Washington Bankers Association Executive Development Program Comprehensive Government Relations Presented by: Denny Eliason, Alliances Northwest

Today’s Presentation 1) Why should business engage in government relations? 2) Elements of a comprehensive government relations program. 3) Types of lobbyists. 4) Qualities of an effective advocate. 5) Proper approach when lobbying an issue. 6) Tips for talking with lawmakers. 7) Real World Application – The 2015 Legislative Session.

Why Should Business Engage? 1) It’s a cost element of your business that you can influence! a) Regulation adds considerable cost to your products and services. b) Taxation goes right to the bottom line. 2) Your competitors and detractors certainly engage. a) Unions. b) Consumer Groups. c) Trial Lawyers. d) Environmental Interests. 3) Business Has A Responsibility to Engage! “It’s easier to get the right person elected than it is to get the wrong person to do the right thing.” Speaker Tip O’Neil

Elements of a Comprehensive Government Relations Program 1) Consistent presence before the elected organization you are trying to influence. 2) Effective and organized Grass Roots. 3) A credible Political Action Committee. “There is almost no dispute between us that can’t be solved with your departure.” Mark Twain 4) A public affairs strategy. a) Social media. b) Paid media. c) Grass roots coordination. d) Press relations.

Types of Lobbyists 1) In-house Company. 2) Unions. 3) Trade Association. 4) Government – State, Local and Agency. 5) Contract.

Qualities of an Effective Lobbyist 1) Honest. 2) Personable. 3) Hard Working All Year Around. 4) Intelligence. 5) Honest.

Proper Approach When Lobbying an Issue 1) State your position on the issue. 2) Explain to the lawmaker your opponent’s position. 3) Tell them why your opponent is wrong. 4) Explain how your issue impacts the lawmaker’s district. 5) Explain the politics of the issue both in Olympia and back home. 6) Don’t ever forget to ask for the “question.”

Tips in Speaking with a Lawmaker 1) Relax. 2) Make it real. a) Talk about your company/organization. b) Relate the issue back to your district. 3) Don’t speculate. 4) Ask for the “question…”

2015 Legislative Session – Political Climate 1) 2014 Elections. a) House – Currently 55 D’s v. 43 R’s – 11 key races. b) Senate – Currently 2 D’s/24 R’s v. 23 D’s – 5 key races. 2) Control and “Balance” matter. 3) 105 Day Regular Session beginning 1/12/15. 4) Adoption of a $36 billion General Fund Budget is job-one.

2015 Legislative Session – General Fund Budget 1) $36.4 billion proposition reflecting a 4.2% growth in revenues. 2) Growth in carry forward costs will lead to a budget that is basically balanced. 3) The State faces a potential shortfall of just over $4 billion. a) McCleary Decision = $2 billion. b) I-1351 (Class Size) = $1.389 billion. c) Health Care Caseloads = $300 million. d) Debt Service = $200 million. e) COLA for State Employees (3%) = $198 million 4) Possible Funding Sources (Largest impact on Banks In Bold) a) B&O surcharge on all rates = $1.9 B e) .3% service B&O = $611 M b) Sales Tax Exemption for motor fuels = $1.4 B f) Capital Gains = $500M - $ 1B. c) Retail Sales Tax (5%) = $1.2 B g) M&E sales tax ex. = $400 M d) Property Tax Levy Swap = $ ? h) Sales Tax on Bottled Water = $48 M

Questions?