2
STRENGTH IN NUMBERS
30 YEARS STRONG
BIAW’S HEALTH INSURANCE PROGRAM PROVIDES EXCEPTIONAL SERVICE AND EXCELLENT BENEFITS BIAW - Quarter Page Ad 2019.ai 1 2/21/2019 2:47:55 PM
For nearly 30 years, BIAW’s Health Insurance program has proudly served our members of the home building industry throughout Washington by helping to provide top notch benefit plans to their employees. In recent history, the future of health insurance rules and regulations, especially for small business, has seemingly been in a constant state of uncertainty. But while the political discussion around the Affordable Care Act continues to be debated, BIAW’s Health Insurance program has remained a steady and stable option for our members. C
M
Y
CM
MY
STABILITY, CONSISTENCY, DEPENDABILITY
the biaw health insurance program proudly serves members of the building and construction industries by providing top-notch employee benefit plans at competitive rates.
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Over 700 companies purchase their employee health insurance benefits through our program, which means almost 17,000 people and their families across the state are covered by our program. With so many companies taking advantage of this member benefit, the phrase “strength in numbers” continues to ring true today as the program has been able to consistently provide exceptional health insurance benefits with stable premiums year after year. Not only that, but more and more members participating in the program have discovered that having the ability to offer outstanding health insurance benefits to potential employees is a fantastic way to attract and retain a high-quality workforce. In a tight labor market such as it is today, the option to offer first-rate health insurance benefits can often be the difference between keeping a good worker on your team and losing them to a competitor. K
LOW RATES, OUTSTANDING BENEFITS
BIAW’s health insurance program offers over 30 medical plans through Regence BlueShield and Kaiser Permanente to qualifying members with as few as two employees. This means member companies in all corners of the state
BUILDING INSIGHT BIAW.com
CALL OR VISIT AND GET A FREE, NO-OBLIGATION QUOTE (425) 641-8093 | BIAWHealthTrust.com have access to excellent benefits at more affordable rates than they could find elsewhere.
QUESTIONS?
To find out more about BIAW’s Health Insurance program or see just how much you can save on your company’s health insurance benefits, contact Capital Benefits Services, the program’s administrator, online at BIAWHealthTrust.com or (425) 641-8093.
//BUILDING INSIGHT | BIAW.COM
CONTENTS // // 30 YEARS STRONG 2
// CONTRACTOR LIABILITY 7
WHO WE ARE
The Building Industry Association of Washington is the state’s largest trade association and represents nearly 8,000 member companies in the home building industry. Known as the “Champions of Affordable Housing,” BIAW is dedicated to ensuring and enhancing the vitality of the building industry for the benefit of its members and the housing needs of citizens.
2019 SENIOR OFFICERS President Rick Hjelm, CGR MBA of Pierce County First Vice President Sherry Schwab MBA of King & Snohomish Counties Second Vice President Chris Lockhart MBA of Pierce County Treasurer Tracy Doriot BIA of Clark County
// STEADY PERFORMANCE 10
// CLUB UPGRADE 12
Secretary LouAnne Neill HBA of Tri-Cities Immediate Past President Kevin Russell, CGP North Peninsula Building Association BIAW STAFF Executive Vice President Greg Lane
// TO SAVE OR TO SPEND 13
PRESIDENT’S PERSPECTIVE
REDUCE YOUR RISK Annual insurance checkup ensures piece of mind
4
// SAFETY STAND-DOWN 14
EVP VIEWPOINT
ALL EYES ON BUDGET Legislature’s focus shifts to budget negotiations, raising taxes
6
Government Affairs Director Jan Himebaugh General Counsel Jackson Maynard Administrative Services Director Jan Rohila R.O.I.I.® Select Director Mark Shaffer Communications & Public Relations Director Jennifer Spall CONTACT THE EDITORIAL STAFF
On the Cover: BIAW members descend on the Capitol last month to deliver tote bags to legislators. The message inside: stop proposed legislation—more taxes!—that ultimately increase the cost of building new homes.
Want to submit an article for publication? Have a story tip or suggestion? For consideration, please email communications@biaw.com
APRIL ’19 VOL. 29, ISSUE 4
ANNUAL INSURANCE CHECKUP ENSURES PIECE OF MIND
PRESIDENT’S PERSPECTIVE
REDUCE YOUR RISK
4 Whether it’s for your personal health or the health of your business, an annual checkup is a good idea. When both are going well, it’s easy to become complacent about the need for a checkup, but when either take a hit, hindsight reminds us of what we knew we should have done, but put off. With the enrollment period of BIAW’s health insurance program (see more about this great member benefit on page 2) right around the corner, this article deals with the need for a good // RICK HJELM insurance plan for both. PRESIDENT On the health insurance side, I can only assume you probably spend a considerable amount of time each year comparing insurance plans offerings and whether or not you can afford to offer employees and their families insurance and still provide a quality plan. We want to make sure when the need for insurance coverage arises, and it will, we picked the right policy that covers the need. That’s called peace of mind. On the business insurance side, I’m also willing to bet the majority of us probably spend very little time pouring over the fine print before we sign on the dotted line. And rightfully so, as we have learned to trust that the insurance industry professional we hired will have fit the need when it arises. (And like health insurance issues, it will arise.)
LET THE PROFESSIONALS DO WHAT THEY DO BEST
It’s suggested that annually your insurance agent should compare your current policy with your most current needs, as policies don’t always remain the same. There may be some little tweak that your carrier is making as well as the tweaks you need to make as your business changes. Recently, at the BIAW board meeting in Olympia, a workshop was held during the Remodelers meeting, presented by SOFA (Society for Financial Awareness). Our workshop presenter, Tyler, pointed out that because we’re so busy running our business, that beyond liability insurance, we often overlook simple insurance needs such as life and disability for ourselves and key employees. I’ll reiterate, as I mentioned in last month’s article, here’s where, “we need to be the best at what we do best and let our insurance professionals do what they do best” comes into play. Below is a quick list to go over with your insurance agent to make sure your business and assets are covered. n Current projects–both during and after completion n Design/build liability n Construction management errors and/or omissions n Office furniture, equipment, and supplies n Computers, servers, etc. n Cyber liability n Valuable books and documents We want to make sure when the need n Business interruption and consequent loss of revenue for insurance coverage arises, and it n Inventory will, we picked the right policy that n Leased equipment n Cash and securities covers the need. n Current and back up records of accounts receivables n Debris removal after a fire or other damage n Office improvements n Signs, fences, and other unattached outdoor property n Intangible property such as trademarks and goodwill n General liability including personal injury and slander n Employment practices liability n ERISA compliance See RISK on page 12 //
BUILDING INSIGHT BIAW.com
5
CAPITOL VISIT HIGHLIGHTS//
BIAW members get ready to deliver reusable BIAW tote bags and mini tape measures to lawmakers. The bags were also filled with messages opposing proposed legislation that would make building new homes more expensive. (See page 9 on how thousands of homebuyers are being priced out of the housing market due to rising costs of new homes.)
(l to r) Spokane HBA members Dustin Swartz, Nick Barnes, SHBA Government Affairs Director Kiernan Sprague, and Nick Scheel talk with Senator Jeff Holy just outside the Senate Chamber doors.
BIAW members Nichole Banegas (far left) and Jack Lynch (far right) talk with Senator Sharon Brown during a break in Senate floor discussions.
(l to r) BIA of Whatcom member Barry Harter, MBA of Pierce County member Michael Fast, and MBA of King and Snohomish Counties member Zak Parpia deliver a tote to the office of Senator Christine Rolfes.
(l to r) BIAW Communications and Public Relations Director Jennifer Spall introduces Senator Mark Schoesler to SICBA members Scott Yonkman (shaking hands) and Gary Wray.
BIAW Treasurer and BIA of Clark County members Tracy Doriot (l) and Aaron Marvin take a quick photo with Senator Lynda Wilson just outside the Capitol doors.
(l to r) BIA of Clark County member Aaron Marvin, MBA of King and Snohomish Counties member Tod Sakai, BIAW President Rick Hjelm, MBA of Pierce County members Tram Bowen and Kent Arola take a quick photo with Senator Curtis King (c) inside his office.
APRIL ’19 VOL. 29, ISSUE 4
LEGISLATURE’S FOCUS SHIFTS TO BUDGET NEGOTIATIONS, RAISING TAXES
EVP VIEWPOINT
ALL EYES ON BUDGET
6
// GREG LANE
After an unusual blast of disruptive February snow, Spring has thankfully arrived. Here at BIAW, we are making great progress on strategic planning and I want to thank everyone who participated in the focus group sessions we held across the state in March as part of that process. The discussions were lively and productive, providing excellent direction to the BIAW Executive Committee, who will meet for a retreat on May 6-7 to draft the BIAW Strategic Plan.
EXECUTIVE VICE PRESIDENT
LEGISLATIVE WINS
Spring also means the focus of the Legislature starts to narrow on finalizing work on public policy, as well as starting to debate the budgets. Before I get into the budget discussion, I want to acknowledge and thank the outstanding work of our Government Affairs team—Director Jan Himebaugh, Manager Josie Cummings, and our contract lobbyists Steve and Kathy Gano, Brent Ludeman, Bill Stauffacher, and Tom Kwieciak. This has been an historic year for anti-business legislation at the state Capitol and our team has performed tremendously to defend the interests of our industry. There is still work to be done, but much has been accomplished on your behalf, including: n HB 1544: Removed vesting for recently expanded UGA areas—DEAD n HB 1395: Held general contractors liable for all unpaid wages and benefits of subcontractors’ employees—DEAD n HB 1795: Significantly changed notice and time line requirements in the Land Use Petition Act—DEAD n HB 1514: Allowed employees to place wage liens on employer’s personal property— DEAD n HB 1965: Allowed for whistle-blowers to sue employers on behalf of the state (with treble damages) for any L&I-type violation—DEAD
NEW TAXES, SPENDING
The clock is winding down on this year’s regular legislative session, but talk of a special session and tax increases remains high. Last month, we saw the Economic and Revenue Forecast Council release a very rosy picture for anticipated state revenue—up 9.6%. This [tax collection] windfall translates into $5.6 billion more for lawmakers to spend on this budget than the last. Despite that, House Democrats have proposed a budget that includes an additional $1.4 billion in new taxes. They propose spending $53.3 billion for 2019-’21, a 19% increase, or about $8 billion, more than the current two-year budget cycle. Senate Democrats proposed a $52.5 billion budget that seeks $1.2 billion in new taxes. What new taxes are they proposing? n One of the nation’s highest Real Estate Excise Tax (graduated rate) The [House Democrats] propose n An increase on current B&O tax rates spending $53.3 billion for 2019n A capital gains income tax of nearly 10 percent (on individuals making more than $75,000 or a combined family making more 2021, a 19% increase, or about than $150,000) $8 billion, more than the current Washington currently has one of the hottest economies in America. two-year budget cycle. The recent budget is the best we’ve seen in the 21st century and includes a sizable surplus. There is simply no need to raise taxes on working families and small businesses that fuel our growing economy.
WINTER BOARD MEETING RECAP
We had an outstanding turnout in Olympia for the Winter board meeting and were See BUDGET on page 12//
BUILDING INSIGHT BIAW.com
7
WA STATE SUPREME COURT
CONTRACTOR LIABILITY CASE TO CHALLENGE L&I’S INTERPRETATION OF GENERAL CONTRACTOR LIABILITY A case pending before the Washington State Supreme Court may test the outer limits of a general contractor’s liability under Stute v. P.M.B.C. The facts of the case are sad and the procedural posture convoluted.
duty to maintain safe work site] duty whether an accident was avoidable. only if it maintains a sufficient degree L&I’s position effectively allows it to of control over the work.” serve as judge, jury, and executioner Based upon that case, in citations and raises significant the Court of Appeals state and federal constitutional issued an opinion essen- concerns. tially dismissing Vargas’s L&I’s position also appears to run appeal. The Washington counter to the legislatively-created State Supreme Court system of Industrial Insurance put accepted discretionary in place over a hundred years ago in review and allowed which employers are given immunity WHERE IT ALL BEGAN briefing by the parties. from suit in exchange for mandatory Gildardo Vargas was The importance of the participation in Industrial Insurance. working for a subconcase is demonstrated in If an employee can recover from that tractor on a project // JACKSON MAYNARD an amicus brief filed by program and then sue other parties when a highly pres General Counsel L&I in the case in which on the project for the same injuries surized concrete hose // HANNAH MARCLEY the agency seeks to have anyway, as Vargas did here, then it struck him in the head Associate Counsel the court “clarify” the would appear to circumvent the policausing significant brain language noted above from Alfoa II. cy rationale for the program. damage. The general contractor for In other words, L&I wants a generthe project, Inland Management, LLC al contractor be liable in suit for the was not cited by the Department of BIAW TO FILE AMICUS BRIEF safety violations of a subcontractor Labor & Industries (L&I) for a single BIAW will be filing an amicus brief when L&I’s own inspectors failed to safety violation. Vargas recovered in this case to challenge L&I’s broad find the general from his employer for his injuries contractor violated under the state’s Industrial Insurance In other words, L&I wants a general a single safety rule. program.
ANOTHER CASE IMPACTS COURT’S DECISION
Vargas and his family sued two other subcontractors and Inland. After the general contractor was dismissed from the suit, arguing it did not control the work of the concrete company, Vargas appealed. While this case was pending the Washington State Supreme Court issued an opinion in another case, Alfoa II, in which it stated that a “jobsite owner or general contractor will have [a non-delegable
JUDGE, JURY, EXECUTIONER
contractor be liable in suit for the safety violations of a subcontractor when L&I’s own inspectors failed to find the general contractor violated a single safety rule.
While the case law on a general contractor’s non-delegable duty is not completely clear and courts have struggled to come up with a consistent approach, L&I ignored a number of cases in its brief that indicate that a general is not strictly liable for a subcontractor’s safety violations and is entitled to raise defenses in court about
interpretation of general contractor liability that will make clear to the Court the serious legal and policy problems with L&I’s position. Hopefully, the Court will be persuaded that a general contractor’s liability for safety violations, while substantial, is not unlimited.
APRIL ’19 VOL. 29, ISSUE 4
8
UNRESTRAINED SPENDING
BUDGET FRENZY
SENATE AND HOUSE DEMOCRATS’ BUDGET PROPOSALS: INCREASE BUDGET, RAISE TAXES, SPEND WINDFALL
So why do they still want to raise your taxes?
$45B
LAYERS AND LAYERS OF TAXES
Lawmakers are hard at work trying to find a mix of tax and fee increases to achieve their goals—including increases our state’s Real Estate Excise Tax (one of the nation’s highest), special assessments on new construction, a 10 percent increase on current B&O tax rates, and, a proposed capital gains income tax—despite the IRS and courts ruling repeatedly that it is considered an income tax, which, by the way, is prohibited in Washington state. With the average cost of a new home in Washington state now at $505,729, research shows that for every $1,000 increase in the price of a home, 2,393 people are priced out of the market. (See the next page for median new home prices in other metro areas around the state.)
BUILDING INSIGHT BIAW.com
$50.5
$34.3
*House Democrats proposed budget
+ $5.6 billion in WINDFALL TAX COLLECTIONS
$53.3 B*
$30B The House Democrats’ // JAN HIMEBAUGH budget is proposed at $25B $53.3 billion, a smaller $20B GOVERNMENT number than the Gover$15B AFFAIRS DIRECTOR nor’s budget which promot$10B ed $54.4 billion in state spending. The Senate $5B Democrats’ budget came in slightly lower than $0 both at $52.5 billion. Despite an updated revenue forecast of $5.6 billion more in unexpected tax collections, Democrats in the House remain firm in their mantra that the state doesn’t have enough money and are proposing to raise your taxes by $1.4 billion. The question isn’t if they should raise taxes, it’s how much, and on what. BIAW will be tracking this issue over the next month.
$31.6
+$1.4 billion in NEW TAXES
$46.1
$39.0
$40B $35B
$54.3
$45.2 B
$50B
TAX COLLECTIONS PROJECTED COLLECTIONS
$38.2 B
$55B
$33.6 B
BUDGET NEGOTIATIONS
Lawmakers already have an extra $5.6 billion to spend…
$31.2 B
BIAW can see the light at the end of the tunnel for the legislature’s regular session (let’s hope that light isn’t an oncoming train), and although the end is near, BIAW won’t stop advocating for our members. The 2019 legislative session is set to adjourn April 28.
Sources: Washington State Economic and Revenue Forecast Council, SSB 1109, HB 2156, HB 2157, HB 2158
‘11-‘13 ‘13-‘15 ‘15-‘17 ‘17-‘19 ‘19-‘21 STATE OPERATING BUDGET
BIAW builders know better than anyone that adding layer upon layer of additional taxes makes building a home more expensive. Government’s insatiable appetite for more taxes on the home building industry will price out thousands of homebuyers who are seeking a path to affordable homeownership—the very people they claim they want to help. We know all too well lawmakers cannot: n Increase taxes on a developable lot and not expect the cost of a home to increase n Increase B&O taxes by 10 percent on all services related to the construction of a new home and not expect the cost of a home to increase n Assess a special fee on new homes and not expect the cost of a home to increase So, our question for legislators is simple, “How do you make housing more affordable by making it more expensive?” Contact your legislators and tell them there is no need See BUDGET FRENZY on page 12 //
9
Homebuyers Priced-Out in Washington Layers upon layers of taxes and fees foisted upon the home building industry increases the cost of a new home. The graphic below shows a snapshot of metro area housing markets and how thousands of families are being priced out of the housing market due to rising home prices. Lawmakers who continually call for raising taxes on B&O, REET, capital gains, etc., all contribute to the obstacles working families face when trying to achieve the American Dream of affordable homeownership in Washington state.
Seattle/Bellevue/Tacoma
WASHINGTON STATE
$505,72o9 me wH Median Ne n state Washingto
for every $1,000 increase in home price
$590,258
2,393 families are priced out
Spokane/Spokane Valley
Median New Home Price
for every $1,000 increase in home price
896
Vancouver/Portland
$433,247
$516,098
Median New Home Price
for every $1,000 increase in home price
85
families are priced out
Median New Home Price
for every $1,000 increase in home price
776
$464,348
$487,238
Median New Home Price
Median New Home Price
66
families are priced out
Olympia/Tumwater
Tri-Cities
for every $1,000 increase in home price
families are priced out
families are priced out
for every $1,000 increase in home price
94
families are priced out
APRIL ’19 VOL. 29, ISSUE 4
10
ENROLLMENT CONTINUES
CONSISTENT PERFORMANCE
STABLE AND DEPENDABLE RESULTS KEY TO PROGRAM’S SUCCESS
R.O.I.I.® Select, BIAW’s group retro program, is accepting applications for the July 2019-2020 plan year (July 1, 2019 through June 30, 2020). If you’re not familiar with the valuable services R.O.I.I.® Select has to offer, find out why nearly 2,000 companies have chosen the experts at R.O.I.I.® Select to help them take the hassle out of their workers’ comp affairs. The goal of retro is simple: eliminate injuries through improvements in work place safety and preventive strategies. Hire our experts today so we can help you become a better, safer company. If you’d like to find out if R.O.I.I.® Select is right for your company, go to BIAW.com/ ROII, contact us at (360) 352-7800, or enroll@biaw.com.
Compare the rest. SELECT the best.
R.O.I.I.® SELECT SERVICES at NO ADDITIONAL COST OUTCOME BASED CLAIMS ASSISTANCE
THE OLDEST AND LARGEST CONSTRUCTION RETRO GROUP IN THE STATE R.O.I.I.® Select has returned over $500 million in refunds to companies since 1982.
NO ADDITIONAL PREMIUM (PENALTY) In our 36 year history, not one R.O.I.I. Select participant has ever paid a penny of additional premium, a claim many retro programs cannot make. ®
MEMBERS RECEIVE A REFUND If the group and participant have a positive claim performance, they receive a refund.
ONE-STOP-SHOP FOR ALL YOUR WORKERS’ COMP NEEDS You won’t find any other retro program that offers all these services at no additional cost.
BUILDING INSIGHT BIAW.com
Closing claims quickly and efficiently
Safety Services
Accident prevention is key to lowering costs
Risk Management Services
Reduce injuries and control losses
Return to Work Unique return to work strategies set us apart
Claims Investigations and Litigation
Relentless pursuit of the best outcome for the group
L&I Audit assistance
A plan of action for L&I audits
1111
TAKE THE NEXT STEP AND GET STARTED WITH R.O.I.I.® SELECT n Go to BIAW.com and complete the online inquiry form n We’ll review your premium and loss information and let you know if you’re
a good fit for R.O.I.I.® Select n You’ll also receive a refund calculation showing you how much you could have earned if you were enrolled n It’s that easy!
DON’T TAKE OUR WORD FOR IT
R.O.I.I.® SELECT GROUP REFUND
42%
— Kirk Koskiniemi, Ibex Roof, Vancouver
34%
2014
34%
36%
2012
*Current projection
Competitors’ Averages
30% Competitors’ Averages
2015*
40%
2013
25%
Competitors’ Averages
37% Competitors’ Averages*
Since enrolling in R.O.I.I.® Select, your staff has helped me implement new safety systems that will not only help to prevent injuries but also save time and money in the event that an injury does happen. I’ve learned things that will help me make my business more successful in the future.
As the oldest and largest construction retro group in the state, BIAW’s R.O.I.I.® Select program has returned over $500 million in refunds to participating members since 1982.
FEE TRANSPARENCY
Other retro programs bury additional fees to pad profits and aid their bottom line. Our program fee is 10% of the group’s overall refund from L&I and an additional 10% divided between BIAWaffiliated local associations. These fees support continuing education, government affairs, and the building industry as a whole.
AFFORDABILITY
Your annual enrollment fee is 1.5% of total premiums paid to L&I, or $150, whichever is greater. We do not charge a Group Administrative Fee.
PERFORMANCE
R.O.I.I.® Select’s strict enrollment criteria and innovative approach to workers’ comp ensures maximum group performance. In our 36-year history, not one R.O.I.I.® Select participant has ever paid a penny of additional premium (penalty).
QUESTIONS? (360) 352-7800 Enroll@BIAW.com BIAW.com
APRIL ’19 VOL. 29, ISSUE 4
12
MEMBER SPOTLIGHT
CLUB UPGRADE
NONPROFIT OUTGROWS SPACE, MEMBERS STEP UP
After listening to Boys & Girls Clubs (BGC) of Olympic Peninsula Executive Director Mary Budke speak about the dire need for a new clubhouse—the nonprofit had outgrown their current facility and had been turning away children— Kelly Fox, CEO of Lumber Traders, Inc., made the decision to step up and help. With Fox’s struggles to find a reliable after-school program—along with his 50 employees, customers and community members—the partnership was an easy decision. Working with the leadership and members of his local, North Peninsula Building Association (NPBA), BGC was chosen to receive the proceeds of NPBA’s annual holiday gala and silent auction. “We are humbled to provide these donations to such a worthy cause and we are thankful for the support they provide in our community,” said NPBA President Scott Schwagler. The event raised a whopping $3,400—of which Lumber Traders agreed to make a matching donation as well. “We are heavily invested in getting this built for our community,” said Fox, and their commitment Boys & Girls Clubs of Olympic Peninsula Executive shows. Director Mary Budke accepts donation checks from NPBA In addiPresident Scott Schwagler (l) and Kelly Fox at the future tion to the home of the Boys & Girls Clubs’ new clubhouse. matching donation, Fox’s company hosts Community First Saturday, a monthly event that donates five percent of their retail sales to a local community organization or nonprofit—BGC was chosen as a recipient. Lumber Traders has also agreed to donate building materials at cost to help reduce the price of the new clubhouse. The Boys & Girls Clubs’ new clubhouse will be centrally located, situated between two elementary schools, and accessible by public transit. The facility will be able to accommodate up to 300 children and staff. Congratulations Lumber Traders and NPBA for your commitment to your community.
BUILDING INSIGHT BIAW.com
//RISK from page 4 n Lawsuits, including discrimination and sexual harassment n Retaliation by former employees who were dismissed or laid off n Mobile property, i.e., automobiles, trucks, construction equipment n Job shacks and equipment/tool trailers n Personally-owned vehicles used for company business This is only a partial list, intended to spark awareness about the ever present need for adequate insurance. Take a few minutes now and invest the time needed to review your coverage and make sure your policies measure up. We’ve all worked hard to get where we are today and none of us wants to be the one who says, “I wish I would have,” but rather, “I’m so glad I did!” A big thanks to my Merlins: Susie Nelson, Nick Gilliland, and Shelli Lucus-Kennedy, for their expertise, guidance, and editing of this article. //BUDGET from page 6 happy to have Republican House Leader J.T. Wilcox address us at the general membership luncheon. Later that day over 60 BIAW members and guests went to the Capitol to personally deliver red tags and messages against several poor policy bills, including the Direct Contractor Liability bill, HB 1395. Thanks to your emails, calls and shoe leather, HB 1395, was stopped in its tracks. Our outreach shouldn’t stop there. If you disagree with the budget plan that Democrats are presenting, call your legislators. Tell them to live within their means and not increase taxes. //BUDGET FRENZY from page 8 for any of these tax increases—Washington needs to live within its means and plan for a rainy day. Tell them builders need regulatory relief so we can build housing for Washington’s residents at all income levels.
MORE WORK TO BE DONE
BIAW has had some success this session in stopping additional regulatory schemes that would make housing more expensive and are still working to stop others. We continue the conversation of increasing overall housing supply by working on the following bills: SB 5334 condo liability reform; SB 5008 increases the short plat allowances; and, HB 1923 addresses urban residential capacity.
13
WHAT WOULD YOU DO?
TO SAVE OR TO SPEND
Kris Johnson is president and CEO of the Association of Washington Business, the state’s chamber of commerce and Steve Mullin is president of Washington Roundtable, an association comprised of senior executives from major private sector employers.
Imagine winning the lottery tomorrow. You’d have $10 million to spend on whatever you wanted in an instant. Of course, the prudent thing would be to get a financial advisor and plan for the future. Ensure you have
// KRIS JOHNSON
// STEVE MULLIN
GUEST COLUMNISTS
a strong foundation and adequate savings, then decide what you can splurge on. This scenario is not unlike the position our state finds itself in after years of economic recovery and expansion. Economic and tax revenue growth in Washington state has been extraordinary over the last decade. So much so that state and local tax growth in Washington was the highest in the nation from 2015 to 2016. The state expects tax collections will top $50 billion for the first time during the next two-year budget cycle. Based on new revenue projections released the week of March 25, lawmakers will have $5.6 billion more in revenue in 2019-21 than they did when they last adopted a budget a year ago. Washington has leveraged this growth to invest in important pro-
grams—dramatically increasing state funding for public education for example. But we need to recognize that this lottery-like period of growth is far from normal. And it has come at a time when Washington also steadily increased the cost of doing business here. Washington’s state and local business taxes per employee are the 7th highest in the nation and are 16 percent higher than the U.S. average. This as Washington has raised the state minimum wage—which is now tied with Massachusetts for the highest in the nation—and recently became the fifth state to require employers to provide paid family and medical leave. Nearly half of U.S. chief financial officers believe that the U.S. will be in recession by the end of 2019, and 82 percent believe that a recession will have begun by the end of 2020. Trade wars, federal government shutdowns, and geopolitical risks only add to the uncertainty. Plus, outside of the central Puget Sound, unemployment is well above the national average in most of the state—and steadily ticking up. Yet legislators are considering proposals that could lead to even more dramatic spending increases in the next two-year budget cycle
and beyond. Many of those proposals come with new and higher taxes on employers. Reliance on new revenue that’s underpinned by assumptions of permanent growth could present a painful cliff when the expansion finally slows or stops. Washington has experienced this boom-bust cycle before. Lawmakers increased spending by almost 18 percent in the 2005-07 budget and by almost 12 percent in 2007-09. Even after enacting a $774 million tax increase, lawmakers had to cut more than $3 billion from state programs in response to the Great Recession. Layering on additional, unsustainable spending and further burdening employers could prove short-sighted when the economy slows and Washington is left with inadequate reserves, unable to pay for what was promised, attract new investment, or spur job creation. Let’s use our lottery winnings wisely. The legislature should look beyond just the next two years and work to protect against an economic slowdown that is sure to come.
APRIL ’19 VOL. 29, ISSUE 4
14
MAY 6-10
SAFETY STAND-DOWN A SAFETY AWARENESS CAMPAIGN FOR EMPLOYERS TO TALK DIRECTLY TO EMPLOYEES ABOUT SAFETY
Did you know thirty percent of all construction fatalities in Washington state are caused from falls? And a worker is four times more likely to fall from a ladder? According to a 15-year study, 52 percent of the 63 deaths during this time frame occurred on a residential construction site. Of those fatalities, one in five involved a fall from a ladder less than 10 feet. Member participants in BIAW’s retrospective ratings group program, R.O.I.I. ® Select, also experienced a high rate of ladder-related injuries during the 2017-2018 plan year. These injuries amounted to over $2.3 million in claim costs, with the average being just over $20,000 per claim.
PREVENTABLE INJURIES
So, how can you help prevent these types of injuries from happening on your job site? BIAW members are encouraged to participate in the National Safety Stand-
Weekly safety meetings are good opportunity to promote new ideas or reinforce safe working habits.
Down the week of May 6-10. So what is Safety Stand-Down? It’s when you take a break from normal work activities so your crew can focus on a particular safety topic—such as ladder safety. The objective is to help break potentially unsafe habits and create better awareness in order to reduce injury and risk of death. Oftentimes older workers can become set in their ways and newer workers may not be as experienced
BUILDING INSIGHT BIAW.com
3 Simple Ladder-Safety Rules Inspect ladder before each use
Make sure workers take time to inspect ladders before each use. Fiberglass ladders can become brittle over time due to age, sun damage, or vibration and jarring on unpadded truck ladder racks. Make sure damaged ladders are destroyed or taken out of service and not accessible to employees. Make sure ladder is secure Take a second to consider if the ladder is in a secure position at the top and bottom and set up at the right angle. Employ “hands free” method while using ladder State law does not allow workers to carry materials while ascending or descending a ladder unless they have both hands free. Never pack a load up a ladder without three points of contact at all times on ladder rungs. in the proper training. Stand-Down activities can range from a short “toolbox” talk to scheduled, full-day events. You pick what’s right for your company. Find more information on the national campaign at: https://www.osha.gov/StopFallsStandDown/index.html. Or the Department of Labor & Industries’ campaign at: https://www.lni.wa.gov/Safety/Topics/AToZ/StandDown/ default.asp?T=About
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WINTER BOARD GATHERING — OLYMPIA
MEETING HIGHLIGHTS
AWARDS, ACCOLADES, AND GUEST SPEAKER FEATURED DURING WINTER MEETING IN OLYMPIA A
C
BOARD MEETING HIGHLIGHTS
B
D
E
[A] BIAW’s Associate Advisory Council’s builder appreciation award recipients and representatives proudly display “saw blade” awards during the membership luncheon. [B] Special guest speaker House Republican Leader J.T. Wilcox addresses members and guests during the general membership luncheon. [C] Gary Wray accepts the President’s Award given to him by Immediate Past President Kevin Russell for his dedication to the industry. [D] (l to r) BIAW First Vice President Sherry Schwab, MBA of King and Snohomish Counties member Zak Parpia, MBA of Pierce County member Kurt Wilson, and SICBA member Martha Rose take a moment for a quick photo with Supreme Court Justice Sheryl Gordon McCloud (c). [E] (l to r) BIAW Regulatory and Government Affairs Manager Josie Cummings, SICBA members Scott Yonkman and Gary Wray get to know Senator Mark Schoesler’s dog, Colt, during a visit to his office at the Capitol.
APRIL ’19 VOL. 29, ISSUE 4
TOP RECRUITERS RECOGNIZED
Building Industry Association of Washington 111 21st Avenue SW | Olympia, WA 98501 (360) 352-7800 | BIAW.com |
Luellen Smith, MBA of King and Snohomish Counties member, was named Top Spike of 2018 during the Winter board meeting held last month in Olympia. In addition to Top Spike, and taking home the Omar Brown Award for recruiting 39 new members, Luellen was also winner of the 500-999.5 category. Smith received a logo-emblazoned tote bag and padfolio, as well as a custom commemorative plaque. Smith’s energy and enthusiasm for signing new members continues to flourish as this is her third consecutive year earning Top Spike—tying the three-peat record set by MBA of King and Snohomish Counties member Patrick McCourt in 1999-2001. Adding 39 new members to her total now puts Smith with 516 Spike credits. We can’t wait to see what great things she does in 2019. Congratulations, Luellen!
(l to r) Spike contest winners Nick Gilliland and also accepting for winner Taylor Ward, HBA of Tri-Cities Executive Officer Jeff Losey accepting for winner Nichole Banegas, Luellen Smith, and Steve Cory.
2018 BIAW SPIKE CONTEST CATEGORY WINNERS
CATEGORY/ SPIKE CREDITS
1,000+ 500 - 999.5 250 - 499.5 100 - 249.5 50 - 99.5 24 - 49.5 6.5 - 24.5
AWARD WINNER
Steve Cory Luellen Smith Erica Ridout Martin Sippy Nichole Banegas Nike Gilliland Taylor Ward
MEMBERS RECRUITED 33 39 28 33 27 13 13
