Local news:  

►  In the Daily World -- Weyerhaeuser closes Aberdeen sawmill, Pacific Veneer -- The company announced Monday it is permanently closing two plants in South Aberdeen, eliminating 221 jobs. The closures took effect immediately. The veneer plant, which was not a union plant, had shut down from Dec. 15 to Jan. 5 and employees went without pay. As for the sawmill, even if the demand for the lumber goes up in the future, the company says the mill will not reopen.

►  At HeraldNet.com -- SPEEA moves to protect members in event of Wichita sale -- The union has presented a contract counterproposal that protects members if Boeing sells its Wichita plant.

►  In today's Tri-City Herald -- Walla Walla DOL office to stay open another 18 months -- Licensing office will remain open after elected officials urged the agency to reconsider closing it this year.

►  In today's Olympian -- Fire district may accept mediation with Lacey -- The ladder truck that took six years and $700,000 to get is at the center of the dispute between the city and the district.

►  At Publicola -- Larry Phillips to announce candidacy for King County Executive -- Reliable sources say Ron Sims will be taking a job with the Obama administration in HUD.

Federal stimulus news: 

►  In today's LA Times -- Deluge of layoffs hits U.S. economy -- Home Depot, Caterpillar, Pfizer and Sprint announce nearly 60,000 job cuts, adding impetus to the Obama's efforts to reach agreement on a plan to pump $825 billion into the economy over a two-year period.

►  In today's NY Times -- Layoffs spread to other sectors -- Furloughs, wage cuts, hiring freezes and shorter hours simply did not do enough. A year into this recession, companies across the board are now resorting to mass job cuts, signaling a protracted decline for business in 2009.

►  From AP -- How Obama's stimulus would create jobs -- If it works as planned, it would create thousands of construction jobs building and repairing roads, bridges and other infrastructure. But it also aims to boost jobs in the manufacturing, information technology and energy sectors.

►  Today from AP -- Obama seeks GOP help on economy; McConnell hopeful -- Obama is making good on his promise to hear from Republicans as he pushes for swift passage and bipartisan backing of his massive $825 billion plan intended to jerk the country out of recession. The unanswered question: whether the new president will actually listen to GOP concerns about the amount of spending and the tax approach -- and modify his proposal accordingly.

►  At Huffington Post  -- Stimulus: Dems may drop family planning after GOP attacks -- The provision has emerged as a point of contention among Republicans, who criticize it as an example of wasteful spending that would neither create jobs nor otherwise improve the economy.

Legislative news: 

►  In the PS Business Journal -- State budget crisis renews tricky hunt for "loopholes" (non-subscribers can email us for a copy) -- Tax exemptions, exclusions and deductions are worth a total $53.5 billion in state taxes and $45 billion to local taxes in this two-year budget cycle. Says WFSE Executive Director Greg Devereux: “I think those should be on the table too, just like state employees and services to the citizens. But repealing tax exemptions is harder than it sounds.

►  In today's Seattle P-I -- More liquor stores, more cash -- In her proposed budget, Gregoire has requested approval for 10 new liquor stores and to allow state stores to sell additional products. Grocery owners aren't happy about it, and Sen. Tim Sheldon ("D"-Potlatch) says he will (again) introduce legislation to privatize liquor stores.

►  In today's Spokesman-review -- House Dems unveil savings plan -- Rushing to save money before budget woes worsen, House Democrats propose cuts and other changes that they said will save $640 million by July. More than half the budget relief comes from federal dollars.

►  In today's -- State's House Democrats unveil savings plan -- Overall, their plan would cut about $14 million less than Gregoire’s budget. One major difference: Lawmakers want to keep a children’s health care program, which Gregoire didn’t pay for.

►  In today's News Tribune -- State vows no overrun on tunnel -- State DOT officials are confident the state’s portion of the project will cost $1.9 billion or less. That’s in addition to the $900 million the state already has committed to it, putting the total state obligation at $2.82 billion.

►  Today from AP -- Lawmakers offer 2 bills to change school finance -- A bipartisan group of legislators present two bills prepared by a joint task force. They avoid discussing the cost of the new system, but acknowledged it could increase the state price tag as much as 50%.

►  In today's Columbian -- Nothing funny about proposed gag rule on employers (AWB's Don Brunell column) -- The bill bans employer communications about “…matters directly related to candidates, election officials, ballot propositions, legislation, election campaigns, political parties, and political, social, community and labor or other mutual aid organizations.” (Don Brunell and other business lobbyists are INTENTIONALLY LYING. The Worker Privacy Act absolutely does NOT ban employer communications of any kind. Learn the truth.)