Jobs and the Economy

When our legislative session began, our state faced a 7.2 percent unemployment rate. Over 90,000 people had applied for unemployment benefits in December alone. Our jobless rate has only continued to grow. In March, more than 344,000 Washington residents were out of work – a 9.2 percent jobless rate, up from 8.3 percent in February.

The public’s top priority for 2009 was all about jobs — preserving them, creating them, and helping the unemployed regain them. And for those who lost jobs, we worked to provide relief. We sought to find a balance between helping our workers and our businesses during this time of historic economic insecurity.

We approved a measure that increased weekly unemployment benefits by $45 to directly and quickly help those who have lost their jobs. The measure also expanded our Shared Work Program which will reduce job cuts and help keep paychecks of workers whose hours have been reduced dependable and consistent.

An extra $180 a month will now be placed into the pockets of our citizens who need it the most. This extra money will help those who are unemployed not have to choose between paying their heating bill or their mortgage payment and provide a modest stimulus to our economy.

We helped workers and employers alike by expanding our state’s Shared Work program. This program pays partial unemployment benefits to 70,000 workers across our state who have had their hours cut, helping workers continue to make ends meet and keeping employers’ workforces strong. (HB 1906)

The Legislature also worked to provide some security for the small businesses across our state that are also suffering from this recession and spur job creation.

We created a Business and Occupations (B&O) tax credit for small businesses – those with 10 employees or less. For every new job that pays 150 percent of the minimum wage or higher that an eligible business creates, that business would receive a $2,000 B&O tax credit. If the new jobs pays $40,000 or higher, the business would receive a $4,000 B&O tax credit. This measure died in the House. (SB 5899)

There is little question that our economy is changing. Those who are unemployed have stayed unemployed for longer amounts of time. Many of the jobs lost in this recession are not coming back as our economy restructures for new technologies. To get our workers back to work, we increased worker retraining efforts across the state. We expanded access to state employment and training programs, which provide unemployment benefits to dislocated workers.

Now, disabled workers, honorably discharged military personnel and low income workers will be able to get the training they need to succeed and be able to pay their bills. (HB 1906) The Legislature funded a program to retrain unemployed workers in high demand fields. Most of the training will be done at community and technical colleges.

We have allocated $7 million as a match for federal and local workforce investment act funds that is expected to help 3,000 to 6,000 students learn a trade that will help the state out of this recession. (SB 5809)

We also changed the way Unemployment Insurance benefits are charged back to employers, putting Washington in conformity with federal laws and allowing the state’s employers access to annual tax breaks. The bill also reduces some employer tax rates permanently and saves the business community hundreds of millions of dollars down the road. (SB 5963)

We passed Community Revitalization Financing which allows local governments to designate “revitalization areas.” Local governments will now be able to retain some of the new taxes generated from added economic activity within them to pay for building and improving infrastructure including roads, pedestrian bridges, landscaping, utilities and sidewalks — in other words, this allows for growth to pay for growth. (SB 5045)

In order to give businesses a break, agencies must now waive fines, civil penalties, or administrative sanctions for first time paperwork violations by small businesses. (SB 5042)

We strengthened the State Board of Community and Technical Colleges’ Job Skills Program by putting an emphasis on high-demand and high-growth job fields. This focuses training dollars on uses that will make the most impact — prioritizing training applications that involve collaboration by industry and by training institutions to garner the most bang for the buck. (SB 5554)

We provided incentive for companies to come to Washington by offering training for their workers. The Customized Training Program provides training allowances to small business employers who have entered into training agreements with colleges in the state. By making changes to the Customized Training Program, the state allows employers to delay payment which encourages them to train their employees now. (SB 5616)

A bold weatherization effort will target reduction of energy consumption by retrofitting an estimated 20,000 homes and buildings across the state. This will reduce heating bills and provide thousands of livingwage jobs for skilled workers, apprentices, veterans and disadvantaged populations. (SB 5649)