So, did Boeing get too much? That’s a little like asking whether you paid too much for your house — you’ll never really know how low the seller was willing to go.
If Boeing decides to take Washington up on its generous offer of tax breaks and build the 7E7 here, it will have gotten a lot. A whole lot.
Indications are that even the jaws of Boeing officials dropped last week when Gov. Gary Locke unveiled his plan to offer the company and other aerospace employers $3.2 billion in tax breaks over 20 years if the 7E7 is built in Everett or Moses Lake, a plan that lawmakers passed overwhelmingly — after the smelling salts were passed around. Few expected such a bold attempt to keep the state’s biggest private employer from bolting for greener pastures.
If Boeing declines this offer, which comes on top of reforms to the state’s costly unemployment insurance and injured workers’ compensation systems, it will be safe to assume Washington was never really in the running for the 7E7. With this package, the state has given Boeing everything it asked for on its list of criteria for a 7E7 site.
What made it happen? Fear, mostly. The fear of losing Boeing motivated Democrats and Republicans, business leaders and Boeing union members, to join in an unusual display of political will.
Despite a high unemployment rate, the will was mustered to bring Washington’s unemployment benefits, and therefore costs, closer to the national average. They’re still among the highest in the country, but the savings for employers will make the state that much more competitive in drawing jobs, whether Boeing stays or not. New workers’ comp rules will require workers to file claims for hearing loss within two years, a big issue for Boeing and other manufacturers. The state had set aside millions for potential claims that can now be used to reduce rates.
And even under the threat of voter backlash, lawmakers passed transportation improvements for which Boeing and other employers had clamored.
Locke deserves high marks for leadership in making sure these fundamental priorities stayed on the front burner. As for the Boeing tax breaks, Locke insists they will pencil out, leaving the state with more revenue than it would have if Boeing and its suppliers went elsewhere. Unlike other states in the 7E7 sweepstakes — many of which are expected to make eye-popping offers, as well — Washington is faced with losing a known quantity. Boeing is a major cog in the state’s economic engine, a fact brought home by the lasting effects of recent layoffs.
The governor and lawmakers have done what they can — perhaps more than they had to — to make Boeing happy. They’ve also taken overdue steps to reverse the state’s business-hostile reputation.
No matter what Boeing decides, that needs to continue.
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