Business groups cheer state budget proposal

Gov. Gary Locke unveiled a $23 billion state budget for 2003-2005, a proposal that included no general tax increase and spending cuts amounting to $2.4 billion.

Highlights of the budget proposal include:

• Canceling cost-of-living increases for teachers and eliminating a class-size reduction set for 2004

• Increases for higher education spaces in high-demand fields, such as engineering, computer science and health care.

• Cuts of $109 million for state colleges and universities, while giving institutions more power to set tuition to cover state funding reductions. Tuitition increases are capped at nine percent.

• Eliminating 2,500 full-time state government positions by 2005.

Gov. Locke said the budget was constructed according to a “Priorities of Government” plan, which sought to reassess where government spends money and target funds to key areas. It follows similar measures, such as the Core Services Review undertaken by the British Columbia government, where government services are scaled back and funds spent on a few key areas.

The business community reacted favorably to Locke’s budget proposal.

“The budget is the most important piece of legislation that will come out of this session,” said Bob Williams, president of Evergreen Freedom Foundation. “If legislators truly want to make their mark on the direction of the state, they will determine government’s core functions and measure every program and expenditure against that standard.”

EFF challenged praised Locke’s decision to define priorities and budget accordingly. They challenged legislators to do the same when they meet for the 2003 session.

“We believe the governor was sincere when he said that his budget proposal is ‘not a Trojan horse for a tax increase,’” said the EFF in a news release.

Don Brunell, president of the Association of Washington Business, also supported the budget and its aims.

“Families and our state’s employers – the job providers – are suffering through a prolonged recession and have to cut back on expenses and layoff workers because the money just isn’t there,” he said. “We think the governor is taking the right approach in facing up to tough decisions early.”

AWB said any new taxes would fall disproportionately on businesses.

“We can no longer just add on to government spending to adjust for inflation,” Brunell said. “We just can’t afford the size of government we have today.”

States are in financial difficulty, according to the AWB, because citizens restricted state and local revenues through initiatives, while mandating additional tax dollars for education and home health care.

“There is a lot of work ahead, but the Governor should be commended for his courage in starting the budget process on the right foot,” Brunell said.

 

Signs Plus constructs Peace Arch sign

Signs Plus, Bellingham-based sign company, is helping Peace Arch Factory Outlet shape their new image. The outlet mall is undertaking a “new beginnings” project to help revitalize the outlet center. Signs Plus will redesign the monument signage and launch a new flag and banner program. Work will be complete in February. The Signs Plus project is one of a series of facelifts planned for the center.

Web site provides list of responsible business

Business Alliance for Local, Living Economies has launched an on-line national directory of businesses serving a triple bottom line, that is supporting community, environment, and economies. Prospective clients will eventually be able to search for businesses in a variety of categories.

A-1 Builders of Bellingham is the third organization in the nation to register with the new service. The Web site can be found at http://www.sconnect.-org/NWWashington/marketplace/searchIndex.cfm.

 

Georgia-Pacific sells off Unisource stake

Georgia-Pacific announced they sold a 60 percent stake in Unisource to Bain Capital. Unisource was Georgia-Pacific’s paper products distribution subsidiary.

Georgia-Pacific sold their portion of Unisource to focus on their core business and reduces the company’s debt. Georgia-Pacific recently announced plans to put their restructuring plan on hold.

 

Bellingham Police launch on-line press module

Citizens can search a daily digest of police incidents on the Web. Reports, once approved by supervisors, are posted to the Internet, allowing citizens real-time access to crime information.

Bellingham police plan to add crime reports and neighborhood statistics soon.

 

Mac techs launch e-newsletter

A Couple of Mac Addicts, owned by Scott and Jacque Peterson, started A Byte of Info, an e-mail newsletter for Macintosh owners. Each issue will feature tips for getting the most out of your Apple computer, choosing software, or assessing Internet options.

To subscribe, e-mail them at: macaddicts4u@attbi.com.

 

Gourmet House opens in Fairhaven

Gourmet House, a fine food retailer owned by Rob and Katrina Dillard, opened in Fairhaven at the end of November.

“We’ve been selling products at fairs and home shows for more than a year,” Katrina Dillard said. “People kept asking us where our store was.”

They searched for a spot to open a store and settled on Fairhaven, in the old Clayworks location. Gourmet House sells lines food products, including barbecue sauces and popcorn, cookware, candles, and home décor.

“Fairhaven is different,” Katrina said. “It has it’s own character. It’s the happening place.”

Soon, Gourmet House will be joined next door by Mannino’s Restaurant, who are moving into the old Doggie Diner location.

 

November Unemployment shows slight dip

Seasonally-adjusted unemployment fell one-tenth of a percentage point to 6.6 percent in November. Nationally, unemployment increased three-tenths of a percent to six percent.

“The November numbers hint at very modest improvement in the Washington labor market in the last quarter of 2002,” said Sylvia P. Mundy, employment security commissioner. “Washington’s jobless rate remains significantly above the national rate, however, and key sectors have not recovered.”

Unemployment in Whatcom County was up slightly in November, to 5.7 percent from 5.5 percent in October. Nov. 2002 unemployment was lower than Nov. 2001 unemployment, which was 7.4 percent.

Sectorally, manufacturing employment declined by 5,000 in the state. Almost half the decline was due to seasonal layoffs in food processing. Construction declined by more than 5,000 jobs, as the rainy season began. Retail employment increased by more than 6,000, but increases were less than usual at the beginning of the holiday shopping season.

 

Farmers asked to participate in agricultural census

National Agricultural Statistics Service, a division of the U.S. Department of Agriculture, is conducting a census of agriculture. Farmers will receive forms asking a series of questions related to the 2002 production year. Replies are due Feb 3.

 

Energy board to consider SE2 environmental impacts

The National Energy Board will consider the environmental impacts in Canada of the proposed gas-fired power plant in Sumas. National Energy has applied to construct an international power line to connect the proposed Sumas plant with BC Hydro’s substation in Clayburn and through that connection to the main power grid for western North America.

Hearings begin in Abbotsford, BC at 9 a.m. on April 7.

 

Farm Bill expands eligibility for agricultural benefits

Farm Service Agency is extending marketing assistance loans and loan deficiency payments to producers who produced certain 2002-year crops on non-program farms in addition to farms that had payment flexibility contracts. In addition, the new deadline for requesting a waiver for producers who lost beneficial interest in a 2002 crop is now Jan. 10.

“This is a significant change,” said Darcy K. Maldonado, farm service agency acting county executive director. She advises producers who may have been turned down for funding in the past to try under the new rules. Loan deficiency payments are even available to producers who wouldn’t qualify for marketing loans.

 

Public comment invited on Oeser site cleanup

Environmental protection agency has drafted a plan for cleaning up Bellingham’s only superfund site – the Oeser Company property.

Oeser treats wooden poles for utility companies. The site has been contaminated with wood preservatives, some of which leach out into Little Squalicum Creek, which empties into Bellingham Bay.

The EPA favors cleaning the site by excavating contaminated soil and laying down asphalt caps to prevent runoff, because they claim this approach is less costly and wouldn’t disrupt company operations.

A meeting to discuss the plan is set for Shuksan Middle School at 7 p.m. on Jan. 15. Public comment will be accepted until Jan. 24. For information on where to direct comments, call the EPA at (800) 424-4372, ext. 6246. Documents related to the clean up plan can be perused at the Bellingham Public Library.

 

Unemployed workers advised to keep filing

Approximately 44,000 jobless Washington workers lost temporary federal benefits when the Temporary Extended Unemployment Compensation program ended on Dec. 28. Because Congress might continue the program retroactively when the new session begins in January, state officials are advising unemployed workers to keep filing

“We can’t say congress will reauthorize this program, but there is a reasonable chance,” said Sylvia P. Mundy, employment security commissioner. People who continue to file will receive benefits more quickly than those who wait and reapply.

All but 1,300 claimants should have transitioned from TEUC to other benefit programs.

If the program is not renewed, the maximum time a Washington resident could receive extended unemployment benefits will be reduced by about six months.

 

Leaders pledge to make state more business friendly

A coalition of Washington business leaders wrote to the governor, urging him to help make the state more business friendly during the next biennium. Business leaders fear the combination of a $2.3-billion budget shortfall and increased unemployment insurance and workers compensation rates could have a “devastating impact.”

“The only way to get out of this fiscal crisis is to improve the business climate,” said Jan Teague, president of the Washington Retail Association. “With a healthy business climate, retailers can continue to make a profit, hire more people and generate more tax revenue.”

Business leaders said government and business have to support each other.

“Business must work together to support lawmakers looking at new and innovative ways to fund public programs,” said Doug Henken, of the Washington Food Industry.

 

Moka Joe adds roaster

Moka Joe, Bellingham-based organic coffee roaster, celebrated their second year in business by purchasing a 120 lb./hour capacity roaster. They began marketing their coffee through untraditional sources, but are now moving into selling through more traditional grocery and deli outlets.

The company participates in the Fair Trade program, which seeks to provide coffee farming communities with fair prices, direct trade, community development projects and environmental stewardship.

 

Industrial Credit Union announces retail location

Industrial Credit Union will open an in-store branch at the Fred Meyer store in late spring. The new location will feature both inside and drive-up ATMs.

The new Fred Meyer location is opening in North Bellingham, near I-5 and West Bakerview.