2005 Policy Agenda

Renewed prosperity depends on whether Washington state adapts to the changing competitive environment.

The Washington Roundtable calls on policymakers to encourage job creation and recharge the state economy by:

• Institutionalizing the Priorities of Government (POG) process and leveraging it to develop the 2005-07 biennial budget.
• Investing in high-impact transportation projects.
• Supporting continued performance enhancements for the state’s research universities.
• Ensuring a quality education for all of Washington’s students through continued dedication to standards-based education reform.
• Reforming the state’s regulatory, workers’ compensation and liability systems.

As Washington’s economy begins to rebound, pressing economic and fiscal challenges lie ahead. Prosperity for communities, businesses and individuals will stem from fiscal stability, investments in critical infrastructure, a better educated workforce, top-tier research institutions and regulatory reforms.

We’ve made significant strides to improve the state’s fiscal structures, recharge the business climate and improve our K-12 education system via standards-based reform. Washington still faces significant budget shortfalls and barriers to job creation that limit opportunities to extend economic recovery across the state.

Washington’s economy has changed fundamentally and the road to renewed prosperity can only be built on the foundation laid down over the past two years. Our state has emerged from a severe economic downturn with a new sense of reality, a better sense of the constantly changing nature of our competitive environment and a new vision of what must be done to keep moving forward. Now we must fuel that vision with action.

Institutionalize the Priorities of Government (POG) process and leverage it to develop the 2005-07 biennial budget.

Washington has faced major budget shortfalls over the past two biennia stemming from recession and unsustainable spending commitments authorized by the Legislature and the voters via the initiative process. State lawmakers addressed these challenges in 2003 by enacting a biennial budget focused on purchasing the highest priority services at the best possible price. A good first step to be sure, but Washington's fiscal problems are not over.

Despite signs of economic recovery, Washington faces a projected shortfall for the 2005-07 biennium in excess of $1.5 billion and current reserve levels are woefully inadequate to cover unforeseen emergencies. The governor and the Legislature must expand and deepen the commitment to priorities-based budgeting because it is the best means to address fiscal challenges and deliver priority services to Washington citizens at the best possible price.

To promote fiscal stability, policymakers must:

• Institutionalize the POG process and enact a results-based – not incremental – 2005-07 biennial budget that avoids unsustainable spending, uses current revenues to purchase and deliver priority services, evaluates dedicated funds as well as the General Fund and avoids further dedication.
• Address the impact of health care inflation on the state budget and bring state health care spending per capita in line with the average of Western states.
• Rebuild the state reserve to five percent of the General Fund biennial budget over the next two biennia.

Target high-impact transportation projects.

Washington's woefully inadequate transportation infrastructure continues to hamper the state’s economic recovery.

To address the urgent need for improvements in the state’s transportation system, policymakers must:

• Invest in high-priority, high-impact projects.
• Align governance and establish accountability provisions to maximize the impact of new investment.

Support continued performance enhancements for the state research universities.

The University of Washington and Washington State University are powerful drivers of economic growth and way of life in our state. Washington must provide incentives to these institutions and their faculties to maximize their contributions to improved state economic outcomes.

To maximize the benefit from Washington’s research universities, policymakers must:

• Enact performance contracts between the state and its research institutions that detail institution-specific priorities, the responsibilities of each party and quantifiable performance measures and benchmarks.
• Enhance research and ensure its subsequent commercialization in order to create economic benefits to Washington.

Ensure a quality K-12 education for all Washington students through continued dedication to standards-based education reform.

Because of the close link between academic skills and future economic opportunities, the Roundtable has consistently sought to strengthen the effectiveness of the state’s K-12 and higher education systems. The Certificate of Academic Achievement represents the minimum skills and knowledge that all students need to earn the high school diploma. It does not define readiness for college or high-demand workplaces. The state must require demonstration of essential knowledge and skills and improve the alignment between the K-12 and higher education sectors.

To continue the drive toward meaningful K-12 education reform, policymakers must:

• Maintain the commitment to upgrading the diploma to include demonstration of knowledge and skills in core subjects via the Certificate of Academic Achievement graduation requirement.
• Implement the system requirements included in HB 2195, including funding of retakes, development of an alternative to the WASL and appropriate remediation.
• Address additional K-12 reform elements not included in HB 2195 but outlined in the Washington Roundtable’s “Students Can’t Wait” action plan:
• Consolidate and refocus state education governance to clarify roles and responsibilities.
• Overhaul existing mechanisms for training, supporting and paying teachers to align with skills-based education reform.
• Provide principals with the skills, support and authority to lead high performing schools.
• Use WASL results as part of the admissions, scholarship and placement processes at the state’s two- and four-year colleges and universities.
• Define the skills and knowledge – beyond the state’s 10th grade standards – that are required for success in postsecondary education and align entrance requirements.

Reform the state’s regulatory, workers’ compensation and liability systems.

Policymakers made progress toward improving Washington’s business climate during the past two years. However, competing states and nations are acting aggressively to stimulate job creation. Policymakers must act decisively to preserve private sector jobs and secure new investment. To avoid a return to increasing unemployment and shrinking state revenues, lawmakers must make the cost of doing business in Washington competitive.

To improve Washington’s competitiveness and control spiraling costs, policymakers must:

• Establish an Office of Regulatory Reform, overseen by a cabinet-level director, authorized to review all regulations and require cost-benefit analysis for proposed regulations, streamline permitting and promote business development while maintaining essential environmental, health and safety precautions.
• Enact significant liability reforms to bring fairness and certainty to the civil justice system, speed resolution of civil actions and reduce frivolous lawsuits and costs.
• Reform the workers’ compensation system to reduce long-term cost growth, promote worker health and retraining and encourage faster returns to work.
• Expand the ability of employers based in Washington to compete successfully, both locally and globally, and avoid restrictions on market access or outsourcing.