Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - December 12, 2002
Contact:  Governor's Communications Office, 360-902-4136

Gov. Gary Locke Outlines Efforts to Create Jobs, Spur Economic Development

OLYMPIA – Dec. 12, 2002 – Gov. Gary Locke today unveiled the economic development elements of his upcoming proposed budget that will create jobs in Washington and help spur the state’s struggling economy.

“It’s all about creating more jobs for Washington citizens right now,” Locke said. “We can’t wait until the recession is over to take action. That’s why, despite the deep cuts we’ve had to make in the budget, we remain committed to creating more opportunities for Washington businesses and more jobs for our citizens.”

Locke today unveiled the new key elements of his budget that will help spur economic development:

·$311 million in new state facility construction to create 1,100 jobs each year for four years. This investment, made possible by bonding against lottery revenue, is added to existing capital funding;

·$5 million per year for economic development infrastructure that will attract at least $400 million in private investment;

·$20 million for 1,550 higher education enrollment slots in high-demand fields, such as engineering, computer science and health care;

·$250,000 in seed funding to develop a research program in bioinformation; and

·Targeted investments in Washington entrepreneurial companies.

The governor’s budget proposal also supports an average of 13,400 construction and related jobs during the next two fiscal years, and 11,000 jobs in the following two fiscal years, by spending $2.5 billion in new public works funding. $311 million of this funding was achieved by bonding against lottery revenues, creating projects that could not have been funded otherwise.

The new funding includes $238 million in new construction at state universities and community and technical colleges and $73 million for K-12 school construction. Examples of the projects that would be funded include expansions, upgrades and renovations at the University of Washington, Washington State University, and Eastern, Western and Central Washington Universities.

Another new element of Locke’s budget provides infrastructure to accommodate private sector expansion. Under Locke’s budget proposal, local governments would be able to finance infrastructure by keeping and using up to $5 million per year in state taxes generated as a result of infrastructure improvements. This program is called Economic Development for a Growing Economy, or EDGE, also known as tax increment financing. It will be combined with a one-to-one local investment, and then bonded to attract private sector investments of at least $400 million.

Locke’s budget also addresses the need for a highly skilled and educated workforce. The governor is calling for $20 million in higher education funding to create 1,550 enrollment slots in high-demand fields like engineering, computer science and health care.

The governor’s budget also maintains $8.8 million dollars in funding for technology-based businesses. Locke said the state would continue to launch businesses through the Washington Technology Center and the Spokane Intercollegiate Research and Technology Institute (SIRTI).

Locke also pledged his continued support of entrepreneurial companies in the state. Currently, the State Investment Board has invested, as an owner, more than $1.5 billion in Washington businesses. The governor has asked the board to explore policies that promote additional targeted investments in Washington companies consistent with the Board’s fiduciary obligations. For example, a 1 percent increase in targeted investments for Washington businesses, roughly $500 million, could provide the necessary venture capital for promising Washington businesses. Such investments could result in greater earnings, tax revenues, and significant opportunities for family-wage jobs in Washington.

The governor also remains committed to promoting trade and tourism for Washington state. He recently returned from an economic development trip to China and Singapore Dec. 1-6, in which he promoted Boeing jets to Chinese officials and Washington companies for the 2008 Olympics in Beijing and laid the groundwork for Washington biotechnology companies to do business in Singapore. In July, Locke also led a successful trade mission to South Korea and Japan.

Locke will present his budget to the Legislature on Dec. 17.

# # #

Attached is a list of the new education bond projects that would be funded under Locke’s budget.

Education Special Bond Projects:

State Board of Education
K-12 Restore Funding Balance $73,000,000
State School Construction Assistance Grants, budget at Maintenance Level.


University of Washington
UW Johnson Hall Renovation $50,352,025
Renovation of Johnson Hall to address health, safety and code requirements, and to ensure the long-term preservation of the facility.


Washington State University
WSU Pullman - Education Addition (Cleveland): New Facility $11,160,000
Provides teacher training courses access to modern technology by construction of the Education Addition.

WSU Pullman - Johnson Hall Addition-Plant Bioscience Bldg $35,200,000
The addition will alleviate serious overcrowding of research and teaching programs currently housed in Johnson Hall.


Eastern Washington University
EWU Senior Hall Renovation $14,480,315
Senior Hall was constructed in 1920 as a women's dormitory. This project consists of a total renovation of and addition to the current building.

EWU Computing and Engineering Sciences Building (Cheney Hall)$19,000,482
This project constructs a single building to house the computing and engineering sciences programs.


Central Washington University
Dean Hall: Walnut Mall Utility Upgrade $9,580,000
This project is to complete the Walnut Mall Utility Upgrade Project started in the last biennium.

Dean Hall: Science Facility Renovation $4,900,000
This remodel project will decontaminate this facility in preparation of future renovations.

CWU/Des Moines Higher Education Center $10,000,000
This request is for the construction phase of the CWU/Des Moines Higher Education Center - formerly called CWU/Highline.


The Evergreen State College
Daniel J Evans Building - Modernization Phase I $21,500,000
Renovate the Library Building to address seismic, mechanical, electrical, roofs, conveyances, life safety, circulation, energy efficiency, security and building efficiency.


Western Washington University
Communications Facility $4,000,000
The Communications Facility will house the departments of Physics, Computer Science, Communications, and Journalism. This appropriation is for furnishings/equipment.


Community/Technical College System
Pierce College Puyallup - Phase III Expansion $23,374,774
Construct an engineering and computer technology building and a second entry to the campus.

South Puget Sound Community College - Humanities/Gen. Ed Compl $17,350,248
Construct a humanities complex for the arts, humanities and communication programs. A theater/lobby area will provide space for drama and music performances.

Clark College - Clark Center at WSU Vancouver - Construction $18,009,800
Construct a classroom building for Clark College on the WSU-Vancouver campus that contains classrooms, technology labs, science labs, offices and support space.


Grand Total $311,907,644

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