Frank Swoboda: Break the cycle of rising spending in Olympia, rising costs for small businesses like mine

How do you even begin to tell the story of Washington state, and our legacy of innovation that has literally changed the world – in agriculture, aerospace, biomedical research, consumer technology, and so much more?

As a small business owner and filmmaker in Spokane for nearly 25 years, I’ve thought about that question of Washington’s innovation story often.

I’ve also had the chance to create and share stories from across our state – stories about big ideas, hard work, community and game-changing ideas that were made real by entrepreneurs and businesses of every size.

But today, the story playing out across our state is one of rising spending in Olympia, rising costs for families and small businesses, and the smoldering risk that our state falls even further behind.

Olympia has fallen into the trap of relying on higher and higher spending as a substitute for real progress. Spending has doubled over the last decade, but we are not seeing the results we all need. Too many families and small businesses are struggling to keep up.

Today, Washington is the fifth most expensive state. Our household grocery costs are among the highest in the country. Home prices shot up more than 800% over the last 20 years. Or consider that 6 in 10 new Washington businesses fail in their first five years, the highest rate in the entire country.

Ask yourself: Why are new businesses in the Evergreen State failing more often than in any other state? Is it that Washingtonians don’t have great ideas, or don’t know how to manage a budget, or don’t work hard? Please.

Look all around our state and you’ll see the consequences of rising spending playing out in real time for small businesses like mine.

To pay for the constantly increasing budget, state lawmakers are always looking for new revenue sources, like the recently enacted digital advertising tax. It makes digital services, like online advertising, video production, web development and digital marketing, subject to sales tax – up to 10.6% in some parts of the state. Older forms of advertising, such as TV spots, billboards, and newspaper ads, got a loophole. Never mind that search, streaming, social media and targeted digital ads are the most cost-effective ways for small businesses to reach customers.

Instead of hurting “Big Tech,” this policy spikes costs for “Little Tech” – the Spokane manufacturer trying to reach new customers, or a nonprofit to raise money online without buying a TV spot at double the cost.

For small businesses like mine, a 10% cost increase in the services we offer to nonprofits and other small businesses could decide whether a contract is signed with a new client. It makes doing business – and growing – a lot harder. A policy meant to raise revenue can actually push it away, and with it, good-paying jobs.

I love living and working in Washington state. It’s my home. I also love our state’s legacy of leadership. And because of that love, we need to tell the truth about the challenges we face.

Make no mistake: Affordability is the great challenge facing our state right now. It’s time to recognize that increases in state spending are not helping address this challenge or improve outcomes. Only when we recognize that the current approach is not working, can we begin to move forward and address rising costs.

Frank Swoboda is the founder and creative director of Corner Booth Media, a Spokane-based video production and digital marketing company he founded nearly 25 years ago.