Wise Investing Pays Dividends Employers Across Washington Reap Benefits Of Payback From Tax Program
Gov. Gary Locke came to Spokane on Wednesday, bagged a few groceries and handed out $422,000 to eight local businesses.
The money was part of a $200 million giveback to Washington employers. It comprised a portion of the money they paid in taxes to the state workers compensation program.
As he was making the presentation in front of a deli counter at Rosauers, the governor may have blocked shoppers from the crackers and goat cheese, but he brought Spokane businesses something they wanted much more.
“It’s rare when a governor gets to hand out money,” Locke said. But the state invested the tax premium wisely, and since the stock market has done well lately, “our workers compensation shared in those gains,” Locke said. “Now it’s only fair to return some of that good fortune to the employers in our state.”
This is the first time in the state’s history that a dividend has been returned to employers. About 130,000 employers will receive 32.3 percent of the premium they paid to the state Accident Fund in 1998. The Accident Fund provides benefits and disability pay for workers injured on the job.
In September, the governor announced he would refund $150 million of the money. On Wednesday, he boosted that by another $50 million.
The checks were mailed Wednesday. About $14 million will go to businesses in the Spokane area.
The eight employers personally given checks by Locke included Lydig Construction, DeVries Moving, Gonzaga University, Max J. Kuney Co., Telect, R.A. Pearson, Rosauers and Modern Dry Wall.
Gonzaga will put a portion of its $34,708 check into its safety programs, said Debbie Cerenzia, assistant director for safety and benefits.
Ron Mickelson, owner of Modern Dry Wall, said he’s probably going to put the $38,469 into his general fund.
He said he was tickled to get the money back. “I’d come to an event like this any day.”
After a brief tour of the Browne’s Addition supermarket, Locke threw on a burgundy apron and set to bagging groceries.
“I haven’t done this since I was a kid,” he said. “My dad and mom owned a grocery store.”
He stood surrounded by an entourage of state employees, business owners and television reporters while the customers surrendered looks of surprise.
“How am I doing?” he asked Kathy Pasby, who was surprised to find the governor across the checkout stand. She offered encouragement.
“It was great,” she said on her way out the door. At first she was irritated with the crowd of people blocking her way through the aisles, but having Locke pack her sacks made up for it.
This sidebar appeared with the story: CASHING IN About 130,000 employers will receive 32.3 percent of the premium they paid to the state Accident Fund in 1998. About $14 million will go to businesses in the Spokane area.