Celebrate the 7E7 and get back to work

The collective sigh of relief you hear is coming from all corners of the state, from lawmakers, business, labor and community leaders, from workers and citizens. After a year of angst and speculation, it is official —the Boeing 7E7 will call Everett home. This decision is good for everyone in Washington state. Anyone who tells you differently is out of touch with the nature of our fragile economy.

This decision will keep our largest private employer centered in Washington. It will bring revenue to our state coffers. Most importantly, it will bring much-needed jobs to a sector and a region rocked by recession.

Jobs drive our state’s social and economic health. They enable citizens to live well. They create the state revenues needed to support important services like education and health care. When jobs disappear — like the 90,000 jobs our state lost during the recent recession — demand for public services rises and government’s capacity to provide services declines. Our state’s response to the Boeing 7E7 search process exemplified the renewed dedication and fortitude needed to rebuild the state economy.

Boeing’s decision to assemble the 7E7 in Everett is the result of a significant attitude change in Washington state. Our state leaders did not take economic growth or employers for granted. They worked together – at the local, state and federal levels — to grow our economy, protect and attract jobs for our citizens. Our leaders recognized their responsibility to convince employers and citizens that they are serious about making Washington a viable place to do business.

By the numbers, Washington hasn’t stacked up well against competitors in recent years. Washington is the only state in the country with a tax on gross receipts (the B&O tax). Employers here pay a much higher proportion the tax burden (46 percent of state and local taxes) than they do in most other states.

Before changes earlier this year, Washington employers paid the second highest unemployment insurance taxes per employee in the nation. Workers compensation rates are also on the rise with a nearly 40 percent rate increase over the last two years.

These factors, as well as an unpredictable regulatory system, a deteriorating transportation infrastructure and the lack of a long-term economic development effort, were turning Washington into a loser in state-by-state and global competition.

State lawmakers recognized these challenges and made a concerted effort to improve the business climate and reduce barriers to private sector hiring and job retention.

They made an important new investment in statewide transportation, reformed the unemployment insurance system and implemented significant regulatory improvements. The 7E7 decision is a clear acknowledgement that they are on the right track. However, it would be a huge mistake to assume that the 7E7 decision means that there is not much more to be done to make Washington competitive. There is.

There is much work to be done to improve the regulatory climate and tax structure, control workers compensation and liability costs, ensure every student graduates from high school with the skills needed to succeed in the workforce or postsecondary education, and develop “centers of competitive advantage” at our state’s research institutions.

On the heels of the 7E7 win, it is more important than ever that Washington maintain a focused effort on job creation. If our leaders grow complacent and assume Washington is a good place to work and do business, rather than ensuring it is, Washington will again relegate itself to a back bench in the an increasingly competitive economy. The effort and collaboration that went into winning the 7E7 must become standard operating procedure in Washington state.

Government, business, labor and community leaders must continue to work together to keep and bring jobs to our state. That is the only way to ensure the quality of life we want for all citizens.

Sound Off is a public forum. Articles are selected from letters to the editor or may be written specifically for this feature. Steve Mullin is the interim executive director of the Washington Roundtable.

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