The proposal, still in the kicking-the-tires stage, would rely on a new way to pay for government construction projects without raising the state’s debt load.
The jobs package would call on the state to issue revenue bonds backed by various state accounts and funds, including the state’s Model Toxics Control Account, the Public Works Trust Fund and maybe some other sources of revenue that flow into the state capital budget.
The plan, advanced by state Sen. Derek Kilmer, D-Gig Harbor, with help from House Capital Budget Committee Chairman Hans Dunshee, D-Snohomish, would avoid adding to the $1.9 billion in state debt payments in the current biennium.
And it wouldn’t need voter approval, which means shovel-ready projects could begin in the next construction season.
The size of the jobs package is just one of many elements still being discussed. One possibility is a $2 billion package that could add as many as 30,000 jobs for the construction industry, knocking a full percentage point off the state unemployment rate.
The proposal has strong support from contractors and labor unions. No small wonder, since the unemployment rate for some construction crafts and trades is hovering above 50 percent.
“The rest of the country is in a recession. Construction is in a depression,” said Rick Slunaker of Associated General Contractors.
Republicans in the House and Senate are just now being briefed on the proposal. Gov. Chris Gregoire has yet to weigh in on it but has asked her economic policy team to give it a closer look.
Regardless, a jobs package that doesn’t add to the state’s general fund debt burden could have some traction.
In fact, the jobs package under discussion would be a better sell if it is part of a comprehensive set of recommendations that helps the state chip away at its bond indebtedness.
Contractors and labor unions suggest a major jobs program could generate roughly $100 million in taxes over the next three years.
A jobs package that relies on funds dedicated to toxic waste cleanups may not sit well with local governments and environmental groups that are already having trouble funding stormwater retrofit projects and environmental cleanups.
One way to reduce the resistance would be to use the toxics control funds to finance environmental projects. That’s a far better result than simply raiding the funds to help balance the state budget.
More work remains to flush out the details of a possible jobs package. But this one deserves full review and consideration.
