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A rough start for local businesses... but there’s reason to be optimistic about the rest of the year WBA Staff The first six months of 2020 have taken their toll on Whatcom County. The coronavirus pandemic and the resulting stay-at-home orders and mandatory closures have led to event cancellations, business failures, border restrictions, limited travel and ongoing concerns about the health and safety of employees and customers. And while the pandemic has been the main story, it isn’t the only reason for a battered local economy. In late April, Alcoa announced the curtailment of activity at its Intalco Works aluminum smelter in Ferndale. That is the bad news. The good news? Local governments can still take action that will help the county’s business community better weather the ongoing storm. “Sometimes it’s the little things,” said Mark Harmsworth, director of the Center for Small Business at the Washington Policy Center. “Local governments can provide some aid to small businesses by doing something as easy as relaxing local sign ordinances. Allowing retailers and restaurants to put up temporary signage advertising new options like takeout and curb-
side pickup will help make shoppers and diners aware of options they might otherwise ignore.” Local and state governments can also do more than such relatively simple changes. Harmsworth, who served two terms as a state representative from Mill Creek, argues that local and state governments need to take a longterm view of revenue. “The business and occupation taxes levied by the state and many local governments here in Washington will slow the recovery,” Harmsworth said. “The state and municipalities will face budget shortfalls because of the pandemic. No one is arguing otherwise. However, a failure to consider B&O and other tax relief risks the state getting its money now—only to find that the number of businesses able to keep their doors open immediately decreases, leading to less tax revenue, which will put pressure on the government to tax the businesses that survive at an even higher rate. If cities and the state of Washington do not take a longterm view of the budget crisis, they could create a downward economic spiral that could last far longer than
the pandemic.” While that doesn’t sound like good news, it highlights a specific opportunity for Whatcom County’s business community. Over the next six months, the county’s private sector needs to make its voice heard. Policymakers listened to the systemic challenges facing one sector of the economy: health care. As a result, they took appropriate action to avoid the worst-case scenario for an industry that plays an important role in the county’s physical and economic health. The next six months could give private businesses and whole industry sectors the chance to better educate policymakers on both the short- and long-term challenges facing other important economic sectors.The next six months could also see Whatcom County recover faster than comparable counties in other states. Economic projections from the Wharton School of the University of Pennsylvania show that Washington’s economy could recover faster than all but five other states. According to the school’s Penn Wharton Budget Model, the state’s gross domestic product could have a year-over-year decline
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JUL/AUG 2020 | BUSINESSPULSE.COM
