Port director not happy with changed bill

ROYAL CITY - A critical piece of Community Economic Revitalization Board legislation for eastern Washington's economic health has been resurrected during the 2015 second special session with a major change.

Port of Royal Slope Executive Director Cathy Potter, whose agency was adversely affected by the current CERB rules, is happy the bill is being re-considered. But she's less than happy with the change.

Under the current CERB funding rules, any construction project in the state that enjoys CERB funding has to produce long-term jobs that pay employees at the median income in the project's county.

"That means more than $15 an hour," Potter said.

Potter believes eastern Washington, which is mostly rural and agriculture, is in effect, barred from CERB funding. New jobs in that setting should be expected to pay prevailing wage, which is much lower.

The legislature passed a bill sponsored by Republican Sen. Judy Warnick of Moses Lake. It called for 50 percent of the projects to be exempted from the current rule. Democrat Governor Jay Inslee vetoed it.

Wednesday of last week, the Senate approved a new bill (SB5442) that would exempt 25 percent of the projects. It needs only Inslee's signature to become law.

"It shows what they think of rural areas," Potter said dejectedly.

Warnick, who'll take something rather than nothing, said: "I am pleased that the Senate has made job creation and competitiveness for rural communities a priority."

The CERB offers financing and grants to local jurisdictions to help fund projects that will lead to private sector jobs. It requires that permanent private sector jobs created exceed the county median wage.

Warnick agrees with Potter that this poses a problem for many rural areas with high paying industries in a portion of the county while there are other economically depressed areas in the same county.

The Port of Royal Slope is a great example. It is located in the same county with Moses Lake and Quincy, both of which are benefiting from electronics and manufacturing.

Most of the business in the PORS is agriculture-related, and pay in that sector is in the $10-11 range. PORS leadership continues to develop and expand its industrial park to allow old business to grow and new business to start. That generally produces jobs with the same pay range.

When the PORS expanded its potable water system last year, it had to stop short of its goal. It could not get needed funding from the CERB because of the existing wage rules. Potter said some businesses that need the system for food processing, human use and fire-flow are not able to get it.