Economy headlines debate

By Jason Hagey | The News Tribune • Published September 26, 2008

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BLAINE – The economy remained the major focus of debate Thursday as Gov. Chris Gregoire and Republican challenger Dino Rossi squared off for the second time this year.

Before an audience of business people, Gregoire emphasized that she will do what needs to be done to balance the state budget while adhering to the "values and principles" of Washington residents.

Gregoire once again brought up the ailing national economy as she did in their first debate Saturday, and she accused Rossi of balancing the state budget on the backs of the elderly and children when he served in the state senate.

Rossi, the former state senator who lost the 2004 race to Gregoire by 133 votes, continued hammering Gregoire for a projected $3.2 billion shortfall in the state's budget. And he repeatedly told an audience of about 300 people at the Association of Washington Business's annual policy summit that Gregoire will raise taxes — despite Gregoire's repeated denials.

"You and I have a bulls eye on our backs," Rossi said. "The incumbent will raise taxes."

Gregoire acknowledged that the state is "headed for troubled times," but she said she's equipped to deal with them.

The candidates also fielded questions on transportation, health care, minimum wage, the growth management act and global climate change.

The second of six 2008 gubernatorial debates was at the Semiahmoo Resort near Blaine.

David Postman, who recently resigned as chief political reporter for the Seattle Times, moderated.

Rossi reminded the audience of business people that he's a business man, and that he wants to turn Washington into an "entrepreneurial state." He drew applause when he said he wanted to get rid of the state's "death tax" and he accused Gregoire of supporting a state income tax.

Gregoire defended the state's "estate tax," saying that it was approved by a majority of voters because funds go toward education. And she adamantly denied supporting a state income tax.

Both candidates addressed the flurry of negative advertising that's marked their campaigns in response to a question about how they could work with both parties once elected.

"You're right about one thing, my opponent has conducted a very negative, bitter, angry and divisive campaign," Rossi said.

"She's attacked everything from my Italian heritage to my dog."