Olympia Business Watch

Innovation schools share insights at AWB Legislative Day

Too often, it's what's not working in public schools that grabs the headlines or the spotlight.

Today, though, at AWB's Legislative Day education panel, it was all about what is working -- and why we need to do more of it. The panel was moderated by AWB Education Committee Chair Natalie McNair-Huff of True Blue, Inc. and sponsored by K12 Virtual Academies.

Representatives from Tacoma's Science and Math Institute (SAMI) and the Delta High School in Richland shared with AWB members how they've been successful in moving students of all backgrounds and education levels to success in their unique schools.

SAMI, a partnership between Tacoma Public Schools and Tacoma Metro Parks that began in 2009, capitalizes on one of the state's largest parks (Point Defiance Zoo and Aquarium), as well as partnerships with local universities, to help students focus on science and mathematics through experiential learning. The school is modeled after the district's other successful innovative school, the Tacoma School of the Arts. Students apply during their eighth-grade year to attend SAMI. School days are a little longer, and students are encouraged to apply for internships, participate in seminars and travel regionally or internationally, as part of the school's focus on applied learning.

Jon Ketler, principal of Stewat Middle School, spoke to the progam's power to catpture the attention of students for who school and/or homeowrk is not a priority at home, or for whom traditional K-12 environments have not been successful.

"How do you get those students engaged in their own educational experience? That's the question," said Ketler. "As the adults, we have to help them see those learning opportunities that they may not have."

The Delta High School, a joint partnership of the Richland, Pasco and Kennetwick school districts, was developed around the fields of science, technology, engineering and math (STEM). The school relies heavily on partnerships with area businesses and government entities -- such as Batelle and Pacific Northwest National Labs -- to provide professional guidance, mentors and advisors.

Who are the advocates for local control of public schools?

When it comes to local control, Washingtonians have remained steadfast in their "local is best" mindset -- except, it would seem, for K-12 accountability.

While most people in our state would likely agree local control is better, Washington has deferred our public school accountability system to the feds. Under No Child Left Behind, Washington is required to have a plan that conforms with the federal requirements, leaving the decisions over poor performance and those in need of corrective action up to the federal Department of Education. This is truly unfortunate, according to Donna Steward, AWB's government affairs director for education, because with the current governance structure in Washington, no one is really responsible -- or accountable -- for making sure students succeed. 

Remember, the governor may advocate for stronger education policy through the Legislature, but she has no control over OSPI. OSPI may advocate for policy but has no clear accountability for school performance, no control over the education budget and no real way to improve school performance. And the State Board of Education has weak laws and few tools to assist in school oversight responsibilities and no clear lines of authority to intervene in a persistently low-performing school.

This situation was exemplified last week when OSPI's Bob Harmon testified before the House Education Committee. As Harmon notes in his testimony (begins at 47:57), Washington, has “enjoyed being able to blame” the feds and the state should carefully consider whether it wants to assume responsibility for its own accountability system. One of the downsides to seeking a waiver from federal education laws, Harmon says, is that the state would have to develop and be responsible for its own accountability system.

AWB believes the key to improving school performance is to develop clear lines of governance and accountability. Currently no one is truly in charge, Steward said. 

Perhaps the answer to our performance concerns, Steward said, would be best addressed by fixing this systemic problem first, and then finding the leadership with the courage necessary to implement the accountability requirements our students deserve.

McKenna, fresh from campaign kickoff, shares his 'New Direction' with AWB

On Tuesday, Rob McKenna reportedly served up "some familiar Association of Washington Business-style bromides" regarding government regulation.

That's how the Seattle P-I.com described part of the attorney general's breakfast speech kicking off his 2012 gubernatorial campaign, anyway.

On Wednesday, McKenna stopped by AWB's office in Olympia for a lunchtime visit with some of the state's business leaders, and he took aim at the remark.

"I just have to point out that people who write things like that have never been in a position to deal with the regulations that we're talking about here, as all of you have, as I have been as private legal counsel to small businesses and large companies," McKenna said. "This is not an abstract or hypothetical or idealogical issue. It is real and it has to be addressed in a real fashion."

McKenna makes it clear how he would address the problem in one of three white papers that lay the foundation for his campaign. The first of the papers, A New Direction for Job Creation in Washington State, offers a detailed list of proposals aimed at reducing unemployment.

They include an examination of regulatory policy, as well as competitive tax reform, ending the state monopoly on workers' compensation and liability reform.

But just as he did Tueday in his kick-off speech, McKenna spent much of his time Wednesday talking about education issues.

Gregoire: Now more than ever, we must work together

Gov. Chris Gregoire blasted Congress for "failing to do what needed to be done in August," and she called on Washingtonians to work together to solve the state's budget problems during her luncheon address Wednesday to AWB members.

"Now more than ever, we can only get through the challenges ahead if we work together," Gregoire said during AWB's annual Policy Summit.

Her comments came after last week's news that state revenue projection dropped another $1.4 billion, raising the estimated budget shortfall to nearly $2 billion.

The forecast brought immediate talk of a possible special session of the Legislature, but Gregoire said she doesn't intend to call lawmakers to Olympia before the next forecast in November. Later in the afternoon came confirmation that Gregoire will call lawmakers back to Olympia in November for a 30-day special session.

"It's not a small, supplemental budget where you tinker, it is a new budget," she said.

Richland's PNNL is a big advantage for business

More efficient diesel engines. Scanners that check cars at the U.S.-Canada border for nuclear material.  And eventually, a smarter electric grid.

Those are a few of the ways that research from Richland-based Pacific Northwest National Laboratory is contributing to the community, Mike Kluse, the lab director, told AWB members Wednesday during the annual Policy Summit.

The lab, one of just 10 national labs in the country, is working on groundbreaking research on everything from national security to energy. It's important for the business community to work with researchers to make sure their discoveries make it into the marketplace, Kluse said.

"Having a national lab in your backyard is a rare and valuable advantage," he said. "We want to help you."

The lab is a unique public-private partnership. It's been run by Columbus, Ohio-based Battelle since 1965 under a contract from the federal government. It employs more than, 4,900 people, and it's been growing fast in recent years, adding staff and buildings to its Richland campus.

Kluse offered AWB members a glimpse into the kind of research being done at the lab to develop a smarter electric grid and better batteries for electric vehicles. The goal, he said, is to develop game-changing science that is linked to the marketplace.

"Partner with us," he implored the audience. "Help commercialize our technology. Bring jobs to all corners of Washington. We clearly are a resource for every one of you."

Like other speakers at the Policy Summit, Kluse was bullish about Washington.

"This state is well-positioned for the future," he said. "The question is whether we have the collective will to make it happen."

Brunell: Jobs for college grads growing at a snail's pace

The nation's ongoing struggle with high unemployment is hitting recent college graduates particularly hard, AWB President Don Brunell writes in his weekly column.

He notes a recent New York Times report that just over 55 percent of 2009 graduates younger than 25 are working in a field requiring a college degree, and nearly a quarter of them are not working at all.

At the same time, there is evidence that America's unemployment rate may not be cyclical, but rather a sign of a new "structural joblessness," Brunell writes. In other words, the number of people unemployed indefinitely is up irrespective of economic times.

One answer to the problem is for government to unshackle the private sector and let it create new jobs. Brunell quotes Martin Regalia, the chief economist for the the U.S. Chamber of Commerce, who says that new government regulations and mandates are stifling job growth.

 "Regalia is correct," Brunell writes. "Unless America empowers the private sector to invest and create new products and jobs, our nation will continue to deal with an anemic job market."

Lawmakers look to tolling, fees to fund transportation

Three of the state's top lawmakers on transportation issues stopped by AWB today to talk about everything from Highway 520 and tolling to the ferry system and the need in the not-too-distant future for a new source of revenue.

Like other discussions in Olympia that involve money, it wasn't exactly an upbeat discussion.

"The good news is our budget isn't as bad as the other budget," Sen. Mary Margaret Haugen, D-Camano Island, said comparing the upcoming state transportation budget to general fund budget. "The bad news is we're broke, too."

Haugen, chairwoman of the Senate Transportation Committee, was joined by Sen. Curtis King, R-Yakima, the ranking minority member of the committee, and Rep. Mike Armstrong, R-Wenatchee, ranking minority member of the House Transportation Committee.

The state needs money, lots of money, to address all of its transportation issues. The statewide total is about $160 billion, Armstrong said. Look for this year's transportation budget to be in the range of $7 billion, he said.

Some of that money could from fees. A bill proposing a 25 cent surcharge on ferry passengers could help finance construction of new ferries, Haugen said.

Rewind: Video from state Auditor Brian Sonntag's visit

Yesterday, State Auditor Brian Sonntag addressed AWB's Lobby Lunch crowd. He began by confirming that the state's financial health is not very good. He's got numbers to support the diagnosis.

Auditor Brian Sonntag: State Financial Outlook from Association of WA Business on Vimeo.

Sonntag says the state Employment Security Department is not adequately verifying eligibility of those receiving unemployment payments. With $4.7 billion paid out annually in unemployment benefits, that's a lot of money at risk. Also: The Department of Social and Health Services is not tracking and collecting inadvertent over-payments made to its workers.

Auditor Brian Sonntag: Audits of ESD and DSHS from Association of WA Business on Vimeo.

Sonntag wishes state would stop talking, start acting on reform

In the year since he last spoke at AWB's Lobby Lunch meeting, little has changed except the numbers, state Auditor Brian Sonntag said Thursday.

The state's overall finances remain in sorry condition, the workers' compensation system -- which he warned more than a year ago is in danger of insolvency -- is no better off, and officials continue to spend more time talking about government reform than implementing it.

On the bright side, Sonntag said his office is uniquely positioned to help. He mentioned several reports already produced and some that will soon be out that recommend ways to save money and improve efficiencey. Among them:

• A report on health benefits for teachers and other school employees. His office found that Washington's 295 school districts pay about $1.2 billion in employee health benefits to more than 1,000 different pools, 200 separate medical plans and 10 insurance companies. Making the plans more consistent and bringing them in line with other could save the state $180 million per biennium, he said -- enough to pay salary and benefits for 1,000 teachers.
• A report due out next month will look at the $30 million the state's workers' compensation program pays for prescription drugs, and recommend millions in recommended efficiences.
• Tax amnesty: When he brought up the idea last year, it failed to gain traction. This year, Sonntag noted that the governor's budget includes $24 million in anticipated revenue from a tax amnesty program.

Gov. Gregoire's Keynote Remarks at AWB's 2011 Legislative Day

(Recorded: Feb. 03, 2011) Gov. Chris Gregoire’s keynote remarks at AWB's annual Legislative Day luncheon. Topics include unemployment insurance, workers' compensation, state employee pensions and education.