Governor Gregoire Addresses the Association of Washington Business Annual Legislative Day Lunch (Talking Points As Written)

February 7, 2007

Thank you,

I�d like to talk about my top three priorities for this session � education, economic development and health care.

Washington is more like a small nation than a state. We are no longer competing with Oregon, Idaho and Montana for businesses and jobs, but with China, India and Ireland.

On my trade missions, I�ve seen the competition and it is fierce. Our state is well-situated to prosper in today�s economy.

For example:

  • 165,000 new jobs have been created in the past two years;
  • A 40% increase in exports up to $45 billion per year;
  • The only trade surplus with China; and
  • International container volumes at our ports are growing dramatically.

The Next Washington is my 10-year business plan for our state.

  • We cannot grow our economy without skills for the changing economy;
  • We must build a foundation for success by investing in infrastructure across the state; and
  • We need an �Open for Business� approach to make Washington an attractive place to do business.

Washington has a reputation as a world leader:

  • Microsoft has changed the way the world uses computers and technology.
  • Boeing has been a leader in airplane development and manufacturing.
  • Starbucks has changed the way people everywhere start their days.
  • Our wines and apples and other agricultural products are well-known for their quality and enjoyed across the globe.

The Next Washington will continue to succeed if we make targeted investments in areas where the state can lead the world.

  • Increased marketing of the state as a tourist destination.
  • Global health research through the Life Sciences Discovery Fund and the new University of Washington Department of Global Health.
  • Research universities as engines of economic transformation and innovation.
  • Biofuels to promote energy independence and grow the future of Washington agriculture in new directions.
  • Our ports which send Washington products all over the world and provide good family-wage jobs at the same time.

Like any smart business, we also need to save money for a rainy day starting with a deposit of $262 million.

And let�s build the Rainy Day Fund with future automatic deposits of one percent of state general revenue each year, or about $150 million annually.

Saving for the future isn�t just good common sense, it also helps keep government accountable by ensuring that we can keep our promises.

Underlying any long-term economic success we might achieve will require us to dramatically improve our education system.

Investing in education pays big dividends: higher-paying jobs, reduced costs of crime and incarceration, stronger communities, and a healthier population.

Students are struggling with math and science, and employers can�t find enough qualified people to fill their jobs.

Washington Learns came away with a clear goal � we need to educate more people to higher levels.

This year�s budget is a down payment toward a world-class education system.

Math & Science:

  • Reduce class sizes, recruit 750 new math and science teachers, increase training and coaching for teachers.

Early Learning:

  • Five-star rating system for child care,
  • Expand pre-kindergarten to 2,000 more children,
  • Provide better pay to child care workers, and
  • Offer all-day kindergarten in schools with the highest poverty levels.

Professional Development and Compensation:

  • Increase pay for teachers who work in challenged schools, and provide an additional raise for national board certification in math and science.
  • Fully fund Initiatives 732 and 728.

Higher Education

  • 8,300 new enrollments, 3,300 in high-demand fields like engineering, construction, and nursing.
  • Freezing tuition at community and technical colleges and capping increases at our four-year schools.

In the area of health care, we are working hard to tackle some challenging problems. Let me lay out a few statistics for you:

  • 600,000 Washingtonians lack health coverage including 73,000 children.
  • The state is now spending an estimated $4.5 billion on health care, up from $2.7 billion in 2000.
  • The share of the state budget for health care has risen from 22 percent in 2000 to 28 percent today.

Here is my five-point strategy to improve the health care system:

  1. Increase the use of evidence-based medicine � Results, not television commercials, should guide health care decisions.
  2. Better manage chronic illness � 5 percent of patients consume 50 percent of health care costs.
  3. Bring our health care system into the 21st century � We�re wasting too much time and money on unnecessary procedures because our system doesn�t allow adequate sharing of information.
  4. Take responsibility for our personal health � Promoting healthy lifestyles and choices in our schools, workplaces and communities.
  5. Build more transparency into our system � People should have a system that makes them informed consumers.

Building on that strategy and drawing on the recommendations of the Blue Ribbon Commission on Health Care Costs and Access, we unveiled a comprehensive package of health care legislation yesterday.

The bill establishes the Washington Quality Forum; implements a health information technology system; and directs our state agencies to change the way we pay for health care by paying only for care that improves health.

The proposals I�ve discussed today - The Next Washington, Washington Learns and the Blue Ribbon Commission health proposal � will not merely collect dust on bookshelves in Olympia.

I hope you�ll work with me to enact these important changes so that we can really start to move our state forward.

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