Association of Washington Business – Updated Weekly

Veto requests: AWB asked Gov. Bob Ferguson last week to veto multiple bills as he faces a May 20 deadline to take action on bills sent to his desk. AWB joined with several dozen chambers and employer groups to urge the governor to veto two tax measures, including:

• B&O tax increases: Rate increases on various sectors will impact employers of all sizes across manufacturing. health care, retail, professional services, and more.

• Sales tax expansion: The expansion of sales tax to professional services— including advertising, IT, security, and staffing—adds direct and pass-through costs for businesses and consumers alike.

“These increases will translate into nearly $2,000 in new tax burden for a family of four in Washington,” the letter states. “This is at a time when inflation, elevated interest rates, and slowing economic growth are already straining household budgets and business balance sheets.”

Additional requests: AWB and partners also asked the governor to veto bills expanding unemployment insurance to striking workers, creating expensive new recycling regulations, and reducing college grants for students who attend independent colleges.

Main Street businesses will pay more: The Legislature recently adjourned after passing the largest tax increase in state history — and small businesses will bear the brunt of it, AWB President Kris Johnson writes in his latest monthly newspaper column.

Crunching numbers: The column highlights just a few examples of how the tax hikes will impact Washington businesses. A tree-service company shared the B&O tax increase will cost his company $40,000 per year in additional taxes. Another firm said the sales tax expansion will amount to a 10% hit to the bottom line — likely forcing the company to lay off staff.

In context: The tax increases couldn’t come at a worse time, with AWB’s spring employer survey showing growing fears of a recession over the next 12 months and widespread impacts from tariffs and retaliatory tariffs.

“Gov. Ferguson has until May 20 to veto parts of the budget,” Johnson writes. “We implore him to do so, on behalf of Main Street businesses throughout the state.”

Three minutes or less: In a series of short videos, AWB’s Government Affairs Team sums up the high and lows in the 2025 legislative session by policy area. Watch videos recaps of:

• Tax & Fiscal Policy

• Transportation, Housing, Land Use & Technology

• Labor and Employment Law

• Workforce, Education, and Health Care

• Energy, Water and Environment

Post-session webinar: Missed AWB’s legislative session review webinar on May 1? See the full recap from AWB News or watch the webinar.

Easing trade tensions: The United States and the United Kingdom reached a trade deal last week, the first major trade agreement since the U.S. imposed sweeping tariffs on dozens of countries in early April. The deal marks good news for Washington, one of the most trade-driven states in the nation.

Details: Under the framework agreement, the U.S. will reverse or ease tariffs on specific goods including cars, steel and aluminum, but leave in place the 10% duty on many other U.K. imports. The agreement will also open up the British market to American beef, ethanol, and other agricultural products.

Expanding trade ties: AWB led a trade mission to the U.K. in 2022, a trip that helped lay the groundwork for the 2023 memorandum of understanding between Washington state and the U.K.

• The UK was Washington’s fifth-largest export market in 2019, with a total value of exported goods of $1.8 billion, including $955 million in aerospace products, plus another $1.8 billion in services.

Time is running out: There’s just three weeks to nominate an outstanding business for AWB’s annual slate of awards, presented at our gala Evening of Excellence in November in Seattle. There is no cost to nominate or receive an award. Watch our quick “learn how to apply” video and make your nominations by May 31.

• Award spotlight: The Excellence in Family-Owned Business Award is given to a family-owned enterprise that is setting the standard for excellence and success by growing the business, while serving their communities and paying close attention to the personal touch in customer service.

• See the full list of 11 award categories and nominate today!

Become a bus tour stop: AWB designs our annual Manufacturing Week bus tour route around our Manufacturing Excellence Awards finalists. Nominating your company for an award is one of the best ways to be considered as a potential tour stop. Nominations are due May 31.

• The ninth-annual bus tour will visit manufacturing facilities in Western Washington Oct. 1-3 and shop floors in Eastern Washington Oct. 6-8.

AWB gives out three Manufacturing Excellence Awards:

• The Manufacturing Excellence Award for Operational Excellence

• The Manufacturing Excellence Award for Innovation

• Manufacturer of the Year

Showcasing shop floors: AWB is looking to visit manufacturers of all sizes as we highlight the importance of manufacturing to Washington’s economy. Learn more in this 2024 tour video. Another way to be considered as a stop is to fill out our 2025 tour application form.

Legislative ballot battles shaping up for Washington’s fall elections

Friday was the deadline for candidates to file for elective offices, and there are multiple noteworthy legislative contests in the mix, the Washington State Standard reports.

On the ballot will be candidates appointed to their seats following a legislative reshuffling last year. That includes a closely watched race in the 26th district, where Democratic state Sen. Deb Krishnadasan faces a challenge from Republican state Rep. Michelle Caldier. Contested races in the 5th, 33rd, 41st and 48th districts will also be on the ballot.

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WA slides again in ranking of best states, falling in key measures

Washington was ranked the 10th best overall state in the U.S. News & World Report “Best States” rankings for 2025, down from eighth in 2024 and second in 2023, The Seattle Times reports.

• Washington dropped in the economy category to 23rd, down from 14th in 2024. This category factors in business environment, labor market and overall economic growth.

• The state ranked 40th for opportunity, which looks at opportunity, equality and affordability. The state would have done better had it not been for its poor ranking for affordability —46th in the nation.

• Washington also dropped in the fiscal stability category from 14th to 16th, and came in nearly dead last — 49th — for short-term fiscal responsibility.

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How are you navigating tariff impacts? Take AWB’s survey

AWB is still collecting information about the impacts of tariffs on Washington businesses. AWB will use responses to help educate policymakers about the impacts of trade policies.

Click here to take the brief survey.

Face to face: AWB lives by and for our members. One important way we connect with you is through regional meetings. We kicked off our 2025 regional meetings recently with a wide-ranging discussion in Kitsap County. We’ll continue crossing the state over the coming months, coming to a community near you. We’d love for you to join us.

The latest info: AWB’s government affairs team will discuss important business-related issues including tax and fiscal, labor, environment, and more. This is an opportunity for the GA team to hear questions, concerns, and ideas you may have on legislative issues impacting your business. We will also be giving a 2025 legislative review to highlight important legislation affecting the business community.

Town to town: While we are still finalizing the regional meeting schedule, here’s the itinerary so far:

• Vancouver: May 28, 8 a.m., Greater Vancouver Chamber, 1111 Main St Suite 201, Vancouver

• Bellingham: May 29, 9 a.m., Mount Baker Theatre, Encore Room, 104 N Commercial St, Bellingham

• Bellevue: May 29, 4 p.m. (tentative)

• Tri-Cities: June 4, 7:30 a.m., Tri-Cities Visitor Center, Bechtel Board Room, 7130 W Grandridge Blvd., Kennewick

• Spokane: June 5, 7:30 a.m., Greater Spokane Inc. Board Room, 801 W Riverside Ave Ste 200, Spokane

Join us: RSVP to AWB’s Elizabeth Carmona to reserve your spot and get details on the event location. We look forward to seeing you soon!

Join AWB for free webinar at 11 a.m. on Friday, May 16 with Integrity Financial to explore how AWB’s retirement options and Pooled Employer Plan can meet the state’s retirement plan requirements and empower your business. Register here.

New law: Under a state law passed in 2024, your company must either currently offer a retirement plan or you will be required to auto enroll employees in the state’s WashingtonSaves program by 2027. You are required to participate if:

• You have been in business in Washington state for at least 2 years and maintain a physical presence here.

• You do not offer a qualified retirement plan to their covered employees who have had continuous employment of 1 year or more.

• You had employees working a combined minimum of 10,400 hours during the previous calendar year.

Alternative option: As an alternative to the state program, covered employers not currently offering a retirement program have the option of enrolling employees in a plan like AWB’s MyFuture 401k plans.

• Get ahead of the curve on compliance and learn about how you can offer a high-quality plan to your employees. With mounting pressure to offer competitive retirement benefits while managing complex compliance and rising costs, AWB’s MyFuture 401k program delivers a game-changing solution tailored to your needs.

• As part of the product mix, AWB offers a Pooled Employer Plan (PEP) 401(k) which significantly reduces administrative burdens, fiduciary liability, and leverages economies of scale for lower fees—freeing you to focus on production and growth.

Save the date and register now for the 2025 AWB Policy Summit, Sept. 16-18, at the Davenport Grand Hotel in Spokane. Save money and reserve your spot at the hotel with AWB’s discounted room block, giving you the best spot to enjoy Spokane without missing any of the action at Policy Summit.

Insights and expertise: AWB is inviting top state and regional leaders to speak with you at the Policy Summit, our biggest policy event of the year:

• Economist Matthew Gardner, who has been a popular and energetic speaker at a number of AWB events, will bring you the latest economic news and updates on the housing market. Stay tuned as we announce more speakers and panels.

• Watch video highlights of last year’s Policy Summit.

🌟National Small Business Week | May 4-10 🌟

📣 Honoring the Backbone of Our Economy

Last week marked National Small Business Week – a time dedicated to recognizing the immense contributions of small businesses to our communities, economy, and workforce

💼 Why Small Businesses Matter

Small businesses make up 99.9% of all U.S. businesses and employ nearly half of the nation's workforce. From local shops to innovative startups, these enterprises play a critical role in offering hands-on learning experiences like internships, job shadows, and mentorships that help shape the next generation of skilled talent.

🤝 Investing in the Future

Whether you're a family-run business, a new venture, or a growing company, your partnership in work-based learning efforts creates meaningful opportunities for students—and helps ensure a strong pipeline of future employees for your industry.

👉 Ready to Get Involved?

Explore ways to connect with emerging talent and contribute to your industry by visiting the Washington Workforce Portal. Together, we can build a brighter, stronger workforce.

Amid all the uncertainty facing businesses today, one thing you can count on is having access to best-in-class service offerings through AWB. To help your company stay competitive, in compliance, and recruit the best and the brightest, AWB offers members products, including:

• High-quality health insurance

• Robust 401k retirement programs

• Workers’ compensation premium savings and safety services

• A comprehensive suite of ancillary benefits such as dental, vision, disability, and life insurance

What members say: “Being able to offer health benefits is extremely important to us. Our broker recommended HealthChoice 20 years ago, and it has been a great choice for us,” said Alta Group President David Haavik. “I have never heard a complaint from any of my employees in all these years.”

More information: Please visit AWB’s member services page.

“No. Sorry, Dan. We are sticklers in Seattle. It’s PIKE Place. No ‘s.'” ~ “Jeopardy” host Ken Jennings, correcting a contestant who answered “What is Pike’s Place Market?” on an episode of the television game show last week.