House Democrats pass Smart Recovery measures

March 10, 2009

OLYMPIA – As federal stimulus funding begins to reach the state, House Democrats passed several pieces of a recovery plan for Washington’s economy. Reps. Larry Seaquist and Tim Probst have worked with members since November on strategies to deal with the economic slowdown.

House Speaker Frank Chopp selected Seaquist and Probst to lead the effort, dubbed the Kitchen Cabinet. Kitchen table issues have been the focus of discussions tackling everything from health care to education to jobs—all with an eye toward protecting the state’s residents during tough economic times and coming out of it stronger.

“Our economy is going through an incredible change,” said Probst, D-Vancouver. “Some things we counted on in the past, like cheap gas and loose mortgage lending, have gone away. The state will recover and we want to come out of the other side better than when we went in.”

The Smart Recovery plan follows a three-legged format put in place by President Obama: addressing the banking and housing sectors, strong oversight and accountability, and a recovery package. For House Democrats, much of the work could come in the recovery segment of the plan.

“While we will pursue and support the accountability and financial reform pieces, the federal level will end up deciding those,” said Seaquist, D-Gig Harbor. “So for our recovery, we wanted to cushion the crash, get people working on projects that will leave something behind, and come out with new talent and better industries.”

The work on the recovery plan is ongoing; currently envisioned to help guide the caucus through the biennium, but several pieces of it have now passed the House.

The Evergreen Jobs Act (House Bill 2227) passed Monday and seeks to modernize and expand Washington’s green economy and job market. It establishes the Evergreen Jobs Initiative, charged with creating 15,000 new green economy jobs by 2020 and attracting private sector investment to further job creation and expansion.

“Washington can and will be a leader in renewable energy and a green economy,” said Probst, the bill’s sponsor. “Green jobs are not the wave of the future. They are a necessity of the present.”

Rep. Eileen Cody’s (D-West Seattle) House Bill 2117 passed Thursday and will expand the Basic Health Program to include “economic recovery enrollees,” which gives unemployed workers coverage while they search for new employment.

“There are about a million concerns affecting those who have lost their jobs. Health care is certainly near the top of any list,” Cody said. “We can help alleviate an enormous anxiety by expanding Basic Health to include the victims of the recession.”

Additional Smart Recovery legislation recently passed by the House:

• Unemployment benefits were increased by $45 a week in HB 1906, sponsored by Rep. Steve Conway, and signed into law February 16. Worker retraining and the shared work program, which helps employers by letting them reduce hours rather than cut staff, were also bolstered. SB 5963, the companion to HB 2204, will cut back unemployment insurance taxes and should come to the House by cutoff on Thursday.

• The governor has also signed Rep. Judy Clibborn’s transportation stimulus package, HB 1978, which will start job-producing projects around the state.

• Rep. Ruth Kagi’s HB 1418 (passed Friday) creates a statewide dropout reengagement program. Kagi’s bill is similar to a program in her own district which recently graduated more than 600 former dropouts.

• Rep. Phyllis Gutiérrez Kenney’s HB 2021 (passed Monday) places all of the state’s many financial aid options under the label “Opportunity Grants.” Washington is fourth in the nation in the amount of student aid distributed, and this program will increase access to these options.

• Rep. Kenney also sponsored HB 1131 (passed Monday), which creates the Washington Economic Development Commission as a state agency and establishes the WEDC fund in the state treasury in an effort to redirect the focus of the state government on what Washington needs most right now – a strong economy.

• HB 1749 (passed Thursday), sponsored by Rep. Barbara Bailey and Rep. Steve Kirby, provides critical consumer protection and regulatory modernization in the mortgage industry. This measure guarantees that regulation of the mortgage industry will remain in local hands, for the benefit of both consumers and lenders.

• Rep. Probst’s HB 2130 (passed Monday) creates a B&O tax exemption for businesses that manufacture renewable energy components and technology.

• Rep Sharon Tomiko Santos’ HB 1347 (passed Monday) authorizes the Office of the Superintendent of Public Instruction and the Financial Education Public-Private Partnership to implement a financial education program. This helps cultivate a financially savvy generation of Washingtonians that will be the keepers of tomorrow’s economic success.

• Rep. Probst’s HB 1355 (passed Thursday) creates the Opportunity Internship Program which creates an educational and employment pipeline from high schools directly to high-demand occupations in a variety of industries.