Gov. Chris Gregoire keynotes the 2008 Economic Development and Workforce Conference

September 4, 2008

Good morning, and thank you for the kind introduction.

Let me first acknowledge the hard work that went into this conference.

And I�d like to thank all the volunteer members of local Workforce Development Councils and the state Workforce Board.

The local councils and the state board are critical to our business plan � Next Washington.

I also want to thank our Economic Development Councils, CTED, and others who work so hard to make our economy stronger.

You help us bring business and labor to the table so we can learn how best to deploy our resources to create good jobs in Washington, and strengthen families and communities.

So especially to the volunteers -- thanks for showing up once again to help us do the hard work on behalf of fellow Washingtonians.

Speaking of showing up � I found out -- in a most unusual way -- this summer that there are actually people out there who doubt whether I�ll show up.

I went to an event and this is what happened:

You know, I can�t think of a more vital time than right now for us to come together and strategize about where we need to go next to keep Washington families working and businesses growing in every nook and cranny of our state.

And in the past nearly four years, we have established one heck of a foundation to work from.

In case you missed it, Forbes Magazine � easily one of the most respected business magazines in the country � this summer moved us from 5th place to 3rd place as the best state to do business.

This was no accident!

We recognized early that our job is to promote two basic engines in our very unique economy � International Trade and business diversity � not just in types of businesses, but in where they are.

And we have succeeded. We doubled the export of Washington products from wheat to airplanes since 2004. In fact, our exports increased 30 percent from last June to this June alone!

The entire state is benefiting � not just the Puget Sound region with its airplanes, software, and 18-wheeler trucks.

Growers in Eastern Washington are doing better than they have in years, and the Spokane and Vancouver areas are exporting machinery and microchips.

The sheer diversity of our economy is amazing, and all of you here today can take pride in the work you do to help businesses grow and hire the employees they need.

It�s certainly poetic that this year�s Economic Development Conference is here in Lynnwood. Because Snohomish County is a shining example of innovation and economic diversity.

Last night, many of you enjoyed the hospitality of the Snohomish County hosts and saw some of the remarkable achievements here.

What I like about the economic development story here is partnerships -- the Washington Way -- linking public and private sectors, state and local, economic and workforce development.

There is just one county in the state with two innovation partnership zones. Care to guess which county? Snohomish!

And these are not run of the mill efforts. The Aerospace zone is home to the best aerospace prime contractor in the world. The Medical Devices zone just may prove to be the most exciting of the new zones when we look back a few years from now.

Snohomish is home to leading-edge manufacturing, but also some of the world's highest quality agricultural products.

This county also embodies one of my favorite combinations -- economic prosperity and environmental stewardship.

In Washington, we never choose between a fabulous environment and a thriving economy. We want both. So not only are we ranked third by Forbes as a place to do business but as one of the top three greenest states in the country.

Here's how that works: Up the road to the north, you'll find a thriving, innovative aerospace cluster and to the south a thriving innovative medical devices cluster.

And to the east, the latest addition to wild and scenic areas, the Wild Sky Wilderness area along the Skykomish River.

It�s clear to see that Snohomish County�s economy is unique � but so is the wine country of Walla Walla, the wheat lands of the Palouse, and the innovative start-up cultures of Spokane, Tacoma, Seattle, Vancouver, and Bellingham.

And in the past nearly four years, we have taken big steps to keep building on our unique strengths.

And the proof is in the pudding. We have created 225,000 new jobs in this state since 2005, while Michigan and Ohio lost more than 600,000.

We have invested in economic development programs, and created and invested in 11 Innovation Partnership Zones.

We have launched my Life Science Discovery Fund, which already is funding work on medical breakthroughs and ways to better feed a hungry world.

And we are leading in the nation with our framework to take on global warming.

Global Health�Green Economy. These are our opportunities and these are our future.

We have worked hard with our community colleges and four-year universities to help us build a workforce that can thrive in a global economy.

I mentioned that now is absolutely the time for us to buckle down and work even harder to build on our strong foundation.

There is no question that the national economy continues to struggle, and because we�re not an island, it�s affecting us too.

Washingtonians are understandably nervous. They watch the news on TV, and they certainly feel the impact of higher gas and food prices and a weaker housing market (though, we are still 49th in the nation in home foreclosures).

Meanwhile, there are places around the country where whole neighborhoods are vacant � all homes lost to foreclosure. Merced, California has thousands of homes in foreclosure and the median price has plunged by 50 percent! (NYT, Sunday, Aug. 24)

Compared to that, Washington real estate is more than holding its own.

But the fact is, Washingtonians are spending less � and it is showing up in our tax receipts.

Receipts are down, but we�re adjusting. Many of you in this room work for state government � so you know we have instituted a hiring freeze and taken other steps to ensure we have a strong surplus.

But let me be clear. We are still the envy of 30 other states who are dealing with big budget deficits while we sit on an $800 million surplus.

At the same time, we have made the right investments to meet the goals of our business plan � world-class, learner-focused education, health care, economic development, public safety, and quality of life.

With your help, we will continue to make Washington a place that is �Open for Business.�

A place where Washingtonians can find rewarding jobs to support their families.

I want you to know, I�ll keep working � across the aisle, across the state, and across the oceans.

Thank you,