Last year’s legislature was overshadowed by the sagging economy and substantial drop in state tax revenue pursuant to a slowing economy. Despite that situation, the legislature did pass a budget without raising taxes, albeit due to the receipt of federal stimulus money. The state economic situation has improved ever so slightly after continuing to slide in the first half of 2009. However, tax receipts have not risen substantially and unemployment is right at 10%.
2009 Review:
WTIA’s involvement in education reform, HB 2261. This was the biggest bill of last session that made substantial changes to the state’s basic education system. WTIA was the most high profile business group involved, along with the WA Roundtable.
The digital goods tax, HB 2075. While compliance with this new tax has been difficult due to its complexity, many WTIA members have seen their B&O tax drop due to their reclassification under the new tax.
Tech based economic development. WTIA, along with WBBA, was the primary group involved with SB 6015, which focused on studying tech transfer and commercialization, Dept of Commerce’s role in economic development and the economic development needs of the state’s technology sectors.
SB 5850. This bill was an attempt to deal with human trafficking. WTIA got a specific exemption in the bill for employers and holders of H1B visas from the provisions of the bill.
SB 5210. This was an attempt to regulate certain online business practices. The bill died and WTIA participated in discussions last summer. This bill probably won’t come back in 2010 but will be a topic in the future if Congress or the FTC do not act this year.
2010 Priorities:
The state budget will again be at the top of the agenda. The legislature did not cut enough last year, the economy has not yet recovered and unemployment remains high. Increasing taxes or closing “loopholes” are on the table. The task for WTIA will be to hold on to tax incentives for R&D and limiting tax increases.
Education. The state wants to get federal Race to the Top money so it has to pass laws giving itself more authority over local schools and other aspects to qualify for the federal funds. WTIA will support those efforts while resisting efforts to delay math and science graduation requirements.
Higher Education. While our positions are not finalized, WTIA will try to limit damage to STEM related degree programs in the colleges and universities. Higher education wants more tuition setting authority and flexibility to make up for the next round of cuts coming from the legislature.
We will continue to monitor a wide range of legislation that relates to the technology sector and be watchful for proposals that could affect those members that we picked up from TechAmerica.