But the big news item is the 10-year transportation plan valued at $3.5 billion that she says will create 5,500 jobs a year. She would accomplish it with fees, specifically a $1.50 per barrel fee on oil produced in Washington.
"In addition to small fee increases, I will ask the Legislature to pass a modest $1.50 fee on every barrel of oil produced in Washington. Our oil companies are getting all the profit and leaving us with the bill. We can do better," Gregoire says in the speech.
The Times had a story on the proposal this morning, linked here.
The speech is built around a theme of "winning in the turn" - a reference both to the book “That Used to Be Us” (by Thomas Friedman and Michael Mandelbaum) as well as to the state economy that is beginning to turn the corner from the deepest recession since the Great Recession. As Gregoire says in the speech, means taking the risk and hitting the gas pedal in the turns when others are still hitting the brakes.
"We know how to win in the turn. We know how to come out ahead. We've done it again and again," she said. And she hearkens to a major capital investment approved by voters under Republican Gov. Dan Evans in the early 1970s and again in 1983 when the Legislature approved a penny increase in the sales tax under Gov. John Spellman.
UPDATE: Gregoire lays out four specific jobs for the Democrat-controlled Legislature to complete in its 60-day regular session:
"1. Use the early start you got in December and quickly pass a budget;
"2. Ask the voters this spring to approve a temporary, half-penny sales tax increase for students and their future;
"3. Pass my school reforms; and
"4. Pass a major transportation and jobs package."
We’ll have more later.
UPDATE 2: Gregoire faces a fight over the oil tax with Republicans. Sen. Doug Ericksen, R-Ferndale, represents an area of Whatcom County that has refineries. And he said immediately after the speech: “We’re going to fight it tooth and nail.’’
And House Republican Leader Richard DeBolt of Chehalis said it would be passed on to businesses that buy fuel and oil products, in effect making it more expensive to do business in Washington.
Sen. Joesph Zarelli of Ridgefield gave the Republican response to Gregoire’s speech, and he addressed the larger themes of the speech – including an argument against tax increases.
You can read Zarelli’s full prepared remarks here.
In his televised talk, Zarelli says that state government’s revenues are now growing at a 7 percent clip. At the same time, he points out that revenues had fallen and remain at the level of six years ago. He also pitches for reforms, which is the GOP mantra this year as the price of considering any tax increases.
Among those reforms Zarelli mentions:
--Putting in co-pays and premiums and adjusting eligibility for those receiving health-care subsidies.
--Shifting K-12 property tax funding from the local to state level, an idea Zarelli has proposed before and this year has been espoused by Democratic Rep. Ross Hunter, who chairs the House Ways and Means Committee. Zarelli says it would respond to last week’s Supreme Court ruling that said the state isn’t living up to its constitutional duty to pay for basic education.
--Pooling all K-12 school employees in a single purchasing pool for health care plans, which the state does today for state employees. Zarelli noted that Democratic Sen. Steve Hobbs “is helping lead the way on that reform.”
--Tort law reform to cure what Zarelli contends is “lawsuit abuse” that costs the state $150 million every two years.
--Switching new state employees into 401(k) still pension plans.
Zarelli said “in my mind the Legislature has barely scratched the surface when it comes to reforms.” But he also left the door open to considering new revenues if reforms are taken:
