Newsletter — July 3, 2024 | |
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Happy Independence Day
WR celebrates the spirit of freedom, bravery, and unity that defines our great nation. As we honor the red, white, and blue, we wish everyone a safe and joyous Fourth of July filled with love, laughter, and cherished moments with family and friends. Let’s come together to celebrate the liberty and independence that make America truly special. 🇺🇸🎆
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POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
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WR attends National Unemployment Insurance Conference
Rose Gundersen, VP of Operations and Mark Johnson, Sr. VP of Policy and Government Affairs recently attended the annual Unemployment Insurance (UI) Conference in Spokane, Washington.
Thirty-two states and the federal government participated in the three-day event and WR was actively involved, serving on the planning committee and introducing the first speaker. Theconference is the only one in the country that brings together all parties involved in the UI process. Unlike workers' compensation, paid family leave, or paid sick leave, which are a combination of employer and employee funded, UI is a major employment cost solely funded by employers.
The conference featured many thought-provoking sessions and breakouts on topics such as UI trust fund solvency, workshare programs, fraud prevention, quarterly wage reporting, and legislative efforts at both state and federal levels.
One of the most impactful sessions for WR was on UI for striking or locked-out workers. The Washington State Legislature considered a bill last session to allow this, thankfully it narrowly failed. Extending UI benefits to striking workers presents a significant issue: employers would be paying for workers to strike against them, which contradicts UI’s purpose of protecting against job loss. Additionally, once an employer hits their UI cap, other employers in the system would end up covering the cost for the striking workers. This could severely impact Washington state, which has several large, unionized employers.
Finally, and most importantly, if a state law were to be enacted, it would be in direct conflict with federal UI law (Sect. 303(a)(12)) which explicitly states that a worker has to be “available to work, and actively seeking work” – conditions not met while on strike. Legal challenges would likely follow if such a law were passed in Washington. Both California and Connecticut legislatures adopted similar UI provisions for striking workers last year, only to be vetoed by their governors. Currently, only New York and New Jersey allow UI benefits for striking workers, but their laws have not yet faced legal challenges.
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State revenue forecasts adjusted amid capital gains decline
Washington's Economic and Revenue Forecast Council (ERFC) has revised its projections, highlighting a significant downturn in expected revenues and capital gains taxes. The latest forecast anticipates a $665.7 million decrease across the upcoming bienniums. Specifically, projections for the 2023–25 period have been adjusted downward by $476.7 million, with further reduction of $189.0 million for 2025–27, now totaling $66,528.4 million and $71,532.2 million respectively.
This adjustment follows a sharp decline in capital gains tax revenues, which saw collections fall from $847.5 million in fiscal year 2023 to an estimated $371 million in 2024, primarily allocated to the education legacy trust account (ELTA). Consequently, forecasts no longer anticipate contributions to the common school construction account (CSCA) throughout the forecast period, significantly impacting the state's budget outlook with reductions of $769.0 million for 2023–25 and $972.0 million for 2025–27 compared to previous estimates.
Despite these challenges, the ERFC remains cautiously optimistic, presenting scenarios that suggest potential revenue variances ranging from a surplus of $6,047 million to a deficit of $6,564 million in the years ahead, reflecting ongoing economic uncertainties. These adjustments underscore the council's commitment to maintaining fiscal balance amidst evolving economic conditions.
ERFC's meeting handout
TVW meeting video
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Join Crystal Leatherman, WR's State & Local Government Affairs Manager, at the Renton Chamber's Governor Candidates Reception!
You're invited to an exclusive reception hosted by the Renton Chamber, featuring the candidates running for Governor of Washington State. Meet Crystal Leatherman and engage with top contenders like Mullet, Ferguson, Reichert, and Bird in an informal setting.
Date: Tuesday, July 9, 2024
Time: 6:00 PM - 8:00 PM PDT (Venue open until 9:00 PM for extended networking)
Location: Weatherly Inn, 4550 Talbot Rd S, Renton WA 98055 Valet Service Available
Discount Code: Use "WARetail" to save $15.00 per ticket. Early registration is recommended as this event is expected to sell out.
Fees/Admission: $65 per person includes admission, food, and drinks.
Don't miss this opportunity to connect with fellow professionals and discuss the future of Washington with gubernatorial candidates. RSVP now to secure your spot!
For more information, contact Diane Dobson at Diane@GoRenton.com.
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Spokane roundtable consensus: New requirements limit the middle class
WR hosted a Retailer Roundtable in Spokane on June 26 to help small retailers and partners stay informed and to hear about implementation challenges. We are thankful to North 40 Outfitters for hosting the event at their West Spokane location.
Small retailers, the Greater Spokane Incorporated, and the Spokane Valley Chamber of Commerce reviewed a summary of new employment laws passed in the 2023/24 legislative sessions. Participants’ most salient response to the continuous onslaught of employer requirements is concerns over their lack of financial and human resources necessary to comply, especially under inflationary wage pressure, which adversely impacts consumer pricing.
For small retailers, the dream of running a business is a pathway to attaining middle-class status. For their mid-level managers, opportunities for training and schedule flexibility have been constrained by the rapid rise in salary-exempt thresholds.
Policymakers and government agencies need to hear and understand the vital role retailers play in their communities and in the State’s economy. WR will be coordinating a retail tour in the Spokane area following the August primary for elected officials and candidates.
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Supreme Court ruling shifts regulatory landscape for retail
In a landmark decision, the Supreme Court has overturned the longstanding Chevron deference doctrine, marking a significant shift in federal agency authority. This doctrine, in place for four decades, allowed agencies to interpret ambiguous laws and implement regulations with minimal judicial interference. Now, with judges empowered to independently interpret laws, the ruling sets a precedent that could facilitate easier challenges to regulatory measures across various sectors, including consumer protections and environmental standards.
For the retail industry, this decision holds profound implications for rules governing toxic chemicals, drugs and medicine, climate change, artificial intelligence, cryptocurrency and more. The move hands a major victory to conservative and anti-regulatory interests that have looked to eliminate the precedent which has led to administrative overreach. Conversely, proponents of robust regulatory oversight fear it may weaken protections vital to public health and safety.
As businesses adapt to this new legal landscape, stakeholders across sectors must closely monitor its impact on policymaking and enforcement, shaping the future dynamics of governance and commerce in America.
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Left to right: Crystal Leatherman, Judge Dave Larson, Mark Johnson
WR supports Judge Dave Larson for Washington State Supreme Court
Last week, WR government affairs staff Crystal Leatherman and Mark Johnson attended a campaign reception for Judge Dave Larson, candidate for the Washington State Supreme Court. Also in attendance were WR-endorsed candidates for Pierce County Executive, State Rep. Kelly Chambers, and 9th District State Rep. Joe Schmick.
Judge Larson is the only sitting judge in the race to fill the open seat on the Supreme Court. He has been a tireless advocate for public safety and has received WR’s endorsement on multiple occasions. Judge Larson will be a welcome addition to the state’s highest court.
WR encourages voters and retailers to support all three candidates: Judge Dave Larson for Supreme Court, Rep. Kelly Chambers for Pierce County Executive, and Rep. Joe Schmick running for re-election.
The August 5 primary is right around the corner. Ballots will be mailed to voters soon. If you are not already registered, please do so at your earliest convenience.
Register to Vote
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Supreme Court ruling on homelessness policies: Implications for retail and local autonomy
In a landmark decision, the U.S. Supreme Court upheld the authority of local governments to regulate public encampments, a ruling with profound implications for the retail industry and cities like Seattle. Ann Davison, Seattle City Attorney, welcomed the decision, emphasizing the need for local autonomy in addressing homelessness. She stressed that while supporting the homeless is crucial, cities must also manage the impact of encampments on community safety.
The ruling in Grants Pass v. Johnson reaffirms municipalities' discretion to enforce laws regarding public spaces, despite concerns about adequate shelter availability. Retailers, represented by the Retail Litigation Center, view this decision as pivotal for community vibrancy and public safety.
Seattle, already navigating complex legal landscapes like Martin v. Boise, expects minimal immediate changes due to existing local policies. As legal challenges loom, including potential state-level disputes, the retail sector remains attentive to how cities balance public safety with compassionate solutions for homeless populations.
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WAORCA's June meeting highlights bipartisan efforts and community collaboration against retail crime
The Washington Organized Retail Crime Association (WAORCA) held its monthly King County meeting at South Center Mall. The June meeting saw one of the largest turnouts yet, with over 50 attendees, including retail loss prevention investigators and law enforcement officers. They reported on the numerous retail crimes impacting businesses and the community. Crystal Leatherman, WR’s Local and State Government Affairs Manager, introduced special guest Representative David Hackney (D-10). Rep. Hackney provided an update on bipartisan efforts at the legislature to address public safety concerns. Attendees also shared firsthand accounts with Rep. Hackney regarding the increase in retail theft and organized retail crime.
WR expresses gratitude to Rep. Hackney for his time and looks forward to collaborating with him during the interim to develop solutions that will improve public safety and create a safer, more vibrant shopping and working environment across the state.
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Mayor Harrell calls for expansion of City’s CARE Department
Launched as a pilot program in 2023, Seattle’s Community Assisted Response and Engagement (CARE) Department would expand to a citywide 24/7 behavioral health response program by the end of 2024 under a proposal announced by Mayor Bruce Harrell.
The goal of the CARE Department is to dispatch behavioral health specialists on 911 calls for people experiencing a mental health crisis or other issues that do not require police engagement. The deployment of CARE staff is designed to both provide appropriate help to the person and allow the City to focus police resources where they are most needed. City data shows that 88% of CARE calls come from Seattle police officers who have already responded to a call and are able to leave when a CARE team arrives.
According to Mayor Harrell, “Since we launched this innovative public safety pilot, the CARE responder team has done outstanding work to both help people in need and to free up police officers to respond to the calls where they’re needed most. That’s why we are announcing our plan to expand CARE to answer calls citywide, seven days a week.”
Initially, CARE was focused on SODO, the Chinatown-International District, and downtown. According to the Mayor’s proposal, the first phase of CARE expansion would cover Capitol Hill, Central Area, First Hill, Judkins Park, Madison Park, Montlake, and upper Pike/Pine. In the fall, CARE would expand to North Seattle, then to South and Southwest Seattle by the end of the year.
The Mayor also announced that he is nominating Acting CARE Chief, Amy Smith, to the role of permanent Chief. This nomination will move on to the City Council for confirmation.
Acting Chief Smith praised the work of her Department, saying, “Our integration and partnerships with community and nonprofit organizations is both significant and vital because the objective is not just to provide the best first response to a 911 call, but then to swiftly help someone onto whatever rehabilitative or supportive path they need.”
Councilmember Bob Kettle, chair of the Public Safety Committee, also lauded the work of the CARE Department: “We can’t succeed in public safety if we don’t also succeed in public health. Our CARE Team is central to that mission. When we create a more diversified and targeted response to 911 calls, we create a more efficient and effective response system that resolves emergencies faster. That’s life-saving work.”
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, State & Local GA Manager — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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