Small business owners have their say
Wed, 01/25/2006
Small business owners are usually too busy to take time from their busy and hectic schedules to decide on a comprehensive message to relay to their elected officials in Olympia. But last fall they did just that at two Small Business Conferences.
In November, Washington Policy Center sponsored two Small Business Conferences - one in the Tri-Cities and one in SeaTac. Our goal was to provide an arena where small business owners could formulate policy recommendations that would help them succeed in our slowly recovering state economy.
What we heard was not all that surprising. Small business owners value common-sense solutions because many do not have the time or energy to deal with hollow proposals or complicated bureaucratic rules. That is why, when asked for their public policy recommendations, just about all of the ideas agreed upon during the issue breakout sessions were not necessarily new or bold ideas. Most of them are common-sense ideas that have been around but have been ignored for one reason or another by a majority of policymakers in Olympia.
Small business owners were asked to identify their policy recommendations in critical areas such as health insurance, transportation, workers' compensation, unemployment insurance, taxes, regulations, tort reform and water and energy.
The number one issue concerning small businesses this year (as in the last few years) is the lack of affordable health care insurance for their employees. Only 47 percent of small businesses offer their employees health insurance. In the 21st century, not being able to offer health insurance to employees is embarrassing and a deterrent to landing new, qualified personnel.
The top recommendations from the health care session took aim at the intrusive nature of state government. Small business owners want to legalize the sale of basic, bare-bones health care. Most are unable to afford the "Cadillac" health plans that are allowed by state law. Because there is no "Hyundai" option available, many simply go without offering health insurance coverage.
The theme of "too much government regulation" was carried over into the breakout session on the complicated workers' compensation system as well. Right now, only large companies can legally self-insure their workforce with industrial insurance-everyone else must purchase their insurance from the state. Smaller companies want the opportunity to band together to purchase their insurance from private insurance companies because the competition will help to improve the system and will further help prevent workplace injuries.
Small business owners received some short-lived good news at the SeaTac Small Business Conference when Governor Gregoire announced she had directed the Department of Labor and Industries to forgo a 3.8 percent increase in the cost of workers' compensation. Later, conference participants learned the cost of workers' compensation will go down for some employees, but will still go up for many employers and several have already expressed their concern.
The unemployment insurance system is also a source of headaches for many small business owners, who feel the system unfairly burdens employers in favor of benefiting laid-off employees. Bringing balance back to the system and ending institutionalized discrimination against employers is a top recommendation by small business owners.
Carl Gipson is director of the Washington Policy Center's Small Business Project.