Democrats look to add 25,000 jobs

Stimulus package focuses on green energy, retraining

By Brad Shannon | The Olympian • Published January 14, 2009

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Senate Democrats rolled out a job-creation plan Tuesday that is heavy on home weatherization, tax cuts for green-energy products and job retraining.

Help for homeowners

Washington Realtors announced a five-point housing plan Wednesday that includes

down-payment aid to 12,000 first-time home buyers. The Realtors’ proposal would require an increase in the state Housing Finance Commission’s debt capacity, which Senate Majority Leader Lisa Brown, D-Spokane, said is already the focus of a bill by one of her caucus’ members, Sen. Claudia Kauffman.

The association also wants:

A tax credit for closing costs for first-time home buyers; this would require federal action.

A temporary property tax credit for home buyers. But Brown said any tax credit shifts tax burden, which works against that proposal.

A public-education campaign to help consumers learn about responsible financing and purchasing options.

Protection for the housing industry with a “do no harm” rule for any regulations adopted.

Realtors issued a news release that said 1,000 first-time home purchases would generate $126 million for the state economy. It based that on work by an advisory group that included ChangMook Sohn, former state revenue forecaster who ran for state treasurer last year as a Democrat.

The plan, outlined by Senate Majority Leader Lisa Brown, D-Spokane, and a half-dozen other Democrats, could add 25,000 jobs on top of any job stimulus resulting from a federal economic-aid plan the incoming Obama administration is considering. But it easily could take months to see any of its effects, although tax breaks on purchases of home weatherization products could happen quickly.

The state plan also includes business-tax credits for small firms of 10 to 15 employees that add workers. The plan also offers regulatory relief for businesses' first-time paperwork errors, something the National Federation of Independent Business has sought.

And it would encourage job training for workers to help fill a 12,000-worker shortage in health care fields, according to the Democrats.

"We believe our first job is about jobs," Brown said in a news conference at the Capitol, flanked by six other Senate Democrats, including Sen. Karen Fraser of Thurston County.

The economic development proposals come on the eve of today's State of the State speech by Gov. Chris Gregoire, who is expected to include a call for stimulating the economy. Gregoire already has talked about expanding the green-energy sector in Washington, and details on her plan are scheduled to be announced Thursday in Seattle.

One top Republican gave a cool reception to the package, calling the tax credit for job creation the one bright spot in the plan.

"It's a lot easier to preserve jobs than to create them, and Senate Republicans would have emphasized that point had we been invited to help develop this package," Sen. Joseph Zarelli, R-Ridgefield, said in a statement.

"We are instead looking at how the state can help employers keep their doors open — now, and next week, and next month — and get over this rough patch so fewer people end up on the unemployment line," Zarelli added. "If the purpose of a stimulus package is to encourage employers, this package falls short with its emphasis on things like training people for jobs that have yet to emerge and expanding Internet access so people can sell products online."

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