Skilled workers, more family wage jobs a key to local business

Sen. Derek Kilmer - Special to the Gateway

When I go to the Capitol each morning, my top priority is to work for more good jobs in our community.

But economic development isn’t just something I focus on during the legislative session – it’s my profession. As the Business Retention Manager for the Economic Development Board, I meet yearly with about 200 businesses to support their efforts to grow and succeed in our region.

There are common themes to the challenges local employers face. As vice chair of the Senate Economic Development, Trade, & Management Committee, I’m working to solve these problems.

Supporting entrepreneurs

Washington is a national leader in small business start-ups. Unfortunately, it’s also near the top of the list in small business failures. Based on the suggestions of local employers, it’s clear there are steps we can take to help.

• Reducing small business taxes
  One of the biggest concerns for employers is our state’s business and occupation (B&O) tax. Because the B&O tax is a tax on gross receipts, a small business could be unprofitable but may still face a substantial B&O tax burden. We’ve got to fix that.

We currently have a tax credit on the books to help small businesses that are starting up or have low profit margins, but we can do better. I’ve co-sponsored Senate Bill 6407, which increases the small business credit this year and then increases it each year at the rate of inflation. This bill is a small step toward providing local employers with the tax relief they need to grow and succeed.

• Tearing down regulatory burdens
  Many small businesses also struggle to navigate their way through the various permitting and regulatory processes. An unclear system leads to unnecessary frustration and cost. That’s why I’ve sponsored Senate Bill 6690 which creates the Office of Regulatory Assistance to promote accountability, transparency and predictability in regulatory processes. The office will work with state agencies and local jurisdictions in an effort to improve our business climate.
   
• Helping those who help small businesses
  If you talk to a banker in our area, they’ll mention that many entrepreneurs often seek a loan before they’ve got a viable business plan. Lacking that, a small business can be set up to fail before they even get started.

Many states have made strong commitments to Small Business Development Centers, which provide critical technical assistance to entrepreneurs, helping them draft workable business plans, create effective marketing campaigns, or develop strategies for early funding. I’ve sponsored Senate Bill 6296 which will enhance our state’s support for Centers like the one at Olympic College in Bremerton and Bates Technical College in Tacoma to empower them to assist more entrepreneurs in our region.

Ensuring workforce skills for the jobs of the future

Employers need good skilled workers to compete. And workers need strong skills to take on the jobs of today and tomorrow.

• Providing more educational opportunities in our region
  From the Naval Shipyard in Bremerton to local small businesses, we’ve heard a consistent message — we need to do a better job of meeting our region’s workforce needs. Last year, I spoke with a Kitsap County employer who said he could have doubled his workforce if only he could have found workers with the unique skills he needed. At the same time, people who want to pursue additional education often face the prospect of long commutes or even having to move.

That’s why legislators from our area are working together to get funding for an evaluation of our area’s higher education needs and a plan for a path forward. This is a critical first step in ensuring we have the local capacity to meet the needs of students and employers and hopefully will result in a new university center or other means of providing additional educational opportunities.

• Preparing workers for the future
  Workforce challenges aren’t unique to our region. According to the state’s Workforce Training Board, 51 percent of Washington businesses attempting to hire new employees reported difficulty finding qualified applicants.

One of the most acute challenges involves simply helping employers improve the skills of their existing employees. Currently, Washington ranks near the bottom in per capita investment in customized training among the 47 states with training programs.

In a dramatically changing economy, we need to be more flexible and innovative with regard to how we provide training opportunities. That’s why I’ve sponsored Senate Bill 6295 to expand partnerships between colleges and employers, so they can work together to offer more workplace-based training programs.

By taking these basic steps to improve our state’s competitiveness, we can help working families and expand opportunities for family wage jobs in our community. Government should work for citizens — not against them. With reforms, our state can be part of the solution.

Derek Kilmer is the State Senator for the 26th Legislative District and was the Washington Economic Development Association’s Leader of the Year.

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