3.23.2009

Budget Gap Widens - Talk of Taxes Likely

The Economic and Revenue Forecast Council (Council) has issued a press release updating the revenue projection for Washington. The press release stated that there is a decline in tax collections from the November forecast. This decrease in tax collections equals a weaker forecast for the rest of the biennium.

Numbers have dropped drastically from those that were predicted in the February “Unofficial Early Guidance Report” from the Council; tax collections are now forecasted to be $552 million dollars lower in the next 28 months.

The predicted decrease in tax income has pushed the projected budget shortfall close to $9 million.

The calculation for the projected budget shortfall is done by finding the gap between tax collections and how much the state would need to spend in order to: maintain all state programs at currents levels; pay for growing school, prisons and Medicaid caseloads; give pay raises to state workers and teachers; and boost spending on programs for low income individuals and families.

Interestingly, although the budget shortfall has increased, the projected revenue for 2009-2011 is projected to be larger than it was in 2007-2009. With current cuts not closing the gap it is likely that talk of increasing taxes will become more prevalent.

Answers will come later this week when legislative budget writers are expected to unveil their spending plans for 2009-2011.

3.20.2009

Architects Licensing Bill gets a Hearing in the House

The architects licensing modernization bill, ESSB 5529, had a good hearing on Tuesday, March 17.

AIA/WA Executive Director, Stan Bowman, and AIAWA Treasurer and member, Peter Rasmussen, testified in support of the bill. The bill also had testimony in support of the bill from a representative of the state community colleges. The AIA is pleased to have found a compromise with the schools that is to the benefit of everyone involved.

The AIA continues to push for passage of ESSB 5529 which would: clarify corporate regulation requirements, update qualification standards, and cleans up confusing exemptions. You can see the AIA/WA testimony below.

AIA Members Testify in Support of Adding IECC to SB 5854

On March 18, John Cochran, AIA, and John Neff, AIA, both testified in support of SB 5854 and instituting the IECC, the International Environmental Council Code. Along with the two AIA members, Craig Stevenson of the International Code Council testified in support of the bill and adoption of the IECC code.

Using this standards instead of the WSEC, Washington State Energy Code will cuts costs which is expensive for the state to develop; it will decrease complications for architects, engineers and contractors to comply; and reduce they difficulty building officials encounter when trying to enforce the code.

The adopted of the IECC also comes with many benefits such as: free training, accessible resources online and for free, and streamlining Washington's energy code with the rest of the nation so that firms who practice in multiple states will have an easier time building "to code".

You can view the hearing (below) from TVW's webcasting program.

3.12.2009

Problematic Home Warranties Bill Passes House

Last night the House passed HB 1393, which is a watered down version of the initial home warranty bill. This bill, while improved, still has some challenging provisions.

The House bill took architects and engineers out of the definition of “construction professional.” So it doesn’t directly target architects. However, the bill still includes “inspectors” in the definition of construction professional. And the definition also covers “design, supervision, inspection…or observation of the construction.” Therefore, an architect who inspects a project could still be held liable.

Overall, the bill does several things:

  • Proves that the “common law implied warranty of habitability” cannot be
    waived
  • Requires all contracts on the sale/construction of new residential projects
    have a written express warranty.
  • Establishes a “Home Construction Board” to investigate and mediate construction defect claims and pays for the board with a $100 fee added to the registration for builders doing residential
    construction.

The house bill does not include the problematic stamping or inspection requirements that are in the Senate Bill, Engrossed Second Substitute SB 5895.

As mentioned previously, we hope that we can continue to work the bill to clear up the ambiguities. There was controversy about the bill coming up last night in the form it did. The builders, contractors, architects/engineers, and insurers were in negotiations with the sponsor, Representative Larry Springer. It was expected that the warrant provisions would not be in the bill. It was quite surprising when the bill came out with those provisions.

Stay tuned, this issue will continue to develop and change as the bills progress.

3.11.2009

Architect Licensing Bill Passes Senate

Senate Bill 5529 (ESSB 5529), which modernizes the architecture licensing law, passed the Senate yesterday in a 42-2 vote (5 excused).

Senator Fred Jarrett, the prime sponsor, has our gratitude for all of his guidance and patience during the process. What had started out as a non-controversial bill became heated at times.

We are also grateful to Senator Chris Marr who stepped in to facilitate a compromise amendment and kept the bill moving. After the agreement was reached, Senator Marr made sure the bill was brought to the floor and passed.

And last, but definitely not least, we owe thanks to all of our members who e-mailed and called Senators over the last week. Without your effort this bill wouldn’t have gained the attention that it needed to continue.

The House bill, SHB 1634, remains stuck in the House Rules Committee, despite near-Herculean efforts by our sponsor Rep. Scott White. Now that the Senate bill has passed, it is likely the House will not move their version. Time on the floor to debate and pass bills is at a premium with just two days before the cutoff.


For more information you can check out various other postings on our blog under the licensing label or contact us at info@aiawa.org.

3.04.2009

AIA Washington Council Testifies in Support of Reducing Emissions

Buildings are the greatest source of emissions and energy consumption in America. They consume between one third and one half of the energy expended in the United States. Buildings use two-thirds of all electricity and produce approximately one-third of carbon dioxide emissions. These numbers are only expected to rise.

To order to reduce building pollution the AIA Washington Council is supporting 2SHB 1747 and 2SSB 5854 which will implement the recommendations of the Governor’s Climate Action Team and significantly improve energy efficiency in Washington buildings.

The bills have faced some opposition from those who are concerned that increasing the energy effectiveness in buildings will also increase the cost of housing. You can see AIA/WA Executive Director, Stan Bowman, address these concerns and others during the hearing for 2SSB 5854 below.

Director Bowman also testified on 2SHB 1747 Friday, which you can see at TVW by clicking here