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The
Herald
Published: January 26, 2002
'Boeing's message must lead to state action'
Guest Editorial,
Dave Schmidt
Last week, members of the 2002 Legislature were welcomed back to Olympia with an ominous warning by Alan Mulally, one of Boeing's highest-ranking executives. His message couldn't have been more clear to policymakers: it's time to either make substantial improvements to Washington 's business climate or prepare to say good-bye to thousands of family-wage jobs.
This shouldn't surprise anyone who has been listening to the warnings over the past 10 years. We've been told repeatedly, and by a variety of business executives representing companies large and small, that Washington is not a friendly state in which to do business.
In the eight years I've served in the Legislature, I've joined my fellow Republicans in working to create a less hostile business envi ron ment. It's the only way to ensure job providers in our state will thrive. I sincerely hope my Democrat colleagues will listen to Mr. Mulally's message and finally join us in these efforts. Every member of the Legislature must commit to responding to this wake-up call by taking bold action. We must work together to address the issues holding back our state's job providers. If we fail to do so, businesses will be forced to take their jobs to states that are ready and willing to welcome them with open arms.
It's really pretty simple: in order for a business to pay its employees, it must make a profit. Restrictive state policies serve as a roadblock for businesses, chipping away at their ability to make a profit -- and pay their employees. The only way to keep jobs in Washington is to remove those roadblocks.
Mr. Mulally clearly told the Legislature that Boeing must be competitive in order to stay alive in today's global economy. He highlighted six roadblocks to success for Washington businesses: education, transportation, taxes, energy costs, unemployment insurance and permitting. In all six categories Washington doesn't even come close to competing with the 27 other states in which Boeing does business. In fact we are at the bottom of the barrel, ranking dead last.
We need look no further than our own backyard to find a perfect example of the challenges faced by businesses in our state. Boeing's Everett plant-expansion debacle is an excellent case in point. The permit process alone took two-and-a-half years longer than the two years spent building the original plant from start to finish. It's no wonder manufacturers have fled the state, and that very few new manufacturers have chosen to locate in Washington . Who would willingly choose to put their companies through such torture?
Washington holds the dubious distinction of being one of the 10 states with the highest unemployment costs for manufacturers. Our state also has the highest business taxes among the Western states. There's simply no such thing as "profitless prosperity." Businesses have to make decisions that will increase their bottom line if they want to keep employees on the payroll.
When we factor in the requirement that businesses must wade through 15,126 pages of state government regulations, it's not hard to understand why businesses are running from the state. Add into the mix Washington 's transportation troubles, and it becomes even more obvious -- we must take bold action, and the time is now. If it is impossible for Boeing to remain competitive by continuing to operate in Washington , it will have no choice but to leave, and go where it can regain a competitive edge in a global market.
Boeing isn't kidding around. We must take Mr. Mulally up on his offer and work to build st ron ger relationships with our state's job providers. Washington citizens are depending on us, as their leaders, to craft policies to make sure they still have jobs. We lost 4,600 Boeing jobs in December, with another 19,000 job losses expected within a year. Will these jobs ever come back to Washington ? Our next move will determine whether or not they do. The clock is ticking. My question to House Democrats is straightforward: are you willing to join with Republicans and work with state business leaders to foster a st ron ger, more competitive business envi ron ment, and keep Washington citizens employed?
State Rep. Dave Schmidt, R-Bothell, is serving his fourth term representing the 44th Legislative District. Schmidt is a member of the state House of Representative's State Government Committee, Education Committee and the newly created Select Committee on Community Security.
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