WSLC Legislative Update -- January 13, 2006

Wikipedia defines a "policy wonk" as someone both deeply knowledgeable about, and fascinated by, the details of government programs.

No one who attended his presentation on Washington's unemployment insurance (UI) system this week in the House Commerce and Labor Committee can question his knowledge or fascination with policy detail. (If they stayed the whole two hours, though, they probably question their own.)

Dr. Vroman of The Urban Institute is the nationally recognized expert on UI systems. States from Montana to Virginia have sought out his expertise in analyzing their systems and recommending changes. So last year when the legislature established a special UI Task Force of equal parts legislative, labor and business representatives, one of the few things they all agreed upon was that Dr. Vroman is da man.

Four times in the past decade, the good doctor has performed similar checkups on our system. But he hasn't since the 2003 passage of dramatic UI benefit cuts and the new 40-rate tax system, and last year's EHB 2255, which temporarily stopped the bleeding on the most severe of the benefit cuts.

So the Employment Security Department has turned its collective head and coughed, providing Dr. Vroman with all the benefit, tax and trust fund data necessary for his diagnosis. He has reported his conclusions and recommendations to the UI Task Force, and this week he delivered them to state legislators at a committee work session.

"The highest priority should be to restore two-quarter averaging as a permanent feature," Dr. Vroman says. He says the 2003 switch to four-quarter averaging for benefit calculation caused "a large reduction" in the average weekly benefits (in the $40-50 range), and "much larger reductions" for many individual claimants. Those would be construction, agriculture, community college workers -- and as it turns out, women in general -- who all experienced disproportionate benefit cuts. These workers' testimony last year about the severe hardship their families were facing spurred passage of EHB 2255, temporarily reinstated two-quarter averaging.

Given that the full effect of separate UI benefits cuts will not be felt until about 2007 -- the same year we will return to the punitive four-quarter averaging if the legislature fails to act -- Dr. Vroman recommended they act now to make two-quarter averaging permanent.

The WSLC strongly supports this recommendation and has made it one of our top priorities for this session.

Dr. Vroman has made several other recommendations. Labor agrees with many of them, like retaining key features of present UI financing and addressing SUTA dumping (when employers close shop and immediately reopen with different names to dodge UI taxes). Labor doesn't agree with some recommendations, but in the spirit of compromise, can accept them if two-quarter averaging is made permanent, such as retaining the 26-week benefit limit and the lower benefit indexation and replacement rates imposed in 2003. And there are a few of Dr. Vroman's recommendations labor just plain disagrees with, such as increasing the voluntary-quit disqualifications and imposing repeat-use penalties that would be the first of their kind in the nation.

Due to limitations of space, and of non-wonk attention spans, we'll discuss these in more detail later.

As for the UI task force's business representatives, they testified this week that they acknowledge the 2003 benefit cuts had "unintended consequences" and were too severe for some workers, but they oppose keeping two-quarter averaging because they think it costs too much. (Translation: we feel your pain, but would rather cut our taxes even more.) They want more time to come up with other alternatives.

But as committee chair Rep. Steve Conway (D-Tacoma) made clear, this is a short session and he wants action on this issue. Let's hope their strategy isn't to stall this to death.

The Fair Share Health Care bills are HB 2517, prime sponsored by Rep. Eileen Cody (D-Seattle), and SB 6356 from Sen. Jeanne Kohl-Welles (D-Seattle). Hearings on both are set for Thursday, Jan. 19 at 8 a.m. in the Senate Labor and Commerce, and 1:30 p.m. in the House Commerce and Labor. Fair Share Coalition supporters will meet between hearings for lunch to talk with legislators. (To RSVP, click here.)

These bills would set a minimum standard for employers of 5,000 or more to invest at least 9% of their labor costs into employee health benefits -- 7% for public employers and non-profits who can’t deduct health costs from their taxes. The handful of businesses that don't meet this always low standard (always!) would have to pay the state a fee -- the difference between that 9% and what they do spend on benefits -- used to cover some of the uninsured working adults in our state.

There is now national interest in this legislation -- the New York Times, Washington Post, L.A. Times, BusinessWeek and others have all called today -- because on Thursday, the Maryland legislature voted to override their Republican governor's veto of a similar Fair Share bill. That makes Maryland the first of more than 30 states that are considering Fair Share legislation to enact it.

This legislation is only one part of the four-point proposal put forward by the Fair Share Health Care Coalition of labor, business, community and religious organizations. The coalition also testified this week on restoring 10,000 slots for working people in the Basic Health Plan and continuing to increase coverage for children in this year's budget.

The coalition also supports HB 2572, the Small Employer Health Insurance Partnership Program, providing premium assistance to small businesses' employees who are under 200 percent of the federal poverty level. It will be heard at 1:30 p.m. Thursday in the House Health Care Committee.

WSLC Legislative Conference
is THURSDAY, FEB. 16

All union leaders and rank-and-file members are invited to attend the 2006 WSLC Legislative Conference Thursday, Feb. 16 at the Olympia Red Lion Hotel from 8:30 a.m. through lunch, with registration at 7:30 a.m. As always, the night before, Wednesday, Feb. 15, we'll host a Legislative Reception from 6:30 to 8:30 p.m. at the hotel. The registration fee, including materials, lunch and one admission to the reception, is $30. Download a registration form or call 206-281-8901. Please register by Jan. 27 so we can make plans to accommodate every one.

Two important election-related bills supported by the WSLC will have hearings this week:

HB 1226, sponsored by Rep. Shay Schual-Berke (D-Normandy Park), would apply campaign contribution limits to judicial races. Last year, it passed the House 59-39 but got hung up in the Senate. In 2004, the Building Industry Association of Washington pumped more than $140,000 into former BIAW attorney Jim Johnson's successful campaign for State Supreme Court. Now, for the first time in this state, a group of partisan ideologues have formed the Constitutional Law PAC to support right-wing judicial candidates. Concerns about the politicization of our judicial branch have lead popular Supreme Court Chief Justice Gerry Alexander, who supports judicial campaign contribution limits, to pledge he will voluntarily impose them upon himself this year. Let's IMPOSE them on all judicial candidates.

HB 2027 and SB 6236 are slightly different versions of similar bills to move the state primary election to the third week of August. There appears to be broad recognition of the fact that there is not enough time between the current September primary and the November general election, especially now that far more people vote by mail. The WSLC supports both of these bills and urges their swift passage.

The big legislative news this week in the commercial media was the announcement by Sen. Bill Finkbeiner (R-Kirkland) that he will support the non-discrimination bill protecting lesbian, gay and bisexual people. Sought for nearly 30 years, this passed the House last year 61-37, but failed on a 24-25 Senate vote after it was opposed by every Republican and Democratic Sens. Tim Sheldon ("D"-Potlatch) and Jim Hargrove (D-Hoquiam).

The WSLC is very pleased with this development, having supported this legislation for many years. In Washington today, it is perfectly legal to fire or refuse to hire someone simply because of their sexual orientation. Thirteen states have laws that prohibit this discrimination, and it is time for Washington to become the 14th.

House Speaker Frank Chopp (D-Seattle) has pledged to advance HB 2661, this year's version, to the Senate as soon as next week. Sen. Finkbeiner’s change of mind improves, but doesn’t assure, its passage. The new GOP leadership may pursue procedural moves to prevent a vote. Or another mind may change. We hope that doesn't happen. It's time to resolve this issue of fairness and equality once and for all.

MONDAY, Jan. 16 -- House Commerce & Labor (1:30 p.m.): HB 2353 providing collective bargaining for family child care providers; HB 2392 protecting the federal FMLA; HB 1371 modifying the nurse mandatory overtime prohibition. Senate Labor & Commerce (10 a.m.): a number of bills regarding salaries and benefits of community and technical college faculty.

TUESDAY -- Senate Ways and Means (1:30 p.m.): SB 5236 providing funding for prevailing wage enforcement. House Health Care (1:30 p.m.): HB 2572 providing health subsidies to small employers plus funding 10,000 BHP slots; HB 2499 re-regulating the individual health insurance market.

WEDNESDAY -- House Commerce & Labor (8 a.m.): HB 2538 on right-of-entry for WISHA safety inspections; and several workers' comp bills. Senate Ways & Means (1:30 p.m.): testimony on the governor's budget.

THURSDAY -- Senate Labor & Commerce (8 a.m.) and House Commerce & Labor (1:30 p.m.): Fair Share Health Care bill (see story).

FRIDAY -- House Higher Ed (1:30 p.m.): HB 2583 on part-time college faculty health benefits and HB 2595 on their salaries. House Health Care (130 p.m.): HB 2473 on regulating pharmaceutical benefit managers; HB 2500 requiring more rate-setting and reserving transparency by health insurers.