Washington State Governor losing grip on economic monster

Washington business leaders want Gov. Gary Locke’s Economic Development Commission made a permanent part of state government. The Washington House and Senate voted unanimously to make it so. But that does not guarantee SHB1509 will bear the governor’s signature come May20.

Bert Caldwell
The Spokesman-Review

Locke created the group by executive order last September. Its 14 members, chaired by Avista Corp. President Scott Morris, were charged with developing a state economic growth strategy, and policies that would put that plan to work. Their role is advisory.

So far, says member Don Barbieri, the commission has been assessing what the state does and does not do, and what other states do better. Members have taken their time because they want to produce a credible product incorporating the best of what they find, something that will guide state leaders through short-term fluctuations in Washington’s economy.

"It needs to be something that has some permanence," says Barbieri, chairman of WestCoast Hospitality Corp.

The Legislature embraced the new body from its inception. SHB1509 not only makes the commission permanent, the smaller, seven- to nine-member group would have stronger "oversight" responsibilities over the Department of Community, Trade and Economic Development. And every two years, the commission would submit a report to the Legislature assessing the state’s economic development policies, recommend changes, and subsequent department implementation.

Staff for the commission would be drawn from the governor’s office and from CTED.

That touches on one of the governor’s concerns about a body created by statute, says senior policy adviser Sheila Martin. With money tight, staff support boils down to a piece out of her time, and a piece from Sharon Wallace, CTED’s spokeswoman. Both, Martin says, have many other responsibilities.

She says Locke is also concerned that, at a maximum membership of nine, three-quarters of whom must be from the private sector, the new commission would lack the diversity of the existing one. And then there is the question of just how much authority the commission would have over CTED.

The governor considered introducing his own bill setting up the commission, Martin says, but decided to wait. "We wanted to give the commission some time to gel."

Time, the Association of Washington Business suggests, is a commodity the state too often squanders. In a letter to Locke urging him to sign HB1509, AWB President Don Brunell says a seven-member commission could act decisively. The broader the mandate, the stronger the leadership the commission will attract, he says. And the Legislature’s unanimous support blesses bold action.

"If we don’t take decisive action today, the consequences are much more severe as we deal with the strong competitive pressures worldwide," Brunell wrote.

Avista lobbyist Collins Sprague said CTED Director Martha Choe has asked Locke to veto SHB1509, and has unsuccessfully tried to rally opposition among various interest groups. Wallace says there has been no such campaign. Choe is only echoing the governor’s own concerns, she says.

Sprague says Sen. Lisa Brown, D-Spokane, sponsored a bill that would have authorized a stronger commission role in setting CTED policy. That measure suffered an unexpected defeat in the House.

If staff and funding for the commission are a problem, Locke could have addressed that problem in his budget, Sprague adds.

Washington needs a high-profile group to signal that the state has become serious about changing its back-of-the-hand approach to supporting business and job growth. Locke’s commission may be in only the early stages of its work, but already this has become the body to which the Legislature has rallied. A resolution supporting motherhood could not have gotten more votes. Although the executive order authorizing the commission is open-ended, as long as it does not guarantee its independence. SHB1509 would do that, and more.

Locke should sign it.

http://www.spokesmanreview.com/news-story.asp?date=050603&ID=s1346218&cat=section.business