Don't let special session end without action on jobs, economy

MOSES LAKE - Chicago Mayor Rahm Emanuel recently gave some advice to his fellow Democrats: "You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before."

We hope the Democratic leadership in the Washington State House of Representatives was listening. During the special legislative session, which is set to begin next week, the House has an opportunity for a do-over - a chance to focus on jobs and act on a number of key reforms that passed the Senate with bipartisan support, but failed to even receive hearings in the House.

On April 26, two days before the regular legislative session wrapped up, the federal Bureau of Labor Statistics released its quarterly update of unemployment rates by state over the past year. Under the broadest of its measures, which takes into account "discouraged" workers who are no longer actively seeking work, Washington ranked fifth-highest in the nation in unemployment over the last 12 months.

That ranking is further proof of the serious crisis our state faces when it comes to jobs. The Senate Majority Coalition Caucus, a bipartisan alliance of Democrats and Republicans, recognizes that; the legislation we passed during the regular session would greatly contribute to building the business-friendly climate our state's employers need.

When we return to the Capitol I hope my colleagues in the House will act on those measures, if they are serious about creating an economic environment in which Washington employers have the confidence to expand their businesses and hire new workers.

It takes more than regulatory reform to create an inviting economic environment; tax policies and a ready workforce are critical too, and the Senate has come through on those fronts.

The Senate approved a bipartisan, sustainable budget that avoids general tax increases, doesn't raid the state's rainy-day fund, and balances over four years, as required by state law. Our budget invests an additional $1.5 billion into K-12 education, with a billion dollars going directly toward addressing the state's obligation to fund basic education. It spends more than $300 million on higher education, an increase of nearly 11.5 percent and reduces tuition by 3 percent. For the first time in our state's history, our budget would reduce college tuition rates while increasing our investment in our higher education system.

These investments in education are tied to a series of important, data-driven reforms aimed at preparing Washington students to compete for the jobs that will be available in our 21st-century economy.

Again, the Senate plan does all this without increasing the tax burden on families and employers.

By contrast, the House Democratic budget doesn't add up. It falls $426 million short of balancing this year alone and doesn't even come close to meeting the legal obligation to balance over four years. It also hikes taxes on families and employers by nearly $1.2 billion, yet fails to include as much for higher education as the Senate budget.

Coupled with our approach to the budget and education are the job-friendly measures the Majority Coalition has passed, the centerpiece of which is Senate Bill 5127.

Approved with a bipartisan 30-19 vote, SB 5127 would help reform the state's costly workers' compensation system and avoid the major rate increases proposed by Labor and Industries for employers to recover the current $720 million deficit in its contingency reserve.

In 2011 I led the successful effort to create an alternative claims-resolution option for injured workers aged 50 and up, allowing them the option to pursue a settlement agreement (such settlements have to do only with compensation; there's no effect on the payment of medical bills resulting from injuries). It was a win-win for employers and workers, and also allowed the state to realize millions in savings.

This year's SB 5127 would allow injured workers as young as 40 to pursue voluntary settlement agreements. As with the reform from 2011, this bill gives more workers the option of a voluntary settlement, allowing them to re-enter the workplace on their own terms rather than be trapped at a much lower earning capacity and prohibited from working.

Unfortunately, this common-sense, bipartisan measure stalled in the Democrat-controlled House, when they denied it even a hearing.

Workers' compensation reform, as embodied in SB 5127, must be a top priority during the special session. Otherwise employers and workers will be looking at another $720 million tax hit in the form of higher premiums at a time when they are already facing an increase in their federal tax burdens.

There's a lot of work to do. Our Senate coalition is committed to creating and preserving jobs, building a world-class education system, and passing a sustainable budget. Hopefully, the House Democrats will not waste this opportunity to be a helpful partner, not a stumbling block, as we pursue this agenda.

We need to get out in front of this crisis. The economy can't wait.

Senator Janéa Holmquist Newbry, R-Moses Lake, represents the 13th Legislative District and is chair of the Senate Commerce and Labor Committee.