We are back from Olympia, and back from the winter storm.

Despite Olympia getting a record snowfall (more than 14 inches!), more than 60 members of our delegation traveled to Olympia to meet with our regional representatives from the 3rd, 4th, 6th, and 9th legislative districts, plus Governor Christine Gregoire. All of our regional representatives met with us or with members in our delegation.

We planned sessions with key legislative representatives to discuss issues in economic development, transportation, budget and capital budget. It is still too early to forecast what is yet to happen with the state budget. Marty Brown, the Director of the Office of Financial Management, informed our delegation that state legislators are waiting for the Washington State Caseload Forecast Council to forecast the entitlement caseloads for the State of Washington.  Once the Council adopts the official forecast, it becomes the basis of the Governor’s budget document and utilized by the legislature.

Once the forecast is made, representatives will be hard at work crafting a balanced budget.  Our regional leaders will also be hard at work with our legislative priorities listed in our state agenda.  GSI’s top priorities include acquiring the remaining funds for the Biomedical and Health Sciences Building and the funds needed to continue the construction of the North Spokane Corridor (NSC) from Francis to Interstate 90.  Construction of the NSC continues, with both south and northbound lanes from Farwell to Francis (6 miles) already completed.

Construction of the Biomedical and Health Sciences Building has already begun!  Once completed the Biomedical and Health Sciences Building will include research and teaching labs, classrooms, and administrative and faculty offices for health sciences.

GSI will continue to assist its partners to achieve the region’s long – term priorities. This legislative session, we will continue our partnership with Association of Washington Businesses (AWB), the state chamber of commerce. GSI will assist AWB in advocating for improvements to the businesses climate in our state, and be a part of the 2011-2012 Legislative Agenda for Local Chambers of Commerce across Washington State. As a partner, GSI will work in a collaborative effort to support tax reform through simplification and streamlining and will encourage state legislators to support economic recovery through job creation before looking for new revenue sources to fill the current budget deficit.

GSI will continue to be your business voice in Olympia this legislative session by promoting policies that will preserve and create jobs, enhance education, and improve transportation in our region.

Keep in touch by following @GSIpolicy and visiting www.YourPolicyVoice.org.

It’s that time again.

We’re partnering with the Spokane Valley and West Plains chambers of commerce to lead a large delegation (as in more than 70 people) to Olympia to advocate on behalf of Eastern Washington.

Time to get our show on the road.

Our delegation will be in Olympia today through Friday, meeting with lots of state lawmakers throughout the trip. (Note: you can follow along on Twitter using #SpokaneInOlympia and by following @GSIpolicy and @GreaterSpokane. Also check www.YourPolicyVoice.org for updates.)

Last year’s trip produced some wins for our region, and we’re looking to come home a winner once again. It won’t be easy, because it’s not exactly classified information that the state faces a big budget crisis.

While state legislators are charged with solving a budget crisis, and Governor Gregoire proposing a half-cent sales tax increase and cuts to Local Effort Assistance (LEA), among other things, we’ve got our work cut out for us.

Even with these challenges, our delegation will remain regional, unified and focused during our time at the Capitol.

Among the items in our State Agenda is funding to continue construction on the Biomedical and Health Sciences Building at WSU Spokane. This is, of course, the building already under construction at the Riverpoint Campus that will soon hold all four years of medical education. You might recall last year, when our community received $35 million in construction funds for the building, roughly half of the needed amount. We’re back this year asking for our legislators to continue their mission of building for the future. Stay tuned.

We’ll also advocate for a transportation package that equally benefits Eastern Washington. The North Spokane Corridor is making progress, and we’ll be asking for continued funds to Keep Spokane Moving. Just think – we could soon have the needed funds to construct the freeway all the way to Interstate 90. What a huge development for our region. Funding would come from the state and federal levels of government because of advocacy efforts of many groups. We’ll keep our foot on the pedal with this project.

With the proposed cuts to LEA – which is the amount of funds the state government contributes to property-poor school districts – we’re teaming up with the area school districts to make sure this does not happen. Our schools need to be properly funded in order to be a better community. The education sector has faced too many cuts in the past few years, and more cuts would be extremely detrimental to the entire community.

As always, we’ll also advocate for pro-business policies, policies in workers’ compensation and unemployment insurance to allow for more choices, the reduction of the number of business regulations, tax incentives that benefit the economy and support job growth, and greater predictability of all permitting processes.

Our delegation is packed and not afraid of the snow. Look out Olympia. Here comes Spokane.

With 2011 in the rearview mirror, it’s time to focus on 2012. What lies ahead for Spokane? What will happen, what might happen, and how will it affect the business community?

Let’s look into the crystal ball, shall we?

The huge Caterpillar plant on the West Plains is set to be up and operating by July. We recruited this company last year, and the distribution center is taking shape nicely along I-90., as you can see to the right (click on the image for a larger view).

Speaking of expansion, the Spokane Public Facilities District (PFD) is looking to expand and complete the Spokane Convention Center in order to attract larger conventions. Expansion will require a public vote. Stay tuned.

Also looking to expand is the WWAMI Program at WSU Spokane. Currently, first, third and fourth-year medical students study at the Riverpoint campus. WSU, GSI and many others are working to secure the second year of studies, bringing more students to our area, meaning more potential customers for you!

The legislative session in Olympia begins next week. We’ll take a delegation Jan. 18 – 20 to advocate on behalf of Eastern Washington. Last year, our trip was a success. This year, we’ll again be advocating for the remaining amount of money needed to fund the Biomedical and Health Sciences Building at WSU Spokane. We’ll also pursue funds to continue construction on the North Spokane Corridor to I-90. You can read our entire State Agenda here (PDF). Will we get what we want? With the budget problems the state faces, our work is cut out for us.

Ten years ago many folks said the North Spokane Corridor would never be built, and there would never be four years of medical education in Spokane. Look where we’re at now: The corridor is half built and construction of the biomedical building at WSU Spokane is ongoing. We’re on the cusp of creating a greater community.

While we’re on the subject of advocating in Olympia, GSI has been advocating for reform to unemployment insurance and workers’ compensation. We’re proud to say our efforts – and the efforts of many others across the state – will see the payoff this year. Governor Gregoire recently announced that workers’ compensation rates will not increase in 2012. Good news!

We hope to hear whether Fairchild Air Force Base will be home to the new KC-46A tankers in 2017. Boeing is currently on track to deliver 18 of its new tankers that year, and we hope to know before 2012 is over whether Fairchild will be home to some of the new tankers. Fingers crossed!

Speaking of Boeing, the company plans to build the new 737MAX in Renton, which is great news for the state. The demand for the planes exceeds the capacity of the Renton plant, so the Spokane region is ready to support overflow. Our region’s 80-plus aerospace supply companies could benefit and see increased operations in 2012. If Boeing decides to expand due to the increased demand, who knows, Spokane could be next on its list! This is all part of Project Pegasus, Governor Gregoire’s program aimed at keeping Boeing in Washington.

Some 2012 predictions are easy, like saying Ag Expo and Farm Forum will once again be a huge success, STEM education will be a hot topic in the business and education communities, and our area’s impressive small businesses will continue to be the heart of our economy.

And Spokane will continue to be the place to live and work. Here’s to 2012!

Fourteen area public school districts will have a levy on the Feb. 14 ballot (which drops in the mail Jan. 27). These levies fund vital programs and resources, such as textbooks, teaching materials, extracurricular activities, classified support staff and a lot more.

The levies will fund bus transportation and vital programs and resources, such as textbooks, teaching materials, extracurricular activities, classified support staff and a lot more.

The Executive Committee of Greater Spokane Incorporated voted on behalf of the Board of Trustees to support the school levies.

Here’s why:

Quality public schools are essential to maintain a vibrant community. Today’s students are tomorrow’s small business owners, CEOs, employees and more. Providing them the learning tools and skills today will help them transition to post-secondary education and their careers later in life.

Recently, Providence Health & Services announced it will be bringing 250 jobs to Spokane. An article in The Spokesman-Review stated:

“The health care programs offered at area colleges and universities ensure that Spokane has a pool of qualified workers and opportunities for further educational training.

‘That’s a big part of why the Providence board looked to Spokane,” said Providence spokeswoman Sharon Fairchild.’”

With the proper training tools in elementary, middle and high school, as well as at our colleges, universities, and vocational and technical schools, companies will be more confident in selecting Spokane as a place to do business and hire our area workforce.

GSI’s K-12 Roundtable works to drive education initiatives, while our Higher Education Leadership Group (HELG) focuses on higher education issues. Both groups bring educators and the business community together.

In the case of the upcoming replacement levies, the business community will benefit by having a talented workforce pool to choose from. If these levies fail, our students will not be properly prepared, Science, Technology, Engineering and Math (STEM) Education will be impacted, high school dropout programs could be cut, and other programs and services will simply go away. A key economic driver is an educated child.

Local Effort Assistance (LEA) allows property-poor school districts to receive extra financial assistance from the state so the public education tax burden is more equitably shared among property poor and property rich districts. In Governor Gregoire’s proposed budget, LEA funding was completely cut. We don’t know what the final LEA funding amount will be once the legislative session is over, but it’s clear that these school levies are more important than ever to keep our public schools functioning in a way that fully supports the needs of our students. We do not want to put extra burden on our public school districts.

The bottom line: Levy funding contributes to our schools preparing our future workforce.

More information on area public school levies:      Online | PDF

We’ll discuss public education at our Jan. 13 Good Morning Greater Spokane Program. 

Top photos courtesy of Spokane Public Schools and West Valley School District

Our President and CEO, Rich Hadley, was quoted in the paper regarding Tuesday’s late breaking news that Providence Health & Services will bring 250 billing jobs to Spokane – from clerks to executives, as the story says. Saying it was a great “gift” for Spokane got us thinking.

What are some other recent “gifts” Spokane has received? Since it’s the gift-giving and receiving time of year, let’s take a look.

Some gifts our community and region received this year, in no particular order, include….

…..A superb harvest. Area farmers experienced great yields and an immensely successful season. Perhaps this is why the 35th Annual Ag Expo sold out so soon.

…..Caterpillar announcing it is expanding to Spokane County. The machinery manufacturer announced in June it will bring about 150 jobs to our area and construct a distribution center along Interstate 90 in West Spokane County. The photo above was taken in late October of this year.

…..$35 million for the Biomedical and Health Sciences Phase I Building at WSU Spokane. This will help bring the second year of medical studies to Spokane. It will also be home to the WSU College of Pharmacy, as well as the nursing and dental programs.

…..Smart educators! Science, Technology, Engineering and Math (STEM) education is starting to trend throughout our region. Multiple school districts are implementing STEM programs, allowing our area students to dig into subjects and learn in ways that will benefit them and the business community in the future.

…..Boeing building the 737 MAX in Renton. Keeping Boeing in Washington was important to maintaining our area’s strong aerospace industry. Did you know more than 80 area companies in our area are directly or indirectly related to the industry? Boeing being in Renton means suppliers around here will benefit, and it also leaves the possibility open for expansion in Spokane County. AIR Spokane will ready our region for future aerospace expansion.

…..MILCON (Military Construction) Projects in the federal budget. Fairchild Air Force Base – the area’s largest employer – will see construction on its headquarters building and the survival school. It also just laid down a new runway. We’re working on advocating for the new KC-46A tankers to be based at Fairchild. Good things are coming!

…..Mark David Milliron. Our Annual Meeting keynote speaker inspired everyone with his speech on education for the future and how businesses and students need to be prepared for each other. The entire Annual Meeting was a call to create something greater for the Spokane region.

So those are a few of the gifts our region was fortunate enough to receive this year. What others come to your mind?

In September, Governor Christine Gregoire called for a special session, which will begin on Nov. 28, after state economist Dr. Arun Raha estimated a $1.4 billion budget shortfall for 2011-2013.

As Washington State legislators address this budget shortfall, the question is…

What will our Eastern Washington legislators’ priorities be? We researched and asked, and came up with some highlights from our Eastern Washington delegation that will be present during the Special Legislative Session. This is not all each representative will focus on, but a sample.

3rd District Senator Lisa Brown says that budget cuts were too deep in education. If we continue to “thin the soup,” we will undermine our values and aspirations to provide a first class education for all children in Washington, Senator Brown says. She is proud of the progress made in early learning programs. In the 2011 Session, she supported the continuation of funding for schools currently offering all-day kindergarten, and is pleased that the number of schools offering all-day kindergarten will increase over the next two years.

3rd District Representative Timm Ormsby supports state investments that will put people to work and help make Spokane a better place to live, work and raise a family. As vice chair of the House Capital Budget Committee, Ormsby helped to craft a construction spending plan that pays for school construction, public facilities and infrastructure projects.

Andy Billig, 3rd District Representative, advocates for raising new revenue to help the state avoid drastic cuts that will harm businesses and families in Spokane, such as cuts to levy equalization and higher education. He supports taking a stand against budget cuts and instead finding ways to raise new revenue. He is particularly against cuts to the Basic Health plan, a state program that provides subsidized health insurance for low income citizens. He believes that less funding for this health insurance program will be more expensive in the long run.

Jeff Baxter, 4th District Senator, believes there are programs on the books that the state can’t afford. Senator Baxter voted against the state’s original operating budget, saying that he could not support a spending plan that raises taxes and fees on struggling families and businesses. One cost-saving reform the Senator supports is Senate Bill 5842 which would enable private contractors to conduct recovery audits of payments made by state agencies to non-state entities, audit fraud in Medicaid, Social Services, general state operations, and other programs, and collect from those cheating the system.

Larry Crouse, 4th District Representative, supports protecting tax incentives. Crouse pointed out that, in the first ten years after the Legislature adopted a tax incentive that exempted sales tax on manufacturing and equipment, it created 285,000 new jobs. For Crouse, eliminating tax incentives will lead to the elimination of jobs.

To meet the current budget shortfall, 4th District Representative Matt Shea proposes that the state eliminate programs such as bonuses for state employees who carpool, not allow EBT cards to be misused, require proof of continuing residency for welfare and food stamps, restructure DSHS and eliminate many mid- and upper level management positions, and prevent state government from further increasing costs against employers. He believes our focus should be on job creation in the private sector, not raising taxes.

Senator Michael Baumgartner, 6th District, believes the best thing the Legislature can do to fix the state’s budget problem is to encourage job growth. He advocates for pro-small business reforms that reduce government red tape and make our state more business-competitive. He plans to support reforms similar to Senate Bill 5500, which reduces the cost of government regulation on small business.

For John Ahern, 6th District Representative, education is a high priority. He believes that the current budget funds social programs that the state cannot afford while sacrificing education. He promises to offer solutions to find ways we can achieve savings in state services while providing the most important priorities of government to taxpayers.

Kevin Parker, 6th District Representative, says his priorities in the November 2011 Special Session will be on job growth, efficiencies and fundamental reform. In his statement on the budget shortfall, Representative Parker said he supports solutions introduced earlier this year that can now be passed to create jobs and harness our state’s entrepreneurial spirit.

Bob Morton, 7th District Senator, supports the preservation of levy equalization dollars for K-12 education, and the way that districts receive funding for school bus depreciation, because both of these issues are critical for small, rural school districts. He is against using budget gimmicks, tapping into the state’s rainy-day fund and spending more than projected revenues.

For Joel Kretz, 7th District Representative, the most urgent issue facing the Legislature is ensuring a sustainable budget that lives within our means without raising taxes and fees. He says we need to solve state budget problems by first looking at critical government reforms and efficiencies, then focusing on how the state can encourage private-sector job creation and retention.

7th District Representative Shelly Short is against deep cuts to education without the necessary reforms, as it only deepens the divide between the rural and urban school districts.  She is against putting public safety at risk by cutting funds from the Department of Corrections. She also supports maintaining Medicaid funding, programs that help developmentally disabled citizens find work, and funding for long-term care facilities.

9th District Senator Mark Schoesler supports funding for higher-education institutions. He advocates for increased support for K-12 education. Although the amount of funding allocated in the 2011 Legislative session was not as large as he would have liked, he is pleased that levy equalization funding was preserved, as this was his top priority.

9th District Representative Susan Fagan hopes that the budget gap can be covered by looking at critical reforms that can save money and make state agencies more efficient before reductions in education, public safety and other vital programs that serve the disabled and elderly are considered. She is against across-the-board cuts, she says, because it treats every service the same.

Joe Schmick, 9th District Representative, believes the state’s paramount duty is to education. He is against increasing taxpayer expense through new or increased fees. He is committed to protecting public safety funding and programs for the most vulnerable in society such as Medicaid funding, work programs for the developmentally disabled, and long-term care facilities.

So now you have an idea of what legislators from our Eastern Washington delegation believe the state’s top priorities are. The Special Legislative Session begins Nov. 28. You can also get some insight at our Annual Legislative Forum & Reception Nov. 22.

Follow @GSIPolicy on Twitter, and visit YourPolicyVoice.org for more business-policy news and information.

Greater Spokane Incorporated’s Public Policy program is sponsored by Lydig Construction and Sunshine Disposal and Recycling.

A big part of our job here is to advocate on behalf of the businesses of all sizes and industries. To do that, we form relationships with local, state and federal governments and meet with representatives year-round.

Each January, we take a delegation of business leaders to Olympia in conjunction with the Spokane Valley Chamber of Commerce and the West Plains Chamber of Commerce for three days to meet with our state legislators, discuss issues, advocate for business-friendly laws, policies and projects, and much more.

We also bring our State Agenda, which outlines our region’s priorities. Let’s take a look at how it’s developed.

Each fall, we invite nonprofits and other community groups to present projects that need funding to our Public Policy Council, a group of 18 of our members representing a wide range of industries. The council then makes recommendations to the GSI Board of Trustees, which then approves our final State Agenda (we go through a similar process when we develop our Federal Agenda).

Last year, our State Agenda included funding for the Biomedical & Health Sciences Building Phase I at WSU Spokane, the North Spokane Corridor, and various higher education projects at Eastern Washington University and Spokane Falls Community College.

Those big capital projects aren’t the only ones included in our agenda. We’ve also included Levy Equalization for our K-12 public schools, funding for Spokane Transit Authority, the Northeast Community Center, Second Harvest, Mobius Science Center, Spokane Public Facilities District and lots, lots more.

One project that didn’t get as much attention as the big capital projects last year was our efforts to save the Northwest Museum of Arts & Culture (MAC). The MAC was on the chopping block during budget cuts, and our delegation, in partnership with the MAC, was able to successfully advocate for nearly $3 million to keep the Smithsonian-affiliated museum open for the next two years.

So, the big projects you hear about on the news aren’t the only items we’re addressing in Olympia. Our delegation is regional, unified and focused, knowing that projects that benefit the community deserve to be addressed.

We’ll keep you updated as our trip to Olympia in January rolls along. In the meantime, be the first to see this year’s State Agenda at our 2011 Legislative Forum & Reception on Nov. 22.

For more business policy information, visit YourPolicyVoice.org and follow @GSIPolicy on Twitter. Greater Spokane Incorporated’s Public Policy Program is sponsored by Sunshine Disposal & Recycling.

Click the above diagram for a larger view.

The aerospace industry is one of our region’s vital and growing sectors.

Currently, there are 80 aerospace-related companies in the Inland Northwest. The graphic above shows how some of the regional companies are involved in aircraft manufacturing.

Governor Christine Gregoire recently launched Project Pegasus, a program aimed at keeping new Boeing manufacturing programs in Washington. We’d like to see the company build its next generation 737, the 737 MAX, in our region.

Here’s why:
Many of our regional aerospace-related companies are certified suppliers for Boeing. Additional Boeing programs could have an immediate impact on jobs in the region, at a time when the unemployment rate is around nine percent.

For example, Triumph Composite Systems in Airway Heights manufactures floor panels and air ducts for Boeing. Goodrich Corporation on the West Plains manufactures aircraft wheels and carbon brakes. JetTech Aerospace, located at Spokane International Airport, refurbishes and works on interiors for Boeing business jets.

Other companies are contributing to the aerospace industry in important ways – hiring workers, utilizing innovative technologies and more.

The Inland Northwest Aerospace Consortium (INWAC), co-founded by Greater Spokane Incorporated, brings together companies from Eastern Washington and Northern Idaho that provide products and services to all areas within the aerospace industry. It works to advance the aerospace industry in the Inland Northwest. Groups like this keep the industry united in its goals.

Recently, the state’s capital budget stipulated that the Washington National Guard will transfer land at Geiger Field to Spokane Community College that will be traded with Spokane International Airport to set up the Inland Northwest Aerospace Technology Center. Spokane Community College’s Air Washington Program also recently received a $20 million grant from the U.S. Department of Labor. The money will be used for, “education, training and services to support the aerospace industry,” according to this news story.

As you can see, the aerospace industry in our region is held in high regard.

The Spokane International Airport Board, local governments, INWAC, GSI and others across the state are working to develop a strategy for new Boeing programs in Washington. With our current aerospace companies already employing a large number of workers, Boeing can take advantage of the many resources in our region.

With Flag Day just passed and the Fourth of July upon us, we thought it was a nice time to highlight our role in supporting Fairchild Air Force Base.

Really, Fairchild supports us, the larger community. It’s the largest employer in our region, and the reason many of our residents live and work here. Lots of people who served at Fairchild remained in Spokane after retirement or after being discharged.

The 92nd Air Refueling Wing at Fairchild, part of the nation’s Air Mobility Command, has a $466,017,278 economic impact on our region. If this base wasn’t here, our region wouldn’t be what it is today.

Let’s take a look at the ways our community shows its gratitude and support for Fairchild.
A top GSI priority is to help advocate for the new KC-46A tankers to be based at Fairchild when they are completed, hopefully in about five years. It was not only good news that Boeing received the contract to build the tankers in its Everett, Wash. facility, but that Fairchild is right in our backyard and is home to tankers that are so vital for our country.

Rich Hadley, our President and CEO, traveled to Scott Air Force Base last week with Representative Cathy McMorris Rodgers and other community leaders to show Spokane’s support for Fairchild in hopes of acquiring the new tankers someday. Scott Air Force Base in Illinois, but just outside of St. Louis, is the Air Mobility Command and oversees Fairchild’s 92nd Air Refueling Wing, among others.

What differentiates Spokane and Fairchild from other communities is our representation across different civic leadership groups.

Currently, Hadley is on the Air Force Chief of Staff Civic Leaders Group. Bever is on the Air Education and Training Command Civic Leaders Group. Finally, Bill Simer, a Partner at McDirmid, Mikkelsen & Secrest, is on the Air Mobility Command Civic Leaders Group.

It is believed Spokane is the only community with three representatives on those groups at the same time. Spokane and Fairchild are both very well represented at the highest levels of the Air Force.

Forward Fairchild is a committee of Greater Spokane Incorporated that advocates and protects Fairchild Air Force Base. The committee, alongside a delegation from Spokane, helped advocate for improvements to the runway – which is being constructed right now – and for funds for other Military Construction (MILCON) projects, such as a new headquarters building and a Phase II building for the survival school.

The greater Spokane community turns out each year in May to celebrate Fairchild and our local military at the annual Armed Forces Torchlight Parade. GSI also hosts the Armed Forces Persons of the Year Awards each year, which is a way of highlighting our community’s heroes.

It’s safe to say Spokane and Fairchild support one another to the greatest lengths.