I-1082 Would Bankrupt Long-Term Care

Here is a chart that uses Department of Labor & Industries’ data that breaks down, to a FTE illustration, the millions of dollars in employers’ workers’ compensation rate increases for boarding homes and nursing homes that would immediately result upon passage of Initiative 1082.

Effectively this would be tantamount to a cut of millions of dollars for this care on top of the $28.2 million in new Medicaid cuts announced today and on top of whatever additional cuts occur in the next biennium.

Note that the assumption is made by I-1082 proponents that rate increases will be slowed after July 1, 2012 by the entry of private insurance carriers.

However, until that time, and beyond, the new employer cost of paying the workers’ half of the Medical Aid premium will remain as a gigantic increase in your rate structure and it’s impossible to imagine that AIG, Liberty Mutual, or any other insurer is actually going to reduce rates from whatever they’re at as of July 1, 2012.  What’s their incentive?  Thus, even under the best case scenario, you’ll never break even from the gamble I-1082 represents.

I-1082 will not immediately increase costs for self-insureds as they already pay the entire Medical Aid premium.

Any comparison to reductions in rates in West Virginia to suggest rates here will decline post-July 1, 2012 do not work.  Those reductions only occurred due to the fact that the old West Virginia system subsidized the coal industry and socialized its liability to all employer classes.

Vote No on I-1082.

The problem is pay. A lack of pay!

The real economic issue of our times is a lack of pay. As you can see from this simple chart, US workers have been improving their productivity steadily over the past thirty years. In the past US workers saw their wages go up in line with these gains. Americans saw their standard of living rise by almost double in each generation.

Not so in our times.

And the above situation contributes to other problems.

Forty years ago, a college education was free in some states and very inexpensive in others. Now its very expensive. Simple reason: the tax base that once, with ease, supported higher education, is gone.

Health care is expensive. But it would be less expensive in proportion to pay if real wages had simply kept in line with productivity gains.

Until we fix this problem, none of our other problems will go away. Many of those problems will simply get worse, just as when a person’s underlying health disorder is not treated, many new ailments are bound to pop up.

This will be a complex problem to solve, but here’s a beginning: starting now, just say no to any and all efforts to lower people’s pay. We have had a thirty year experiment with the “neo-lliberal” theory that lower wages will make us richer. Making some of us poorer, in the end makes us all poorer. The hollowing out of people’s purchasing power finally caught up with the housing market, and now even the most expensive house has lost value. Since the value of anything is simply whatever the price that the last buyer was able and willing to pay, its time to re-think the idea that making some people poorer will make everyone else richer.

We have to return to an economic model where all boats are lifted.

Here are some local resources on wage issues

Washington Minimum Wage

Small Business? Calculate you health care savings here

If you own a small business, or work for a small enterprise, click here to learn about a tax credit that your company might be eligible for since the passage of federal health care reform.

Tool around the site.

You will find other useful resources and information http://smallbusinessmajority.org/tax-credit-calculator/

Columbian: In Our View: Re-creating Wisdom

In Our View: Re-creating Wisdom

Legislators put task force back to work chasing license cheaters in S.W. Washington

This story was published in The Columbian and is the property of the The Columbian Publishing Company.

Friday, March 19, 2010

Few acts by the Washington state Legislature in the past three years have made more sense than the creation and the re-creation of the Vehicle License Task Force. (Don’t get ahead of us now. We know that little “re-creation” word jumped off the page, and we know that you know the word ultimately will become the subject of this editorial. First, though, let’s return to the task force that was introduced in the opening sentence).

The task force was created three years ago and charged with catching residents of Southwest Washington who were driving vehicles registered in Oregon to avoid paying sales tax and license fees. Statewide, these cheaters were depriving the state of an estimated $10 million in revenue. In this corner of the state, these miscreants had generated considerable public outrage.

The $250,000 investment by the state for the task force paid huge dividends. In 2008 alone, $647,027 was paid by residents who had been coaxed by the task force into registering their vehicles legally in this state. That net gain of about $400,000 was thanks to the work of two Washington State Patrol officers, an auditor with the Department of Revenue and supporting expenses for a crew of 10-12 volunteers who cultivated tips from the public. The cheaters had been reminded by postcards that violation of this law is a gross misdemeanor that carries a $529 fine and could cost thousands more on repeat offenses.

Fast-forward from 2007 to 2010. (Actually, it’s more of a leapfrog over the legislative blunder that we’ll get to in a minute). This year, the greatness of the Vehicle License Task Force was unanimously affirmed in both the Senate and the House. Both re-creation votes occurred March 11, the last day of the regular session. Needless to say, it’s rare that members of both parties express unanimity on innovative funding measures, especially while lawmakers are wrestling with a $2.8 billion revenue shortfall. But that’s exactly what happened last week: uncontested affirmation in a Capitol full of frantic politicians — in an election year, no less.

Now, though, let’s return to that pesky word that won’t go away: “re-creation.” It’s physically impossible for us to applaud the legislators while we’re smacking our foreheads in bewilderment. And the question on everyone’s mind becomes: Why in the world was the Vehicle License Task Force abolished in 2009? The quickest — and worst — answer was to save money. This year’s $2.8 billion chimpanzee was nothing compared to the $9 billion gorilla that stormed around the Legislature last year. So frightened the legislators must have been during the budget-writing process, they simply could not see the task force’s net gain of almost $400,000.

We can think of no other explanation for the big blunder of 2009.

Now, though, the absurdity has been remedied, and more than anyone else, Southwest Washington residents have state Rep. Jim Moeller, D-Vancouver, to thank for it. Moeller sponsored House Bill 2436, which not one legislator could bring himself to oppose. State Rep. Jim Jacks, D-Vancouver, was another sponsor of the bill. We’ll suspend the forehead smacking and applaud Moeller and Jacks and, for that matter, every other member of the Legislature who could not rise this year in opposition to the Vehicle License Task Force.

Southwest Washington residents are encouraged to prepare to participate again when the task force starts up soon; tips from the public are integral to the operation.

They say the making of legislation — like the making of sausage — is no sight for the weak of stomach. And when it comes to the Vehicle License Task Force, the only thing we can say in retrospect is: This sausage had to be made twice. But it’s not so ugly.