PRESS RELEASE

January 21, 2004

Details of Boeing agreement revealed

OLYMPIA—The Evergreen Freedom Foundation has obtained details of the state's agreement with Boeing, which the state has tried to keep secret. The agreement confirms that a $3.2 billion tax break and long-needed unemployment insurance reforms were not enough to convince Boeing to continue doing business in our state.

Some of the "extras" in the contract include:

• Seven full-time employees hired by the state (with Boeing's approval) to expedite the company's permitting requests; coordinate workforce training; work on the company's transportation needs; provide advice and consulting on state tax policy, pursue and apply for grants, coordinate relations between the company and state and local governments, etc.
  
  
• Special exemptions from sales, use and property taxes.
  
  
• Rate freezes for water, sewer, wastewater treatment and solid waste services.
  
  
• Favorable treatment in environmental impact analyses.
  
  
• State payment and management for all recruitment, screening and training of the workforce needed for Boeing's 7E7 project.
  
  
• A state-bought (or built) facility to serve as Boeing's Employment Resource Center, with all costs associated with operation, maintenance and repair of the facility paid for by the state.
  
  
• A provision instructing all parties with access to "withhold or redact" all details of the agreement "to the fullest extent permitted by law."

"Our state's business climate is so bad that despite a highly publicized $3 billion tax break and unemployment insurance reforms, the governor had to cut a special deal and hire seven full-time employees to run interference for Boeing," said Bob Williams, EFF's president. "Now what about all the other businesses that are barely surviving under Washington's onerous tax, regulatory and permitting policies? Who will run interference for them and the families they employ?"

Governor Locke has stated his special agreement with Boeing is responsible for safeguarding 200,000 state jobs.

"Boeing jobs are crucial to our state, but so are the others that have not been afforded the governor's special protection," said Williams. "If the Tumwater Brewery had enjoyed even a few of the provisions granted to Boeing, it would still be here. That's 400 jobs! We've lost more than 90,000 manufacturing jobs under Locke's administration."

EFF contends that the state's deal with Boeing is unconstitutional because it gives the company special treatment not afforded to other businesses.

"This is inequality under the law," said Williams. "We're not saying the legitimate reforms granted to Boeing should be undone. We're saying ease the burden on other businesses as well. Businesses don't need corporate welfare at the expense of taxpayers, they need freedom to compete."

Contact: Marsha Richards | Communications Director | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org