OLYMPIA -- Sen. Jim Kastama thinks the Tri-Cities has one of the best economic development strategies he's seen.
Kastama, D-Puyallup, told a crowd of Tri-City leaders in Olympia on Thursday that the area's focus on innovation is a strength that will help it stay ahead in tough times.
"What I've been taken by in the Tri-Cities is your recognition that it really does come down to intellect and talent," said Kastama, who is chairman of the Senate Economic Development, Trade and Innovation Committee.
About 100 delegates from the Tri-Cities Legislative Council traveled to the Capitol Thursday for a two-day trip to meet with law and policy makers and talk about issues of importance to the region.
The delegates represented a cross-section of the Tri-Cities, including Hanford contractors, local governments, port districts, utilities, small businesses, chambers of commerce, hospitals and Washington State University Tri-Cities.
Economic development topped the list of discussion topics, as did funding for higher education and research.
"You're talking about innovation and lifelong learning, but you're talking about a budget this year that rips our research universities," said Gary Ballew, Richland's economic development manager. "That's where innovation will come from."
Kastama said he has a plan to help higher ed: Diverting the state's lottery proceeds into higher education. He believes that would net the higher education system about $380 million per year.
His bill got a hearing in the Senate Higher Education and Workforce Development Committee on Tuesday, but has not received a vote. Today is the deadline for bills to passed out of committees in the house of origin.
Tri-City delegates also asked whether the Legislature is likely to pass a bill giving a break on the state's business and occupations tax to Lockheed Martin.
The state decided years ago to reduce the B&O tax for Hanford contractors working on cleanup. But the state Department of Revenue decided that activities such as computer services provided by Lockheed Martin weren't "cleanup," so the company gets charged the full rate.
Frank Armijo, general manager of Lockheed Martin's Richland operation, said making the company pay the full B&O tax just takes money away from cleanup, since it all comes out of the cleanup budget.
Sen. Jerome Delvin, R-Richland, has been trying to get a B&O tax credit for Lockheed Martin for three years without success. He said it was unlikely the bill would pass this year because of the deficit the state faces.
"I don't know if we'll get there this year," Delvin said. "I don't have anything positive to say about it after the last couple of days."
Today, delegates will have a chance to question House Speaker Frank Chopp, D-Seattle, and Sen. Lisa Brown, D-Spokane.