Adding to that confusion is the frustration at the federal and state level over the botched online enrollment in the state health exchange and the ACA.
As we look into January, Boeing will make a major decision over the location of the 777X, the new generation of jumbo jets. The Everett facility is ideal for the $10 billion plant – that is, if Boeing and its unions can reach a long-term work agreement. Gone are the days when airlines won’t penalize Boeing or any other aircraft manufacturer for labor stoppage. Besides, the competition from Airbus and Chinese, Canadian, Russian and Chinese companies is ramping up.
Boeing, the bellwether for our state’s economy, must contain costs and keep the assembly lines running at a steady clip.
Complicating Boeing’s decision is new and seemingly unachievable air and water quality standards. Boeing isn’t the only employer impacted. Other industries, small businesses, local governments and farmers are as well.
Washington’s Dept. of Ecology is considering adopting Oregon’s standards for water quality as it relates to what fish ingest. The problem is the technology has not been developed to meet those standards. As a result, cities and businesses forced to comply with those standards can invest billions in the best available technology only to find that it is inadequate.
Likewise, under the agreement which the governors of Washington, Oregon and California signed to reduce greenhouse gases, requiring our state to adopt new low carbon fuel standards could drive the price of a gallon of gas and diesel up by more than a $1.
There is a correlation with economic retraction when the price of fuel skyrockets.
Finally, Washington must fund transportation projects. It is not only to add capacity but to maintain and upgrade the existing highway system. In recent years, when voters have approved increases in the fuel taxes, the money has been spent on adding capacity, not maintenance.
In the short term, transportation will have to be funded primarily by the gas tax; however, as more electric and hybrid vehicles dominate the roads and highways, there isn’t sufficient taxing capability for highway construction. That needs to be the top priority of the 2014 Legislature.
Washington is poised to grow in 2014, but the job growth still won’t track with the numbers of people seeking work for the first time or looking for a new job. The nagging problem with unemployment and people who have given up the job search is troubling.
While our unemployment rate tracks the national average, it simply isn’t good enough. People need work and our state needs an economic climate conducive to employers investing here to create jobs and additional tax revenues.
Some of the issues hindering job growth and expansion are caused by the president’s policies and congressional inaction. However, many of the barriers are at the state and local level. Clearing those barriers must be job number one in 2014.
Don C. Brunell is the president of the Association of Washington Business.
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