2003 Chair's Report

The storm clouds were circling overhead when the gavel fell to begin this year’s legislative session. More than 96,000 private sector jobs had been eliminated in two years and state unemployment was among the highest in the nation. Policymakers were also confronting a $2.4 billion state budget deficit, an amount that would grow to $2.7 billion before the session ended. 

Acknowledging Washington’s economic problems, state lawmakers stepped up to the challenge of passing a 2003-05 biennial budget that delivers priority services without general tax increases. Enacting this budget was the most important step lawmakers could take this year to position Washington for better economic times and help put citizens back to work.

State leaders also demonstrated that they understand the need to reestablish Washington’s competitive edge. After years of work and negotiation, lawmakers passed the first comprehensive statewide transportation investment in more than a decade. While this package will not solve all of our state’s transportation problems, it is a catalyst for rebuilding a deteriorating system that has hindered safety and mobility and drained our state economy of an estimated $2 billion annually. This is an important and long overdue step toward improving quality of life for Washingtonians and keeping jobs in our state.

State leaders also made significant improvements on other competitiveness issues such as unemployment insurance, regulations and municipal business and occupation tax reform. The effort cannot end there. As our state works to dig its way out of the two-year recession, we must continue to take every opportunity to keep jobs in Washington. We must push forward on many of the Competitiveness Council recommendations yet to be acted upon.

Becoming and staying competitive is an unrelenting process with a bar that is consistently raised by competing states and countries. It is incumbent upon state, business, community and labor leaders to work together to do what it takes to keep and create the jobs that will drive future economic growth and make Washington a better place to live, work and raise a family.

Sincerely,

Richard S. Swanson, chair

Fiscal responsibility: living within the state’s means

The Roundtable’s top priority in 2003 was to work with lawmakers to develop a priority-based biennial budget that lives within the state’s means and works to rebuild the economy. Governor Locke charted new territory in this endeavor, demonstrating insightful and persistent leadership through his dedication to the Priorities of Government (POG) process.  The POG established a new way of doing business in Olympia, one where policymakers worked to evaluate all spending and determine how best to deliver priority services with available funds. State leaders worked together to pass a budget that balanced the $2.7 billion budget deficit without leveling new taxes or significantly extending the cost of maintaining services into the future. This approach should be refined and used to develop future budgets and improve efficiency throughout government. It will be extremely valuable as the state wrestles with potential multi-billion deficits already projected for the 2005-07 and 2007-09 biennia.

Moving forward with infrastructure improvements

Transportation continues to be one of the most important competitiveness concerns in Washington state. Following more than a decade without new investment, the deteriorating transportation system is severely congested and riddled with safety hazards. Lawmakers worked together during the 2003 legislative session to fashion a compromise that gets our state moving again. Passage of a $4.2 billion statewide plan was a long-overdue first step toward rebuilding our transportation infrastructure. This plan will serve as the starting point for many of the improvements that will be necessary to drive continuous economic prosperity in Washington state.

Improvements in regulatory reform

Governor Locke’s Competitiveness Council concluded that Washington’s regulatory system must become more predictable and solution-oriented in order to foster long-term economic growth and job creation. Processes implemented at the agency level during the last year have helped streamline permitting and remove some ambiguity. Benchmarking has also been effective. For example, efforts to approve 90 percent of permits in 90 days will make Washington a more attractive place to do business. More work must be done to improve communications and service as well as reduce redundancies and overlap with federal regulations. Creating a state cabinet-level position to oversee regulatory reform would significantly enhance these efforts.

Continued progress in K-12 education reform

State lawmakers did not back away from education reform this session, staying committed to academic standards and the Certificate of Mastery. Washington must continue to move forward with plans to implement reading, writing and mathematics requirements as one condition for high school graduation beginning with the class of 2008 and science with the class of 2010.  While drafted legislation was not passed during this legislative session, the Roundtable will continue to call for a structured plan to implement these standards, including setting parameters for retaking the 10^th grade WASL and alternative assessments. The Roundtable will also continue to advocate for legislation approving charter schools in our state. This legislation was drafted and ready-to-go this session and we urge lawmakers to act on it next year.

Funding reform needed in higher education

Our higher education institutions are the birthplace of the ideas and workers that will drive our future economies. During difficult budget cycles higher education often gets squeezed and institution leaders have little flexibility to respond to increasing market demands, capacity limitations and rising costs. This session lawmakers took the important step of giving the universities full tuition-setting authority for graduate and non-resident students. The Roundtable has been a long-time advocate for this level of flexibility and will work to provide our institutions with additional management tools. We will also work to protect “Centers of Competitive Advantage” at our institutions, including those programs that have the potential to create new economies, industries and jobs for Washingtonians.

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