State traffic, regulations assailed

  • Bryan Corliss / Herald Writer
  • Wednesday, January 16, 2002 9:00pm
  • Business

By Bryan Corliss

Herald Writer

SEATTLE — Gov. Gary Locke appears to be committed to pushing competitiveness legislation recommended by a panel of business executives last year, a ranking member of the panel said Wednesday.

"He is embracing a lot of it," said Judith Runstad, co-chairwoman of the Washington Competitiveness Council. "I think he’s absolutely dedicated."

But whether Locke will succeed in getting the recommendations approved by legislators this year is another topic, she said. "They’re real difficult for him to deal with."

Runstad, a Seattle real estate lawyer and former chairwoman of the Federal Reserve Bank of San Francisco, spoke at a breakfast meeting sponsored by the University of Washington Business School.

The council was formed by Locke after the Boeing Co. last year announced it was moving its headquarters to Chicago and criticized Washington’s business environment. Its membership included a number of business leaders, including Boeing Commercial Airplanes chief Alan Mulally. It met five times last year before issuing its recommendations last month.

"There’s no rocket science in what we recommended," Runstad said Wednesday.

Transportation is the overarching issue facing the state’s economy, she said. "How many times can we say it?"

Runstad criticized Initiative 695 and the impacts it has had on state transportation funding, calling it "a silly little initiative born out of frustration."

She also criticized the state’s regulatory system, calling Washington "a terribly regulated state." The state’s unemployment insurance system and proposed new ergonomics rules particularly are burdensome, she said.

"We’re not talking about getting rid of standards," Runstad said. "What we’re talking about is the process."

It takes years to get permits for major projects, she added, noting that the proposed third runway at Seattle-Tacoma International Airport has been tied up in hearings for 14 years.

Regulatory issues also are hampering the development of adequate housing, and that’s "definitely a problem" when it comes to recruiting new businesses to the state, she said.

The combination of problems means "it’s very hard to attract businesses to this area," Runstad said.

Because of those problems, there’s a real risk that Washington will lag behind the rest of the nation, which seems to be poised for an economic recovery later this year, she said.

She encouraged business people to lobby the Legislature for action.

"We’re all going to have to chime in on this," she said. "If we don’t address some of these problems … that rosy scenario will push by the wayside."

Quality higher education also will be vital to the recovery, she said. The state needs to foster its growing biotechnology industry, which she predicted will be "the next driver of our economy."

You can call Herald Writer Bryan Corliss at 425-339-3454

or send e-mail to corliss@heraldnet.com.

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