2003 Policy Agenda

Washington state is at a crossroads. A sagging economy has led to consistently high unemployment and the loss of tens of thousands of private sector jobs. This downturn is much different than past economic recessions. Many jobs will not come back because, in the face of recession and fierce competition, employers have made structural changes or focused growth outside the state. Washington must rebuild its economic base. The first critical step must be for state government to make the adjustments necessary to live within its means and adopt a 2003-05 operating budget based on projected revenues. Policymakers must also take decisive action to improve infrastructure, the regulatory climate and education. Without these improvements, state leaders risk condemning Washington to a future far below its potential and the expectations of its citizenry.

The Washington Roundtable calls on policymakers to:

• Enact a sustainable biennial budget that nurtures economic growth.
• Address urgent need for efficiency and improvements in the state transportation system.
• Implement major regulatory reforms.
• Articulate a detailed and orderly plan to implement the Certificate of Mastery graduation requirement in 2008.
• Provide more management tools for higher education institutions and focus resources.

First Priority

Enact A Sustainable Biennial Budget That Nurtures Economic Growth.

Washington state faces its greatest financial challenge in decades. The most important step policymakers can take in 2003 is to enact a budget that encourages employers to invest in new jobs for Washingtonians. State leaders must address fast-growing budget items and other underlying structural problems to ensure long-term sustainability. They must enact a budget that prioritizes the most critical state functions and nurtures economic growth by living within the confines of projected revenues.

Policymakers are urged to adhere to the following principles:

• Develop a results-based – not incremental – budget that prioritizes government services and purchases those deemed most critical.
• Do not further erode state competitiveness by raising business taxes or taking steps that impede economic recovery and cripple long-term state revenue growth.
• Enact sustainable spending policies, avoiding the use of one-time funds to support on-going programs and curtailing spending in fast-growing areas.
• Adopt a “whole budget” approach, evaluating all budget areas including the General Fund, Health Services Account and all other dedicated funds.
• Begin to rebuild the reserve to five percent of the General Fund biennial budget.

Additional Priorities

Address urgent need for efficiency and improvements in the state transportation system.

Washington state has repeatedly failed to secure long-overdue investments in transportation. The state’s antiquated infrastructure continues to stifle the economy, threaten jobs and harm quality of life with no indication of relief in sight. The Washington Competitiveness Council said investing in transportation is the most important step the state can take to improve competitiveness. This issue demands leadership to reestablish much-needed public credibility. Policymakers must take visible steps to:

• Implement state-mandated performance standards that ensure accountability and improve efficiency.
• Provide clear, continuous communication with the public and develop a transparent process whereby citizens can better understand project selection, costs and spending.
• Pass legislation that commits new revenue to fund critical transportation projects statewide. 

Implement major regulatory reforms.

Washington’s regulatory system has continually been identified as a major inhibitor of competitiveness and employment growth. The regulatory system must become more predictable and solution-oriented in order to provide protections while also stimulating economic growth. The Roundtable urges policymakers to significantly reduce the time and cost associated with state regulations as recommended in the Washington Competitiveness Council report. Policymakers should:

• Form a new agency authorized to review all regulations before they are proposed as rules and require cost-benefit analysis for any proposed regulation before it takes effect.
• Work with local governments to identify and prepare pre-permitted sites consistent with the state’s economic development strategy.
• Benchmark and enforce permitting timelines.

Articulate a detailed and orderly plan to implement the Certificate of Mastery graduation requirement in 2008. 

Full implementation of the Certificate of Mastery graduation requirement is the state’s best hope to ensure students obtain the skills and knowledge they need to step onto the first rung of the ladder to opportunities and economic advancement. Now is the time for strong leadership – not timidity and the status quo. Policymakers must immediately articulate a detailed plan to implement the Certificate of Mastery reading, writing and math requirements as one condition for graduation starting with the class of 2008 and the science requirement starting with the class of 2010. The plan must include:

• Curriculum alignment to ensure students are taught what they need to achieve the Certificate.
• Student incentives to achieve the Certificate prior to 2008, such as aligned postsecondary education admissions requirements and scholarships.
• Access to appropriate additional learning opportunities for those students who do not meet all Certificate requirements on their first attempt.
• Multiple opportunities for students to certify by retaking all or parts of the 10th grade WASL.
• Alternate measures for students in special circumstances to demonstrate their knowledge of the 10th grade standards.

Provide more management tools for higher education institutions and focus resources.

An effective and adaptable higher education system has a far-reaching impact on Washington state’s ability to compete in a global, knowledge-based economy. The state’s higher education institutions play a critical role in developing Washington’s future workforce, while research institutions also contribute substantially to development of the pioneering technologies that will drive much of the state’s future economy. The Washington Roundtable calls on policymakers to:

• Significantly increase management flexibility at institutions, including full tuition-setting authority, so they can manage resources more efficiently.
• Protect, to the extent possible, core funding for institutions.
• Focus resources on “Centers of Competitive Advantage” that are determined to be drivers of Washington’s future economic vitality.