Gregoire hears economic recovery ideas

Gov. Christine Gregoire emerged from a closed-door brainstorming session with some of the area's top business, labor and higher-education leaders Monday to deliver a rapid-fire report on ways to help the state's economy.

She didn't divulge details of what the group discussed, but said the first step is to create a state stimulus package and expedite transportation construction projects to get people working.

Gregoire plans to unveil her proposed stimulus package by mid-January. The state Legislature convenes Jan. 12.

Citing growing unemployment and a shortfall that could top $6 billion in the next two-year state budget, Gregoire said the state's economic recovery hinges on the passage of both national and state stimulus packages.

Gregoire stressed the importance of creating jobs, improving the state's transportation system and ensuring an educated work force. But she also called on all Washingtonians to make sacrifices to help their fellow citizens.

"We find ourselves in uncharted territory," Gregoire said during an afternoon news conference after the brainstorming session at the University of Washington. "We all clearly have a sense of urgency. Time is of the essence. We must do what we can now to turn this around."

Gregoire began recruiting advisers to the group called "Partners for Economic Recovery" shortly after her re-election last month.

The people who stood behind Gregoire as she addressed the media represented big names in Seattle-area business: Microsoft, Boeing, Costco.

CEOs, venture capitalists, investors, builders, labor representatives and two university presidents were among the group of 17 who spent two hours in candid discussion with the governor.

"Everybody will have to contribute something," Gregoire said.

"This is not something done by government; it's not something done by labor or business alone."

Given the anticipated budget shortfall, Gregoire said the state doesn't have money to spend from the general fund on a stimulus package. But she said transportation projects that are already funded should be put out to bid now so people can be on the job within 90 days.

She also said the state must capitalize on its strong business environment and continue to invest in technology and higher education.

"This is a great opportunity to remove some of the obstacles that make doing business here challenging at times," said Scott Carson, executive vice president at Boeing. "... All of us talked about the importance of making the state an attractive place to do business."

One example is streamlining the permitting process for complex projects, he said.

Even though state universities are facing a possible 20 percent budget cut and students are being hit with rising tuition costs, UW President Mark Emmert said he is committed to keeping "as many students in school as we possibly can."

The university "has to be as clever as we can in deploying our resources," he said, while also working to attract research and investment dollars.

The governor's staff will vet the ideas that emerged Monday in seeking ways to create jobs, build an educated work force or improve the transportation system, Gregoire said.

Sara Jean Green: 206-515-5654 or sgreen@seattletimes.com