Ninth District Congressman Adam Smith is holding a "conversation on trade" at his office in Tacoma next week on Wednesday, July 1 from 8:15 to 9:15 a.m.  Space is limited and RSVP is required.  Please contact Debra Entenman at Debra.Entenman@mail.house.gov or (253) 593-6604.  Rep. Smith's office is located at 2209 Pacific Avenue, Suite B, Tacoma, WA 98402.

As most of you are well aware, trade is enormously important to Washington state, as both importer but mostly as exporter.  Our state exports a wide range of high value goods and services, which include aircraft, agricultural products, other industrial machinery and equipment, software, etc. 

The Ports of Seattle and Tacoma handle large amounts of barge traffic that has goods destined locally but mostly to areas beyond the state's borders.  The jobs that trade supports are high-paying, high impact jobs from longshore workers to truck drivers to farmers and software developers.

With high-tech goods, some of the key trade issues are protecting intellecutal property as counterfeiting and pirating of software, games and other digital media is unfortunately all too common in places like China.

If you live in the 9th Congressional district and want to express your thoughts about trade policy, please contact Rep. Smith's office and attend the July 1 meeting.  Congressman Smith's website is here:  http://adamsmith.house.gov/

Hello Readers,

The Workforce Training and Education Coordinating Board (Workforce Board, www.wtb.wa.gov) is the primary state agency tasked with worker training and retraining.  They repurpose federal money and use some state money for a wide range of programs focused on helping improve the skills of the labor force.

Currently, the Workforce Board is launching a pilot program around what are called LiLAs, or Lifelong Learning Accounts.  LiLAs are employer-matched, portable individual accounts to finance employee education and training.  The US Dept. of Labor is the sponsoring agency through its WIRED grant program.  The area of Washington state that is eligible is the Pacific Mountain region, which encompasses Grays Harbor, Lewis, Mason, Pacific and Thurston counties.  WTB wants technology companies to be participants in this pilot as well as to be part of the extended network of companies when this program rolls out statewide.  A slideshow is attached that discusses LiLAs in more detail.  Below is a cut and paste from Patrick Woods, the state program director for this project.  Patrick can be reached at (360) 664-4232 if you want to participate or learn more.  You may also contact us at Lmcmurran@washingtontechnology.org if you are a tech company wishing to participate.

Two recent studies that have highlighted the importance of Lifelong Learning in promoting a qualified workforce and competitive business sector. 

* Tough Choices or Tough Times: http://www.skillscommissionorg/pdf/exec_sum/ToughChoices_EXECSUM.pdf

* Lifelong Learning/New Strategies:  http://www.futureworks-web.com/pdf/publications/NewStrategiesforEducationofWorkingAdults.pdf

2.  The following is some general background material on Lifelong Learning Accounts that we are sharing with interested employers:
 

The Lifelong Learning Account LiLA  program is designed to assist employers and their employees in creating a lifelong learning environment in the workplace. Employees are encouraged and supported to invest in their training and education, that will enhance their skills. In turn they add to the company's ability to respond to ongoing challenges and emerging opportunities, both locally and  globally. Washington was fortunate to receive a national grant to establish this pilot project in the five county region of Pacific, Thurston, Lewis, Grays Harbor and Mason counties. We are currently in the outreach phase of the project and are actively seeking companies and their employees to participate, in what we believe is an exciting and rewarding opportunity for all parties. It is also our intention to expand the use or Lifelong Learning Accounts LiLAs across Washington in the coming years.  The LiLA Initiative is being funded through a grant from the Council for Adult and Experiential Learning CAEL Foundation:  http://www.cael.org/adultlearninginfocus.htm

The following are some frequently asked questions about LiLAs .

What are LiLAs? Lifelong Learning Account is a promising new strategy to finance training and education through matching contributions from employers and employees and in some cases third parties. LiLAs enable workers to upgrade their skills and knowledge to achieve their career goals and earning potential, while meeting the skill needs of their employers. LiLAs are particularly appealing because they leverage individual and employer investment, that not only benefits the workers and employers but also ensures that Washington's businesses are globally competitive

How do LiLAs Help Employers? Lifelong Learning is generally recognized as a key component of a high performing workplace, that must successfully  adjust and respond to the changing the demands of today's economy. LiLAs provide companies with an affordable benefit they can offer to their employees to increase productivity, boost retention and reduce HR costs related to recruitment and hiring. In short it has the potential to first attract employees that are committed to growth and learning and once they are on-board help keep them longer or encourage them to promote within the company. From my own experience of managing 120 employees in central office in Olympia and matrix managing 350 people in the field, the LiLA program has tremendous potential for helping to attract and keep the best employees. In Washington we are truly excited about having Mike Hudson from the Association of Washington Business AWB and Jamie Krause from Pacific Mountain Workforce Consortium as a key partners in working with the business community and employees in order to ensure that the LiLA system works.

How do LiLAs Help Employees? Lifelong Learning provides employees with the opportunity to upgrade their skills through a joint funding mechanism between them and their employer and in some cases a third party match.  The establishment of a LiLA account by an employee starts the "crucial conversation" on career goals and connects the employee with a career counselor that will help them discover the professional path that best fits their goals and skills set. In short LiLAs can turn a job into a career with all the benefits that accrue to higher level positions. On the employee advising side we are very fortunate to have the Pacific Mountain Workforce Consortium providing the career counseling services in the 5 county region which makes up the first pilot project area. It is important to note that there is currently a limited pool of third party funding in the form of educational and training scholarships for the first group of employees that participate in the LiLA program.

Washington LiLA Website: http://www.wtb.wa.gov/LifelongLearningAccount.asp

Hello Readers,

On Thursday evening at 6 p.m., the Tacoma area tech community is getting together at Meconi's Pub at 709 Pacific Ave in downtown Tacoma.  http://www.tacomapub.com/

This is an informal get together just to network and talk.  WTIA will spring for a few pitchers and some appetizers.  We have had a group of members in the South Sound region for a long time and we would like to do more in that area if there is enough momentum for ongoing events. 

We want to thank WTIA Board Member and UWT Tech Institute faculty member Andrew Fry and entrepreneuer Erik Hanberg, http://www.erikemery.com/ for pulling this together.  Andrew has long been a booster of the South Sound technology community and really appreciate his efforts to build a cohesive technology cluster in the South Sound area.  We also want to thank Erik for getting the word out on his blog.

Hope to see you this Thursday.

Hello Readers,

Scott Oki, the former Microsoftie who ran their International Division, who has been known in recent years for his philanthropic and golf interests, just published a book through the Washington Policy Center called "Outrageous Learning", his effort at pointing out the major problems in K-12 education and suggesting solutions to those problems.

The Washington Policy Center (WPC) is hosting a free reception June 16 to officially release the book.  You can sign up on their website here:  http://www.washingtonpolicy.org/.  Click on the events tab and follow the links to register.

A number of Oki's recommendations are embodied in House Bill 2261, the basic education reform bill passed by the legislature and signed by Gov. Gregoire in May.  WTIA supported this legislation that makes major changes and recommits the state to its paramount duty under the state Constitution to provide a "basic education" to all children in the state, no matter their background or socioeconomic status.

Accomplishing this will require new ways of thinking, better execution, better trained teachers, more "hands on" learning by students and a large, ongoing financial commitment in the state budget to ensure that our students achieve high standards and graduate with a meaningful high school diploma.

One big problem that we have seen played out recently in school districts that are cutting their budgets is how teachers are hired and fired.  In many, if not all cases, teachers were kept based purely on seniority.  The younger teachers, many of whom can relate better to the students and who understand technology better, were the first to go while more senior teachers, many of whom are simply marking time to retirement,  kept their jobs.  This is inexcusable.  But, this is the result of an overly powerful teachers union.  The WEA and its local affiliates are one of the biggest roadblocks to true education reform.  This must change.  All too often unions resist any kind of reform but constantly carp about money.  Maybe if Washington's students performed better on the WASL and more were college or work ready, they would have a case.

We can no longer tolerate academic underachievement.  Our future depends on a more educated and technically trained citizenry to be the next generation of technology entrepreneurs.  If you care about improving the state's education system, check out the June 16 event and contact WTIA to become part of our advocacy network.  Thanks and have a great weekend.

Good afternoon Readers,

The digital goods tax is going into effect on July 26--less than two months away.  For sellers of various digital products, such as video games, digital movies, digital music, ringtones, online subscriptions and other online services, you will have to charge sales tax to customers located in Washington state and remit it to the Department of Revenue.  You will have to set up a way to collect the tax at time of purchase and base the tax rate on the location of the customer.

The Dept. of Revenue is the state agency that regulates this activity and will be the one implementing this tax.  They are setting up small group meetings with WTIA members and others this month to get a handle on how sellers of digital goods transact business and help them comply with the new law.

Dept. of Revenue has scheduled two stakeholder meetings in July to get broader input.  Here is the link to the DOR website announcing the meetings:  http://www.dor.wa.gov/Content/GetAFormOrPublication/PublicationBySubject/TaxTopics/DPStakeholders.aspx

These will be held July 14 from 10 a.m. to noon in Burien and July 15 from 10 a.m. to noon in Olympia.

For additional information, there is more from Dept. of Revenue here:  http://dor.wa.gov/Content/GetAFormOrPublication/PublicationBySubject/TaxTopics/DigitalProducts.aspx

There is a Q&A page you can access at that link if you are unfamiliar with how this tax will be applied.  While this new requirement will require changes in how sellers of digital goods do business, it does lower B&O taxes for companies that have to charge and collect the sales tax on digital products.

Please contact me at Lmcmurran@washingtontechnology.org if you have any questions or concerns or wish to get involved in this process. 

Hello Readers,

I wanted to pass on a great article that appeared on John Cook's Techflash blog on Tuesday.  Here is the link to the article:  http://www.techflash.com/Lazowska_Washingtons_smug_tech_industry_needs_kick_in_butt44821697.html?commentSubmission=.3137723467#comments

The comments come from UW Computer Science Professor Ed Lazowska, who also sits on the WTIA Board of Directors.  Ed doesn't pull any punches and there are some interesting tidbits on a wide range of topics.

The one area that resonates with me is the need for the state's technology industry to coalesce, as an industry, around key public policy issues, particularly education, both K-12 and higher education, among other issues.

Our problem is that we, as the state's most dynamic and important industry, are not as important a political force as our economic influence should have us be.  Sure, Microsoft is very influential with the Governor and the legislature but they are looking out for their interests.  Luckily, Microsoft's interests match that of the broader IT/software/internet industry in that the Redmond software company is engaged in improving K-12, increasing higher education capacity, promoting more transportation options and maintaining a decent business climate for starting and growing technology companies.  But we need more voices saying the same thing.

WTIA actively lobbies for the industry's interests in Olympia and elsewhere but our resources are stretched thin.  Most other industries and certainly the unions and other special interests have much greater involvement in legislation and politics than the tech industry.  This is not to say that many, many individuals within the tech industry are not engaged; they most definitely are but it is more around their own pet causes than in strengthening the tech industry's influence.

Part of this is due to the entrepreneurial and unregulated nature of high-tech.  One of the reasons the tech sector has thrived in our state and around the country is because it is essentially unregulated.  Entrepreneuers tend to be "lone eagles" who have no time or inclination to be involved in the slow moving process of government.  Can't really blame them for that.

Yet if we want better schools where teachers actually know math and science and where students learn math and science; if we want to see more students graduate with STEM or other meaningful degrees; if we want to maintain a business climate that does not overburden small employers, then the tech industry must step up into a greater leadership role.

One way is to help grow our political resources.  Here is a link to our Political Action Committee page on our website:  http://www.washingtontechnology.org/pages/advocacy/advocacy_wsa_pac.asp

Contributing to the WTIA PAC is a simple way to help the industry improve its political standing. 

Another way is to get involved in our advocacy and lobbying efforts.  We are seeking tech industry executives who are willing to sit down with us to discuss and decide the industry's public policy priorities and be advocates with us to improve our state.

If this is something that interests you or your tech industry colleagues, please contact me at Lmcmurran@washingtontechnology.org or by phone at (206) 448-3033 x101 to get involved.  We are forming an "Executive Policy Council" that will shape the industry's priorities and devise strategies to achieve our goals.  We need you.  Thank you.

Hello Readers,

Last Wednesday, April 29, Governor Gregoire signed Second Substitute House Bill 1522 into law.  This bill will help those companies that are in the business of recycling computers for reuse.

The original E-waste law took effect January 1 of this year.  One problem with the law was that it cut out those companies that primarily recycle computers for reuse, rather than for parts and materials.  This affected companies like Interconnect, RE-PC and 3R Technology.  These companies refurbish existing computers and sell them, often to developing nations to help build technology skills for people who lack the resources to buy new computers.

The state Department of Ecology and others had been concerned about toxic materials from computers, monitors and televisions showing up in unsafe conditions outside the state's broders.  The bill ensures that computer refurbishers can participate in the state's E-waste program under certain parameters.

Thanks goes to State Representative Zack Hudgins for sponsoring this bill.  If you want to know more about it, check it out at the legislature's website:  http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1522

There you can see the bill's history, read the bill or the final bill report (usually the last document listed is the most recent) and see how legislators voted.

Hello Readers,

The state legislature session is rapidly coming to a close and it appears that no special session will be necessary.

The House of Representatives passed both operating and capital budgets Friday night.  The Senate will take up the operating budget today.  It is ESHB 1244, and it is attached.  It is a very long bill but it is broken down by sections.  K-12 is section V, Higher Education is section VI.  There is a search function within the document to find whatever may interest you.

While about $4 billion is cut, there is still funds being spent on K-12 math and science programs.  Higher education is getting nailed and tuition will go up to partially offset the cuts.

With these two major budget moving through the legislature, it is likely that nothing will be held over for a special session.  A number of bills will die until next year as time will run out before they can be voted on. 

I will be reporting in more detail key bills that passed once the session has ended and the Governor has had time to act on them.