers. After retiring from GTE, he became
a true country lawyer on rural Maury and Vashon Islands. He even served
as a district court judge when the elected jurist became incapacitated. In
traditional Coulter form, he convinced King County to make him “judge
pro-tem,” enabling him to preside while the sick judge received the
much-needed salary and benefits.
Today, he remains an avid AWB and Business Week supporter. “I
believe in the Association—always have. I gave my heart and soul to it
and Business Week. All employers and business owners should belong to
AWB because it is the organization which saves our bacon every day.”
While macular degeneration has impaired his vision and made it difficult for him to practice law, Coulter, now 80, remains active. He and his
former wife, Maribeth, have a son, Warren, who produced the “Judge
Judy Show” in Los Angeles and married daughters, Maribeth and Kay
who live in Oregon and Florida respectively.
Washington Business Directory
Bellingham / Whatcom County Businesses
Alpha Technologies, Inc.
World-Leading Power System Provider for
Broadband, Data Communication, AC UPS,
Commercial and Industrial Powering Systems
(360) 647-2360 www.alpha.com
Rice Insurance, LLC
Business, Home, Auto Insurance Brokers
Best Rated Insurance Company's
Professional Responsive Personal Service
(888) 742-3467 Rice@RiceInsurance.com
Bodes PreCast, Inc.
Manufacturing Precast Concrete Products.
Serving the Agriculture Industry in the PNW.
Commercial Products Also Available.
Lynden, WA (360) 354-3912
Sanitary Service Company, Inc.
Recycling & Waste Collection Services.
Portable Toilets / Portable Storage Units
Commercial / Residential – Whatcom County
www.ssc-inc.com (360) 734-3490
Dentech Corporation
International Mfr. of Dental Equipment.
Ergonomics – At the Heart of Every Design.
Increased Productivity by Design.
(800) 826-5004 www.dentechcorp.com
The Unity Group Insurance
(360) 647-9000, Toll Free (800) 339-9270
Insurance for Individuals & Businesses:
Home, Auto, Life, Benefits, Retirement,
Property / Liability Coverage.
Deric Willett Construction Inc.
Quality Commercial / Residential Construction
20 Years of Experience in Construction
Phone: (360) 920-7906
E-mail: dwillett.1@netzero.net
Trans-Ocean Products, Inc.
A Leading Producer of Surimi Seafoods
Our Crab Classic Brand is Sold Across U.S.
Offices / Mfg. in Bellingham, WA & Salem, OR
(360) 671-6886 www.trans-ocean.com
Express Personnel Services
A Full Service Staffing Company.
Bellingham Office: (360) 734-2457
Mount Vernon Office: (360) 336-1980
www.ExpressPersonnel.com
Holiday Inn Express (Bellingham)
For Convenience, Comfort, and a Name
You Can Depend On For Quality Service.
4160 Meridian Street, Bellingham
(360) 671-4800 hiebllex@az.com
HTMS, Inc.
www.htmfg.com (1-888-381-HTMS)
E-mail Us at Support@htmfg.com
Manufacturer of Precision Machine Parts!
Milling, Turning, and Waterjet Cutting.
Kodiak Fish Company
Highest Quality Frozen at Sea Aboard
FT Legacy • FT Alliance • FT Provider
Alaska Groundfish: www.talbotseafood.com
Alaska Scallops: www.novafish.com
Mt. Baker Silo, Inc.
Specializing in Concrete Water Storage
For Drinking Water and Fire Flow.
Serving Washington, Oregon and Idaho.
(360) 354-4940 www.mtbakersilo.com
Northstar Woodworks, Inc.
Highest Quality Custom Door Systems
Western United States and Hawaii
www.northstarww.com
Ferndale, WA (360) 384-0307
Recycling & Disposal Services, Inc.
Commercial and Residential Waste.
Fast and Friendly Service. Open Daily.
"We Want Your Garbage"
(360) 384-8011 www.rdsdisposal.com
Dayton, Washington
Businesses
Columbia Cut Stock, Inc.
Manufacturing Quality Fingerjointed Pine
Window and Door Parts Since 1973.
Dennis Lockard (509) 382-2509
Congratulations AWB on 100 Years.
Professional / Statewide Organizations
Association of Washington Business
P.O. Box 658, Olympia, WA 98507-0658
Phone: (360) 943-1600 Fax: (360) 943-5811
www.awb.org
Coalition of Washington Business
Organizations (COWBO)
P.O. Box 658, Olympia, WA 98507-0658
Phone: (360) 943-1600 Fax: (360) 943-5811
Institute for Workforce
Development and Sustainability
P.O. Box 658, Olympia, WA 98507-0658
Phone: (360) 943-1600 Fax: (360) 943-5811
www.WorkforceCollege.com
Business Week
P.O. Box 658, Olympia, WA 98507-0658
Phone: (360) 943-1600 Fax: (360) 943-5811
www.wbw.org
Publishing Companies
AQP Publishing, Inc.
3100 Bucklin Hill Rd., Ste. 246
Silverdale, WA 98383
Phone: (425) 379-9417 Fax: (503) 536-0014
Toll-Free: (866) 562-9300
www.alaskapub.com
Leavenworth, Washington
Businesses
Columbia Cascade Winery Association
Newest Wine Region in Washington State.
20 Wineries Now Open. More Opening Soon.
Wonderful Tours. Great Wine Tasting.
(509) 782-0708 ColumbiaCascadeWines.com
Enzian Inn — Leavenworth, WA
Located 1/2 block From Downtown Shops
And Activities. Full Breakfast Buffet.
Indoor/Outdoor Pool/Spa.
(800) 223-8511 / www.enzianinn.com
Scheibler Brothers, Inc.
Manufacturers of Specialty Dry Offset
Printing Machinery for the
Packaging Industry. Worldwide.
(509) 548-7115 scheiblerm@aol.com
Printing and
Prepress Services
Pollard Group
4824 South Tacoma Way
Tacoma, WA 98409
Phone: (253) 473-7755 Fax: (253) 474-2805
www.pollardgroup.com
SEPTEMBER / OCTOBER 2004
51
People on the Move
Who’s in the News, Who’s on the Move
Lemly, Agnew, Nelson and
Bernard to Lead AWB in 2005
Senior Vice President of Technology for Weyerhaeuser
Co. George Weyerhaeuser Jr. has been named chairman of Tacoma’s Museum of Glass board of directors.
The Association of Washington Business (AWB) is
Tom Lemly
pleased to announce our board officers for 2005. Tom
Donald Jenkins has joined Baldwin Resource Group in
Lemly of Davis Wright Tremaine has been named
Bellevue as executive vice president.
Lysa Barbano
board chair while Creigh H. Agnew of Weyerhaeuser
will be the new vice chair. Kirk Nelson of Qwest joins
Kurt Fraese and David Winter have been promoted to
the officers as secretary/treasurer. Mike Bernard of
regional managers at GeoEngineers of Redmond.
Madison Cooke will continue on as an officer as the
Creigh H. Agnew
immediate past chair. These new officers officially took
Andrew Zuccotti has joined Preston Gates Ellis as a
charge at AWB’s annual Policy Summit at Semiahmoo
partner in the Seattle firm.
George
Weyerhaeuser, Jr.
in September.
Personnel Changes
The National Association of Manufactures (NAM) has
Tony George has joined Starbucks in Seattle as senior
vice president of partner resources for Starbucks Coffee
International.
announced that former Michigan governor John M.
Kirk Nelson
Engler has been named the new chief executive for the
The Port of Tacoma announced that Brendan Dugan
trade association. The Association of Washington
has become the senior director of container terminal
Business is a NAM state affiliate.
businesses and is responsible for the port's internation-
Brendan
Dugan
al carriers line of business. Senior Director of Marketing
Wayne Stevens has been named head of the Alaska
and Public Relations Rod Koon will manage the newly-
Chamber of Commerce. Stevens served as head of the
formed Marketing and Public Relations Department,
Kodiak Chamber of Commerce for 19 years before
providing marketing and research services to the port's
being named president.
seven lines of business.
Renee Radcliff Sinclair has been hired as the new exec-
Gary Moore joined the Seattle office of Pacific Public
utive director for the Seattle-based northwest regional
Affairs. He has served as director of the Dept. of Labor
office of the U.S. Chamber of Commerce. A former
and Industries, commissioner of the Dept. of
member of the Washington state House of
Employment Security, deputy staff director and direc-
Representatives, she was also head of the Everett Area
tor of legislative relations in the Governor’s Office, and
Chamber of Commerce.
senior staff consultant in the Office of Financial
Mike Bernard
John Engler
Rod Koon
Management.
Mack Hogans
Emily Homer has been named director of care management for Group Health’s Community Networks and
Weyerhaeuser’s Senior Vice President and former AWB
Clinical Support Division. Homer will be responsible
Chair of the Board Mack Hogans announced his
for division-wide planning and program development
retirement. Hogans joined Weyerhaeuser in 1979 and
of care coordination activities.
was AWB Chair in 1998.
Lysa Barbano has been named vice president and pri-
Jon Teague joined the Association of Washington
vate banking manager for the South Sound as part of
Business as a director of risk management for workers’
Wells Fargo’s new Washington Community Private
compensation. AWB is also pleased to announce that
Banking initiative. Michael Wallingford, senior vice
Amie Fowler joined AWB as receptionist /office assis-
president and regional manager of the South Puget
tant and that Michael Neiertz is a new membership
Sound region, made the announcement.
manager.
Wayne Stevens
Renee Radcliff
Sinclair
52
WASHINGTONBUSINESS
Jon Teague
Gary Moore
Jim and Fawn Spady are Super Heavy Lifters
round Olympia, people who successfully
take on difficult tasks are called Heavy
Lifters. Occasionally, there are those who tackle extraordinarily tough projects over long
periods of time and prevail.
That’s the case this year. Jim and Fawn
Spady, owners of Dick’s Drive-Ins restaurants
in Seattle, worked harder than any other education reform activists to pass the state’s charter
schools legislation. They received AWB’s Super
Heavy Lifter award at AWB’s Governmental
Affairs Council retreat last May.
They are joined by Superintendent of Public
Instruction Terry Bergeson, who will also
receive the rare Super Heavy Lifter honor for
her dedication and work to keep education
reforms on track. Bergeson was presented with
her award at the Policy Summit in September.
There are others who have worked hard for
AWB and the employer community this year,
and they will receive their Heavy Lifter
plaques at the Policy Summit as well.
“These members, along with Superintendent
Bergeson, have made a difference. By recognizing
them we are expressing our heartfelt gratitude,”
AWB President Don Brunell added.
Photo by Daniel Brunell /AWB
A
Jim and Fawn Spady show off their AWB Super Heavy Lifter award in front of Dick’s
Drive-Ins restaurant on 45th Street in Seattle. Both are recognized for their work to
pass the state’s first charter schools law.
2004 Heavy Lifter Awards
Brad Carlson
Evergreen Memorial Gardens, Vancouver
Dave Quiring
Quiring Monuments, Inc., Shoreline
Brad Marten
Marten Law Group, Seattle
Bill Meacham
The Meacham Group, Kirkland
Gus Kiss
The Meacham Group, Kirkland
Jeff Gingold
Lane Powell Spears Lubersky, Seattle
Bob Ulin
AQP Publishing Inc., Silverdale
Bruce Beckett
Weyerhaeuser Company, Olympia
Ken Johnson
Weyerhaeuser Company, Federal Way
Mel Oleson
The Boeing Company, Spanaway
Collins Sprague
Avista Corporation, Olympia
Tim Boyd
The TSB Group, Olympia
Sarah Mack
Mentor Law Group, Seattle
SEPTEMBER / OCTOBER 2004
53
Letters (continued from page 7)
Hundreds of local non-profit groups and
many small businesses have watched their revenues drop drastically as revenues ballooned at
tribal casinos to over $700 million a year.
Many of these non-profit groups lost their
major source of revenue, and this loss affects
thousands of people, including children. Many
small businesses around tribal casinos suffer as
customers go to tribal businesses that can offer
them what they want, which is electronic
scratch ticket machines.
I-892 would correct this by simply allowing
the same machines into tax-paying businesses
and non-profit groups who have agreed to pay
a 35 percent tax to our state for the privilege.
These groups would once again have the revenue to support their worthy causes, and all
property owners would receive a reduction in
their property taxes.
I-892 offers property owners an opportunity to receive a benefit in return for allowing the
same type of machines into private businesses
and non-profit groups that tribal casinos have
had for years.
54
WASHINGTONBUSINESS
I would add that I have not heard, seen or
read from anyone opposed to I-892 any information that any tribal casino has been a detriment to the communities they're located in. In
fact, they're almost always praised.
If allowing these machines into tribal casinos hasn't negatively affected communities
around them, then it's reasonable to assume
that I-892 won't negatively affect the communities around tax-paying businesses.
With I-892, millions of taxpayers receive a
benefit — estimated at $400 million a year —
and a voluntary tax partially replaces a mandatory one. Even property owners that don't
choose to play benefit from the tax on these
machines via a lower property tax bill.
Additional millions in sales tax revenue and
other taxes would be generated and paid to
Olympia and other localities because of the
additional customers. Further, it stands to reason that these new customers buying more
food, drinks, merchandise and services will
require the hiring of thousands of new
employees by the local taxpaying businesses
across the state to take care of these new customers.
Opponents, such as the Tulalips and
Muckleshoot tribes, hypocritically state that
we shouldn't expand gambling. Meanwhile,
many tribes — including those opposed to I892 — continue to expand their casino operations. The fact is gambling will expand regardless of whether I-892 passes. It's just that without I-892, it won't be taxed or controlled.
If the debate is problem gamblers, then I-892
resolves this by creating a solid funding mechanism to finally treat the problem, unlike the present system, which provides nothing. Many tribal casinos pay virtually nothing to treat the problem gamblers they claim to care so much about.
How telling is it that tribal casinos have
raised millions to fight I-892 but still pay virtually nothing to reimburse taxpayers for the
resources they use?
We would allow no other group to maintain
and continue the kind of monopoly that has
been allowed in this case, and it's time we put
a stop to the unfair and unequal treatment that
hundreds of non-profit groups and thousands
of businesses across our state have to endure.
Dave Wilkinson, Renton