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Posts tagged as “economy”

WA: An aggressive approach

Chris Gregoire

Chris Gregoire

The view of a sizable number of Republicans in Washington is that, while Governor Chris Gregoire and the Democrats didn't cause the national economic calamity, they are responsible for making worse the impact on government in the state, by pushing for more spending in the last few years than they might have. State spending has in fact risen quickly in the last few years, and if it had grown more slowly, state revenues and spending might be at least closer to alignment. (In Republican-run Idaho, where spending hasn't been increasing nearly as much, Republicans talk about how fortunate they are in that regard - and now need to make big cuts in spending.)

There's a powerful argument in that, and no doubt the Democrats in charge in Olympia are going to have a harder time maintaining in the fact. A few years ago you might have expected a bunch of Democrats to sign off on it, at least partly and in principle. But Gregoire, delivering her second inaugural address today, made clear that she doesn't and won't. A central segment:

Instead, we must renew hope for Washingtonians who are suffering today, and lay — for them — a platform for a better tomorrow.

First, we can and must quickly create new jobs for working families by rebuilding roads and schools, and creating a green economy for the 21st century — all in partnership with President-elect Barack Obama’s “American Recovery and Reinvestment” plan.

Second, like our struggling families and businesses, we can and will tighten our belts, balance our budget and focus on basic needs — protection of our children, our schools and colleges, our public safety, our environment and our economy.

Third, we won’t waste this crisis! We can and must reform state government. In this moment of clarity, we must grab the opportunity to reform so we can respond to the evolving needs of this century.

Fourth, we can and must approach all our challenges as a computer engineer might. Let’s build a new platform that makes Washington unique — that can support the exciting possibilities of the 21st century rather than the fading possibilities of the last.

And finally, this is the time for generosity among all Washingtonians.

So what we're seeing here is a call for activism, in a time of revenue diminishment - maybe a little less than in Oregon, a lot more than in Idaho. She has yet to lay out all the specifics, but the outline in her speech today seems clear enough: "We can quickly create thousands of new jobs this year and next by accelerating nearly $1 billion in public works projects. These projects will build new roads and schools, and create green-collar jobs to lay more groundwork for the prosperity to come. The time to act is now!"

Philosophical lines are being drawn - two very different approaches to dealing with the down times. We'll be able to do some sharp comparisons in the months ahead as they play out.

THE VIADUCT The apparent consensus decision among state, county and city officials (Gregoire, Chopp, King, Nickels and others) to go for the tunnel as the replacement for the Alaskan Way Viaduct seems of a piece with this. The tunnel is the most costly way of dealing with the need for action on the viaduct, and it may be the long-range quality solution, but it also is the most expensive. That is why so many people recoiled from it before. But now? There's no certainty about where the money will come from, and there's a distinct possibility (as the Seattle Times notes) of a taxpayer revolt. Will there be?

OR: The mission continues

Ted Kulongoski

Ted Kulongoski

Compare the state of the state addresses by Idaho's Governor C.L. "Butch" Otter and Oregon's Governor Ted Kulongoski, and you could hardly imagine they were delivered at nearly the same hour on the same day, each facing similar economic and social pressures. The speeches could hardly be more difference.

Both proposed transportation and some other infrastructure improvements (which, in each case, could tie into federal spending).

You can see references in Otter's speech in the post below. But consider what Kulongoski had to say - it was a short speech and the key sentences jump out:

"What do we have to do to restore prosperity and lay the groundwork for a future where our children are the best educated in America, our environmental leadership is unquestioned in America, and our economy stands ready to take full advantage of the green industrial and energy revolution that is stirring in America. . . . The ground on which – together – we will build a budget for the next biennium has shifted. But the pillars of that budget – children, education, health care, renewable energy, green technology, and transportation – cannot be shaken. . . .

"If we’re going to turn unemployment checks into paychecks, the state must invest in our human infrastructure. My top priority for this upcoming biennium remains education – because only by creating the best trained, best skilled, best educated workforce in America will we be able to create the employment opportunities that are this state’s future. I’ve been saying for months that the way to turn despair into hope, and uncertainty into prosperity, is to build a protective wall around funding for education.

"The time has come to rise to that challenge – and to accept the moral responsibility of making sure that every Oregon child from birth to age 19 has health insurance. Yes – that means finding the political courage to raise revenue. What are we afraid of? These are our children! . . . We’re also going to have to innovate, educate, and invest! That means more research and development into energy efficiency and conservation. Creating a larger science infrastructure that will attract and train scientists and engineers. And making sure Oregon businesses have the opportunity to generate a critical mass of brainpower, financial power, and marketing power. When it comes to fighting climate change, recently I’ve been hearing a chorus of naysayers singing a three-part harmony of – too costly, too burdensome, and too soon. But this chorus is out of tune – and out of touch – with Oregon’s future."

This could be a big one

Hard to know exactly how seriously to take this: It is marked in a number of places (seen here via the Slog, twice removed) somewhat as rumor, and yet the details of a mass layoff at Microsoft seem quite specific:

Currently Microsoft employs about 90,000 people across the world and from what we're hearing, some 15,000 of those are expected to be giving marching orders come January 15th. That's almost 17 percent of Microsoft's total work force, not exactly a small number. So far, we haven't managed to confirm what departments or regions will be hit the worst, but we're hearing that MSN might be carrying the brunt of the layoffs. We're also hearing rumors about the possibility of somewhat larger staff cuts at Microsoft EMEA (Europe, Middle East and Africa).

The source is described as ordinarily sound but not entirely reliable. But, as we begin 2009, something to watch for.