New job creation tools pass out of committee

Rolfes sponsors three measures to give local communities additional resources for job development

February 13, 2007

OLYMPIA—Three different pieces of legislation aimed at giving local communities some new tools in economic development efforts were passed out of the House Community, Trade & Economic Development Committee on Monday.

The measures which were sponsored at the request of Gov. Christine Gregoire were part of an ambitious effort to give local communities tools to attract and retain businesses to their region.

Newly elected Kitsap Legislator Rep. Christine Rolfes (D-Bainbridge Island) sponsored one such measure that was passed out of committee.

“The ability to attract and retain jobs to our communities is vital,” said Rolfes who was a sponsor of the three measures. “Economies start at the local level, and we need to give cities and counties the ability to be competitive.”

Rolfes is the prime sponsor on House bill 1178, a bill that aims to give local Associate Development Organizations such as the Kitsap Economic Development Council (KEDC) a shot in the arm with increased state funding.

Rolfes’ bill would allow the Economic Development Councils (EDCs) around the State to apply for matching state funds for economic development efforts up to $400,000. To obtain funding local EDCs must submit an annual report that lays out specific performance measures to which they will be held accountable. If standards are not met state funds can be terminated.

Also clearing committee was an expansion of a State program called LIFT (Local Infrastructure Financing Tool).

In 2006 the Legislature passed a pilot of the LIFT program. The new financing tool offered a way for communities to pay for economic development projects by capturing a portion of new and future sales, property and excise tax revenue coming into a designated area to finance a bond.

These funds that come from increased commerce or construction can then be used to pay for improved water lines, roads, affordable housing and other infrastructure needs necessary to attract and retain economic development.

House bill 1277 would add an additional $5 million to the existing program doubling the State’s contribution and removing the requirement that there be only one project per county.

Pairing with the LIFT measure and also passing out of committee on Monday was another measure (HB 1091) that would allocate an additional $5 million to create Innovation Partnership Zones.

The legislation would create regions throughout the state where research and business have connected to create thriving job centers.

Programs that have teamed with local research institutions submit proposals and compete for designation as a Partnership Zone. They then are eligible for support through a sales and use taxes for public facilities, and the Local Infrastructure Financing Tool and Job Skills programs.

“Under the proposal programs such as Kitsap SEED, a high tech alternative energy hub being promoted here in Kitsap County can remain competitive,” said Rolfes. “Our economy is changing and we need to make sure we are adapting to meet these needs.”

All three measures await further action. The last day to pass legislation out of the House is March 14.

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Derek Baker (360) 786-7697; baker.derek@leg.wa.gov

House Bill 1178: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1178&year=2007

House Bill 1277: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1277&year=2007

House Bill 1091: http://apps.leg.wa.gov/billinfo/Summary.aspx?bill=1091&year=2007 

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