Governors emphasize regional approach

PORTLAND, Ore. – Gov. Ted Kulongoski joined Washington Gov. Chris Gregoire on Thursday to urge government and business leaders in their two states to work together to develop a regional approach to improving the economy.

Both said one of the chief bottlenecks to growth is the aging I-5 bridge over the Columbia River, which has increasingly clogged commercial transportation along the West Coast.

The governors, both Democrats, also said the only way to keep the Pacific Northwest competitive in the global economy is to improve their education systems, from preschool through graduate school.

“It’s the one thing they bring up without fail,” Gregoire said of companies she tries to recruit to the Northwest.

Kulongoski praised Gregoire for her “Washington Learns” initiative to find ways to improve schools and public universities, but he admitted his frustration with similar efforts in Oregon due to the unique “kicker” refund required by state law.

The Oregon constitution was amended to require the state to refund excess personal and corporate income taxes when revenue is higher than expected – which generally happens when the economy is booming.

But Kulongoski, who is seeking re-election this year, called on business leaders to instead invest the extra taxes in schools.

“We have a phenomenal ability to give it away,” Kulongoski said of tax refunds to corporations, many of them based out of state.

Both governors suggested a regional approach to boosting exports and foreign trade by combining the resources of their Columbia River ports in Portland and Vancouver, Wash.

Gregoire noted that Washington is the state most dependent on foreign trade in the entire nation, with Oregon close behind.

Kulongoski said exports account for about 7.5 percent of the gross national product but total about 15 percent of the economy for Oregon and Washington.

Both governors also said they will push hard to make the region more independent from foreign oil by encouraging the development of alternative energy and biofuels.

Kulongoski recently moved up his deadline for state agencies to switch to renewable energy sources from 2025 to 2010 – “just four short years from now.”

He praised Gregoire for her successful efforts to lobby the Washington Legislature to set aside millions of dollars to build the biofuels industry and promised a similar effort in Oregon.

The governors also shared some lighter moments, noting they are both former attorneys general who have worked closely together on a number of issues over the years.

Kulongski compared the regional effort to bridge the Columbia River to the “hands across the water” lyrics in the Paul McCartney song, “Uncle Albert/Admiral Halsey,” while Gregoire joked that Oregonians are already making fun of the new official Washington tourism slogan, “SayWA?”

Their appearance led off the 2006 Bi-State Metropolitan Forum at Portland State University.

Portland Mayor Tom Potter and Vancouver Mayor Royce Pollard also spoke, both urging that the Portland light rail line be extended to Vancouver to ease congestion on I-5 and I-205, the main links between the states.

Associated Press

Gov. Christine Gregoire and Oregon Gov. Ted Kulongoski appear at a forum at Portland State University in Portland, Ore., on Friday.

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