Last week’s vote by Boeing machinists to approve the company’s contract offer was a landmark in more ways than one.
To begin with, it apparently will ensure that construction and assembly of the 777X will remain in Washington state. That was the deal behind $8.7 billion in tax incentives that were approved by the state Legislature late last year in an effort to keep the project in the Puget Sound area. Called to a special session by Gov. Jay Inslee, lawmakers approved extending tax breaks, which were scheduled to expire in 2024, until 2040 — contingent upon the 777X landing in the state. A separate bill earmarked $17 million in state money for aerospace training programs.
The importance of the aerospace industry to the future of Washington’s economy was evident in the support that Boeing received from Southwest Washington lawmakers. Rep. Sharon Wylie, D-Vancouver, was the only local legislator to vote against the tax incentives, saying she had a lot of questions about the bill, “and, frankly, there wasn’t time to answer my questions, so I voted no.” That’s a reasonable, thoughtful position, even if others disagreed. Rep. Ed Orcutt, R-Kalama, and Rep. Liz Pike, R-Camas, voted against funding for aerospace training. All other Southwest Washington lawmakers supported both bills.
Perhaps more indicative of the large stakes at play is the fact that at least 21 other states salivated at the opportunity to land the 777X if Boeing airlifted the project out of Washington. Missouri, for example, approved $3.5 billion in state and local tax incentives in an effort to lure the 777X and the jobs it would have brought. Given the fact that Boeing moved its headquarters in 2001 to Chicago, and that recent production plants have been built in other states, there was little reason to believe the company would maintain loyalty to its birthplace when it came to siting the 777X.