Washington State Legislative Session

The legislative session is nearing the three-quarters mark and budget-writing is in full swing. We continue to watch budget proposals as they come out. The revenue forecast was released last Monday and will guide spending over the next two years. Revenues remain healthy but are forecast to decrease, which is why we’ll continue advocating for the state to build up its reserves.

• Last Monday’s revenue forecast came in under earlier projections, reflecting the projected broader economic slowdown. There are fewer building permits and real estate excise tax collections are down 42%. Personal income growth has also slowed. The Federal Reserve’s interest rate increases to fight inflation have cooled the economy, but Washington remains in a strong position. Lawmakers will still have more to spend this biennium than they did in the last two years, meaning they likely won’t face pressure for new taxes or major budget cuts.
• The Supreme Court did uphold the Capital Gains tax, which will mean that there will be more revenue than the state budget accounted for as referenced above
• As we discussed at this year’s Horizons event, there is a bit of a “reset” happening in our local, national, and global economy. Pierce County and the South Sound are better positioned for resiliency however, recent bank failures and future interest rate increases continue to add to the economic uncertainty. 
• The Senate’s capital budget proposal unveiled last Monday shows a big investment in housing, which is encouraging given our priorities this year. There’s a record $625 million for housing, including $400 million for the Housing Trust Fund. That’s more than the entire amount the state budgeted for housing in the three biennia before the pandemic. The new funding plus a package of housing legislation would be a big win for addressing the housing crisis.

 
Pierce County

• Last Tuesday, the Pierce County Council approved the 1/10 of 1% increase in sales tax to fund housing and related services. The tax is expected to bring in 6.3M in revenue in 2023 according to estimates. Remember, cities that already adopted this, such as Tacoma, will not pay that additional .1%. Ryan Mello, Dave Morell, Marty Campbell, Jani Hitchen and Robyn Denson voted in favor. Amy Cruver and Paul Herrera voted against.
• Also on Tuesday, the Council approved the Tiny Home Village project west of Spanaway as a new approach in the County to address homelessness. 285 micro homes will be built on an 86 acre site. The goal is for construction to be completed by fall of 2028. More information on this project can be found here.

 
City of Tacoma

• Last week, thanks to successful advocacy efforts we were successful in securing the Mayor’s approval to add Ryan Spence, our MIC Program Director to the Tideflats Advisory Group (TAG). We had a robust meeting last week and are continuing to monitor all activity related to the sub-area planning process and EIS. Again, thanks to our successful lobbying the Chamber holds two seats now on this critical advisory group, along with several of our members, including our GAC Chair, Tony Belot.
• I continue to meet with the Mayor regularly and the Economic Development department on the plan to advocate for the 4M projected increase due to business license fees to be reinvested for the business community. More meetings are scheduled with the EDC in April and I will continue to keep you all updated.
• I continue to meet regularly with law enforcement and City officials to do all we can to create and maintain a safe, clean, and welcoming environment throughout the City and have had several one-on-one meetings with representatives from the South Tacoma Business District. We are particularly grateful for our partnership with the Downtown Tacoma Partnership as we look forward to continuing to support and enhance our shared work. We also had a productive meeting with UWT on how we can continue to activate campus and maintain a safe environment. These meetings will now happen more regularly with UWT Leadership, Chamber and DTP.

Thank you,
Andrea Reay
President & CEO Tacoma-Pierce County Chamber

Last Thursday, March 23rd, we attended an open house hosted by The Village Senior Living in Tacoma and helped them celebrate their Grand Reopening with a ribbon cutting! Everyone who attended was treated to live jazz music, and art demonstration, incredible food and beverages prepared by The Village's culinary team, and tours of the recently-remodeled facility. It was an honor to be a part of this incredible event!

​View photos from the event below. 

​Tacoma-Pierce County Chamber CEO and President Andrea Reay visited Olympia this past Friday to testify in support of Washington’s 2023 Middle Housing Bill (E2SHB 1110). This bill, if successful, will open the door for more housing options for hundreds of thousands of families in Washington State, including right here in the South Sound. The bill seeks to “increase middle housing in areas traditionally dedicated to single-family housing.” This would set the stage for more affordable, dynamic housing options that are much needed in our region.   

In her testimony before the Senate on Friday, Andrea Reay stated “Housing is a cornerstone for building an equitable economic ecosystem and the lack of housing makes it harder to attract and retain talent as we are still very much in a workforce shortage. We all know that production has not kept up with demand and we need creative solutions to this complex problem now to ensure we are able to continue to build generational wealth in and for the South Sound and the state.” 

A representative from the Washington Department of Commerce also gave testimony in support of the bill. The legislation is also supported by the Association of Washington Business, the statewide chamber of commerce for Washington.  

The Washington Department of Commerce recently released its housing needs projections showing that Washington will need to add over a million new homes over the next 20 years to meet population demand. This is a critical issue at play for our business community.  

“37% of Washington State Employers report the lack of housing as a top priority,” Reay shared in her testimony, “Our state has the fewest number of housing units per household of any state in the county. Over the last 30 years, our population has grown by 60% but the number of housing units has increased by only 33%. We know we will need between 20,000 and 71,000 new housing units per year over the next 30 years to keep up with growth.” 

The bill accounts for various factors such as the population size of cities, proximity to public transit, and unit affordability in determining what types of middle housing developments should be allowed in different areas throughout the state. You can learn the specific details and view the most recent version of the bill here.  

From our CEO on behalf of the Tacoma-Pierce County Chamber, “The coalition of supporters is broad, the legislation is a step in the right direction, the time is now, and I strongly urge your support.”  

Our March Chamber After Hours was a blast! Thank you to Dancing Goats Coffee in Tacoma for hosting this fun event. Our members enjoyed a great night of networking and enjoying delicious food and beverages. Every Chamber After Hours is special, and this one was no different. We hope to see you at an upcoming event! 

This past Tuesday, March 14th, we joined Pure Infusion Suites in Tacoma to celebrate their new clinic location with a ribbon-cutting! Thank you to Pure Infusion Suites for having us be part of their celebration and to everyone in our business community who showed up to make this such a great event. 

March is shaping up to be a month full of financial opportunities for businesses! Explore 3 new funding opportunities currently open or opening soon for small businesses. Take a few minutes to learn about these opportunities, get your paperwork in order, and mark your calendar with the application deadlines. Don't miss out on the chance to earn money to help your business thrive! 

BACKING SMALL BUSINESS GRANT PROGRAM (Application open March 20 - April 7)
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​​Main Street America and American Express are presenting the second year of the Backing Small Business grant program. 350 small business grants of $5,000 are available to businesses at least 51% owned by women, veterans, people of color, people with disabilities, members of the LGBTQ+ community, immigrants, and refugees operating businesses in historic commercial districts. This includes historic downtowns, main streets, and other commercial districts. Other eligibility requirements apply. Application window opens March 20, 2023. Learn more. 

WASHINGTON HOSPITALITY GRANTS (Opening March 14)

The Washington State Department of Commerce is opening applications this month for Washington Hospitality Grants to support eligible restaurants, bars, lodging, and other qualifying businesses negatively impacted by COVID-19. More information will be made available soon and the application window is set to open March 2023. Learn more here about this opportunity. You can also register to attend a free informational webinar about this program on March 13, 2023. 

DIGITAL SALES ACCESS PROGRAM TACOMA (Application OPEN NOW)

The Digital Sales Access Program (DSAP), made possible by Kay Tita, aims to help 65 Tacoma-based business owners grow their businesses through increased e-commerce capacity, social media marketing, improved digital literacy, greater financial awareness, and a connection to a reliable community. Chosen applicants will receive a free point-of-sale system for their business, $1,000 in Google ads, a 6-month online Quickbooks subscription, a 12-month Square online website subscription, and more. Learn more.