2010 Policy Agenda: Vigilance and leadership needed

Thankfully, signs point to the beginning stages of a national recovery from the Great Recession.  However, the crisis is not over in Washington state.  The recovery is expected to be long and slow and state unemployment is projected to remain high well into 2010.  Further, a multibillion-dollar budget shortfall looms.  In the absence of intervention, the deficit will be substantially larger in 2011-13.

A clear demonstration of state fiscal restraint is needed.  Consumers and employers must believe lawmakers are committed to responsible budgeting.  To achieve this, lawmakers must avoid tax increases that harm economic growth and job creation and not resort to gimmicks that push our state’s problems into the future.  Washington must also commit to innovation and prioritize investment in services that will drive state competitiveness and future prosperity.

Great opportunity lies in the area of education policy in 2010.  Programs to improve college and career readiness, revamp teacher compensation and intervene in low-performing schools will advance education quality and maximize Washington’s chance to secure federal stimulus money.  These reforms are very much needed and this opportunity should not be missed.

Significant challenges lie ahead for Governor Christine Gregoire and the 2010 Legislature.  Continued vigilance and leadership will be required to encourage economic recovery and budget sustainability, while also strengthening a foundation of education quality and innovation.

Priority: Demonstrate fiscal restraint and deliver a balanced, sustainable budget.

Washington state projects a supplemental budget shortfall in excess of $2 billion.  We cannot expect federal fiscal stimulus to bail the state out.  What Washington needs in 2010 – more so than anything else – is a clear demonstration of fiscal restraint and a decisive, long-range strategy to create jobs.  To that end, the Roundtable urges lawmakers to deliver a balanced supplemental budget that maintains adequate reserves and prioritizes spending in areas that drive economic growth.  Unemployment is expected to remain high and businesses are still struggling, making tax increases untenable.  Lawmakers must avoid budget gimmicks, fund shifts or use of one-time funds that will only lead to larger problems in 2011-13.

Priority: Reduce business costs.

Employer confidence is critical to recovery.  Employers will not create jobs here unless the business environment is reliable, competitive and cost-effective. Unemployment insurance and workers’ compensation are particularly high cost areas for Washington employers as compared to businesses in other states.  The Roundtable will work closely with lawmakers to enact much needed reforms in workers’ compensation policy and other areas where high costs inhibit job creation.

Priority: Prove that Washington is prepared to innovate and improve public education.

The 2009 Legislature set the stage for transforming basic education in Washington state, passing legislation that requires every student to have access to an education that prepares them for college, careers and citizenship.  The Obama administration has presented a subsequent challenge to all states: prove your state is able to innovate and improve public education.  States that demonstrate innovation and success against set criteria will be better positioned to compete in the federal Race to the Top program, a competitive fund that will award significant grants to a small number of states with proven track records for driving reform and raising student performance.

Now is the time for key reforms that deliver on the promise of college and career readiness and enhance our state’s ability to compete for Race to the Top funds.  The Roundtable urges lawmakers to:

• Grant the state authority to intervene in persistently low-performing schools. 

• Enhance teacher evaluation and compensation systems to reward effectiveness in improving student performance.

• Ensure timely and cost-effective implementation of college- and work-ready graduation requirements for every student.

• Lay the groundwork for transitioning to a common core of internationally benchmarked, college and career-ready standards.

• Prioritize strategic investments in math and science and preserve graduation requirements in these subjects.