1. Anticipating Legislative Activity Karen Wanamaker, V.P. Industry & Govt. Affairs NWPCA

2. Since Jan 2009 Chrysler, GM Citigroup AIG Jan 2009: $10,628,881,485,510.23 Dec 2009: $12,144,893,016,570.46

3. Carbon Tax (& Trade) ACES (American Clean Energy and Security Act) –Passed in House –Passed Senate Committee –Target: Cut “Greenhouse Gases” 20% by 2020 EPA Endangerment Ruling –Target: Companies that emit 250 tons of CO2 a year

4. Union Strength Congress – Employee Free Choice Act “Card Check” –Eliminate secret ballot voting, replacing it with union cards signed by a majority of employees –Binding arbitration U.S. Department of Labor –Eliminating union reporting requirements –Hiring 250 new investigators to audit employer records for wage/overtime; injury/illness –New industrial dust standards –Plans to hire 100 new OSHA inspectors –Increase in “egregious” violations – the highest penalties

5. ICE Increasing Workplace Audits April 2009Entire FY 2008 Businesses debarred450 Individuals debarred471 Notices of Intent to Fine (NIF)14232 Dollar amounts of NIFs$15,865,181$2,355,330 Final Orders458 Dollar amounts of Final Orders$798,179196,523 Cases initiated1,897605 Form I-9 Inspections1,069503

6. Health Care Bill – Employer Impact Increased Premiums –$70 billion over 10 years on insurance companies, –$2 billion-a-year tax on medical devices Employer Mandates –$750 penalty per worker on employers of 50 or more who do not offer “federally qualified coverage” –$3,000 for each worker that qualifies for a federal insurance subsidy Excise Tax: 40 percent on plans exceeding $8,500 (individual) and $23,000 (family) State Taxes: Expand Medicaid Medicare Payroll Surtax: income in excess of $200,000 (individual) and $250,000 (couple) New limitations on flexible spending accounts (FSAs)

7. SBA Small Business Loans Loan volume down 36%, 25,000 businesses Total dollar volume dropped 27%: Stimulus Bill: $730 million SBA waived fees. increased guarantees; encouraged 1,200 lenders to resume lending Wells Fargo, increased lending Rest of top-10 cut loan volume by 30% or more. CIT Group last year’s largest lender, edge of bankruptcy. Last year’s 10th biggest lender was shut down by regulators in July. Half nation's workforce on payroll of a small business President wants “windfall profits tax” on top 20- 30 banks – $120 billion revenue

8. Economic Forecast Consumer Spending –Flat through 3 rd Q 2010 –2% increase 4 th Q Business Investment Restrained –1.5% to 2% – through 2 nd Q –4 th Quarter 5% annual rate – 1 st time in 3 ½ years International Trade –Stable Dollar –U.S. Exports Rebound and grow by 7.2% Labor Market Remains Weak – Job Losses Continue –1 million jobs forecast lost by mid-2010 –Manufacturing hit hardest – 29 percent of total jobs lost –Unemployment to peak at 10.8% in 3 rd Q (Individual monthly rate of 11% likely) –Initial increases will be mild –Nonfarm employment will not reach pre-recession level of 138 million until 3 rd Q of 2012 (7.2%)

9. Other Employer Issues Paycheck Fairness Act – Passed House R&D Tax Credit Expired (Dec) Policy Uncertainties Impact Business Outlook