Governor Gregoire speaks at aerospace summit

For Immediate Release: October 7, 2009

SPOKANE � Gov. Chris Gregoire today joined more than 200 aerospace executives at the 3rd annual Governor�s Aerospace Summit in Spokane, where she discussed �The Business Case for Consolidating Boeing 787 Assembly in Washington,� and other advantages for the aerospace industry in Washington state.

�In Washington, we�ve built a home that encourages aerospace,� Gregoire said. �Our basic taxes, including property, sales and business and occupation taxes are below or very near the comparable taxes in our competitor states. We�ve reduced the B&O tax rate for aerospace, and created credits for new buildings, new machinery, and land used for manufacturing to ensure our aerospace companies statewide succeed.�

At the summit, Gregoire pledged to work with the aerospace industry to address training programs and improve the state�s workers compensation system.

Gregoire also said she would propose extending a tax credit granted to FAA-certified repair stations to 2024. The current tax credit is set to expire in 2011. This complements the up to $3.4 billion in incentives already enacted for the aerospace industry.

�I am personally committed to making sure we remain the best place in the country for aerospace,� Gregoire said. �I am working closely with the Legislature to make sure we are doing everything we can to attract and keep aerospace business.�

Gregoire emphasized the strong unemployment insurance system in Washington, contrasting it with states that have bankrupt systems. �In South Carolina, for instance, their Board of Economic Advisors Chairman recently said the state is borrowing $16 million a week from the federal government, and will be $750 million in debt by the end of the year. Instead of borrowing, their fund should have more than $1 billion in reserve. That�s a hole of almost $2 billion they will need to fill by raising taxes.�

The governor and Legislature enacted reforms to the unemployment insurance system earlier that reduced employer costs by more than $300 million when compared to costs without the changes.

Washington state is now home to nearly 650 aerospace companies statewide. To ensure that Washington remains the leading location in the world in which to design and build airplanes, Gregoire in May signed an executive order creating the Washington Council on Aerospace. The council has been charged with providing advice to the governor and Legislature on how Washington can improve its attractiveness to the aerospace industry. The council is also responsible for streamlining aerospace training programs at the state�s community and technical colleges, and four-year universities.

Following the summit, Gregoire toured the Spokane Community College Aviation Maintenance Program, which prepares students for airframe and power plant certification. This certification allows individuals to pursue careers with commercial airlines as repair specialists. Currently, 110 students are enrolled in the program.