Business Chiefs Cite I-695 Drawbacks Conference Speakers Also Declare Washington State Must Provide A Better Environment For Economic Growth

Deborah Hopkins, Boeing’s chief financial officer, had a dire prediction for Washington state if voters approve Initiative 695 on Nov. 2:

“This is an issue of whether our state will continue to function,” Hopkins told about 150 regional business leaders, gathered for a three-day Leadership Conference co-sponsored by the Spokane and Seattle Chambers of Commerce.

If approved, I-695 would cut vehicle license rates to a flat fee of $30, costing the state more than $550 million in revenue for transportation and other areas the first year. The ballot measure would also require voters to give their approval before any new tax increases can be enacted.

At a press conference after the day’s meetings, Gov. Gary Locke vowed to work with the Legislature to overhaul and reduce the motor vehicle excise tax if the initiative fails. The tax is criticized by supporters of I-695 as unfair because it’s based on a vehicle manufacturer’s suggested retail price.

Locke agreed Friday that’s an unrealistic figure.

“Whoever buys a car for the manufacturer’s suggested retail price?” he said. “It ought to be based on the fair market value, and it ought to be significantly lower than it is today.”

Chamber leaders from Spokane and Seattle joined Locke at the press conference in predicting dire consequences if the measure passes.

“Clearly, we need to come up with a collaborative effort of how you seek reform,” said Debbie Bevier of the Greater Seattle Chamber. In her talk, Hopkins noted the Seattle area has some of the worst traffic congestion in the nation, saying I-695 would be a blow to any road-work progress being made - injuring commerce in the process.

“Passage of this measure would be a huge step back for the state of Washington,” she said at a luncheon at the DoubleTree City Center.

Hopkins also faulted the initiative for not providing alternative ways of refilling state coffers.

She said voters’ willingness to frequently approve new tax measures is unrealistic.

Proponents of the initiative say rather than decimating state government, the measure would make government more efficient and responsive.

Boeing last month threatened to cut its donations to the state Republican party if it endorsed I-695, which the party did.

On another matter, Hopkins said Washington needs to become a better place to do business.

In a cost analysis of the states in which Boeing operates, Washington finished as one of the more expensive venues, Hopkins said.

She said the state, for example, has the fourth-highest employment liability tax, of the more than 20 states in which Boeing operates.

“When you add it all up, Washington is not the best environment for business,” she said, stressing a need for change.

Among other conference speakers:

Paul Sommers, a senior research fellow at the Daniel J. Evans School of Public Affairs at the University of Washington, said on an economics panel that one of the biggest challenges facing area high-tech businesses will be finding technically competent employees.

“Access to qualified workers is the single-biggest thing holding companies back,” he said. “There is no more important issue.”

The American Electronics Association earlier this year noted that high-tech degrees granted in Washington state increased by 3 percent between 1990 and 1996, while the market for those workers has increased 21 percent nationally during the 1990s.

Sommers said the challenge for the state will be finding more funding for community colleges and universities for training high-tech workers.

John Mitchell, regional economist with U.S. Bancorp in Portland, said the national economy will once again expand between 3.5 and 4 percent.

However, Mitchell said, Northwest job growth has cooled, putting the region “in the middle of the pack.”

Glenn Pascall said the U.S. must move away from an economy driven by fear to one lifted by innovation.

Pascall, a senior fellow at the University of Washington Institute for Public Policy and Management, warned that a workaholic culture will eventually burn out.

Even grade school kids are showing anxiety about their future in a high-tech world, when they should be content with getting the basics of a good education, he said.

Monika Kosmahl Aring said some of that satisfaction could arise from greater corporate attention to the ways employees learn informally.

Aring is the director of the Center for Workforce Development and the leader of a $1.6 million study that concluded workers pick up 70 percent of their skills outside of classroom-style settings.

Yet employers devote just a small part of their training budget to instilling personal and professional skills that create a quality work force, she said.

Aring encouraged businesses, schools and government to create “Intentional Learning Environments” that nurture ongoing personal development.

Blake Nordstrom, Nordstrom co-president, told the group to not let satisfaction with the Northwest lifestyle jade their sensitivity to customer service.

“Do we have our antennae up, or our horns up?” he asked.

Chicago-based consultant Franco Eleuteri briefly explained a proposal to “twin” the Port of Seattle with a new transportation hub built around the Moses Lake airport.

That development would alleviate congestion at Seattle docks while putting rapid shipping capability into the heart of an agricultural area that could benefit from ready access to markets, he said.

The leadership conference concludes today.