Published August 2004

Next governor will face tough decisions

The next governor of Washington state needs to “streamline government, match the budget to priorities the public wants, appoint competent people to run the agencies, reduce the regulatory burden on business” and be ready for big financial decisions, in the opinion of Don Brunell.

As president of the Association of Washington Business, Brunell has become an astute observer of political candidates and government issues. In a recent interview at his office in Olympia, he said “the next (legislative) session is all about money ... the state pension fund is underfunded, health-care costs are going up at double digits, and we have the potential for another revenue shortfall similar to 1993.”

He hopes the budget tightening that started in 2003 continues under the new governor, adding that “some things will go away and not be funded anymore, but that happens in business and families, too, because they have to live within their means.”

Workers’ compensation is a major issue for businesses, he said, particularly because another large rate increase is expected next year.

“Another big one is education. We need to add enrollment for universities and community colleges. By 2008, we need an additional 30,000 slots. I think we’re going to see a combination of higher tuition for the kids and more state money, it’s almost inevitable,” Brunell said.

Transportation, too, is a major concern for Brunell and the AWB, which has 4,200 members. Of those, 85 percent employ fewer than 100, with 33 percent employing fewer than 10.

“We may need tolls to pay for new transportation projects, as we did when we paid off the SR-520 bridge over Lake Washington, except tolls may need to be kept on for maintenance costs, not dropped when bonds are paid off, creating funds for upkeep,” he said.

Also, for better accountability, more agency directors need to be appointed by the governor, Brunell suggested, including the directors of transportation, fish and game, and the superintendent of public instruction.

“The state’s gotten into a lot of trouble before because with the present structure nobody could make the decisions that were needed. Like the CEO of a corporation, the governor needs to be able to hold directors responsible, rather than having a commission to deal with,” he said. “Good people need to be appointed and given the authority, or we won’t get the changes we need.”

As for the regulatory burden in the state, Brunell sees a need to reduce it, particularly to eliminate the mindset of one-upmanship that allows state officials to make Washington regulations more restrictive than federal ones, adding more cost for state businesses.

“The new governor has to streamline government, gain control and not defend the status quo,” he said. “Twenty years ago, the Department of Licensing had everyone standing in the same line for a license. Today, segmented lines move people through more quickly, and state people have been trained to look at customer needs. That made a big difference. We need more of that.”

After September’s primary, the two remaining candidates for governor will participate in an Association of Washington Business-sponsored debate Sept. 23 at Semiahmoo Resort near Blaine. Further information is available on the association’s Web site, www.awb.org.

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