inslee building a new economy for washington

8/3/2019 Inslee Building a New Economy for Washington

http://slidepdf.com/reader/full/inslee-building-a-new-economy-for-washington 1/29

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JayInsleeApproachtoJobCreation

Weareinacompetitionwithstatesandcountriesthatwanttotakethejobswehaveandthejobswe

want.Tocompete,wemustnurturelocalindustries,prepareourchildrenandworkersfora21stCentury

economy,changethewaygovernmentagenciesdobusinesswiththeirboss,thetaxpayer,andpartner

withhealthcareproviderstovaluequalityoverquantityandlessenthecostburdenonworkersand

employers.

ToBuildaWorkingWashingtonandrebuildthemiddleclass,weneedtotakecontrolofourown

destiny.Wecannotrelyonaseriesofblueribboncommissionsandone-offpolicyinitiativeswithouta

unifyingstrategytocreatelong-termprosperity.Aspartofanongoingjobsagenda,JayInsleewillbe

announcingasetofspecificpolicyproposalsfocusedonthefollowing:

● BuildingaNewEconomyforWashington

● EducationandWorkforceDevelopment

● LoweringHealthCareCosts

● ReformingGovernment

GuidingPrinciples

RebuildtheMiddleClass–Effortsmusttargetmiddle-classjobcreationandeconomicdevelopmentthat

ensuressustainedandeconomy-widejobcreation.

Wake-UpCall–Weareinaninternationalrace,fallingbehindinsomerespects,andthemiddleclassis

bearingthebruntofthisimpact.Wecannotcontinuetorelyongoodlucktogrowjobs.

LocalandfromtheGroundUp–Jobswillcomefromtheprivatesector,workingwithlocalleadersand

industry.Solutionswillbefromthegroundup,nottopdown.Opportunitiesinoneareaofthestatemayrequireaverydifferentapproachfromotherareasofthestate;wemustharnesstheuniquestrengths

oflocalcommunities.Thereisno“one-size-fits-all”solution.

WashingtonValues–Wewillachievelong-termeconomicgrowthbyprotectingourcorevalues,

fosteringinnovation,protectingourenvironment,deliveringqualityeducation,andmeeting

infrastructureneeds.Wewillnotgettherebyunderminingthesevaluesandscapegoatingworkersas

hasbeendoneinotherstates.

InvestinTodayandTomorrow–Economicdevelopmentandjob-creationpoliciesmustinclude

measurestargetingnear-termjobcreation,medium-termdevelopment,andlong-termgrowth.ThisincludesinfrastructureprojectsthatputWashingtonianstoworkimmediately,policiesthatnurturekey

industries,andinvestmentsineducationforsustainedgrowth.

OngoingReforms–MakeongoingsystemicchangestothewaythestateandGovernor’sofficefacilitate

jobcreation.Bythemselves,blueribboncommissionsandreactionaryresponsestothelatestcrises

oftenfailtoachieveongoingresultsabsentsystemsintheGovernor’sofficetodriveconstantchange.



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NoExcusesfromtheTop–TheGovernorneedstobeheldaccountableforsuccessandfailuresof

facilitatingjobcreation.Wemustmakegovernmentmoreefficientandeffective,activatingallagencies

toalignpoliciesandremovebarrierstojobcreation.

BuildingaNewEconomyforWashington

JayInslee’spoliciesaredesignedtogetWashingtonStateinthegameof21stCenturyjobcreation,

expansion,retention,andbusinessrecruitmentbyimprovingthebusinessenvironmentandtargetingthoseindustriesuponwhichthefutureforWashingtonState’seconomyhinges.

Theworldismorecompetitivetodaythaninanyothertimeinhumanhistory.Wemustadoptdirected

policiestonurturethoseindustriesinwhichWashingtonStatehasaneconomicedge—aninherent

advantagethatwecanrelyupontogrowmorejobs.Thosetargetedindustriesare:LifeSciences,

Aerospace,MilitaryBases,CleanEnergyTechnology,Agriculture,andInformationTechnology.Itwas

oncecommonlysaid,“AsgoesBoeing,sogoesWashington’seconomy.”Wenowknowthatasgoes

thesesixindustries,sogoesWashington’seconomy.

Thisjobcreationapproachcreatesmiddle-classjobsinthetargetedindustriesaswellasmultiplier

middle-classjobsinancillaryindustries—fromconstructionandsalestosupermarketsandrestaurants.

Wealsomustfosterthegrowthofsmallbusinessesandhelpthemprosperinaglobaleconomy,while

givingworkersthetoolstheyneedtothriveinarapidlyevolvingeconomy.

Weneedagovernorwhoacceptsnoexcusesingettingthejobdone,andwhocaninstituteasystemic

plan—ongoing,coordinated,anddynamic—toensurethatwearealwaysevaluatingour

competitiveness,makingadjustments,andidentifyingnewideas.Thisalsorequiresustotakeacritical

lookatalltaxincentivesanloopholes,ensuringallthatareonthebooksareprovenmethodsofcreating

jobs.



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Chapter1:LayingtheGroundwork

BuildingaWorkingWashingtonstartswithrebuildingthemiddleclass,anditisthejobofstate

governmenttoadoptsmartpoliciesandregulationsthatfostertheretentionandcreationofjobs.These

policiesincludemaintainingahighqualityoflifebyprovidingthebestpubliceducation,protectingour

environment,makingnecessaryinvestmentsininfrastructure,adoptinghigh-qualityandlow-costhealth

caredelivery,andprovidingefficientgovernmentservicesandreliableandexpeditiouspermitting.

Wealsoneedtorestructureouroftenadhocjobcreationandeconomicdevelopmentcapabilitiesto

operateinamoreconsistent,systemic,andstrategicmanner.Weneedtoreplacereactionwith

proactivity.

ReformourEconomicDevelopmentCapabilities

Wecancreateeconomicdevelopmentandcompetitivenesscapabilitiesthatallowustocompeteina

21stCenturyeconomyandhelpfacilitateprivate-sectorjobcreation.Fortoolong,oureconomic

developmenteffortshavelurchedinfitsandstarts,respondingtothelatestcriseswithoutadequately

addressingunderlyingproblems.

Pastattemptstoreformthestate’seconomicdevelopmentstructureshavefailedinmanyrespects.

BoththeDepartmentofCommerceanditspredecessorhavenotbeenprovidedtheneededfocuson

keyindustries;havebeenmixedwithunrelatedgovernmentagencies;havefailedtoincorporatea

systemtocontinuouslyevaluateandimproveourcompetitiveness;andhavebeeninadequately

empoweredtobreakthroughagencysilostostreamlineregulationsandpermittingrules.

Despiteitsname,onlyasmallfractionofthestaffandfundingattheDepartmentofCommerceare

dedicatedtoeconomicdevelopment.Economicdevelopmentandtradeprogramsareprimarilyfunded

inthesamebudgetthatpaysforvitalsafetynetprograms,suchaschildren’shealthinsuranceand

housingfordisabledWashingtonians.Thiscompetitionforfundsandyearsofbudgetcutshasleftonlya

smallgroupofemployeesandcontractorsavailabletohelpfacilitateprivatesectorjobcreation.

Atthesametime,businessrecruitmentbyourstategovernmentislargelyutilizedonlywhen

opportunities“arise,”whereasstateslikePennsylvania,SouthCarolina,Texas,andDelawarehaveseen

successfromaggressivecompany-recruitmentefforts.Whenitcomestomarketingourstatewehavea

greatstorytotell–ahighqualityoflife,beautifulenvironment,andahighlytrainedworkforce.

● EstablishanewOfficeofEconomicCompetitivenessandDevelopmentwithinthegovernor’s

officetoprovideeconomicdevelopmentandtradeexecutionandpolicydevelopment.This

smallorganizationwillbeleadbythenewly-created,acabinet-levelpositionwhoisdirectlyaccountabletothegovernor.

Elevatingtheseactivitieswithingovernmentwillenablethisofficetoworksmoothlyacrossmultiple

agenciesandlevelsofgovernmentbecausetheyarenotconnectedtoanexistingdepartment.Making

theDirectoracabinet-levelpositionandlocatingitintheOfficeofFinancialManagementwillgivethe

groupthemantleoftheGovernor,whichwilladdcredibilitywhenworkingwithinboththeprivateand

publicsectors.Finally,removingthesefunctionsfromtheDepartmentofCommercewillleavebehind



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anagencywithcommunity,housingandinfrastructureprograms.Legislationpassedin2009expressed

thestateLegislature’sinterestincreatingsuchanagency.1

ResponsibilitiesoftheOfficeofEconomicCompetitivenessandDevelopment:

● Provideadirectlinkbetweenindustrieskeytoourfutureprosperity,theGovernor,andother

partsofstateandlocalgovernmentthroughnewlycreatedsectorleads.

● Executestate-levelbusinessrecruitment,retentionandexpansionopportunities,including

targetingsuppliersofouranchorcompaniesandindustriestotoutthebenefitsofco-location

andoperatinginourvigorousindustryclusters.

● EstablishanAmbassadorProgrammadeupofbusinessrecruitmentteamsintargeted

industriestohelprecruit,retainandexpandcompanies.Teamswillincludethegovernor,state

agencies,membersofthebusinesscommunity,laborrepresentativesandwhereappropriate,

spousesandcommunitymemberssuchaseducationprofessionalswhomayhelpinfluence

relocationdecisions.

● Inducecollaborationandcooperationamongandbetweenstateagencieswhenconsidering

sitelocation,statepermitrequirements,andregulatorybarriers.

● Consolidateeconomicdevelopmentagencyfunctionsandcreateasinglepoint-of-contactandone-stopshopforindustryengagement.

● Workwithstate’sAssociateDevelopmentOrganizationstosynchronizeandcollaborate

activities.

● ProvidetradeassistancetoWashingtoncompanies,coordinationoftrademissionsand

internationalleadgeneration.

● Marketthestatedomesticallyandinternationallyasagreatplacetovisitanddobusiness,

usingwebsites,socialmedia,tradeshowpresence,andcollateralmaterial.

● Coordinatethestate’sjobcreationstrategies,suchasourInnovationPartnershipZones,and

CommunityEmpowermentZones.

ImproveP-12,HigherEducation,andWorkforceTrainingSystemstoProvideOurYouthwith

OpportunityandtoMeetEmployerNeeds

Itisimpossibletooverstatetheintegralrolethateducationplaysinshort-andlong-termjobcreation.In

thecomingweeks,Jaywillbeproposingamorecomprehensiveandspecificplanonreformingand

improvingourstate’seducationsystemtomeetourstate’sfutureworkforceneeds.Forthepurposesof

thisdocument,itisimportanttonotethatawell-educatedandhighly-trainedworkforcefacilitates

companygrowthinindustriesacrosstheboard.Asimportantly,ahigh-qualitypubliceducationsystemis

essentialtopreparingouryouthfortomorrow’sjobs,andisaleadingfactorinourabilitytoattractand

retainnewbusinessesandeducated,entrepreneurialtalenttocontributetoourstateeconomy.Nobody

wantstomoveacrossthecountrytoputtheirchildreninsub-parschools.WashingtonStateranksamongthetop10statesfortechnologyworkforce,buthasfailedtoprovidethe

educationalopportunitiesourcitizensneedtoparticipateintheirownstate’seconomy.Werank42ndin

per-capitaspendingineducation.2Lessthanhalfofoureighthgradestudentsareproficientinmath3and

1http://www.governor.wa.gov/news/news-view.asp?pressRelease=1355&newsType=1

2http://www.k12.wa.us/Communications/PressReleases2012/StatementQualityCountsReport.aspx

2http://www.k12.wa.us/Communications/PressReleases2012/StatementQualityCountsReport.aspx

3 http://nces.ed.gov/nationsreportcard/pdf/main2011/2012458.pdf



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science.4Inthe2010-2011schoolyear,only76%ofourstudentsgraduatedhighschoolontime.5We

rank37thinBachelor’sdegreeproductionpercapita,6andwearethebiggestimporterofindividuals

withBachelor’sdegreesorhigheronaper-capitabasis.7Inshort,weareunderfundingourschools,our

schoolsareunderperformingforourchildren,andourfour-yearcollegesanduniversitieshave

insufficientsupporttomeettheneedsofstudentsandemployers.

Inordertocompeteinthe21stCentury,wemustofferWashington’sstudentsastrongfoundationatthe

P-12level,andourcommitmenttodevelopingahighlyskilled,competitiveworkforcecannotendaftergraduation.InprovidingasolidbackgroundinP-12Science,Technology,Engineering,andMathematics

(STEM)Education,weprepareourkidstoexcelinburgeoningfieldswithrapidlyexpandingworkforces—

fieldslikeInformationTechnology,CleanEnergy,andtheLifeSciences–andempowerthemtobuildand

growthenextgenerationofcompaniesandindustriesthatwillfueleconomicgrowthandprosperityin

ourstate.WemustfollowastrongP-12foundationwithapprenticeshipsandtechnicaleducation

directedtowardproducinganexcellentnext-generationworkforce,andwithdramaticallyincreased

Bachelor’scapacityinkeyfields.

● PrioritizeSTEMdegreeproductionatourfour-yearcollegesanduniversitiessothataswe

restoreourstate’scommitmenttohighereducation,weexpandstudentaccesstocrucialfields

likecomputerscience,engineering,andbiotechnology.● ConnectP-12studentswithindustryleadersandworkerstointroduceandinspiretheminto

realworldscienceandtechnologycareers.

● Furtherdeveloprelationshipsbetweenemerging,job-creatingindustriesandhighereducation

–buildingpartnershipsincurriculaandpost-graduaterequirements.

● Strengthenexistingcertificationandapprenticeshipprogramstoincreasetheproductionof

skilledworkers,withanemphasisonservingnewhighschoolgraduatesandmilitaryveterans.

InvestinandSupportWashington’sWorkers

Washington’sworkersareourgreatestasset.GivingWashingtoniansmoretoolstoimprovetheir

knowledgebaseandtheirskillsetshelpsthemachievetheirdreamswhilealsopoweringoureconomy.

Awell-trainedandwell-educatedworkforcehelpscreateanenvironmentthatfeedsoninnovationand

competition.Thereisnogreaterinvestmentthestatecanmakethaninitscitizens,andthestatehasan

importantroletoplayintheirempowerment.

● Allowworkerstocreatealifelonglearningaccountwithmatchedsupportfromtheir

employersinordertosaveforfutureretrainingneeds.

● Ensurethattaxincentivesandloopholesdesignedtocreatejobsarebenefitingworkers.All

taxincentivesandloopholesshouldonlybeextendedbydemonstratingtheirjobcreation

impacts.

Increasethespeedofourcommercebygettingproduceandgoodstomoremarketsfasterthrough

freightmobilityimprovements.


5http://reportcard.ospi.k12.wa.us/summary.aspx?year=2010-11

6http://seattletimes.nwsource.com/html/localnews/2011764312_bellevuecollege03m.html

7http://lazowska.cs.washington.edu/STEM.pdf



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Wemustprioritizetransportationprojectsthatimprovecommerceandcreatejobsbyfindingfunding

solutionsforneededrailandshippingprojects.Wecan’tallowdelaysinthedeliveryofourstate’s

productsandproduce,whetherit’sapplestothelocalfarmers’marketorairplanestomarketsacross

theocean.

● Prioritizeinfrastructureimprovementsandfreightmobilityprojectsthatexpeditecommerce

andtradethroughoutthestate,throughourportsandbeyond,overthelong-term.

● Streamlineregulatoryprocessestoreducetimedelaysinpermittingsignificantinfrastructural

upgrades

LowerthecostofdoingbusinessinWashingtonbybendingthehealthcarecostcurve

Anyeconomicdevelopmentplanwouldbeincompletewithoutaddressingoneofouremployers’top

concerns:therisingcostofhealthcareandcoveragefortheiremployees.Employersdon’twanttohave

tochoosebetweenlayingworkersoffandeliminatinghealthbenefits.FortoomanyWashington

businesses,healthcareinflationisforcingthatdecision.

Weneedtoimprovethequalityandcostefficiencyofourhealthcaresystem.Byfocusingonthreepillarsofhealthcarereform:prevention,evidence-basedmedicine,andinnovation,Washingtoncan

changethehealthcarestatusquoandpreservethewellnessofitscitizens.

KingCountyhasshownhowapreventative-basedmodelsavedthem$61million8—expandingthisidea

totheentirestatecouldresultinsavingsofbetween$300-$455million.Evidence-basedcarewillhelp

ensureourdollarsarebeingspentonthetreatmentsandcaremostproventowork.Finally,innovation

ateverystageofcare,fromcutting-edgesciencetopatient-centeredpaymentmethods,isvitalto

sustainingourhealthcaresystem.

Aftergatheringinputfromdoctors,physicians,andotherhealthcareprofessionalsacrossthestate,wemustchartanewvisionforourhealthcaresystemthatwillbuilduponthebestpracticesadoptedby

businessesandmunicipalitiesthathavesuccessfullyreinedincostsandimprovedoutcomesforpatients

andtheircareproviders.Tostart,wemust:

● Rewardhigh-qualityandefficientcarethroughimprovedcoordination.

● Fundamentallychangethe“fee-for-service”modelbyaligningpaymentincentiveswiththe

kindofcarewewantandthekindofqualityoutcomesWashingtoniansexpect.

● Fosterasenseofcollaborationamongproviders,tobreakdownthesilosthatkeepproviders

frommoreeffectivelycollaboratingandintegrating.TheGovernorcanplayacentralrolein

conveningstakeholdersinthesystemtoimprovepatientcare.

● UseinnovationsinMedicaidandthepurchasingpowerofthestatetosetanexampleofthekindofcollaborationwe’dexpecttoseeinWashington.

● Reducemedicalerrors.

● Supportarobusthealthcareexchangeatthestatelevel.

8http://seattletimes.nwsource.com/html/localnews/2016323871_countybudget27m.html



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Chapter2:FocusonSmallBusinesses

Oursmallbusinesses,companiesof50peopleorless,employabout41%ofWashington’sworkforce9.

Theysitattheforefrontofeconomiccyclesandareoftenthehardesthitduringeconomicdownturns.

Theyarealsokeytopullingusintooureconomicrecoveryandwerethefoundationthatpulledusoutof

ourlastrecession.

Targetingthesixindustryclustersthatwillmostlikelydictateourprosperity–aerospace,lifesciences,agriculture,military,informationtechnology,andcleantechnology–willincludemanysmallbusinesses

employingthousandsofpeople.Inaddition,strongjobcreationintheseindustrieswillsupport

thousandsofsmallbusinessesfrommaterialsuppliers,todrycleaners,torestaurants.

Manyofthepoliciesoutlinedhere–fromworkforcetraininginRentontoirrigationprojectsinYakima-

willimpactoursmallbusinesses,eitherdirectlyorindirectly.Investmentsbythestateinourworkforce

andinourinfrastructure,aswellasprocurementpreferencesandtimelyandpredictableregulatory

processallbenefitourlocalbusinesses.

Providetaxreliefforsmallbusinesses

ToharnessthepowerofsmallbusinessestoBuildaWorkingWashington,wecanbetteralignourtax

policiesinamannerthatworksforthesejobcreators.Thefollowingtaxincentivesshouldbeenactedin

amannertoencouragejobcreation,whilepreventingoverlapand“doubledipping.”Further,eachtax

incentiveshouldbefinite,narrowinscope,andsubjecttoreviewforjobcreationperformance.

● EstablishaJobCreationTaxCredit,givingaB&Otaxcreditforsmallbusinessesaddingworkers

totheirpayroll.Creditshouldbeincreasedwiththewagespaid,andtopoutat$4,000for

everyjobcreatedandtheprogramwillbecappedat$8million.

● Encouragesmallstart-upbusinessesinhigh-growth,andoftenhigh-capitalindustrieslike

biotechnology,biomedicine,cleanenergytechnologyandinformationtechnologybyproviding

B&Otaxreliefforthefirstthreeyearsofthecompany’sexistence.● Encouragesmallstart-upbusinessesinhigh-capitalindustriesbyallowingpre-revenue

companies,withinappropriatelimits,accrueR&Dcreditsforresale.

Makegovernmentworkforsmallbusinesses

Interactionwithgovernmentshouldbeaseasy,predictable,andtimelyaspossible.Stategovernment

needstoremovebarrierstoworkingwiththestatesoourbusinessescanfocusonsuccess.Whenit

comestosmallbusinesses,Washingtonranksamongthetopwithitshighnumberofstartups.10Buttoo

often,theseshopsclosetheirdoorsforgoodwithintheirfirstfewyears.Runningasmallbusinesscanbe

adauntingtask,withobstaclesseeminglyateveryturn.Navigatingoverlycomplexgovernmentbureaucraciesshouldn’tbeoneofthem.Thisputsdollarsbackintothepocketsofsmallbusinessowners

andallowsthemtoreinvestintheircompaniesandhireWashingtonians.Governmentcanbeapartner

inthesuccessofabusiness,notahindrancetoit.

9http://www.washingtonpolicy.org/publications/facts/snapshot-small-businesses-washington

10http://money.usnews.com/money/business-economy/small-business/articles/2009/01/06/the-7-best-states-to-start-a-

business



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● Investinourregionalprocurementtechnicalassistancecenters(PTACs).PTACsareakintothe

economicdevelopmentcouncilsoftheprivatesector,providingthetechnicalassistanceand

know-howtosmallbusinessespursuingUSDepartmentofDefensecontractingwork.

● Expandthestate’sonline,open-bidprocurementprocesstoallowsmallbusinessestocompete

forstatecontracts,increasecompetitionforstatepurchases,andallowmembersofthepublic

toreviewopenandcurrentbiddingandcontracts.

● ExpandLeanManufacturingtechniquesinallstateagenciestoempowerstateemployeesto

improveoperations,providemorecertaintyandtimelinessinregulatorydecisions,improve

customerservice,anddelivermoreserviceforeachtaxpayerdollar.

Improveworkforcetraining

Everysuccessfulhomegrownbusinessinourstateoncestartedoutasaone-ortwo-personoperation.

First,ittakesanidea.Thenittakestheknow-howtogetitofftheground.Andthatknow-howcomes

fromatrainedandeducatedworkforce.Ourstatemustcontinueconnectingoursmallbusinesseswith

theworkerstheyneedbytrainingthoseenteringtheworkforcewithappliedskillsets,andretraining

thosewhoseekoutnewskillsandcareerpaths.

● Developaprogramtorapidlytrainworkers,similartoprogramsinGeorgiaandNorthCarolina,

withaskillsetspecifictoabusinessorindustry’sneeds,workinginconjunctionwithexisting

assetsatourregionalworkforcedevelopmentcouncils.Thiswillbeaservicewecanprovide

businessesandserveasarecruitmentandretentiontool.

● Strengthenthebondsbetweenourcommunityandtechnicalcollegesandouremployers,

throughappliedcurriculainhigh-demandfieldsdevelopedwithemployer-inputandtechnical

assistance.

● Increaseexistingcertificationandapprenticeshipprogramstoincreaseproductionofskilled

workers,withanemphasisonservingnewhighschoolgraduatesandmilitaryveterans.● Expandthesuccessfulsmallfarminternshipprogramfromoneregiontotheentirestate,

allowingopportunitiesforeducationandtrainingtoyoungfarmers,andthefarmassistance

neededontoday’sfarms.

Expandexportopportunities

WashingtonStateisthecloseststateinthecontinentalUStothefastgrowingeconomiesofAsia,yet

currentlylessthanfivepercentofallWashingtoncompaniesexport.11Byaggressivelytargetingthese

marketsforWashingtonproducts,wecanhelpinsulateourstate’seconomyfromtherecessionarycycle

ofdomesticmarkets.

● Providesmall-andmedium-sizedbusinessesmarketinformation,technicalsupport,andaccess

financialassistancethatisavailable.

● EmbracePresidentObama’sGlobalExportInitiativeandpartnerwiththefederalgovernment

togivemoresmallandmediumsizedWashingtoncompaniesaccesstoglobalopportunities

andmarkets.

11

http://www.governor.wa.gov/news/news-view.asp?pressRelease=1517&newsType=1



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Chapter3:LifeSciences

Continuedgrowthandrevolutioninthelifesciencesmeetsgrowinghealthneedsandprovidesnew

opportunitiesforinnovation.Lifesciences,includingbiotechnology,biomedicaldevices,globalhealth,

andpersonalizedmedicineisanindustryinwhichtheUnitedStatesremainstheunquestionedglobal

leader.WeneedtoensurethatWashingtonStateisoneofthetoplifesciencescentersintheworld.

Thesebusinessesandnon-profitscurrentlyaccountforover22,000directjobsinWashingtonState,andmaycontributetoanother55,000indirectjobs,accordingtotheCityofBothellandtheWashington

ResearchCouncil.12Continuedsuccesswillbringthousandsofmoredirectandindirectjobstoourstate.

WhilemanyinnovatorscallWashingtonhome,otherstatesmoreaggressivelycourtthisgrowth

industry.Earlierthismontharespectedbiotechtradepublicationcarriedthefollowingheadline:“New

BiotechClustersintheU.S.areScramblingtoChallengeEstablishedRegions.13”Thearticlefeatured

severalotherregionsengagedinpolicyinitiativesaimedatovertakingestablishedclusters–including

Seattle.WashingtonStatecannotrelyoncontinuedadhocdevelopmenttoremaincompetitive—we

needaconcertedandintentionalpolicyfocustohelpfacilitatejobcreation.

JayInsleehasworkedforyearstohelpthelifesciencesindustrysucceedindevelopinginnovativebiologicsandcreatingjobs.Jaystooduptopartypoliticsbypassingabipartisanbilltogetmore

affordablegenericmedicationstoconsumerswhileensuringthatthelifesciencesindustryretainedthe

incentivesneededforfurtherinnovation.Jayhasbeennamedthenational“LegislatoroftheYear"by

theBiotechnologyIndustryOrganization(BIO)inrecognitionofhislongstandingleadership.

Ahands-onapproachtorecruitmentandsupportfortheindustry

Ourstateneedsahands-onapproachtobusinessrecruitment,retention,andexpansionopportunities.

Wealsoneedtocreateahigh-levelpolicypositiontoworkwiththeGovernorandindustrytoachieve

policyobjectives.

● Createalifesciencessectorlead,chargedwithworkingwiththeGovernorandindustryto

ensurethestate’songoingsupportforthelifesciencessectorsanditsworkforce.

● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthyclimate

forindustrydevelopmentandassistindustryleadersinterestedinlocatinginWashingtonwith

everythingfrominventorysourcingtositeselection.

● AttractnewbusinessestoWashingtonbypersonallyleadingrecruitingeffortswithlifescience

businessesandurgingthemtolocateinoneoftheworld’sgreatestlifesciencesindustry

clusters.

12

http://www.ci.bothell.wa.us/Site/Content/Economic%20Development/Development%20Sites/IPZ/HealthLifeSciencesImpa

ctReport.pdf 13

http://www.genengnews.com/insight-and-intelligence/new-biotech-clusters-in-the-u-s-are-scrambling-to-challenge-

established-regions/77899526/



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Aligntaxincentivestoencourageinvestmentinlocallifesciencesstartups

Lifesciencescompanieshavehugepotentialtocreatemanyjobs,butareoftencash-starvedwhilein

startupphase.Theymustraisecapitalandspenditonresearchanddevelopment.Suchcompaniesare

inaraceagainsttime–theyneedtoconductresearchtovalidatetheirinnovativeideasinorderto

grow.Iftheyrunoutofcapitaltoosoon,thecompanyfailsanditsinnovativeideasoftendissolve

withoutcomingtofruition.

TheB&Otaxcanunfortunatelyacceleratethedeathrateforsomelifesciencestart-ups.Many

companiesspendlargesumsofcashonresearchanddevelopmentforyearswithoutgenerating

revenue.ThesecompaniesareunabletotakeadvantageoftheR&Dtaxcreditduringthesezero-

revenueyears.

Thefollowingtaxincentivesshouldbeenactedinamannertoencouragejobcreation,whilepreventing

overlapand“doubledipping.”Further,eachofthesetaxincentivesshouldbecapped,finite,narrowin

scope,andsubjecttoreviewforjobcreationperformance.

● Provideathree-yearB&Otaxreliefforstart-upresearch-basedcompanieswith50orfeweremployees.

● Allowpre-revenueresearch-basedcompaniesto,withinlimits,accrueandsellR&Dtaxcredits.

Facilitatetechnologycommercializationactivitiesatourresearchinstitutionsanddriveinvestments

intolocalcompanies

ThevastmajorityofbasicresearchintheUnitedStatesisdoneinpublicresearchinstitutions,suchas

universitiesandnationallabs.14Asthelargestpublicuniversityrecipientoffederalresearchdollars,15our

publicuniversitiesareoneofourstate’sgreatesteconomicassets,havingspunoutsuchcompaniesas

Immunex,Sonosite,andZymogenetics.Theseresearchinstitutionsbecomeenginesofeconomicgrowth

byspinningoffjob-creatingcompaniesformedaroundnewinventions.

Ourresearchinstitutionshavemadegreatstridesinrecentyearstostepupandimprove

commercializationefficacy.Findingwaystobuildupontheseimprovementscanleadtolong-termand

sustainedjobcreationinourstate.WealsomustkeepourpromisestoourR&Dinvestmentstogrow

promisingtechnologies.

● Enhancecommercializationcapabilitiesatourresearchinstitutionsbygivingthemflexibilityin

takingequitypositionsinspinoffcompaniesandusingfundsgeneratedfrompatentand

technologylicensingtoreinvestinothertechnologies.Thismayrequireanarrowconstitutionalamendment.

● Identifyandremoveadditionalregulatory,statutory,orculturalbarrierstocommercialization

effortsandworkwithresearchinstitutionstoremovethem.

MeettheWorkforceTrainingNeedsoftheLifeSciencesIndustry

14

http://www.nsf.gov/statistics/nsb0803/nsb0803.pdf 15

http://www.washington.edu/discover/academics



11

Meetingtheworkforceneedsofourlifesciencesindustriesisbothachallengeandanopportunity.Itis

anopportunitybecauseitrepresentswell-payingjobsforWashington’sworkersandtheirfamilies.Itis

achallengebecauseourcurrentdemandforengineers,techniciansandbiologistsoutstripsour

universities’andcommunitycolleges’abilitytoproducedegrees.

● PrioritizeSTEMdegreeproductionatourfour-yearcollegesanduniversities,soaswerestore

cutstohighereducation,weincreaseourgraduatesincrucialfieldslikecomputerscience,

engineering,biotechnology,andmath.

● ConnectP-12studentsandindustryleadersandworkerstointroduceandinspiretheminto


● Furtherdeveloprelationshipsbetweenemerging,job-creatingindustriesandhigher

education—buildingpartnershipsinfunding,curriculum,andpost-graduaterecruitment.



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Chapter4:Aerospace

Ittouches28counties16withover600businessesacrossthestate.Itemploysaround84,000workers17.

Andit’sthebesttheworldhaseverseen.18

TheaerospaceindustryandWashingtonStatehaveenjoyedauniquepartnershipoverthelastcentury,

butwemustmakesmartdecisionstoleveragethisrelationshiptodayandmovetowardmore

investmentstokeeptheaerospaceindustryathome.

Inadditiontotraditionalmethodsofindustryrecruitmentsuchastaxincentives,competingstatesare

makingstrategicinvestmentsinP-12STEMeducationprograms,andareintegratingtheaerospace

industryintothecurriculaoftheirresearchuniversities—actionsthatthreatenWashingtonState’sskills

advantage.

Duringthisuncertaineconomictime,Washington’shighereducationsystemhassuffereddeepercuts

thanotherstates’,limitingourabilitytoproducetheinnovative,highqualityengineeringtalentrequired

tosustainBoeingandotheraerospacefirms.

Gatheringinputfromaerospaceengineers,manufacturers,educators,organizedlabor,andlawmakers,Jayhastakenprovenmethodsforsecuringtheworkforceneedsofourindustryandforgedanew

proactivevisionforWashington.Newpartnershipsandtrainingsupport,andanewapproachto

recruitmentandpromotionofouraerospaceindustrywillensurealongfutureinairplane

manufacturingthroughoutWashington,fueledbyahomegrown,highlyskilledworkforce.

TheagingincumbentaerospaceworkforcecreatesbothachallengeandanopportunityforWashington

State.Withinthenextdecadenearlyhalfofallcurrentaerospaceworkerswillbeeligibletoretire.This

createsatime-criticalwindowofopportunitytotransfertheknowledgefromthoseworkersonfactory

floorsandengineeringcubiclestothenextgenerationofaerospaceworkers.Maintainingourcurrent

competitiveskilledworkforceadvantagewillrequiregrowingtheworkforce-trainingpipeline.Thepayoff

fortheseinvestmentswillbethegrowthofgoodaerospacemanufacturingjobsforourcitizensandourstate.

BuildtheFoundation:STEMEducationandWorkforceDevelopment

ThefutureofWashington’saerospaceeconomywillbedeterminedbyourinvestmentinfosteringan

educated,skilledworkforce.Thebuildingblocksareinplace:astrongindustrypresenceandtop-flight

researchinstitutionsandtechnicalcollegesgiveusthetoolsnecessarytocultivatethehighestquality

nextgenerationofaerospaceworkersinWashingtonState.JayInsleeiscommittedtobuildingupon

theseassetstomaintainandgrowaerospacejobs.

● ExpanduponprogramssuchasLaunchYeartopreparehighschoolstudentstomeetthenew

demandsofthe737MAXworkforce.

● ExposestudentsinWashington’sP-12systemtoanearlyintroductiontocareerpossibilitiesin

aerospacemanufacturingandprovideaccesstotherelevantcareerandtechnicaltraining

classesintheP-12system.

16

http://www.washington-aerospace.com/Email-Blast/aug-09_west.html 17

http://www.choosewashington.com/industries/aerospace/Pages/default.aspx 18

http://www.washington-

aerospace.com/study/Washington%20State%20Aerospace%20Partnership%20Competitiveness%20Report%20FINAL.pdf



13

● Additionally,justasimportanttothesestudents,thestatemustcreateaclearlyarticulated

roadmapfromhighschooldiplomatocollegeand/orapprenticeshipcredentials.Aerospace

employerswillbenefitfromapipelineofhighly-skilledyoungpeopleenteringthefieldwell

intothefuture.

● IncludeaerospaceexpertsinP-12curriculumdevelopmentandinourclassroomtoexpose

younglearnerstothemanyjobopportunitiesinouraerospaceindustry.

● Strengthenexistingaerospacecertificationandapprenticeshipprograms,withanemphasison

servingnewhighschoolgraduatesandmilitaryveterans.

● Worktofurtherdeveloprelationshipsbetweentheaerospaceindustryandhighereducation—

buildingpartnershipsincurricula,andpost-graduaterecruitment,aswellasexpanding

aerospace-relevantresearchattheUniversityofWashington&WashingtonStateUniveristy.

● Meetemployers’needsbymeasuringhowmanySTEMgraduatesfindworkintheirfield

againstemployerdemand.Thiswillallowtheuniversitiesandstatetobemoredynamic,

adjustingprogramsandtrainingwhennecessary.Providenewlevelsofaccountabilityand

oversighttohighereducationprograms,ensuringthatwe’remeetingemployer’sneedsand

ourstudentsarereceivingandkeepingjobsintheirrespectivefields.We’llmeasurehowmany

STEMgraduatesfindworkintheirfieldagainstemployerdemand,allowingthestateto

dynamicallyadjustprogramsandtrainingwhennecessary.

Anaerospace-friendlyWashingtonthroughbetterbusinesspractices

WhileBoeingmaybeatraditionalengineofthestate’seconomy,Washingtoncannotaffordtotakethe

industryforgranted.Otherstatesandcountriesarevyinghardforaerospacebusiness,withstiff

competitionfromAirbus,aswellasemergingaerospacemanufacturersinAsiaandSouthAmerica.To

continuetoretainandattractaerospacejobs,WashingtonStatemustbecreativeandproactiveinits

approachtoindustrysupport.

● Providelong-termstabilityandsecuritytothemanufacturingbasebyextendingstatetax

creditsforinvestmentsinmanufacturingandresearch.● ImprovecoordinationwithWashingtonState’sCongressionaldelegationtomaintainfunding

andsupportforaerospace-relevanteducation,workforcedevelopmentandtraining,and

research.

Ahands-onapproachtorecruitmentandsupportfortheindustry

Ourstateneedsahands-onapproachtobusinessrecruitment,retention,andexpansionopportunities.

Wealsoneedtocreateahigh-levelpolicypositiontoworkwiththeGovernorandindustrytoachieve

policyobjectives.

● Createanaerospacesectorlead,chargedwithworkingwiththeGovernorandindustrytoensuretheState’songoingsupportfortheaerospaceindustryanditsworkforce.

● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthyclimate

forindustrydevelopmentandassistindustryleadersinterestedinlocatinginWashingtonwith

everythingfrominventorysourcingtositeselection.

● Bolstertieswithourmilitaryinstallations,creatingnewpartnerships,academccentersof

excellence,andlandingmoredefensecontractshereinWashington,builtwithWashington

workers.



14

● Attractnewbusinesstothestatebypersonallyleadingrecruitingeffortswithaerospace

manufacturersandsuppliersacrossthecountryandtheglobe,urgingthemtoco-locateherein

thegreatestaerospaceclusterintheworld.



15

Chapter5:MilitaryandVeteranSupport

Spending$12.2billioninWashingtonState,19themilitaryisasignificantdriveroftheeconomy,and

servestorecruitgreatminds,hardworkers,andmanynewinnovationsandmanufacturingpartnerships.

Still,despitehavingoneofthetop-tenlargestmilitarypopulations,ourstateranks23rdinlanding

militaryprocurementprojects.20Wecandobetterthanthat.

TheMilitarysectorrepresentsasignificantopportunityandnaturalresourcethatmustbesupported

andpartneredwith,justasourstatehasdonewithaerospace.Currently,thereistremendoussynergy

betweenouraerospaceindustryandtheDepartmentofDefense,withcountlessmilitaryveterans

currentlyworkingatBoeingandotherindustriesthroughoutourstate.

Toooften,theeconomicimportanceofourmilitarybasesandtheskilllevelofourveteransgo

unrecognized.WemustdoeverythingwecantobolsterourbasesandkeepthemrelevanttotheUS

military’smissionnowandwellintothefuture,lestweloseaninstallationtoaBaseRealignmentand

Closure(BRAC)process.

Mostimportantly,ourveteransreturninghomeafteroverseastoursofdutyfacetheprospectoflookingforanewjobduringtheworsteconomicrecessionandthehighestunemploymentindecades.

ReturningheroesareoneofAmerica’sbestresourcesforskilledlaborandJayInsleeiscommittedto

connectingthemwiththetrainingopportunitiesandjobstheyneedanddeserveaftertheirmilitary

careershaveended,buildingonthetremendousjobbyourstateDepartmentofVeteransAffairs.

Jayiscommittedtoourservicemembers,theirfamiliesandthehundredsofthousandsofveteransand

retireesthatcallWashingtonStatehome.Heisreadytobringanunprecedentedlevelofattentionto

theimportantissuesandopportunitiesfacingourmilitaryandleveragetowardgreateroutcomes.

WashingtonStatenotonlyneedstobethebestplacetoretirefromtheMilitary,weneedtobethebest

placetoworkaswell—andwemustcommittohavingastrategicandrobustdefensesectoreconomy.

WashingtonStateistheperfectplacetomergeagreatworkforce,second-to-nonequalityoflifeandacommitmenttoexcellenceasaleaderintheneweconomy.WearenotonlyagatewaytotheEast,but

agatewaytothefuture.

BetterconnectourlocalbusinesseswiththebusinessofDefense

Whetherit’sthenewP-8replacementsatWhidbey,acyber-warfarefacilityatJBLM,oraNationalGuard

UAVschoolattheArmy’sYakimafacility,ourstateneedsahigh-levelexperttodriveprojects,facilities,

andequipmenttoWashingtonStatebases.TheUSCorpsofEngineersoftenbringintheirapprovedlist

ofcontractorsbasedintheSouth,leavingourlocalcontractorsshutoutoftheMultipleAwardTask

OrderContract(MATOC)orSingleAwardTaskOrderContract(SATOC)procurementsystems.This

processhasnotprovidedgreateraccesstoourlocalprovidersandourstateneedstobestrategicwithseekingDepartmentofDefensework.

WemustprovideexpertsupporttoourcontractorsandworkforcetoensureWashingtonworkersare

providedthegreatestaccesstosuccessfullysecuringDepartmentofDefensework.Wehaveoneofthe

19

http://www.wedc.wa.gov/Download%20files/WADefenseEconomy-WhitePaperFinal.pdf 20

http://www.wedc.wa.gov/Download%20files/WADefenseEconomy-WhitePaperFinal.pdf



16

mostskilledworkforcesinthenationandwemustleveragetheirskillstoensurewearenolonger

middleofthepackofstateswhenitcomestosecuringimportantjobcreatingcontracts.

Withoutaguideandastrongvoiceintheprocurementprocess,tryingtowinaDepartmentofDefense

contractisadauntingchallengeforourlocally-ownedbusinessesandtheassistancetheyneedis

stretchedtoothin.WemustclosetheprocurementgapandlandDepartmentofDefensecontractswith

localcontractors.Stateswithactiveandaggressivemilitaryaffairsofficeshaveseensignificantgainsto

theirstates’economiesfromfocusedattentiononthedefenseindustry.21

● CreateamilitaryliaisonandambassadorforWashington,answerabledirectlytotheGovernor.

Akeycomponentoftheposition’smissionwillbestrengtheningtherelationshipbetween

militaryinstallationsandtheirhostcommunities.

● Investinourstate’sprocurementtechnicalassistancecenters(PTACs).PTACcounselorsassist

Washingtonfirmsincreatingaroadmaptosuccessfullycompeteonfederal,stateandlocal

governmentcontracts,includingDepartmentofDefenseopportunities.Thistechnical

assistanceresultsinmoregovernmentcontractsbeingawardedtolocalfirms.

CreateandattractnewCentersofExcellenceinburgeoningmilitarytechnology

Co-locatingsuppliers,manufacturers,andtheengineeringworkforceinWashingtonmakessenseand

ensuresalongmilitarypresenceinWashington.Justasweinvestintheworkforceandtechnological

advancesatourcentersofexcellenceinaerospaceandagriculture,wecanbuildthesamekindof

trainingpartnershipswithourbases.WeknowthatWashingtonStateisthesecondmostrequestedfinal

dutystationinthenation,22sowehaveaninherentadvantagetokeepthesehighlyskilledservice

membersprovidingpositivelytoourstate’seconomicfuture.

● SecureaNationalGuardUAV(unmannedaerialvehicle)trainingschoollocatedattheYakima

TrainingFacility.Thenextgenerationofaerospacevehicles,andtheirworkforce,shouldbe

locatedinWashingtonState.Wehavetheworkersandtheknow-howtobuild,maintain,andtrainthisburgeoningfieldinournationaldefense.

Supportforthemilitary’senergyindependencemovement

Thetechnologicalinnovationscreatedbythemilitaryoftendriveinnovationinothersectorsofour

economy.Thisholdstrueforalternativeenergytechnologies.JointBaseLewis-McChordhasitssightsset

onaninitiativetogeneratezerowasteandconsumezero-energyfromthegridby2020.23Throughthe

Army’sNet-Zeroprogram,theNavy’sGreenFleet,andAirForce’sexplorationofbiofuelsdrivingan

energyindependencemovement,thereareampleopportunitiestosecureWashingtonbusinessesas

theproviderofthosealternativefuelsandenergy-generatingequipment.

● Incentivizealternativeenergyproducersandforgenewpartnershipsandopportunities,

connectinglocalproducers,manufacturersandcontractorswithourmilitaryinstallationsin

ordertofulfillourmilitary’smissionandfosternation-leadingtechnologiesherein

Washington.

21

TheLatestTrendsinState-LevelMilitaryAffairsOffices,http://www.defensecommunities.org. 22

http://community.seattletimes.nwsource.com/archive/?date=19940904&slug=1928742. 23

http://www.army.mil/article/55370/joint-base-lewis-mcchord-wins--three-environmental-honors/



17

● PartnerwiththeproposedWSUadvancedbiofuelscenterwiththeDepartmentofDefenseina

“FieldtoFlight”program,focusedonresearchanddvelopmentoflocallygrownfuels.

Expandopportunitiesandsupportforourreturningveterans

Withmorethan45,000activemilitarypersonnel,65,000militarydependents,andover640,000

veterans,almosteverylifeinWashingtonisconnecteddirectlyorindirectlytothemilitary.24Thereare,

infact,over44,000employeesonJBLMalone,25makingthebasethestate’sthirdlargestemployerby

itself.26

Manyofourreturningveteranscomehomeonlytofacehighunemploymentratesanddifficulty

transitioningbackintocivilianlife.Ourcurrentsystemthrowsuproadblockstoveteranslookingtoenter

tradessimilartotheirserviceinthemilitary.Thestateneedstodobetter.

● ExpandtheHelmetstoHardhatsprogram,asuccessfulmodelthathelpsveteransconnectwith

thetradesthroughapprenticeships.Thisprogramshouldbeexpandedandassistedby:

○ Expandingveteranapprenticeshiputilizationoncapitalprojects

○ Increasingaccesstomid-sizeprojectsaroundstate

○ Providingarevenuestreamforoutreach/liaisingwithvetsandcontractors○ Providingavet’sombudsmanateachstatecommunityandtechnicalcollege

● Builduponthesuccessofmilitaryfamilyemploymentprogramswithinthestateandacrossthe

nation,bypartneringwiththemandprovidingonecentralonlinehubforallservicesavailable.

We’llbehelpingmilitaryfamilymembersfindemployment,aswellashelpinglocalemployers

tapintoawell-qualifiedworkforcepool.

24

http://psrc.org/assets/5613/MilitaryStrategy.pdf 25

http://seattletimes.nwsource.com/html/localnews/2014632121_scaparrotti30m.html 26

http://www.army.mil/article/71905/Federal_grant_to_help_ease_JBLM_traffic_congestion/



18

Chapter6:CleanTechnology

Risinggasolineprices,dependenceonfossilfuels,andclimatechangerealitieshavedrivenworld

demandforcleanenergytechnology.Asthisdemandcontinuestogrow,jobcreationfollows.

Whenitcomestocleanenergy,WashingtonStateisoneofthemostinnovativeplacesontheplanet.27

AccordingtotheWashingtonStateEmploymentSecurityDepartment,Washington’scleantechnology

economyemploysaround61,775peopleinourstate.28Duringthedowneconomy,PugetSound’sProsperityPartnershipestimatesthatthesectorwouldstilloutperformtherestoftheeconomy.29

JayInsleehasworkedforyearstohelpbuildacleanenergyindustryinourstate.Hechampioned

Washington’sEnergyIndependenceAct,whichhaschangedourenergylandscapewhilecreating

thousandsofjobsandgeneratingmillionsintaxrevenuetofundruralschoolsandfirstresponders.30To

helpcreatejobsacrossthestate,hechampionedadvancedsustainablebio-jetfuelsbypartneringwith

theDepartmentofDefenseandsecuringlocalfunding.Jayalsoco-authoredabookoncleanenergyjob

creation, Apollo’sFire:IgnitingAmerica’sCleanEnergyEconomy .

PromoteOurEnergyIndependence

Energyisthelifebloodofourstate’seconomy.Affordableelectricityhashelpedindustriesgrowacross

ourstate,andcleanenergyisattractingnewbusinessestoday.Washingtoniansspendover$20billion

eachyearonenergy,31withasignificantamountbeingpurchasedfromoutofstate.

32Ifwereducethat

economicleakage,wecaninvestourdollarsintomorejobcreatingenergysourcesinWashington

communities.

JayInslee’sproposalswillbuildonthestate’scompetitiveadvantageofaffordableandcleanenergyto

positionWashingtonStateforsuccessinanational,low-pollutionenergyfuture.Byleadingtheregion

andthecountryincleanenergyinitiatives,Washingtonwillgrowlocaljobsbyexportingour

technologiesandexpertise.

Leadthecountryindevelopmentandproductionofadvancedsustainablebiofuels

Ofthe$20billionthatWashingtonStatespendsonenergy,over$15billionperyeargoestooilandgas

companiesfortransportationfuels.33Wecanlessenthateconomichitbyseizingtheopportunityto

createjobsinWashingtonbygrowing,processing,refininganddeployingadvancedbiofuelsata

commercialscale.

27

http://www.brookings.edu/reports/2011/0713_clean_economy.aspx28

https://fortress.wa.gov/esd/employmentdata/docs/occupational-reports/green-economy-jobs-report-2009.pdf

29http://www.washingtoncelc.org/filestore/Navigant_CELC_Leadership%20Final%20Report_FINAL_Dec-9--2010.pdf

30http://www.nwenergy.org/news/washingtons-clean-energy-future-at-risk/

31http://www.commerce.wa.gov/site/526/default.aspx

32http://www.commerce.wa.gov/DesktopModules/CTEDPublications/CTEDPublicationsView.aspx?tabID=0&ItemID=10206&

MId=863&wversion=Staging 33

http://www.commerce.wa.gov/DesktopModules/CTEDPublications/CTEDPublicationsView.aspx?tabID=0&ItemID=10206&

MId=863&wversion=Staging



19

Thisisanareawhereindustry,environmentalleaders,andcommunitieshaveidentifiedvastneedandas

muchopportunity.Itaddressesakeystrategicchallengeforoneofourstate'sgreatesteconomic

sectors,aerospace,anddrawsonthefullrangeofourcapabilities,fromhigh-techcompaniestoworkers

inforestryandagriculture.

AlaskaAirlines,Boeing,PortofSeattle,andSpokaneAirportareworkingwithWashingtonState

Universityandenvironmentalleaderstofacilitatethecommercializationoflocallyproducedfuelsto

powertheaviationindustry.34Localcompanieshavealreadymadedrop-inbio-jetfueltopowerU.S.militaryaircraftliketheU.S.Navy’sF/A-18SuperHornetandBoeingjets.35Homegrownfeedstockscan

beproducedinallcornersofthestateandincludeagriculture-basedcrops,woodwastes,solidwastes,

andevenalgae.36

WecanbuildonthisworkandputWashingtonStateonthemapasanindustryleaderinadvanced

biofuels.

● CreateanAdvancedSustainableBiofuelsCenterofExcellence,ledbyWashingtonState

University,topartnerwithprivateindustry,local,state,andfederalgovernment.TheCenter

willfacilitateresearch,feedstockgrowth,sourcing,processing,andthedeploymentof

commercialscaleproduction.

TheBiofuelsCenterofExcellencecanhelpcreateconditionsforindustryleadershipinproducing

advancedrenewablefuels,includingproductionscalerefinerybyleadingeffortsto:

● Coordinate,support,andaccelerateproposalsforresearchandtechnologydevelopment.

● Advocateforprivate,non-profit,andfederalfunds.

● Supportproductionandpilotscalerefineriestoproduceadvancedrenewablefuelsatscale.

● WorkwiththeDepartmentofDefenseandlocalbasesinordertomaximizeopportunitiesaround

supplyingsustainablefuelsforaviationandlocaljobcreation.

Wecanhelptocreate“marketpull”toencouragelocaldemandforbiofuelsthatwillhelpcreatelocal jobsforfarmers,haulers,andmanufacturers.

● PartnerwiththeDepartmentofDefenseandWSUina“FieldstoFuels”efforthelpthe

departmentmeetitsbiofuelsgoalswhilecreatingjobsfromthefarmergrowingcrops,tothe

truckerhaulingitandthetechnicianrefiningitintofuel.

● Provideatechnology-neutralmarketmechanismtospurdevelopmentoflocalandregional

alternativetransportationfuels,includingadvancedsustainablebiofuels,electricvehicles,and

naturalgas.

● Identifyandpursueopportunitiestoincreasetheuseofadvancedfuelsinstateandlocal

operations.

34

http://www.safnw.com/about-safn/ 35

http://www.businesswire.com/news/home/20091215005518/en/14-Airlines-Sign-Landmark-MOU-Camelina-based-

Renewable 36

http://www.safnw.com/wp-content/uploads/2011/06/SAFN_2011Report.pdf



20

UpdateourEnergyIndependenceActandhelpelectrifythetransportationsector

TheCleanEnergyIndependenceActhasalreadygeneratedover$7billioninnew,cleanenergy

investment,providingthousandsofjobsandhelpingruralcommunitiesbuildstrongerlocaleconomies.37

Still,morecanbedonetomakeitworkbetterandcontinuetocreatejobsfortheentirestate.

Wecanaimhigheranddobetter,atlowercost,iflocalutilitiesareprovidedmoreflexibilitytobepartofthesolutioninawaythatworksbestfortheircommunities.Wecanalsoleverageourclean,lowcost

hydropowerandwindresourcestoleadthecountryinthemovetowardvehicleelectrificationwhile

decreasingthe$15billionWashington’seconomylosesannuallytopayforoilandgasimports.

● GrowanddiversifyWashington’scleanenergycommitmentbyacceleratingthedevelopment

ofhydroefficiencies,safeandsustainablebiomass,combinedheatandpowersystems,and

electrificationofthetransportationsystem.Withincreasedflexibility,theEnergy

IndependenceActcanaccomplishmoreandworkbetterforallWashingtoncitizensand

utilities,includinglow-loadgrowthutilities.

● Expandopportunitiesforcommunitiestoachievecleanenergygoalswhileadvancingcritical

localprioritiessuchascleanair,reducingoildependence,andlocaleconomicdevelopment.● BuildacleanenergyeconomytolastinWashingtonbyincreasinglong-termrenewableenergy

goalsandbetteraligningcleanenergygrowthwithutilities’powerrequirements.

Removebarriersforrenewableenergyprojects

RenewableenergyprojectshavecreatedjobsineverycornerofWashingtonState.EasternWashington

farmersbenefitfromincreasedlandrevenuesfromwinddevelopments,andportworkersinVancouver

movehundredsofturbinesperyear.Inotherruralareas,anaerobicdigestersconvertanimalwasteinto

energy.Yet,barriersremaintocreateamorerobustdeploymentandjobcreation.AsWashington

positionsitselftoleadinthecleanenergysector,itisvitaltodevelopcleanenergyfacilities,likewindturbines,solarcollectors,combinedheatandpowergenerators,districtenergyprojectsandnext

generationalternativeenergysystems.

● Driveastakeholderprocesstoaddresshighwind/highwatereventsinamannerthatdoes

notrequireshuttingdownrenewablepowergenerationbyconsideringthedeploymentoflow-

cost,innovativesolutionssuchasvirtualbatteries,scheduledtransmissionimprovements,and

powerswaps.

● ExtendthetimeframeandincreasethelimitsforWashington’scurrentproductiontaxcredit

forrenewableenergydevelopment.

FosterthegrowthofCleanEnergy/TechnologyCompanies

CleanenergytechnologyisasectorinwhichWashingtonStatehasanopportunitytoflourish.With

Washington’srichhistoryinagricultureandnaturalresources,inconjunctionwithalegacyofinnovation

andleadershipininformationtechnology,ourstateiswellpositionedtocreatejobsbypromotingthe

37

http://www.nwenergy.org/news/washingtons-clean-energy-future-at-risk/



21

developmentofcleanenergybusinesses.Accordingtothestate’sCleanEnergyLeadershipPlan,with

therightpolicieswecouldproduce25,000directcleanenergyjobsby2020.38

Aligntaxincentivestoencourageinvestmentincleantechnologystartups

Manycleantechnologystart-upcompanieshavethepotentialtocreatealargenumberofjobsiftheir

technologyisproveninthemarketplace.Notallwillsucceed–that’sthepriceofinnovation.Despitethe

challenge,itisinourstate’sbestinteresttogivethesetechnologiesachancebytakingstepstoimprovethetaxenvironmentatcriticalstagesofdevelopment.


overlapand“doubledipping.”Further,eachofthesetaxincentiveshouldbecapped,finite,narrowin


● Provideashort-termB&Otaxreliefforstart-upresearch-basedcompanieswith50offewer

employees.


● EstablishaJobCreationTaxcredit,givingaB&Otaxcreditforsmallbusinessesaddingworkers

totheirpayroll.Creditshouldbeincreasedwiththewagespaid,andtopoutat$4,000for

everyjobcreatedandtheprogramcappedat$8million.

Facilitatetechnologycommercializationactivitiesatourresearchinstitutionsanddriveinvestment

intolocalcompanies


universitiesandnationallabs39.Asourcountry’slargestpublicuniversityrecipientoffederalresearch

dollars40,theUniversityofWashingtonisoneofourstate’sgreatesteconomicassets,havingspunout

suchcompaniesasEnergy2andImmunex.Theseresearchinstitutionsbecomeenginesofeconomic

growthbyspinningoffjob-creatingcompaniesformedaroundnewinventions.





Cleanenergytechnologycompaniesfacesignificantfinancinghurdlestoovercomeresearchand

developmentexpensesandsignificantscaleupcosts.Statepoliciesmustbealignedtohelpovercome

thesechallenges,nothinderthem.

● Giveinvestor-ownedutilitiesmoreflexibilitytoinvestinthedemonstrationanddeploymentofcleanenergytechnologieswhileincludingdurableratepayerprotections.

● Enhancecommercializationcapabilitiesatourresearchinstitutionsbygivingthemflexibilityto

takeequitypositionsintheirspinoffcompaniesandtousefundsgeneratedfrompatentand

38

http://www.washingtoncelc.org/filestore/CELC_Navigant%20Final%20Report_Final.pdf 39

http://www.nsf.gov/statistics/nsb0803/nsb0803.pdf 40

http://www.choosewashington.com/industries/sciences/Pages/default.aspx



22

technologylicensingtoreinvestinothertechnologies.Thismayrequireanarrowconstitutional

amendment.



Jobcreationthroughhomeandbuildingefficiencies

WashingtonStateresidentsspendover$5billioneachyeartoheat,coolandlightourhomesand

workplaces.Accordingtothe2009McKinseyReport,anaverageof30%ofthisenergyiswasted

throughinefficiencies.41Thisresultsinthewasteofmillionsofdollarsofpotentialjob-creatingcapital.

JayInslee’sproposalswillgetWashingtonworkingbyreinvestingthesewastedresourcesintothe

buildingenergyefficiencyindustrywhilesavingconsumersmoney.Energyefficiencyisthemostcost-

effectiveresourcetopoweroureconomyanditbecomesevenmoreattractiveaswelookattheair

pollutionandenvironmentalconsequencesofmanyotherenergysources.Theenergyefficiency

industryalreadyemploysalmost25,000workersinthestate,42butourpolicyislaggingbehindother

regionsinitscommitmenttocreatingefficientbuildings.

Alignutilityandcustomerinterestsinenergyefficiency

Currently,Washingtonregulationsforinvestor-ownedutilitiescreateadisincentiveforthemtofully

investinenergyefficiencyprogramsforalltheircustomers.Wecanunlocktheseinvestmentsby:

● UpdateUTCpoliciesandratemakingapproachestobetteralignutilitybusinessinterestswith

theinterestsoftheircustomers.Suchchangeswillenhanceenergyefficiencyservicesforthe

customersofthestate'sfiveinvestor-ownedelectricandnaturalgasutilitiesandensure

consumerandindustrialcustomerprotections.

Attractandleveragepublic-andprivate-sectorcapital

Althoughbeingcost-effectiveoveraperiodoftime,energyefficiencyretrofitsareoftenstymiedbythe

upfrontcostofefficiencymeasures.Thisconditionprovidesanopportunitytoattractthird-partyfunders

toprovidefinancingoptionstopropertyowners.Publicpoliciescanreducetheriskoftheseinvestorsby

providingreliablere-paymentmechanismsandbyenhancingthecreditofenergyefficiencyloanpools.

● Allowhomeownersandbuildingownerstheoptionofpayingforenergyefficiencyupgrades

overtimeontheirutilitybillsbyrequiringregulatedenergyutilitiestoprovidemeter-based

financingoptionsforcustomers.

● AllowcommercialbuildingownerstheoptionofpayingforenergyefficiencyupgradesovertimeontheirpropertybillsbycreatingaPropertyAssessedCleanEnergy(PACE)program.43

41

http://www.mckinsey.com/Client_Service/Electric_Power_and_Natural_Gas/Latest_thinking/Unlocking_energy_efficiency

_in_the_US_economy 42

http://www.energy.wsu.edu/Documents/Energy_Efficiency_Workforce_Study.pdf 43ACommercialPACEprogramwillprovidecountyauditorswithamechanismtocollectpaymentsonpropertytaxbillsasa

feeservice.



23

● Establishabondingprogramthatusesexistingrevenuestreamstoinvestinstateinfrastructure

andefficiencyinvestmentsthatcanspurjobcreationnowandrealizeenvironmentalbenefits

sooner.Thebondinglevelmustnotbesetatlevelthatjeopardizesstate’screditrating.

Adoptahands-onapproachtorecruitmentandsupportfortheindustry

Ourstateneedsahands-onapproachtobusinessesrecruitment,retention,andexpansionopportunities.WealsoneedindustrysectorexpertstoworkdirectlywiththeGovernorandkeyindustry

sectorstoachievepolicyobjectives.

● CreateaCleanEnergysectorlead,workingwiththeGovernortoensuretheState’songoing

supportforthecleanenergysectorsanditsworkforce.

● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthy

climateforindustrydevelopmentandassistindustryleadersinterestedinlocatingin

Washingtonwitheverythingfrominventorysourcingtositeselection.

● Attractnewbusinessestothestatebypersonallyleadingrecruitingeffortswithcleanenergy

businessesacrossthecountryandtheglobe,urgingthemtoco-locatehereinoneofthegreatestlifesciencesindustryclustersintheworld.



24

Chapter7:Agriculture

At160,00044strong,agricultureisWashington'sbiggestemployer.The$40billionindustry45isthe

secondmostdiverseagriculturally,46growingeverythingfrompotatoestopeppermint,toraspberries,

hops,wheatandapples.Nearly$13billionofagriculturalproductsareexportedthroughWashington

portsin2010.47

Despitetheindustry’ssuccess,however,ourfarmersandgrowersarefacingdifficultchallengesrangingfromwatertoworkforce,andfrompeststoports.

Weneedagovernorwhounderstandsbothsidesofthestate,andhowthisindustrydrivestheeconomy

ofmanycitiesandtownsoutsidetheshadowoftheSpaceNeedle.

AsaStateRepresentativeandCongressmanfromYakimaValley,JayInsleeworkedcloselywiththis

industrytoexpandmarketsandsecuremorewaterforirrigatedagriculture.JayworkedwiththeClinton

AdministrationtogetUSapplesintotheJapanesemarketsandhelpedpassintolawtheYakimaRiver

BasinEnhancementActtobalancewatersuppliesforgrowerswithincreasedin-streamflowsfor

salmon.

WeneedanadvocateforthisindustryintheGovernor’sofficetopromoteourproductsthroughoutthe

world,andhelpourindustrydelivergoodstomoremarketsfaster,cheaper,andmoreeffectively.

AddressthewaterneedsforWashington’sgrowers

Foryears,theYakima,Columbia,andWallaWallabasinshavesufferedfromascarcityofitsmost

preciousresource:water.Theproblemisexacerbatedindroughtyears,withgrowerslockedina

perennialbattleoverwaterrightsandriverbedsunabletosupportwildfishruns.

Developmentoftheselong-termprojectswilladdressthewaterresourceandecosystemproblems

affectingouragricultural,municipalanddomesticwatersupplies,andfishstocks.Withoutprogresson

thewatersupply,hugeswathsofonce-productivelandwillwitherandfarmswillgobankrupt.Wemustforgeapathaheadontheseprojects,andworkwithallpartiesinvolvedtofindsolutionsandshared

fundingsourcesfromthestate,municipal,andfederallevel.

● Workwithlocal,stateandfederalpartnerstofindfundingsolutionsandmoreforwardonthe

YakimaRiverBasinWaterEnhancementProjectforthesurvivabilityofournaturalfishstocks,

ouragriculturallands,andthosewholiveandworkintheregion.

● Workwithlocal,stateandfederalpartnerstofindfundingsolutionsandmoveforwardonthe

Columbia-OdessaSubareaAquiferProject,tosupplytheagricultureindustrywiththewaterit

needs.

● BuildontheprogressmadeintheWallaWallaBasintofindfundingsolutionstofullyfunda

neededpumpexchangeprojectthatwillreplenishdryriverbedsandsustainourstate’swine

grapegrowersintheregion.

44

http://agr.wa.gov/AgInWa 45

http://agr.wa.gov/AgInWa 46

http://foundation.wsu.edu/campaign/bigideas/index.html 47

http://agr.wa.gov/AgInWa



25

Helpmeetourgrowers’workforceneeds

Whenitcomestoharvestseason,there’snotimetowaste.That’swhyprovidingasolid,stable

agricultureworkforceiskeytoourgrowers’success.TheagriculturebusinessinWashingtoncanbevery

volatile.Seasonsgetcutshort,theweatherbecomesunpredictable,andthewindowforpickingcan

closesuddenly.

Astableandskilledworkforceiscrucialtothesuccessofthisindustry.

● Re-establishtheFarmworkerHousingInfrastructureLoanProgram,fundedintheCapital

Budget,toprovidefarmerswithlow-andno-interestloanstoconstructhousingforseasonal

andmigrantworkers.Suchloansmustbeusedforon-siteinfrastructureimprovementsornew

constructiontoprovidequalityhousingforfarmworkers.Thishousingmustbeoperatedona

not-for-profitbasis;rentandfeescannotexceedoperatingexpenses.

● Providemorerecruitmentopportunities,outreach,andassistancetofarmersnavigating

employmentopportunities,guest-workersprograms,andstateregulations,throughthestate’s

agriculturalservicesprogramandregionalWorksourcecenters.

● Expandthesuccessfulsmallfarminternshipprogramtotheentirestate,allowing

opportunitiesforeducationandtrainingtoyoungfarmers,andthefarmassistanceneededon

today’sfarms.

MakeWashingtonthenation’sleaderinqualitygrapesandwines

AlthoughCalifornia’swineindustrymaybelargerbyvolume,Washington’swineindustryissetto

becomethepreeminentsourceofthenation’shighestqualityandvaluewines.Ourindustryhasgone

fromnearlynon-existentonlyafewshortdecadesagotogrowingover400%overthepasttwelve

years.48Wenowboastover700wineriesandmorethan40,000acresofgrapesplantedstatewide.The

Washingtonwineindustryisa$3+billionindustryannually,thesecondlargestinthecountry.49

Theonlywaytosustainthatkindofgrowthandcontinueoursuccessishavingagovernorwhowill

partnerwiththeindustry.Wemusthelpmarketourhomegrownwinesacrosstheglobe,andprovide

thetechnicalandacademicresourcesneededtoensureWashingtonwinestaketheirrightfulplacenext

totheworld’sgreatest.

● Re-establishapartnershipwithexistingorganizationstopromotetourisminourstate.

Workingwithourlocalgrapegrowersandwineries,ourstatewillbepoisedtobenefitgreatly

fromwinecountrytourism.

● UsherinarenaissanceinWashingtonwinesthroughnewscienceandresearchwithfull

supportfortheWSUWineScienceCenter,whichwillonedayhouseastate-of-the-artresearch

andteachingfacilitythroughthestate’sViticultureandEnologyprogram.● ModernizestateLiquorControlBoard’sregulations,emphasizingflexibilityandacustomer-

focusedapproachwhilestillmaintainingpublicsafetystandards.Manyolderregulationson

thebooksestablishedinthePost-Prohibitionerafailtoreflectcurrentneedsofthewine

industry,andlimitourstate’swineries’abilitytopromotetheirproduct.

48

http://www.wawgg.org/index.php?page_id=103 49

http://washingtonwine.org/wine-101/state-facts/



26

Supportourgrowersinthemilitary’senergyindependencemovement

Thetechnologicalinnovationscreatedbythemilitaryoftendriveinnovationinothersectorsofour

economy.Thisstandstrueforalternativeenergytechnologiesandbiofuelsinparticular.Coupledwith

effortsintheprivatesector,ledbysuchcompaniesasBoeingandAlaskaAirlines,weareuniquely

positionedtoleadandgrownewagriculturejobsbygrowingbiofuelcorps.JointBaseLewis-McChord

hasitssightssetonaninitiativetogeneratezerowaste,water,andconsumezero-energyfromthegrid

by2020.50ThroughtheArmy’sNet-Zeroprogram,theNavy’sGreenFleet,andAirForce’sexplorationofbiofuelsdrivinganenergyindependencemovement,thereareampleopportunitiestosecure

Washingtonbusinessesastheproviderofthosealternativefuelsandenergy-generatingequipment.

● CreateanAdvancedSustainableBiofuelsCenterofExcellence,ledbyWashingtonState

University,topartnerwithprivateindustry,local,state,andfederalgovernment.TheCenter

shouldfacilitateindustryprogressonallaspectsofsustainablebiofuelsdevelopment;including

research,feedstockgrowth,sourcing,processing,andthedeploymentofcommercialscale

production.

● PartnerwiththeDepartmentofDefenseandWSUina“FieldtoFlight”efforttohelpthe

departmentmeetitsbiofuelsgoalswhilecreatingjobsfromthefarmergrowingcrops,tothe

truckerhaulingit,andthetechnicianrefiningitintofuel.

● PartnerwithDepartmentofDefensetohelpthedepartmentachieveitsrenewablefuelgoals

whilegrowingjobsacrossthestate.

50

http://www.army.mil/article/55370/joint-base-lewis-mcchord-wins--three-environmental-honors/



27

Chapter8:InformationTechnology

WashingtonStateishometoanactive,broadinformationtechnologycluster.Inadditiontoanchors

suchasMicrosoft,Valve,andAmazon,Washingtonisaleadinginnovatorinenergyefficiencyandcloud

computing.Washington’sinformationandcommunicationtechnologyworkforceisnearly120,000

strong,51whichplacesitattheforefrontofthecountryinthisrespect.

Majorout-of-stateandoverseasbusinessesareattractedtothestate'shighlyskilledITworkforce.Inadditiontosoftwaredevelopment,Washington’sITindustryisavanguardininteractivemedia,

telecommunication,ande-commerce.Ingamedevelopmentandpublishingalone,morethanathirdof

the$10billionindustrynationwideisgeneratedinthegreaterSeattlearea.52

JayInsleehasbeenalongtimechampionofWashingtonState’shightechindustryandhasbeenthego-

toleaderforWashington’sinformationtechnologyindustry.JayhasfoughttosaveInternetradio,to

protectintellectualpropertyrightsandtocombatsoftwarepiracy.Hehasalsohelpedlocalindustry

growinotherways,includinghelpingtosecurefundingfortheWashingtonInteractiveMedia

Acceleratortohelpgrowthatindustrycluster.

Itiscriticaltohaveagovernorwhounderstandsthisindustryanditsneeds,andwhoiswillingtoenactpoliciesthathelpmaintainouredgeingeneratingthemiddleclassITjobs.

ImproveP-12,HigherEducation,andWorkforceTrainingsystemstoprovideouryouthwith

opportunityandtomeetemployerneeds

Itisimpossibletooverstatetheintegralrolethateducationplaysinshort-andlong-termjobcreation.In

thecomingweeks,Jaywillbeproposingamorecomprehensiveandspecificplanonreformingand

improvingourstate’seducationsystemtomeetourstate’sfutureworkforceneeds.Forthepurposesof

thisdocument,itisimportanttonotethatawell-educatedandhighlytrainedworkforcefacilitates

companygrowthinindustriesacrosstheboard.Asimportantly,ahigh-qualitypubliceducationsystemis

essentialtopreparingouryouthfortomorrow’sjobs,andisaleadingfactorinourabilitytoattractand

retainnewbusinessesandeducated,entrepreneurialtalenttocontributetoourstateeconomy.Nobody

wantstomoveacrossthecountrytoputtheirchildreninsub-parschools.

WashingtonStateranksamongthetop10statesfortechnologyworkforce,buthasfailedtoprovidethe

educationalopportunitiesourcitizensneedtoparticipateintheirownstate’seconomy.Werank42ndin

per-capitaspendingineducation.53Lessthanhalfofoureighthgradestudentsareproficientinmath54

andscience.55Inthe2010-2011schoolyear,only76%ofourstudentsgraduatedhighschoolontime.56

Werank37thinBachelor’sdegreeproductionpercapita,57andwearethebiggestimporterofindividuals

withBachelor’sdegreesorhigheronaper-capitabasis.58Inshort,weareunderfundingourschools,our

schoolsareunderperformingforourchildren,andourfour-yearcollegesanduniversitieshave

insufficientsupporttomeettheneedsofstudentsandemployers.

51

http://www.choosewashington.com/industries/tech/Pages/default.aspx 52

http://www.choosewashington.com/industries/tech/Pages/default.aspx 53

http://www.k12.wa.us/Communications/PressReleases2012/StatementQualityCountsReport.aspx 54 http://nces.ed.gov/nationsreportcard/pdf/main2011/2012458.pdf


56http://reportcard.ospi.k12.wa.us/summary.aspx?year=2010-11

57http://seattletimes.nwsource.com/html/localnews/2011764312_bellevuecollege03m.html

58http://lazowska.cs.washington.edu/STEM.pdf



28

Inordertocompeteinthe21stCentury,wemustofferWashington’sstudentsastrongfoundationatthe

P-12level,andourcommitmenttodevelopingahighlyskilled,competitiveworkforcecannotendafter

graduation.InprovidingasolidbackgroundinP-12Science,Technology,Engineering,andMathematics

(STEM)Education,weprepareourkidstoexcelinburgeoningfieldswithrapidlyexpandingworkforces—

fieldslikeInformationTechnology,CleanEnergy,andtheLifeSciences–andempowerthemtobuildand

growthenextgenerationofcompaniesandindustriesthatwillfueleconomicgrowthandprosperityin

ourstate.WemustfollowastrongP-12foundationwithapprenticeshipsandtechnicaleducation

directedtowardproducinganexcellentnext-generationworkforce,andwithdramaticallyincreased

Bachelor’scapacityinkeyfields.

● PrioritizeSTEMdegreeproductionatourfour-yearcollegesanduniversities,soaswerestore

ourstate’scommitmenttohighereducation,weexpandstudentaccesstocrucialfieldslike

computerscience,engineering,andbiotechnology.

● ConnectP-12studentsandindustryleadersandworkerstointroduceandinspiretheminto


● Furtherdeveloprelationshipsbetweenemerging,job-creatingindustriesandhighereducation

–buildingpartnershipsincurriculaandpost-graduaterecruitment.

Piracyandstateprocurement

Theftofinformationtechnologyisanepidemic,andiscostingWashingtonstatejobs.Insomecountries,

over80percentofallpackagedsoftwareisstolen.59Reducingglobalsoftwarepiracywouldcreate

almostahalfamillionjobs,60thousandsrighthereinWashington.Asasociety,wehaveaverylow

toleranceforpeopleandbusinessesthatusestolenphysicalproperty,suchascars,desks,and

computers.Yetwhenitcomestosoftwareandotherdigitalproductsandservices,toleranceoftheftis

unacceptablyhigh.WashingtonStatehastakenafirstandveryimportantsteptochangethis

unfortunaterealitybycreatingaprivaterightofactionagainstpiracy,butmorecanbedone.

● Incorporateintothestate’sprocurementprocessassurancesthatmanufactureshaveadopted

bestpracticestominimizepiracyintheirsupplychains.

Facilitatetechnologycommercializationactivitiesatourresearchinstitutionsanddriveinvestments

intolocalcompanies


universitiesandnationallabs61,includingtheUniversityofWashingtonandWashingtonStateUniversity

thatareworldleadersinresearch.Theseresearchinstitutionsbecomeenginesofeconomicgrowthby

spinningoffjobcreatingcompaniesformedaroundnewinventions.



59

http://portal.bsa.org/globalpiracy2010/ 60

http://portal.bsa.org/globalpiracy2010/index.html 61

http://www.nsf.gov/statistics/nsb0803/nsb0803.pdf





● Enhancecommercializationcapabilitiesatourresearchinstitutionsbygivingthemmore

flexibilityintakingequitypositioninspinoffcompaniesandusingfundsgeneratedfrompatent

andtechnologylicensingtoreinvestinothertechnologies.



AligntaxincentivestoencourageinvestmentinlocalITstartups

FormanyITstartupcompanies,itcantakealongtimebeforebusinessesbecomeprofitable.Inthe

interim,companiesinvestheavilyinproductdevelopment,andmarketinganddistribution.Whilethese

companieshavehighjob-growthpotential,theycaneasilyrunoutoffundingandendupfailingbefore

havingthechancetoreachtheirpotential.Asataxongrossrevenueandnotprofits,theB&Otaxcanbe

acontributortosomecompaniesprematurelyrunningoutoffunding.


overlapand“doubledipping.”Further,eachtaxincentiveshouldbecapped,finiteintime,narrowin


● Provideashort-termB&Otaxexemptionforresearch-basedcompanies’start-upwith50or

feweremployees.


Adoptahands-onapproachtorecruitmentandsupportfortheindustry

Ourstateneedsahands-onapproachtobusinessesrecruitment,retention,andexpansionopportunities.WealsoneedindustrysectorexpertstoworkdirectlywiththeGovernorandkeyindustry

sectorstoachievepolicyobjectives.

● CreateanInformationTechnologysectorlead,workingwiththeGovernortoensurethe

State’songoingsupportforthesectoranditsworkforce.

● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthy

climateforindustrydevelopmentandassistindustryleadersinterestedinlocatingin

Washingtonwitheverythingfrominventorysourcingtositeselection.

● Attractnewbusinessestothestatebypersonallyleadingrecruitingeffortswithinformation

technologybusinessesacrossthecountryandtheglobe,urgingthemtoco-locatehereintheoneofthegreatestindustryclustersintheworld.