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What we can do to stimulate
our state economy
Rep. Jaime Herrera
Our state faces an
unprecedented budget crisis and economic elements that are impacting
Southwest Washington families, farmers and small businesses. As we
weather this storm together, I’d like to share what I believe we can do
to get our state finances in order and grow our economy.
An
important starting point is an understanding that our state budget and
economy are closely related. If state lawmakers cannot control spending,
they cannot control taxes. And if taxes run out of control, the
financial burdens will fall on families and employers. This outcome will
lead to less consumer spending, higher unemployment, and more budget and
economic problems.
This is why I support taking tax increases
off the table for the state’s 2009-11 budget. Our budget crisis offers
us an opportunity to commit to a more prioritized state government that
focuses on education, transportation, public safety and the protection
of our most vulnerable citizens. Taxpayers deserve the assurance that
their contributions are being used wisely by state government.
A
no-new-taxes approach also includes not allowing any existing tax
incentives to expire or be terminated. Many of these incentives are
vital parts of business plans across our state and have helped pave the
way for job creation and business growth.
It’s also time for
state lawmakers to finally act on the concerns of the business
community. In good economic times, these concerns were unfortunately
pushed aside. Today, it’s vital they are addressed. If we don’t, our
economic problems will only get worse.
When I talk to local
business leaders, they don’t want a bailout – they just want for
government to untangle many of its costly and time-consuming rules and
regulations. Problems with our state’s one-of-a-kind business and
occupation tax, new storm water run-off rules, Growth Management Act,
and unemployment insurance and workers’ compensation systems are but a
few of these. Not only are these systems difficult for our existing
employers, they send the wrong message to outside businesses that might
be interested in relocating to our state.
A lot has been made of
so-called stimulus plans. Our governor’s plan, “Washington Jobs Now,”
would basically accelerate construction and transportation projects in
our state capital budget. While I support these shovel-ready
infrastructure improvements, they aren’t going to do enough for the
worker who just lost his or her job at Hewlett-Packard.
We must
be sure that any funding that comes to our region is in the form of a
true stimulus plan – not just a spending plan. Despite earlier federal
bailouts and rescues, home prices have plummeted and banks are asking
for more money. We must get it right this time. If we are going to use
taxpayer dollars, we need to provide something of lasting value and,
most importantly, allow families and employers to keep more of what they
earn.
Again, a true stimulus package isn’t just about spending –
it’s about empowering employers. For example, local business leaders
have told me they want to utilize tax increment financing options to
drive economic development. I agree with them. The focus must be on
creating family-wage jobs that are sustainable and lead to future
economic growth.
The road ahead won’t be easy, but we will reach
our destination. We must brace for the worst, and do everything in our
power to prevent it. I’m optimistic though. Adversity has always brought
the best out in our communities, and our state will emerge stronger from
its budget and economic decisions this year. I encourage you to stay
tuned, be involved and contact me if you ever have any ideas or
questions.
Rep. Jaime Herrera, R-Ridgefield, represents the
18th Legislative District. She can be contacted at (360) 786-7850 or
herrera.jaime@leg.wa.gov
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For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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