Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - June 11, 2003
Contact:  Governor's Communications Office, 360-902-4136

Gov. Gary Locke Praises Passage of Key Legislation in Special Sessions

OLYMPIA – June 11, 2003 – Gov. Gary Locke today commended the passage of a critical tax incentives package for the aerospace industry as well as unemployment insurance and injured workers’ compensation reform for all Washington’s businesses during today’s second special legislative session.

The governor called the additional special session early this morning immediately upon adjournment of the first special session. This was done to address issues that affect Washington state’s overall business climate and the submission of the state’s Boeing 7E7 final assembly bid on Friday, June 20.

“The measures we passed today are necessary and vital to our state’s unified, aggressive effort to win final assembly of the Boeing 7E7 as well as our ability to attract new business,” Locke said.

The Legislature today passed the governor’s tax incentives proposal, which he presented to lawmakers on Monday. The total expected economic impact of final assembly of the Boeing 7E7 in Washington state could result in as many as 150,000 jobs, including suppliers and other multiplier effects, and as much as $540 million in tax revenue per year. The entire tax incentives package would be contingent upon Boeing choosing Washington as the site for final assembly of the 7E7.

“This legislation is imperative to our state’s economic development and recovery, and addresses some of the most important issues facing Washington’s future,” Locke said.

The Legislature today also passed unemployment insurance reform, following intense negotiations between the governor, lawmakers, and business and labor groups.

“We worked hard to ensure that we protected as many workers as possible,” Locke said. “Of all the reform measures this session, the decisions made on unemployment insurance were some of the most difficult.”

In order to endorse the reforms, the governor said he would only support final legislation that reflected a number of principles he supported, including:

· Mitigating impacts of taking 40,000 workers off the unemployment insurance rolls;
· Eliminating a differential system for seasonal workers;
· Phasing-in benefit cuts based on economic recovery; and
· Establishing trigger mechanisms related to solvency concerns in the system.

Locke also praised the quick work of the Legislature in passing injured workers’ compensation reform early on in the second special session. The legislation, requested by the governor, relates to hearing loss claims. The bill gives workers two years from the time of their last exposure to occupational noise to file for hearing loss compensation. Hearing loss claims have risen dramatically over the past nine years – escalating from 884 in 1992 to 4,218 in 2001. The cost of claims has risen from $3.3 million in 1992 to $40.3 million in 2001.

The governor said the work of his office and the Legislature during the extra sessions was some of the most productive in recent history.

“The first special session saw the passage of a $23 billion General Fund budget that mirrored my Priorities of Government approach and didn’t raise taxes as well as a $2.57 billion construction budget that will provide much-needed repairs and renovations at our colleges and universities,” Locke said.

“We also addressed the skyrocketing cost of prescription drugs and passed legislation to help better manage our water – issues we’ve been wrestling with for months and, often, years,” he said. “It is quite a remarkable achievement, and we did it by working together.”

“This year, we were challenged to do something great while making some extremely tough choices,” Locke said. “We made the most of the opportunity and as a result were able to accomplish what few thought possible. We took difficult steps to establish a foundation for our present and future business climate and make Washington more competitive. I congratulate the Legislature for its commitment to these issues that are so critical to the future of our state.”

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