Jolt

Afternoon Jolt: The Washington Economy

By Josh Feit November 19, 2010

Today's winner is Washington State's economy.

Huh?

Despite the high unemployment rate (still over 8 percent) and slacking state revenues, a business climate ranking index released today by the prestigious Information, Technology, & Innovation Foundation put Washington State at No. 2.

In fact, the recession has actually strengthened Washington State's hand, because many of the jobs lost in the recession are old-economy jobs that are not coming back. This means leadership in information and technology is the key to rejuvenating economies.

As the ITIF report
says:

Many jobs lost in the recession are never coming back and job creation is expected to be sluggish for years. This has created an imperative to develop new jobs, business models and industries. The states are on the front line of this effort and it is more important than ever for them to embrace innovation and the New Economy.

Massachusetts, Washington, Maryland, New Jersey, and Connecticut are the top five states at the forefront of the nation’s movement toward a global, innovation-based new economy.


The report measures state economies in five areas: Knowledge jobs; globalization; economic dynamism; transformation to a digital economy; and technological innovation capacity.

Footnote, though: Washington State's overall score was 77.5 (out of 100), which is 4.4 points lower than our score in 2008, 81.9.

Today's losers are state unions.

We'll just quote from Gov. Christine Gregoire's proclamation to make state workers head back to the bargaining table to amend their current contracts:

WHEREAS, the legislature has enacted statutes providing that when a significant revenue shortfall occurs, resulting in reduced appropriations after the compensation and fringe benefit provisions of agreements are approved by the legislature, the Governor has the power to issue a
proclamation requiring the parties to immediately enter into collective bargaining for mutually agreed upon modifications of the agreements
; and

WHEREAS, the state of Washington and the employees and their representatives have endeavored to establish employment relations based on mutual respect, fair treatment, and efficient and cost-effective service delivery to the citizens of the state of Washington;

NOW, THEREFORE, I, Christine O. Gregoire, Governor of the state of Washington, by virtue of the authority vested in me by RCW 41.56.028(10), RCW 41.56.029(8), RCW 41.80.010(6), and RCW 74.39A.300(7), do hereby call for the parties to existing collective bargaining agreements subject to these provisions to immediately enter into collective bargaining for mutually agreed upon modifications to the agreements to address the changed fiscal circumstances outlined above.
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