Olympia Business Watch

Brunell: GPS needs to control our skies, too

The GPS unit in your car is more advanced than the technology used by air traffic controllers.

That's something to think about the next time you're on a commercial airliner, AWB President Don Brunell writes in his weekly column.

It doesn't have to stay this way. Congress approved a new GPS air traffic control system known as NextGen in 2003, but it has yet to be fully implemented, partly because of the cost -- $40 billion -- and also due to bureaucracy.

Nevertheless, it's an investment well worth making, Brunell writes. Congestion and weather delays tied to the limitations of radar cost airlines and consumers almost $10 billion last year.

Some airlines are moving ahead. Alaska Airlines is using GPS to assist with landing at Juneau International Airport, and the company said it prevented 729 flight cancellations last year.

"This is an opportunity for the FAA to demonstrate that it understands the importance of efficiency, precise information and a timely response," Brunell writes, "in our air traffic control system and in our federal bureacracy."

Brunell: Good news, bad news about cars

Today's cars are safer, more fuel-efficient and emit fewer greenhouse gases than ever before. That's the good news, AWB President Don Brunell writes in his weekly column.

The bad news is that the state's highway system has relied for decades on gas taxes to pay for construction and maintenance.

When cars got 10 or 12 miles per gallon, there was plenty of money to pay for projects, Brunell writes. But now that they're more efficient, they use less gas -- so there is less coming in to pay for highway projects.

And the problem will only grow as alternative fuel vehicles become more popular.

So what's the answer?

First, alternative fuel vehicles must pay their fair share. Tolls and special HOT (high occupancy tolls) lanes must also be part of the equation. Finally, transit schedules need to be adjusted so that buses and ferries no longer run at times when they are virtually empty.

"The good news is we have the technology," Brunell writes. "The bad news is we take too long to study, approve and build anything."

Brunell: Will America still aspire to space greatness?

Given the country's $14 trillion budget deficit, coming up with the $18 billion needed to launch a test flight of NASA's new space launch system could be a challenge, AWB President Don Brunell writes in his weekly column.

And that's just the beginning. The total price tag for the rocket program that would eventually carry U.S. astronauts to Mars is currently estimated at $35 billion, and it could cost more than $60 billion for an accelerated program.

Why spend the money?

For starters, the U.S. space program has solidified America's leadership role in the world, fostered incredible advances in science and technology, produced thousands of innovations and products we use in our daily lives, and inspired millions of American youth to pursue careers in science and math, Brunell writes.

In addition, we have a clear lead in space. So as other nations emphasize innovation as they attempt to attract research and development, America already has the space technology and R&D here.

Finally, reaching beyond our planet to the stars has long been part of our greatness as a nation.

Our struggles with debt and China's ambitious space agenda are prompting Brunell to wonder, "Do we as a nation still aspire to greatness in space and beyond?"

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.

Stormwater tax returns: Deja vu in Olympia

It's back. Only now it's called a fee instead of a tax.

A proposal to levy a 1 percent fee on the wholesale value of pesticides, herbicides, fertilizers and petroleum products has returned to the Legislature this year following similar failed attempts the last two years.

Backers of the idea want to generate hundreds of millions of dollars in new revenue to fund stormwater cleanup projects throughout the state. No one is opposed to cleaning up Washington's water, but the targeted agriculture and petroleum-related businesses that would be hit with a huge new tax -- one that would raise $345 million over the next two years -- are crying foul, telling lawmakers that it's not fair to make them pay for what's really everyone's problem.

"SB 5604 unfairly singles out two industries, namely petroleum and agriculture, and forces them to pay for a societal problem," Grant Nelson, AWB's government affairs director, told lawmakers Thursday during a meeting of the Senate Ways & Means Committee.

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.

Rewind: Video from Sen. Brown and Rep. Springer's visit

As noted on the blog yesterday, the Senate and House are taking different approaches to the debate over unemployment insurance. Here is a video clip of Sen. Lisa Brown, D-Spokane, describing the Senate's position (a two-bill approach) to AWB members.

Sen. Lisa Brown Highlights: Unemployment Insurance from Association of Washington Busine on Vimeo.

Rep. Larry Springer, D-Kirkland, told the same audience that House members are still hoping to address unemployment insurance with one bill - and be done with it for the session.

Rep. Larry Springer Highlights: Unemployment Insurance from Association of Washington Business on Vimeo.

A few other highlights:

AP legislative preview offers glimpse of the challenge facing lawmakers

Are taxes really off the table? And what does government reform really mean?

The leaders of the state's legislative caucuses answered questions from the state's press corps this morning during the annual Associated Press legislative preview, and their comments helped illustrate the challenges that lie ahead for them during the 2011 session.

The bipartisan panel seemed to agree that government reform is essential if lawmakers hope to address the estimated $4.6 billion shortfall in the 2011-13 budget, but they showed a reluctance to address some major elements of the budget.

When asked whether state employees should give up more and whether lawmakers should discuss doing away with collective bargaining, Sen. Lisa Brown, D-Spokane, said that wouldn't solve the problem. "Collective bargaining is not the fundamental cause for the situation we're in," Brown said.

Regarding the Basic Health and Disability Lifeline, the social service program formerly known as General Assistance - Unemployable, House Speaker Frank Chopp, D-Seattle, strongly defended the programs, saying thousands of people are depending on them.

On the Republican side, Walla Walla Sen. Mike Hewitt and Chehalis Rep. Richard DeBolt spoke up for levy equalization, which helps less affluent school districts. "This is one we know we will fight to the death on," DeBolt said.

Brunell: Electric cars will be a shock to the grid

Electric cars like the new Nissan Leaf and Chevy Volt may well be the future of the automobile, AWB President Don Brunell write in his weekly column. But they are not necessarily a panacea, in part because of their appetite for electricity.

Many view electric cars as a way to reduce greenhouse gas emissions, but the Edison Institute estimates that driving 10,000 miles in an electric car will use about 2,500 kilowatt-hours of electricity, or 20 percent more than the average home uses in a year.

That electricy must come from power plants, but many of the same activists who promote electric cars are working to constrict the generation of electricity, Brunell writes. Some of them shun hydropower, which supplies 70 percent of our state's electricity.

Ironically, the abundance of Washington's cheap, renewable hydropower was a major reason that German automaker BMW and partner SGL Group chose Moses Lake to make carbon fiber for its upcoming electric-powered Megacity commuter car.

There is little doubt that electric cars are the wave of the future, but there are trade-offs, Brunell writes. "Failing to deal with those trade-offs will only compound our growing problem of supplying adequate electricity to our factories, hospitals, businesses and homes — and cars."

 

Alaska Air listed among notable recession survivors

Sea-Tac-based Alaska Airlines is one of 10 companies labeled "Back From the Brink" by U.S. News & World Report.

"It's been a bumpy decade for most airlines," the article notes, citing spikes in fuel prices and a plunge in travel. But after suffering losses in 2006 and 2008, Alaska turned a profit last year and its stock price is up 135 percent over the last two years thanks to cost-cutting and other measures.

Alaska, an AWB member, is the only airline and the only Northwest company to make the list of notable recession survivors. Others include Ford Motor Co, E-Trade (the online brokerage with the talking baby television spots), Corning and Jo-Ann Stores.

The list identified companies that "stared into the abyss -- and backed away from it on their own power."

Specifically, the magazine looked for companies that ranked near the bottom on Standard & Poor's long-term debt ratings and quality rankings over the past two years, but whose quality or debt rating has improved recently.

It cast a dim view on companies that survived only because of a government bailout.

The listing is only the latest bit of good news for Alaska. The company is also winning praise for turning around its on-time performance, going from dead last a few years ago to among the top performers, according to The News Tribune.

And the airline was recently named one of the greenest in the country thanks to its fuel-efficient fleet and recycling efforts.