News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - April 24, 2003
Contact:  Governor's Communications Office, 360-902-4136

Gov. Locke Highlights State’s Plan to Keep and Grow Boeing Jobs; Calls for Swift Action on Transportation-Improvement Package

OLYMPIA - Gov. Gary Locke today highlighted the state’s strategy to keep and grow Boeing jobs in Washington by winning the final assembly of Boeing’s next jet, the 7E7. A cornerstone of the governor’s strategy is to get a transportation-improvement package passed this legislative session.

Locke said the state has been working for more than a year on securing the final assembly of Boeing’s newest commercial airplane. “We want those jobs here in Washington,” he said. “We have a strategy, and we’ve been taking action to keep the work in our state.”

Alan Mulally, president and chief executive officer of Boeing Commercial Airplanes, met with Locke in the Governor’s Office last night to provide the state with an update on the industry and competitiveness issues, including transportation.

Boeing has indicated it will provide a list of issues it would like the state to address to be competitive for winning the 7E7 assembly. The list was not discussed in yesterday’s meeting.

Still, the governor said the first step in securing those jobs is to fix the state’s ailing transportation system. Improving transportation was the No. 1 recommendation of the Washington Competitiveness Council, which the governor convened in 2001 to further improve the state’s business climate. Transportation is also one of Boeing’s top concerns.

Locke has been meeting with transportation and legislative leaders every week since the beginning of the session, even calling them to his office for an all-night meeting to try to forge a compromise solution. The House and Senate are getting closer to an agreement, but the mix of highway and non-highway funding remains a sticking point.

“We must clear up traffic congestion and improve freight mobility,” Locke said. “The Boeing final assembly operation depends on the smooth movement of parts and sub-assemblies from suppliers to the factory. Our entire state needs these improvements. I remain confident we can reach a compromise on transportation before the end of this session.”

Locke was joined at today’s news conference by legislative leaders, as well as Martha Choe, director of the state Department of Community, Trade and Economic Development (CTED), and Paul Isaki, the governor’s special assistant for business, who has been working closely with Boeing on an almost daily basis.

“As the lead economic development agency for the state, CTED stands ready to ensure that assembly of the new 7E7 Boeing commercial airplane happens in Washington state,” Choe said. “We have both the expertise and financial resources to assist with the infrastructure needs associated with the assembly of the new plane.”

The state has already taken action on much of its strategy to keep and grow Boeing jobs in Washington, as well as improve the overall business climate in the state, including:
· Streamlining regulatory and permitting processes; and
· Transforming the state Department of Ecology into a more business-friendly agency without compromising environmental priorities.

Also part of the state’s strategy are several pieces of economic development legislation, requested by the governor, that have passed or are expected to be passed this session, including:
· Tax increment financing (TIF) legislation (2SSB 5364), which allows local government to fund infrastructure with future tax revenues generated by the development;
· Legislation that establishes a permanent funding source for the Community Economic Revitalization Board (CERB) (SSB 5363), which helps fund infrastructure for economic development in rural areas;
· Tuition flexibility legislation (SB 5448), which would give state universities greater flexibility in tuition-setting authority to ensure that they can continue to produce new engineers that will become future knowledge workers for Boeing and other technology industries;
· Legislation that clarifies regulatory requirements for shorelines (HB 1933), which would support Boeing’s proposed rail-barge facility in Everett; and
· Use tax correction legislation (HB 1977 signed into law), which clarifies use tax exemptions that complement existing sales tax exemptions for repairs on industrial equipment.

Locke has also expressed his support for the legislation that allows the third runway project at SeaTac Airport to move forward, another Boeing priority.

Isaki has been working with Boeing for more than a year to identify specific steps the state can take to help keep and grow Boeing jobs in Washington.

“The state understands the transformation that Boeing is currently undergoing,” Isaki said. “In my weekly meetings with top Boeing officials, I have let them know that we have done, and will continue to do, what it takes to help Boeing and its partners succeed in Washington state.”

Locke said, “We are proud of our long and distinguished history with Boeing. We want to build a great future with Boeing. We will continue in our determined efforts to keep the Boeing 7E7 final assembly in our state.”




Related Links:
- CTED


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