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Workers' comp rate increase
could affect economic recovery
By Rep. Dan
Kristiansen
Although Arun Raha, the
state's chief economist, says Washington's recession may be over, the
state is still struggling to find its way toward economic recovery.
Figures just released show 330,800 people are out of
work in Washington. Skagit County comes in with an unemployment rate of
9.2 percent, or more than 5,500 local people jobless.
With Washington's economy
still fragile, you'd hope leaders in Olympia would be seeking ways to
get people working again -- and at the very least, resist creating any
barriers to economic recovery. Unfortunately, state government seems to live
in a different world than the rest of us.
Last month, the state
Department of Labor and Industries (L&I) announced a proposal to
increase workers' compensation insurance premiums by an average of 7.6
percent. The insurance pays for medical care, rehabilitation and
replacement of lost wages for injured workers. Washington is only one of
four states that requires employers to purchase their insurance from
state government.
L&I Director Judy Schurke
acknowledged the timing's lousy.
"I know that any increase
adds to the challenges that businesses and workers face in this tough
economy," she said.
Nevertheless, L&I is
pushing forward, saying higher costs, fewer premiums because of reduced
hours worked, and lost jobs are the reason for the $120 million tax
hike on employers. It doesn't say, however, that administrative costs
are up 28 percent in the last year, even though workers' compensation
claims have continued to decline. That suggests reforms are needed to
lower costs and keep premiums down.
How will this rate
increase affect you?
Washington is the only
state in the nation where workers pay a substantial portion of premiums.
When rates go up, your paycheck goes down. For many families living
paycheck to paycheck, any income reduction is significant.
Many local businesses are
struggling to keep their doors open. I am concerned this would add to
their burdens, making it more expensive to retain workers, and taking
money that could be used to hire new workers. In this economy, the state
shouldn't be prolonging unemployment.
Two weeks ago (Sept. 30),
the Courier-Times wrote, "The evidence of a budding economic recovery in
Skagit County, though encouraging, is mixed with statistics showing
activity is still down in most sectors of the economy."
I believe we are on the
cusp of heading for better times in the economy, even though recovery
may be slow. Let's not sabotage it now.
Six public hearings will
be held statewide before the final workers' compensation rate is adopted. I urge
you to get involved and speak up. Written comments will be accepted
before Nov. 7 to: Department of Labor and Industries, P.O. Box 44140,
Olympia, WA 98504-4140, or you can e-mail them to Ronald Moore,
Employment Services Program manager at:
MOOA235@lni.wa.gov.
Public hearings:
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Tukwila: Oct. 27, 1
p.m., L&I Office, 12806 Gateway Dr.
-
Tumwater: Oct. 28, 10
a.m., L&I Headquarters, 7273 Linderson Way S.W.
-
Vancouver: Oct. 28, 10
a.m., Red Lion Inn at the Quay, 100 Columbia St.
-
Bellingham: Oct. 29, 1
p.m., Bellingham Quality Inn, 100 E. Kellogg Rd.
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Spokane: Oct. 30, 9
a.m., Spokane Airport Ramada, 8909 W. Airport Dr.
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Richland: Oct. 30, 2
p.m., Richland Hampton Inn, 486 Bradley Blvd.
# # #
EDITOR'S NOTE:
State Rep. Dan Kristiansen, R-Snohomish,
represents the 39th Legislative District, and also serves as chairman of
the Washington House Republican Caucus. He can be contacted at (360)
786-7967 or e-mail him and sign up for his e-newsletter at:
www.houserepublicans.wa.gov/Kristiansen.
For more information, contact:
John
Sattgast, Senior Information Officer: (360) 786-7257
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