Democrats look to add 25,000 jobs

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

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."

Jocelyn McCabe of the Association of Washington Business said the proposal "looks promising" and the tax credit is worth exploring, but the AWB wants more details about how programs are funded.

But Gov. Gregoire's spokesman Pearse Edwards said "there are a lot of good ideas out there and we look forward to working with the House and Senate on a variety of proposals." He predicted there will be similarities in themes between Gregoire's plan and the Senate's.

"We need to create jobs," Edwards said.

Retraining

The Senate package includes a proposal to tap surpluses in the state's $4 billion unemployment insurance fund to use for worker retraining. Other proposals would help students get work-study jobs in the private sector. Still others would piggyback on Obama's federal stimulus plan that could put money into adding broadband connections to rural areas.

And still other ideas championed by Sen. Karen Keiser of Kent would provide help to health care workers who want training so they can move up from low-wage jobs into higher paying medical fields that have a shortage of workers.

Brown said the cost for the package of close to a dozen bills could be just a few million dollars out of the state's general fund, which faces a shortfall of billions of dollars. Other money would come out of the unemployment insurance fund, which business groups have fought for years to protect against raids for other purposes — fearing rate increases could result.

The majority leader said the state is a producer of many new businesses, but the challenge is to help them survive.

As part of the sweeping proposals, lawmakers would expand eligibility for unemployment benefits, aligning benefits more closely with retraining programs. They also would expand enrollments for worker retraining into high-demand fields, foster internships for college students in high demand fields, and invest capital funds in demonstration projects such as labs and technology parks.

The package has these elements:

• Green jobs: Aid to homeowners and businesses to measure or "audit" energy use and efficiency of buildings, as well as to offer financing for weatherization. Dislocated workers could be retrained for these jobs. Other incentives would be given to installation of renewable energy facilities or such things as solar panels.

• Tax breaks: 18-month temporary business-occupations tax credit to small businesses for each "family wage" job created. The plan does not define the income requirement for that.

• Broadband: Expand its access to rural areas through a state strategy that could also use finances from the Obama economic plan.

• Streamlined regulations: Make it easier to designate projects of smaller investment size for statewide significance and to speed permitting.

• Investment: Find a permanent funding source for the state Community Economic Revitalization Board; review pension investments in bonds and other financial tools for their job-creation effects; expand the use of tax-increment financing, which lets developed areas receive infrastructure financing that is paid back using tax revenue that the development creates.

• Entrepreneurial support: Use Gregoire's new economic stimulus leader Dick Thompson to find federal dollars and put together teams that seek out the financing.

"I think it's a forward looking package," Fraser said. "It focuses really on the future in terms of helping people to be more ready for the jobs of the future. It helps finance the economy of the future and helps (move) us toward more green buildings, green energy and a green economy. A green economy is a rapidly rising part of our future."