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:

• Leverage and expand the Priorities of Government process to build fiscal stability and drive efficiencies throughout state government.
• Protect jobs and attract new investment through decisive advancements in Washington’s competitive position.
• 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.
• 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:

• Enact a supplemental state budget that supports economic growth.
• 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:

• 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.
• 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.
• Transition to a new teacher compensation and career system based on knowledge, skills, responsibility and performance.
• 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.
• 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.