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  At Washington gov. debate, economy is No. 1 issue
Last updated: 2008-10-02


At Washington gov. debate, economy is No. 1 issue
2008-10-02

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(AP)
YAKIMA, Wash. - The state's flagging economy was the No. 1 topic at Democratic Gov. Chris Gregoire and Republican challenger Dino Rossi's third debate, although the candidates also squared off on immigration, energy and water issues.

Washington's revenue forecast has dropped by $530 million, pushing a projected deficit in the 2009-2011 budget period to about $3.2 billion, and the state jobless rate is at its highest level in nearly four years.

Tapping the state's rainy day fund to patch the projected deficit should be an option left on the table, both agreed Wednesday, although Rossi said it would be a last resort.

The campaign is a rematch of the candidates' close 2004 race, where Gregoire was declared the winner by just 133 votes after three vote counts and an unsuccessful Republican court challenge.

Gregoire blamed the economic woes on the federal government's inability to police Wall Street and said she is taking steps to curb spending and improve the state's situation.

Rossi cited what he called Gregoire's reckless spending as the cause. In addition to budget cuts, he said, the state needs to improve its climate for small businesses.

"The reality is we don't just have a problem in Washington D.C.," he said. "We have a problem in Washington state as well."

In particular, Rossi blamed Gregoire for the fact that a proposed $2 billion uranium enrichment plant is planned in Idaho, rather than in southeast Washington's Tri-Cities. In May, the French-owned energy services company Areva NC Inc. announced that the eastern Idaho city of Idaho Falls had won the plant following tax concessions from that state's Legislature.

"The reason the incumbent didn't pick up the phone is because she was afraid what some of her supporters would say if she brought Areva to Washington state," Rossi said, throwing his support behind nuclear energy. "Now the Tri-Cities is wondering how their financial future is going to survive."

Every power source should be considered to reduce the nation's dependence on foreign oil and improve Washington's economy, Gregoire said, not ruling out an increase in nuclear power.

Neither addressed the issue of raising taxes, which was a central topic in their debate last week.

In one of two debates scheduled for eastern Washington, many questions centered on issues relevant to the region's growing Hispanic population and to its agricultural economy, valued at $6.87 billion statewide in 2006.

Gregoire and Rossi both said they believe driver's licenses should only be issued to U.S. citizens. When asked if the state should provide public benefits to people who have entered the country illegally, Gregoire said she was proud the state didn't turn its back on "poor kids' health care."

"We said we're going to step up to it," she said. "This is a test of the moral compass of the people of Washington state."

Rossi defended himself against Gregoire's accusation that he cut health care for poor children when he was in the state Senate. But in response to the immigration question he said, "Clearly we're suffering the effects of a failed federal policy when it comes to immigration."

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