As Washington begins its climb out of the dual disasters of coronavirus and the economic crisis that came with the shutting down of the economy, there needs to be a plan to restore the economy while protecting our most vulnerable citizens. The Governor's emergency proclamations have seriously restricted private entities to engage in operations that could easily be done in a safe and prudent method. Just as the governmentally contracted private entities are allowed to do in the name of the state government. Since the source of both private and governmental construction projects both have the same root financing source, the people, it is inconceivable as to how the Governor could logically assume because funds were coming from a governmental budget that construction activities were of less risk of spreading the coronavirus than other construction crews performing commercial and residential construction. Fortunately, the Governor seems to have been forced to recognize that fact by his parties own union supporters. While this has the appearance of relaxing the restrictions put in place by the Governor, it is only a very limited relaxation.
With what is expected to be at least a $6 billion shortfall in the budget of the state for the 2021-2022 biennium, there will have to be some serious adjustments in order to increase the state's revenue flow and prevent the shortfall from growing significantly larger. As we continue to deal with this ongoing virus pandemic and the quarantine of our most vulnerable citizens, we will need to incentivize businesses that are able to get back to work and restore the state's economy and revenue stream in a safe and prudent manner. Whether those incentives be in the form of reduced regulations, lower taxes, or other removing bureaucratic barriers to increase job creation, the Legislature will have to tackle this situation sooner rather than later.
Only the legislature can reduce the state's budget in an effort to proactively reduce the dire effects of this economic shut-down by the Governor. Changes will have to be made to the budget. That is the Legislatures purpose and duty. Whether the Governor calls them back into session or the four pillars of the legislative leadership can gather the required number of votes for the Legislature to call itself into session it must be done. The Legislature should focus itself on reducing and reprioritizing the budget and its programs to fit the current existing revenue stream. Not the pre-shutdown projections, and billions of dollars in new taxes. The Legislature should do its utmost to focus on the retention of jobs in Washington state. Directing agencies to reduce regulations that increase the cost of manufacturing within the state that businesses find it more economically viable to close down and leave the state. When regulations lead to business pulling out of a state due to extreme cost and restrictions, the businesses take with them thousands of jobs. With those jobs go all the capillary tax revenues spread out through the community.
As an example, take a look at the flight of American manufacturing jobs during the 1970s and into the early 1980s. The vast majority of these industries left America due to high labor costs and ever-increasing regulations and restrictions that made it untenable to remain in the US. Then, during the Trump administration, many of those regulations were cut, and economic strategies brought back thousands of manufacturing plants to the US. Another example of unnecessary regulations costing jobs is the Olympia Brewery in Tumwater. After millions of dollars were spent to meet drinking water standards for the water outflow from the brewery, the brewery was told that while the outflow was clean enough for human consumption, it did not meet the standards for the fish at the small facility just downstream of the brewery. When told it would require more millions of dollars in expenditures, the brewery laid-off some 400 employees and close-down.
In the current situation Washington finds itself, we can no longer accept the same high taxation, high regulation, and agency restrictions we have had previously. Washington state needs to focus on retaining jobs, especially manufacturing jobs, and creating an inviting environment for businesses to want to invest and become engaged in Washington state again.
There is just so many half truths and Fox News talking points in this blog that it's going to be difficult to unpack so bare with me.
1. The Olympia Brewery was not closed down because of "some fish". It was a water rights issue, the brewery was drawing water from an artesian well, due to the population surge in the area it was found that people's ability to drink water was more important than a companies ability to use that water to make and sell beer. I understand that some people don't think that humans have a right to water but I digress.
2. According to the Bureau of Labor manufacturing took it's largest dive in the years followin…