Tag Archives: washington

Prohibition Ends in Washington! Where’s My Booze At?

As you may by now have heard, Washington voters overwhelmingly approved Initiative 1183! This historic vote ends our state government’s unAmerican monopoly on liquor sales and/or turns our state’s highways into a giant game of drunken bumper cars, depending on if you work for Costco or not.

Of course, the question you and I want to know is: When is Safeway going to start selling me some damn George Dickel?

Here are the facts as I have cribbed them from various news sources.

  • Stores can start selling liquor on June 1, 2012 (just 205 days away!)
  • Prices won’t go down that much, since we retained our state’s high liquor taxes.
  • Only stores that are 10,000 square feet or more will be able to sell liquor (that’s about the size of the average Trader Joe’s, according to the Tacoma News-Tribune)
  • Don’t get too excited, owner of a 10,000-sq. ft.-retail space! You still have to apply for a license to sell liquor from those pesky state bureaucrats.
  • Also, pesky city and county bureaucrats will be passing regulations about where liquor stores can be. So if your 10,000-sq.-ft. retail location is next door to an elementary school, church/mosque/wiccan magic circle, hospital, or other place where sobriety is highly recommended, you may be S.O.L!
  • All the state-owned liquor stores will quit business by June 1, no matter what Bartleby says. Some state liquor stores are run by third-parties–those folks will be able to stay in business (even if they are smaller than 10,000 sq. ft.) but will have to buy their inventory from the state.

So, to recap, June 1, 10,000 feet, bureaucrats. Happy drinking, Washington!

(Photo of George Will and wife via Facebook)

Health Net “Alerts” Customers to 6-Month-Old Data Breach

You're screwed, little kid. Good luck fixing your credit history!

I had to read the letter I got from Health Net about a possible data breach twice, for several reasons. First there was the notice that the incident was prior to January 21, 2011. That’s when “IBM informed us the company could not locate several hard disk drives that had been used in Health Net’s corporate servers….”

Notice that’s not when the hard drives went missing, necessarily, it’s when IBM told Health Net about it. The drives were decommissioned when  Health Net moved its data center operations in Rancho Cordova, CA, to IBM’s facility in Boulder, CO. Back in March, Health Net announced the “unaccounted-for server drives” contained information on “some” customers. (We’re going to come back to that “some.”)

Then there is the date of the letter actually informing me that I’m in the unaccounted-for pool: July 27, 2011. Six full months for data thieves, if that’s what happened, to get a head start on looting, with “details such as your name, address, health information, Social Security number and your financial information.”

Lastly, Health Net writes, they wanted to tell me about the incident–again, six months after a “continuing” investigation has been started–out of “an abundance of caution.” (Here, the ghost of Inigo Montoya whispers to me that he doesn’t think that phrase means what they think it means.)

What’s not in the letter? I’m glad you asked. The letter doesn’t admit that the hard drives contained data on some two million Health Net customers. (If you got your small business health insurance through Costco, as I did, then you have Health Net.) About 40,000 Washington residents had their data breached, and 130,000 Oregonians.

Also, Health Net initially told thousands of customers that their Social Security numbers were not on the drives, before confirming that, in fact, they were.

Nor does the letter mention that Health Net, in 2009, reported a breach involving 1.5 million customers. It also fails to mention that Health Net was sued by the Connecticut attorney general, in part, for taking six months to alert customers to that breach: “Even more alarming than the breach, Health Net downplayed and dismissed the danger to patients and consumers.”

It doesn’t seem like the lesson took. The Foley Hoag legal blog muses that if Health Net is penalized in proportion to Massachusetts General Hospital, the payout would $9 billion. Somewhat more than the two years of “free” identity fraud protection that Health Net is offering its customers through Debix.com.

What is the Sound of Washington State’s Economy Treading Water?

Unemployment data from Washington State Employment Security Department. Terrible Excel graph courtesy MvB.

Washington State’s chief economist, Arun Raha, has updated his revenue forecast for the state for June, and the upshot is that projections for the 2011-13 biennium are down $183 million. It’s become habit the last few years for Raha to trot out an analysis that shows a near-term plateau, with a soft recovery in the offing, perhaps six months or more out. Raha is scrupulous about noting that even a mild recovery is predicated on fair economic winds, it’s just that, regularly, the economic winds do not blow fair.

This time, it’s Japan:

The repercussions from the disaster in Japan have turned out to be worse than we had thought. Not only did it constrain consumer spending by not having enough goods available, but it also put a crimp in the remarkable recovery that had been unfolding in the U.S. manufacturing sector.

It’s high gas prices:

The main reason why the 2% cut in payroll taxes this year has not been as stimulative to the economy as anticipated is because half of that tax cut is going overseas to pay for imported petroleum products.

It’s the chicken-and-egg of lackluster employment and consumer demand:

The economy added 8,400 net new jobs in March and April. There was no job growth in May. Over the three months, we had expected 14,800 jobs in our March forecast.

That means the litany continues as per usual, with construction still feeble, housing prices in a double dip, and foreclosures still high (Seattle Bubble looks into recent dips).

Even so, the news is not all bad: “Aerospace and software are expanding again,” with Boeing announcing a major push in production of 737s. The airplane manufacturer has already hired 4,300 employees since last May. And as Japan rebuilds, it will likely be purchasing from one of its mainstay exporters, Washington State. And without legislative action to increase revenues (and budget cuts), that $183 million reduction would be worse than it is. As it is, reports the Seattle Times, “estimated reserves stand at a relatively skimpy $163 million.” (Seattlepi.com has an amusing–really!–story on the difficulty pinning down a non-squishy number.)

Graph: WA ESD

Raha leaves no room for doubt that we remain in an uncertain position, with downside risks roughly four times that of upside. As the graph up top illustrates, the state has registered unemployment at 9.1 percent or above for the past two years, which contributes to many of Washington’s economic ills: foreclosures, lack of consumer confidence, lack of consumer demand, and lower tax revenues. (Washington’s underemployment rate is worse.) As Raha notes, with no state or federal projects to boost hiring–the opposite is true, as governmental workers are laid off–new hiring will have to be in the private sector.

The Castles of Washington State: Manresa Castle & Hoquiam Castle

Hoquiam Castle

According to this graph, you’re taking a summer vacation closer to home this year. But there’s no need to feel like you’ve fallen on hard times. Not when The SunBreak Vacation Team has determined that there are least eighteen castles in Washington State that you can either stay in or loiter in front of, proprietorially, with a halberd or mace. (You supply the armaments.)

As if you needed another reason to visit Hoquiam, for instance, there’s the Hoquiam Castle B&B, a 20-room mansion with four bedroom suites. Kick back like an 1897 lumber baron, and imagine you’re watching the construction of the 180-foot schooner Defiance, which I will hypothesize was the “make your own fun” activity of the day.

Manresa Castle

One of our all-time favorite getaways from Seattle, Port Townsend, boasts the Manresa Castle. They’re currently running a $99-per-night special on a courtyard room (Sunday, Tuesday, Wednesday, Thursday, Friday only), which includes (for a couple) a cocktail or glass of wine, hors d’oeuvres plate, and continental breakfast. Also, free WiFi.

Built by a Prussian immigrant, this castle knows what being a castle is all about. It’s 30 rooms, with foot-thick bricked walls. “Tiled fireplaces and finely crafted woodwork were installed by German artisans.” Maybe that long-ago demand is why Port Townsend is a microbrew godsend.

It’s not as easy getting to Port Townsend from Seattle as it could be, if you don’t have a car, but it is possible! The trick will be packing your suit of armor.

Op-Ed: At the University of Washington, the Other Shoe Drops

In other UW news, the corpse flower there is blooming. (Photo: Our Flickr pool's +Russ)

Guest contributor Andrew Tsao is an Associate Professor with the University of Washington’s School of Drama. He has previously written on budget impacts at the UW here and here. His latest editorial arrives as the UW is announcing that it is considering a tuition increase of 20 percent or more for next year.

Andrew Tsao

The long winter has finally given way to a spring of cold reality here at University of Washington.

After an extended session, the Washington State legislature has finally handed down the budget cuts we all have been waiting for that will shape the university not only for the next biennium, but for decades to come.

As Michael Young prepares to become the next president of UW, he will have to strategize, fundraise, and administrate a smaller, weakened university. One word that has been getting a lot of use here over the past few months is “quality.” The UW administration insists that quality will be maintained and even enhanced moving forward. Indeed, many administrators, professors and staff have found new ways to educate our students in the face of dwindling resources. The mainstream press rarely seeks out these stories, but I can tell you that here in the trenches, there are indeed heroics happening.

Odai Johnson

One personal hero of mine is my colleague Professor Odai Johnson, head of the Ph.D. area in the School of Drama. Faced with losing half his teaching faculty, much of his doctoral student teaching support and little sympathy from the university at large, Dr. Johnson choose to innovate instead of disintegrate. The result is The Center for Performance Studies, a new collaborative venture that creates a synergy between the School of Drama and a range of other programs in the Humanities. By sharing teaching resources and combining curriculum, the center is emerging as a shining example of forward thinking in the face of shrinking resources.

However, while endeavors like The Center for Performance Studies point to the entrepreneurship and resilience of our administration and faculty, the hard truth remains that the concept of an affordable, accessible and high quality university education here in Washington  is in a precarious state. Quality in higher education has always centered on a single idea: a valued professoriat in regular contact with students. No amount of crisis driven innovation, political hyperbole, or necessity-based reorganization can change that fact.

Any institute of learning can educate by rote and routine. To produce consumer/workers who fit into a wilderness of cubicles is certainly affordable. Indeed, it has been argued that some see an unthinking workforce in America as a socio-political goal. The 20th century had a few examples of this way of thinking, specifically in Asia and central Europe. Thankfully, the political forces who advocated ignorance and arrogance as a social ideal faded through war and isolation. Time will tell whether these forces now visible and gaining momentum in our economic and political landscape will fade as well.

Therefore, quality in higher education depends on the freedom and security of academics to teach critical thinking to the next generation. For those who like to tout the gospel of “useful skills” in regard to a quality college education and deride a broad-based liberal education, I cite the copious evidence from corporate CEOs that the single most valuable attribute companies seek in new hires is the ability to think critically and creatively.

Only time will tell whether we will be able to maintain this idea of quality here at UW. We go into the summer of 2011 believing we can. People like Dr. Johnson inspire us to do so.

The Pacific Northwest, Home of Les Misérables

A Stevens Pass avalanche makes a good metaphor for our search for progress. (Photo: WSDOT)

GeekWire tipped me off to the Dow Jones “Misery Index,” which ranks Seattle as the third most miserable city in the country. But it’s worth noting that Portland is number two. Put a bird on that.

The Misery Index tracks just three factors: decline in home value, increase in gas prices, and unemployment. As for the home prices, this headline from the Seattle Bubble gives you some idea: “Case-Shiller: Seattle Home Prices Nearly 30 Percent Off Peak.” Portland, same story. If that’s not enough, economists are predicting a double-dip in housing prices, while even renters are getting hit with increases, thanks to refugees from the housing market deciding to rent instead.

Unemployment remains a chronic problem, despite the media regularly reporting fictitious “drops” in the unemployment rate. The most recent good news for Washington was that unemployment was actually worse than reported in early 2010, not nine but 10.9 percent. Oregon’s unemployment is currently at eleven percent. But a quick glance at Washington and Oregon’s unemployment rate shows the two correspond closely, despite Oregon’s slight lead.

A website that tracks gas prices shows the most expensive gas in Washington at a Chevron up in Blaine: $4.19 per gallon. The cheapest? $3.45, in Ephrata. This too is comparable to Oregon.

Throw in the weather–tell us more about atmospheric rivers, Cliff!–and it becomes tougher to keep singing in the rain. Politicians, even those fighting to save the city from megaprojects, are reviled. Even our tech billionaires can’t put on a happy face.

The thing about this type of misery, though, is that it endures because of the gap between the remembered past and the present. There is pain to losing a job, or losing a home; there is even “pain at the pump” when your grocery budget and your gas budget fight out a zero-sum battle.

But misery derived from measuring home values from the peak of a housing bubble is purely self-inflicted. It’s our “up and to the right” mania that insists on a single standard of growth, rather than a more organic series of developments. So we miss the news that doesn’t correspond to that narrative. We don’t know where to put the fact that driving is declining (along with traffic deaths). We skip mentioning that “net climate warming emissions from the U.S. fell by a whopping 15 percent from 2000 through 2009.”

Good things are happening out there. Just look around.