2009 STATE LEGISLATIVE PRIORITIES
The Federal Way Chamber of Commerce represents approximately 550 businesses employing more than 27,500 workers in the South Sound Region. Our vision is to create a strong local economy through business advocacy in the South Sound Region. Federal Way is strategically located and is the 3rd largest city in King County and 7th largest in the State, therefore Federal Way is recognized collectively and strategically vital to international trade and commerce in our state, we have unanimously developed the following 2009 legislative priorities for our South Sound Region:
Transportation
· The Federal Way Chamber of Commerce supports the full funding and construction of the I-5 / SR 18 interchange and the SR 18 / SR 161 intersection, also known as the ‘Triangle Project’.
· The Federal Way Chamber of Commerce supports:
- The proposed route for Light Rail for Federal Way would be a blending of the Interstate 5 with three stops: two off current transit locations at Star Lake and Sound Transit's 320th station and 348th area option coming in on Route 161.
- Any future plan for Federal Way will be shown as a HUB for both North and South routes.
· Regional transportation governance must be scrutinized at all levels. The governance of our region’s transportation system is confusing, duplicative and, at times, counterproductive. Any new governance structure must strive to consolidate and streamline decision-making and must have equal and fair representation from every region within its boundaries. We expect full representation of the South Sound’s business interests in the region’s transportation governance structure, otherwise we fear that critically important, and too-long delayed, South Sound projects will be compromised.
Workforce Development/Education
· We believe that the state’s current education funding structure (which has recently been ruled unconstitutional) must be replaced by a system that provides full equality for financing the basic education of all of state’s students, regardless of the region in which they attend school.
· We believe that the Running Start program is an innovative and successful method of preparing our state’s students for the workplace. The ability of high school students to earn college credit is a cost effective approach that enhances our state’s ability to compete in a global marketplace. Unfortunately, the current funding allocation formula is inadequate and has resulted in a statewide, unfunded liability of $35 million. We believe a funding allocation model must be developed specifically for Running Start students, similar to other non-traditional student allocation formulas that would fully recognize the educational services provided at both the K-12 system and the community and technical college system.
Economy/State Budget
· Small business is the backbone to the State’s economy, therefore by not burdening these businesses will allow the economy to flourish and grow, adding additional tax and fees will prolong the economic downturn. Limit spending and implement controls to provide long-term financial stability for our state. Ensure that the operating budget does not spend more than it brings in through revenues.
Health Care
· Repeal the Paid Family Leave Insurance Program. Alternatively if the program is not repealed:
o Funding should be borne by the workers who will utilize it as is currently the practice with many businesses; and
o Allow employers to voluntarily comply with a more streamlined system coupled with financial incentives ; and
o Coordinate any State program with any employers voluntary benefit plans; the Federal Family Medical Leave Act and State leave of absence laws so that they run concurrently.
Other Positions
The Federal Way Chamber of Commerce is an advocate for business. Our goal is to make sure that the business community has a voice in the ongoing debates over public policy in our community, in our state and in our nation.
ISSUE - Triangle Project
POSITION
The Federal Way Chamber of Commerce supports the full funding and construction of the I-5 / SR 18 interchange and the SR 18 / SR 161 intersection, also know as the ‘Triangle Project’.
BACKGROUND
· Reconstruction of the I-5 @ SR-18 interchange in Federal Way to current standards to alleviate safety and congestion issues associated with the outmoded cloverleaf interchange. The project would add ramps between SR-161 and I-5 from the north, therefore alleviating congestion at the intersection of SR-18 and SR-161.
· Reduce congestion, increase freight mobility, and improve safety at the I-5 / SR 18 interchange and the SR 18 / SR 161 intersection.
REASONS FOR POSITION
· Mitigation of congestion is a significant issue at this location. Recurring congestion occurs during morning, midday and evening peak hours, as well as several hours during weekends. In addition, incident-related congestion on I-5 as far south as Tacoma results in spillover traffic impacts in the project location.
· Congestion levels also adversely impact the environment in terms of increased motor vehicle emissions and energy consumption. The project provides significant opportunities for restoring a badly degraded streambed, which, if improved would provide access to significantly more salmon habitat in the Hylebos Creek Basin.
· In addition to reducing congestion-related safety issues, the project would also eliminate weaving sections in the outmoded cloverleaf interchange. WSDOT has identified 11 High Accident Locations within the project area as well as the intersection of SR-18 and SR-161. I-5 and SR-161 are also identified as High Accident Corridors in the area.
· The project would also support economic development of Federal Way’s industrially zoned property as well as development in the City of Milton. Currently, the costs of mitigating the transportation impacts of development are reducing the development potential of these properties.
CURRENT STATUS
· $110 Million has been secured
· All Environmental Studies have been completed summer of 2006.
· Acquisition of right-away is underway.
ISSUE - Streamline Sales Tax
POSITION
The Federal Way Chamber of Commerce supports of having SST enacted into Washington State law during this legislative session and to publicly acknowledge its support through a Press Release.
BACKGROUND
The SSTA is a compact involving 41+ states that attempts to address the lack of uniformity in our sales tax system nationwide. The SSTA evolved from an earlier Multi-State Tax Commission project and is designed to put in place a consistent sates tax terms, definitions and standards across the states.
Local sales tax “sourcing” has been the stumbling block in our State because it created negative impacts for many local governments while increasing revenue for others. Sourcing refers to how the sales tax is credited for a local sale. Washington is one of 18 states that utilized “original based” sourcing for the local tax, meaning that for sales involving the shipment of goods from a warehouse, distribution center, manufacturing facility, etc., the sales is credited at the point where the shipment originates.
The SSTA rules call for destination based sourcing, largely because that is the easiest way to address the “nexus” of goods purchased on line. Thus Washington had to make a significant change in local sales tax sourcing rules.
Because of the negative impact to many cities, there had been a major divide for the last three years. However, over the summer of 2005 and culminating with an agreement in Sept. 2005, cities have bridged their differences and are now standing together to work toward enactment of 2006 legislation that resolves the sourcing issue.
REASONS FOR POSITION
· Positively impacted cities agreed to push for full mitigation of local sales tax revenue losses incurred under and SST sourcing change.
· Negatively impacted cities agreed to drop a ‘reversion” clause that that had inserted in SB 5622.
· Positively impacted cities agreed that all cities will support a system of supplemental reporting by a subset of businesses to help ensure that mitigation numbers for local sales tax revenue losses are based on actual experience and actual losses vs. projected
· Negatively and positively impacted cities agreed that the source of funding for mitigation should come from the state.
CURRENT STATUS
· Legislature passed in 2007.
· Legislative members updated some language during the 2008 Legislative Session.
ISSUE - Sound Transit Light Rail in Federal Way
POSITION
The Federal Way Chamber of Commerce supports:
- The proposed route for Light Rail for Federal Way would be a blending of the Interstate 5 with three stops: two off current transit locations at Star Lake and Sound Transit's 320th station and 348th area option coming in on Route 161.
- Any future plan for Federal Way will be shown as a HUB for both North and South routes.
BACKGROUND
The Federal Way City Council has been asked by Sound Transit if light rail comes through Federal Way via ST2, would they like it to come down Highway 99 or Interstate 5. As the council is considering the path of light rail they are very interested in hearing from the Federal Way Chamber of Commerce. Sound Transit has given the Federal Way City Council a deadline of May 10, 2006 to bring back an answer. The Chamber through it’s membership has gone through a very quick but through process to come up with the recommendation.
REASONS FOR POSITION
The Federal Way Chamber of Commerce have spent a considerable amount of time and resources to get a consensus among our 640 plus members and the business community in Federal Way on the alignment of light rail in Federal Way.
The Federal Way Chamber of Commerce through its membership has gone through a very quick but thorough process, which included a work session with businesses, Sound Transit, and City of Federal Way staff. We surveyed our membership and received a variety of feedback which helped us create the recommendations.
CURRENT STATUS
· ST2 is slated to be on the ballot for a public vote November 2007.
· Sound Transit is narrowing the list for a public vote, this section is currently on the list.
ISSUE – Oppose any King County Utility Tax in Incorporated Cities.
POSITION
During the 2009 King County Budget process there was a lot of discussion of creating a countywide utility tax. 1% would raise $40 million countywide. Collection would grow with expenditures on utilities countywide, reflecting usage, population, cost, and economic growth. This requires a majority vote of the State Legislature, the state could require that the local tax authority be councilmanic or voter approved. King County may be looking to the legislature in 2009 to pass this legislation. The Federal Way Chamber of Commerce opposes any King County Utility Tax in incorporated cities.
BACKGROUND
City utility taxes vary both in terms of which utility are teased and the rates. Many cities impose a 6% tax, the statutory limit for most utilities. This countywide utility tax would be applied on top of city utility tax. The City of Federal Way imposes a tax on all utilities (except water and sewer) operating in the City at a rate of 7.75% (effective 2/4/07). This includes a 1.75% tax increase voters approved at the November 2006 general elections to fund the Police and Community Safety improvement initiative consisting of 24 FTEs in police, prosecution, court, code enforcement, parks maintenance, and related support functions. The utility tax is also used to fund capital improvement projects; including related maintenance and operations, and general fund operations. All utility companies are required to file and remit a monthly utility tax return to the City of Federal Way at a rate of 7.75%.
CURRENT STATUS
- This issue will be debated during the 2009 Legislative Session on whether to bring it to a vote of the people.