Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

Access to health care is essential. Plus: sick days, equality, stimulus and unemployment insurance

Health Care Now: The whole world is in recession. But the United States is the only wealthy country in which the economic catastrophe will also be a health care catastrophe — in which millions of people will lose their health insurance along with their jobs, and therefore lose access to essential care.

Senate passes child health bill: Senate Democrats moved one step closer to handing President Barack Obama an early health care victory Thursday, passing a bill extending government-sponsored health insurance coverage to about 4 million uninsured children.

Report: State has options to widen health care: Washington could save money on health care by implementing an approach that’s already used for public employees, according to a consultant’s report. The report, by Mathematica Research Inc. of Washington, D.C., lists the costs and benefits of four health care reform options.

Sick days for all: Everyone gets sick. But for far too many employees who don’t get paid sick days, losing a day’s pay — or even a job — is as easy as catching a cold. The alternative isn’t much better, as people go to work sick and spread illness to co-workers and the public. That’s why enacting paid sick days as a basic workplace standard is such an important public health reform — and even more so in tough economic times like these.

When Should You Call In Sick?: Hacking. Coughing. Sneezing. Sometimes the workplace sounds less like an office and more like a hospital ward, especially now that we’re at the height of cold and flu season. If you’re not feeling great, do yourself and your co-workers a favor: Call in sick. You’ll likely get better faster and save your employer money.

LTE: Ensure equity in jobs programs: While I understand Gregoire faces difficult choices in attempting to balance the state budget, I would like to recommend an essential criterion that “jobs programs” must meet to be considered fair to our populace: gender equity.

House passes $819-billion stimulus bill: In a strictly party-line vote, lawmakers approve Obama’s plan that expands jobless benefits, cuts taxes and spends on infrastructure, energy and education.

Speaker Chopp wants to boost unemployment checks: House Speaker Frank Chopp wants to tweak a proposal by Gov. Chris Gregoire to temporarily boost unemployment benefits for workers as well as provide a tax cut for business. Gregoire recently proposed taking $400 million from the state’s $4 billion unemployment trust fund, which is running a surplus. Half would go to boost benefits and the other half would aid businesses by reducing the amount of money they pay into the fund. Under her proposal, workers would receive a $45-a-week boost in benefits on average.

Filed under: state economy, tax and budget, work and family, , , , , , , , , ,

The best kind of stimulus. Plus: health care, equal pay, paid family leave and the state budget

Food stamps offer best stimulus: As Congress and the White House consider a $150 billion stimulus package that includes tax rebates and tax incentives for business, a report released Tuesday suggests that other methods would do a better job of infusing money into the flagging economy and doing it fast.

Treat health care as a human right: With our economy in crisis, President Barack Obama newly sworn in and health reform hearings under way this week in the Legislature, only one thing is certain about U.S. health care: We cannot afford the status quo.

Obama signs equal-pay bill: President Barack Obama signed an equal-pay bill into law Thursday before cheering labor and women leaders who fought hard for it and the woman whose history-making lawsuit gave impetus to the cause.

Fee on workers may pay for leave: In 2007, jubilant Democratic lawmakers approved $250-a-week stipends to workers who take unpaid time off to bond with a new baby. Two years later, without paying anyone a dime, paid family medical leave has stalled. Gov. Chris Gregoire halted computer work on it to save money. And no one agrees how to pay for the estimated $40 million annual payout.

State Senate passes bill that aims to trim $105 million in government expenses: The Senate passed a bill on Wednesday to reduce the administrative costs of government in the face of a $6 billion deficit. Under Senate Bill 5460, a salary and hiring freeze will occur for one year. Employees would not be reimbursed for out-of-state travel and agencies would not be allowed to contract personal services or purchase equipment that exceeds $1,000.

State gets 360 suggestions for its share of stimulus: As of Tuesday, Washington state had received more than 360 proposals totaling nearly $1.5 billion from local governments and various agencies looking for a piece of the federal economic-stimulus package.

Billions in aid for state now up to Senate: The House of Representatives approved a massive economic stimulus bill Wednesday that could provide up to $4.7 billion to Washington state for road, sewer and school construction; aid to the poor, elderly, students and unemployed; and dozens of other programs.

Filed under: state economy, tax and budget, work and family, , , , , , , , , , ,

Tax cut shovel will only dig a deeper hole

If you’re holding a hammer, so the saying goes, everything looks like a nail. But what if you’re holding a shovel?

Faced with a mounting revenue shortfall, Washington lawmakers are grappling with potential cuts in health care, transportation spending, education and more. That hasn’t stopped some legislators from introducing bills to cut revenue even further.

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Filed under: state economy, tax and budget, , , , ,

Strong minimum wage boosts economy – New Jersey may follow in Washington’s footsteps

In the midst of the Great Depression in 1938, Franklin Roosevelt called for adoption of the first federal minimum wage as “an essential part of economic recovery.”  By increasing the purchasing power of those workers “who have the least of it today,” he explained, “the purchasing power of the Nation as a whole – can be still further increased, (and) other happy results will flow from such an increase.”

Washington voters approved the highest minimum wage in the nation 10 years ago, and guaranteed cost-of-living adjustments to preserve  buying power for good measure. Now a New Jersey commission is calling on that state’s legislature to take similar action.

National economic troubles aside (which are affecting nearly every state in the union), Washington’s minimum wage has been good for our economy. Over the last year, jobs in Washington increased much faster than in the nation as a whole. What’s more, jobs rose in both retail and restaurants, the two largest employers of minimum wage workers.

Proponents of the idea in New Jersey point out that:

…Federal Reserve Bank of Chicago economists confirmed that minimum wage increases boost consumer spending substantially more than tax cuts do.  This is spending that goes directly into local businesses and the local economy. Moreover, as the state grapples with a looming budget shortfall, a minimum wage boost represents one of the few forms of stimulus that will not worsen the deficit.

…[R]epeated studies – in good times and bad – have found no job losses resulting from minimum wage increases. In 2006 more than 650 economists, including five Nobel laureates and six past presidents of the American Economic Association, called for increasing the minimum wage, finding that it “significantly improve(s) the lives of low-income workers and their families, without the adverse effects that critics have claimed.”

So, everything old is new again. Thanks, Mr. Roosevelt.

Full story below the fold.

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Filed under: minimum wage, state economy, tax and budget, work and family, , , , , , ,

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