The Economy and Jobs

I decided to run for office after hearing too much bad news about the economy: federal budget deficits spiral out of control– banks post record losses from mortgage and banking crisis– record foreclosures on home mortgages– collapse in home values worst since the Great Depression– value of dollar plummets– oil companies post record profits– 2 out of 3 corporations not paying income taxes (reported by the Government Accountability Office)– top 1% wealthiest households granted over $1 trillion in tax cuts– cost estimated at $4.3 trillion over next 10 years– paid for with cuts to programs for workers, seniors, veterans, the unemployed, and people with disabilities.

Conservative economic policies have wreaked havoc throughout the economy, and the economic outlook is getting worse every day. Borrowing from foreign investors to provide tax cuts to the wealthy led to the collapse of the dollar and the subprime mortgage meltdown. That's the main reason homes are worth much less now, and you're paying $4.00 for a gallon of gas.

The problem may be global, but the solution is local. As an economist, I believe we need to focus our efforts on building a sustainable local economy and preventing fiscal mismanagement from damaging the outlook here in Washington. The best way to ensure economic growth and prosperity in the future is through wise public investment today- in quality education, transportation and infrastructure, affordable housing and health care, and energy independence.

Investing locally in the community provides long-term financial stability and adds to the tax base. We get a return on this investment in the form of increased employment and economic activity. That's the reason Washington was ranked the third best state for doing business by Forbes Magazine, and second in the nation for labor and business growth prospects.

We can do more to support small businesses, promote energy efficiency and sustainability, and help people acquire the skills and education needed to get decent jobs that pay living wages. This will in turn generate future economic growth and attract quality employers.

Fiscal Responsibility

This year the City of Vancouver is facing a structural deficit of over $6 million. Since 2001, city departments excluding police and fire have absorbed a combined $14 million in cuts. As reported in the Columbian, the factors contributing to the Vancouver’s budget shortfall:

• An estimated $40 million has been lost in the past 7 years as a result of two voter initiatives, one capping property tax increases, the other lowering car tabs to $30 each.
• An estimated $67 million has been lost in 10 years as the city phased out the local business and occupation tax.
• Vancouver loses an estimated $10 million a year in sales tax revenue as shoppers travel to sales-tax-free Oregon.

Taxpayers have a right to vote on tax increases. They should also vote on how taxes should be cut. When politicians promise to cut taxes, be sure to ask them: what government services are they willing to live without? Do they want to shut down schools? Lay off teachers, police officers, and firefighters? Stop paving our roads and maintaining infrastructure? Cut their own salaries? How do they plan to make up the lost revenue?

Taxes represent an investment in our future and our children's future. They are the dues that we pay for education, public services, and infrastructure. Tax cuts don't solve economic problems, they often create them by increasing borrowing costs. It’s irresponsible to cut taxes unless we’re willing to live without essential government services.

With proper planning, tax increases shouldn't be necessary. I support balancing the state budget by closing tax loopholes and saving surpluses in a “rainy day fund". We should be proud that our state earned the highest possible ranking from the Pew Center for management of state resources during Governor Gregoire's term of office.

Tax Fairness

We need to stabilize state revenues to ensure funding for basic priorities like education, public safety, and infrastructure. But current sales and property taxes in Washington are unfair to people with low or fixed incomes, who pay a disproportionate share of taxes. This is especially difficult for seniors and retirees. The solution is to provide sales and property tax relief (often called a "circuit breaker") to people with low or fixed incomes in a way that is revenue- neutral to the state treasury. For details, visit the Washington Tax Fairness Coalition.

Quality Education

Did you know that Washington's teachers are paid $3,000 less than the national average and $12,000 less than the average west coast teacher? Or that the Evergreen School District is facing a budget shortfall of $2 million next year, while one-third of our students are in portable classrooms? Our state ranks 45th in the nation in per student expenditures, and 46th in the nation for average class size. We want our students to get a top quality education, but it's getting more difficult each year to recruit and retain the best teachers under these conditions.

We must find ways to stabilize funding for education so that we can get our students out of portable classrooms, pay our teachers competitive salaries, and reduce class sizes. I will work to prioritize basic education expenditures within the state appropriations process and establish a strategic direction for higher education that will account for changes in demographics and workforce requirements.

Transportation and Infrastructure

Our infrastructure is crumbling and choking off future economic growth. On average, 47,000 jobs are created for every $1 billion invested in infrastucture. We need to expand the Public Works Trust Fund to finance projects that will attract new businesses and support existing ones.

I also support expansion of the Port of Vancouver, which will add between 4,000-5,000 jobs within the next 15 years. The Port currently provides about 2,300 direct jobs, $82 million in annual tax revenue, and nearly $99 million in annual payroll income to local residents. 

To support future job growth in Clark County, we need to be able move more people and goods along the I-5 corridor. I support the recommendations of the Columbia River Crossing Task Force for the I-5 replacement bridge. Recent polls show that a majority of Vancouver residents want to replace the bridge and include public transit. They understand that sound public investment will create jobs, expand our economy, and pay off for generations to come.

Affordable Health Care

Too many hard working people go without health insurance because neither they nor their employers can afford to pay for it. To make matters worse, Clark County’s public health department announced recently that it will have to cover a $4.8 million budget shortfall by cutting staff and services. The high cost of health care makes it difficult for employers to compete in the global economy. I support the Health Insurance Partnership, which would provide low-cost health care options to all Washington residents.

Affordable Housing

The Housing Trust Fund and the Washington Families Fund are examples of public-private partnerships that have helped many low income families find affordable housing. I work with the Southwest Washington Community Land Trust and the Northwest Cooperative Development Center to build homes that will be permanently affordable for future generations.

Energy Independence

Washington residents export millions of hard-earned dollars to oil companies and oil-rich nations. We could instead invest those dollars locally and produce biofuels from wood and yard waste, straw, trash, and manure. Washington's tremendous wind and solar resources should be tapped to meet future demand for electricity. Wind power is already one of the fastest growing industries in the state, and it's creating great new jobs. We can boost the local economy by developing renewable energy resources to power the next generation of automobiles and public transit.

Public Safety

Our police and fire divisions are inadequately staffed to meet current service demands, and unless steps are taken to remedy the budget shortfall, the Vancouver Police Department will have to reduce its operating budget by $2.3 million and reassign several police officers. We have an obligation to insure that basic fire and police services are adequately staffed to provide quality services. We need to find ways to stabilize funding for public safety to meet the needs of a growing population.

Climate Action

Climate change is real, and it's one of the planet's greatest environmental threats. I worked in West Africa 25 years ago with people who were already suffering the consequences of climate change. They could no longer grow traditional food crops and their wells were dry. Our energy consumption caused them to become "environmental refugees" and move away from a place that had been their home for hundreds of years. What if that happened here?

After that experience, I can't help but think about the global consequences of our actions. Our own forests are stressed and glaciers are disappearing. We need to do more to promote energy independence and sustainability. Some people think it's got to be jobs or the environment. Our state has proven that we can have both. The Climate Action and Green Jobs bill that just passed the legislature is a big step in the right direction.

Community Development

When the economy is weak and the cost of living keeps rising, it can be especially difficult for people on fixed incomes and the working poor to make ends meet. The solution is to empower people to help themselves. Nonprofit and religious organizations are often in the best position to provide the hand up that's needed. Public-private partnerships with these organizations have proven to be highly effective.

Share is an outstanding example here in Vancouver. Through July of this year, Share received $102,520 in State funds from the Emergency Shelter Assistance Program, the Transitional Housing Operating Reserve, and the Department of Community, Trade, and Economic Development. State funds covered only 6% of Share's operating costs, but they were able to help 682 people find jobs and housing with the help of 931 volunteers serving 29,282 hours. Share provided assistance to people in need at a cost to the State of only $150 per person. We can and should provide more support for organizations like Share.

Predatory Lending

The growth of subprime mortgages and predatory lending in recent years has hurt military families, minorities, and the working poor hardest. Interest rates on payday loans can be several hundred percent, but Washington currently has no consumer protections in place to control predatory lending. Oregon has an interest rate cap of 36% and it’s time we did the same here. I support the Subprime Lending Reform bill and the recommendations of the Governor's Task Force for Homeowner Security, which will curb predatory lending practices and mortgage scams.

Election Reform

With the "top two primary" in our state, voters end up with candidates from the two main political parties. We need more choices. With "instant runoff elections" or "ranked voting" in the primary, voters select their top three candidates instead of just one. If their first choice does not make the top two, their vote would count toward their second choice, and so on. So if you vote for a third party candidate and they don't make it to the top two, your vote still counts. For details visit www.fairvote.org/ I also support campaign finance reform.

Life Issues

I believe in a consistent ethic of life. Details are available on LifePac's web site.

You are invited to post your comments regarding these issues on my blog: www.davidcarrier.org/blog.

My opponent's views are available at his web site and Project VoteSmart.

Climate change matters.

I am an avid whitewater kayaker and climber, and spend my free time hiking and climbing in the Cascades and the Columbia Gorge. Like all of us, I love Washington for its natural beauty and quality of life, and do all I can to preserve it. Climate change is real, and it threatens that natural beauty. There are immediate steps we can all take to reduce our carbon footprint. I started by driving less, commuting by bicycle, insulating my attic, and installing solar heat and hot water in my home. These small changes have cut my energy consumption in half.