State Economy Scores High Marks Lowry Sees ‘No Dark Clouds’ Next Year Despite Boeing Strike

Washington’s economy is diversifying and expanding so dramatically that the Boeing Machinists’ strike will barely cause a ripple, Gov. Mike Lowry said Friday after meeting with economic advisers.

At least 70,000 new jobs have been created in the first 10 months of 1995 and a number of major manufacturing companies, including Intel, have announced plans to built plants here, said the state’s chief economist, Chang Mook Sohn.

With the exception of aerospace, virtually every major sector of the economy is exeriencing growth, including computer softwear, agriculture, manufacturing, services and retail sales, they said.

“This is good news,” Lowry said of the rosy projections. “There is a consistent, very positive feeling about our economy. Nineteen-ninety-five has been a very good year and there are no dark clouds for ‘96.”

Despite layoffs at Boeing and at the Hanford nuclear reservation, the state is far outstripping the national average for job growth, Lowry said.

“It’s exceptional,” he said.

Diversification finally has paid off and the state no longer goes into a tailspin over such developments, Sohn said. Layoffs are felt by local communities, but overall the state can absorb the losses, he said.

“The state should be able to weather the strike if it doesn’t last more than 45 days,” Sohn said of the Machinists’ walkout that began four weeks ago on Oct. 6.

He said the revenue forecast he releases later this month probably won’t show much of a windfall, though, because he had previously forecast a vigorous economy.

Lowry again warned that the Legislature must not give away most of the state’s $690 million surplus as tax breaks next winter.

While some tax cuts are possible, the state needs to get ready for federal budget cuts and must leave some money in reserve, he said.

The latest economic news underscores the benefits of spending money for good schools, tax incentives and environmental protection, Lowry said in an interview.

“It is working, it is working,” he said. “The fact is, we are an economic success.”

Republican leaders in both houses said lowering business and property taxes would further spur the economy.