2004 Policy Agenda
Shaping economic prosperity through
fiscal discipline and job retention.
As the nation
slowly recovers from recession, Washington state is challenged to
rebuild its economy and ensure the national recovery does not leave
our state behind. Policymakers made significant competitiveness
improvements in the last year. Economic recovery, however, will
require additional bold action. A strategic, long-term
competitiveness effort is needed to preserve jobs, attract
investment and spread prosperity throughout the state. Lawmakers
must build on the initial steps taken in 2003 to improve the
business climate, expand the new fiscal discipline established
through the Priorities of Government process, and take the steps
necessary to better prepare the workforce. Decisive action that
improves competitiveness is crucial to keep and attract the jobs
that will shape prosperity and protect quality of life.
The Washington
Roundtable calls on policymakers to:
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Leverage and expand the Priorities of Government process to build
fiscal stability and drive efficiencies throughout state
government.
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Protect jobs and attract new investment through decisive
advancements in Washington’s competitive position.
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Better prepare Washington’s future workforce through steadfast
commitment to higher academic standards for all students and a
flexible, responsive postsecondary education system.
Leverage and expand the Priorities of Government
process to build fiscal stability and drive efficiencies throughout
state government.
The
most important thing state lawmakers can do in 2004 is stay true to
the fiscal principles applied through the Priorities of Government (POG)
process. The POG process offers an excellent framework for ensuring
Washington delivers priority services and lives within its fiscal
means. Continued executive and legislative leadership is necessary
to maintain fiscal stability and address major cost drivers without
further burdening the already beleaguered economy. Now is the time
to reassert fiscal principles established in the 2003-05 biennial
budget and prepare for deficits already projected for 2005-07.
To
build fiscal stability, policymakers must:
-
Leverage the POG process to drive efficiencies throughout state
government and address potential shortfalls in the 2004
supplemental budget.
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Develop a long-term plan to deal with the $1.5 billion deficit
projected for the 2005-07 biennium; this includes pursuing
sustainable spending policies and examining and planning for
anticipated growth in health care, pension, education and
corrections costs.
-
Avoid raising
business taxes or other actions that will impede economic recovery
and cripple long-term state revenue growth.
-
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.
Protect jobs and attract new
investment through decisive advances in Washington’s business
climate.
Washington state
has taken important steps toward improving competitiveness and
responding to the needs of current and potential employers. However,
progress must come faster if Washington is to rebuild its economy
and recover lost jobs. The governor and state lawmakers can build
on progress made to date by implementing key Washington
Competitiveness Council recommendations. From that base, additional
steps must be taken to end job losses and create a climate that will
attract and retain jobs. Conserving existing jobs and creating new
ones will require persistence, innovation and flexibility from
local, state and federal leaders.
To advance
Washington’s competitive position, policymakers must:
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Enact a
supplemental state budget that supports economic growth.
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Enact a
statewide economic development strategy that capitalizes on unique
assets in each region.
-
Appoint a
Secretary of Regulatory Reform and streamline regulations in a
manner that promotes business development and maintains essential
environmental, health and safety protections.
-
Bring greater
certainty, fairness and competition to the workers compensation
system through reforms that protect worker health, improve
retraining and promote faster returns to work.
-
Ensure state
transportation dollars result in visible improvements and move
forward with a regional transportation package for the Central
Puget Sound.
-
Enact
significant liability reforms that bring fairness and certainty to
the civil justice system and reduce frivolous lawsuits and
costs.
-
Acknowledge
the military’s economic impact and identify ways to support its
continued operations in Washington state.
Better prepare Washington’s future workforce through
steadfast commitment to higher academic standards for all students
and a flexible, responsive postsecondary education system.
Because of the
shift to a knowledge-based economy, the outlook for well-paying
opportunities for people with deficits in basic subjects like
reading, writing, math and science continues to deteriorate.
Similarly, the role of Washington state’s postsecondary institutions
in developing our future workforce is increasingly critical, as is
the role of its research institutions in creating the pioneering
technologies that have the potential to drive the state’s future
economy.
To support
and enhance our state’s commitment to education, policymakers must:
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Implement a detailed action plan, consistent with the Washington
Roundtable’s Students Can’t Wait report, to ensure Washington is
ready to enact the 2008 Certificate of Mastery graduation
requirement.
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Take advantage
of the provisions and resources of the federal No Child Left
Behind Act (NCLB) to strengthen – not turn back from –
Washington’s assessment and accountability efforts.
-
Authorize the
state to intervene in districts with persistently low-performing
schools as required by NCLB.
-
Authorize
charter schools as one means of achieving the local flexibility
envisioned in ESHB 1209 and the choice provisions included in NCLB.
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Transition to
a new teacher compensation and career system based on knowledge,
skills, responsibility and performance.
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Significantly increase the management flexibility of Washington’s
postsecondary institutions, through mechanisms such as explicit
performance compacts between institutions and the state, so they
can manage resources more efficiently to improve educational
opportunity and quality.
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Protect core funding for the state’s postsecondary institutions
and focus resources on enrollment in high demand areas and
“Centers of Competitive Advantage” at our research institutions
that are determined to be drivers of Washington’s future economic
vitality.
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