Washington state looks to do more for Boeing after huge tax breaks

OLYMPIA, Wash.—Even after giving Boeing Co. one of the largest packages of tax breaks in U.S. history, state leaders in Washington told the aerospace giant in a proposal that they were ready to do even more.

In the 164-page proposal obtained under public disclosure laws, Gov. Jay Inslee and his administration vowed to work with Boeing on water quality issues, workers’ compensation costs and improved transportation infrastructure.

State officials identified more than $4-billion in possible transportation projects that they deemed “key to Boeing’s success in Washington state.”

“Washington’s government is stable and is dedicated to partnering with Boeing and its supply chain to create the most competitive economic environment possible,” officials wrote in the pitch.

Washington leaders approved $9-billion in tax breaks in November to aid Boeing, and the additional written proposal was designed to woo Boeing as the company considered competing bids from other states interested in attracting work.

The bidding process became unnecessary after machinists in Puget Sound voted earlier this month to approve contract concessions that led to a promise by Boeing to build the 777X in the region.

The latest proposal from the Inslee administration raised issues such as water quality that have been sensitive for the governor and his fellow Democrats.

“We are eager to partner with Boeing to better understand the company’s specific challenges and to develop reasonable and rational water quality regulations that protect the health of Washingtonians without unduly impacting the company and other economic engines of our state,” officials wrote.

For years, state officials have been studying the water quality standards influenced by estimates of how much fish people eat.

Washington’s estimate is that average fish consumption amounts to just 8 ounces—roughly one fillet—per person, per month.

Environmental groups are pushing federal and state officials to adopt more realistic estimates, something that could force changes in water quality rules.

Boeing has expressed concern about the state process for updating the fish consumption standards.

While much of Inslee’s career has been built around environmental stewardship, his administration said in its recent pitch to Boeing that officials “are concerned about any potential impacts that these updated standards could have on Boeing operations.”

Democrats in the Legislature have also balked at further changes to the workers’ compensation system after a 2011 overhaul designed to reduce costs.

Republicans in the state Senate have proposed further changes, and Inslee’s administration said in its Boeing pitch that it was committed to working with Boeing to identify and implement further cost-saving measures.

Washington’s pitch identified several potential sites for Boeing 777X production and support facilities in the state, including areas in Everett, Renton, Auburn, Frederickson, Seattle and West Spokane, which officials deemed a lower-cost alternative to Everett.

State officials touted the company’s century-long ties with the region, its large aerospace workforce, broad college training programs, ports and hydroelectric power as some of the other reasons Boeing should stay in Washington.