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Home  /  Washington Business - January/February 2007  /  Q&A with Gov. Chris Gregoire: Gov has clear goals for 2007
Q&A with Gov. Chris Gregoire: Gov has clear goals for 2007
Written On: January/February 2007
Gov. Chris Gregoire was elected governor in 2004. Prior to her governorship, she served as state attorney general for three terms, beginning in 1993, and was director of the Department of Ecology from 1988 to 1992.


Q: As you look ahead to the 2007 legislative session, what are your top three priorities?

A: Good schools that will prepare students to compete in a global economy; access to affordable, quality health care; and creating high-paying local jobs.

Q: Revenue projections indicate there will be a $1.9 billion surplus heading into the next budget cycle. Will all of that revenue be allocated for new or enhanced programs, or will some of it be socked away in a rainy day fund?

A: I have proposed a new, constitutionally protected rainy day fund. I will make an initial deposit of $262 million, and we will build it with future automatic deposits of 1 percent of state general revenues every year—about $150 million annually.

Q: There is talk about replacing the Initiative 601 spending limit with a new one. What are your thoughts about that?

A: I haven’t heard anything about this change at this time. The Legislature replaced the spending limit in the 2005 session, and the bill I signed into law does a number of things:

• The new limit applies to more funds besides just the general fund. Now, in addition to the general fund, the same spending limit applies to funds like the health services account, the public safety education account, the water quality account, and the violence reduction and drug education account.

• The bill eliminated the ability to transfer between accounts in ways that can be used to artificially increase the spending limit.

• The new limit is allowed to grow annually in step with the growth in personal income, which is a reliable and well-accepted way to measure the overall size of the economy.

Q: One of the budget items which has been difficult to establish cost controls around is health care. You convened a commission to look at health care issues. What are the priority recommendations you expect to carry to the Legislature in January? Do you have an idea of what those would cost?

A: Building on the recommendations of the Blue Ribbon Commission on Health Care, I believe we need to pay for results. We can take health care in Washington to the next level by paying for outcomes rather than simply paying for particular procedures. We need to integrate prevention and the promotion of a healthy lifestyle into state health programs. We need to support the use of information technology in health care that allows care providers in different areas of the state to talk to each other about a patient’s care. We need to continue to work toward the goal of having all children covered by 2010. We must continue to look at ways to make insurance affordable and accessible, particularly for small business and individuals. The commission is working to finish their recommendations by the end of January.

Q: Another key budget driver is the cost of state pensions, particularly the costs associated with gain sharing. The legislation setting up gain sharing has a kill switch in it. Is it time to flip the switch?

A: I have proposed a way to improve the finances of the pension system by reducing the cost of gain sharing. My gain-sharing proposal saves $104 million in 2007-2009 and $2.1 billion over the next 25 years. I do not believe anyone clearly understood the long-term costs of gain sharing when it was passed by the Legislature. The legislation clearly states that gain sharing can be modified or eliminated, if so desired. My proposal allows one more distribution of gain-sharing proceeds to occur (in January 2008). After that, the benefit is eliminated.

Q: Washington Learns has an ambitious agenda. What are your immediate priorities for early learning, K-12, workforce training and higher education? What about your long-term recommendations?

A: Education is my top priority this session. We must continue to invest in early learning so that children start as lifelong learners. We must improve math and science teaching so our citizens have a competitive edge, and personalize learning so every student has the opportunity to succeed. We must offer college and workforce training for everyone and hold the system accountable for results.

Q: Pending itigation could dramatically impact school funding. How do you see this affecting funding for the Washington Learns program?

A: While I cannot comment on litigation, I can tell you that the Washington Learns steering committee recognized that it is time to make some real changes to Washington’s education system. The Washington Learns report offers a bold plan to redesign and re-invest in education over the next decade. With my budget proposal, it is time we focus on the classroom, not the courtroom.

Q: What do you see as the focus of the Puget Sound Partnership, and what recommendations do you see coming forward to the 2007 Legislature? Do you have any idea of the associated costs?

A: We cannot underestimate the impact of Puget Sound’s environmental health on our economy and quality of life. I have outlined several initiatives that will move the cleanup of Puget Sound toward the goal of one Puget Sound Partnership to make the area fishable, swimmable and digable by 2020:

• Restoration of damaged shorelines ($37.4 million)
• Reduction of stormwater runoff ($25.3 million)
• Cleanup of septic pollution ($56.3 million)
• Protection essential habitat ($40.7 million)
• Toxics cleanup and prevention ($54.7 million)
• Support of citizen partnerships ($5.8 million)
• Introduction of legislation to change the governance structure to oversee the state’s investment in cleanup.

Q: You’ve led trade missions to Europe, China, Japan, Australia, New Zealand, Korea and Taiwan. What are the most valuable things you’ve learned from these trade missions?

A: First we must continue to open trade doors, break down barriers and sell Washington business products and services—not only from our large companies, but also from small businesses. To do that, we must change our educational system so we have a qualified work force and the next generation is prepared to do business internationally. We must also maintain our reputation for quality products—like our agriculture products—and prepare our state to compete by investing in 21st-century industries like global health and alternative energy. We need to maintain our ports and our status as a gateway state, and promote tourism.