Gregoire says state's improved in 3 years

OLYMPIA -- Investments in education, the environment, transportation and children's health have made Washington much stronger than it was three years ago, Gov. Chris Gregoire said Tuesday in her annual State of the State address to the Legislature.

"We've come a long way, from tough times and dour prophecies, to put our state back on track toward a safe, prosperous, healthy future," Gregoire told lawmakers. "But believe me, we're not done yet. Claiming victory now would diminish the challenges ahead, and we are not going to turn back."

Boasting a record low unemployment rate, a 50 percent increase in state exports and money for future needs, Gregoire said there is ample reason for optimism -- a contrast to what it looked like when she took office.

"Just three years ago, when I came to office, Washington was struggling with a $2.2 billion shortfall that threatened to halt any progress on needs from education to health care," she said.

"Those were tough times, indeed. But we have met the challenges head-on, made tough decisions, and adopted fiscally prudent and economically sound policies for our families, our communities and our future."

Gregoire, who faces an election year challenge from Republican Dino Rossi this fall, said her supplemental budget would keep the state on course to budget stability.

With many references to how much has changed since she took office, Gregoire seemed to suggest that things would have been much different under Rossi's leadership.

Gregoire narrowly defeated Rossi in 2004 after two recounts. Rossi won the initial tally and the first recount but Gregoire prevailed by just 133 votes after the final tabulation.

Rossi provided a different perspective in a video address released Monday in anticipation of Gregoire's assessment.

"There's nothing wrong with our people, but I believe there is plenty wrong with our government," Rossi said.

He said that despite a 33 percent increase in spending, the Gregoire administration has not improved education, transportation or public safety.

Rossi blasted Gregoire for failing to make progress on congestion relief, the 520 Bridge and the Alaskan Way Viaduct.

"We need decisive leadership," Rossi said. "As governor, I will make congestion relief my No. 1 transportation priority."

Rossi said it is time for fresh ideas.

"I see a state government that isn't serving the people, a state government doing things the same old way they've always been done. A state government that is spending a lot more of your money without delivering results," Rossi said.

He called Gregoire a carrier public servant and said there is likely a lack of new ideas and approaches coming out of state government right now.

Gregoire defended her decision to expand government rather than cut back on it and said that the state economy is healthy despite bad news nationally.

She also vowed to take care of King County's most vexing transportation problems -- figuring out how to replace the Alaskan Way Viaduct and replacing the state Route 520 Bridge.

Republican leaders were quick to decry the governor's claims of success, echoing sentiments similar to Rossi.

Seated next to a large poster that read "33 percent" in large red letters -- referring to Gregoire's increase in spending -- House Minority Leader Richard DeBolt, R-Chehalis, said the governor has failed to produce results on the issues of fiscal limitation, crime prevention, education and transportation.

"We're all taxpayers ... and that's our money -- our money -- that's being spent." DeBolt said.

But the majority of the Republican's rebuttal to the Governor's address was spent criticizing Gregoire over her leadership on the central Puget Sound's area's traffic-congestion woes.

"Where were we four years ago? We were in traffic. Where are we today? We're sitting in traffic," DeBolt said.

Sen. Cheryl Pflug, R-Maple Valley criticized Gregoire's recent call to tear down the Alaskan Way Viaduct by 2012. Pflug said Russians, deep-boring a tunnel under the Bering Sea, will most likely be finished by the time state and city leaders under Gregoire's watch even begin tearing down the Viaduct.

"Seventy percent of the people in Washington state do not feel we are doing a good job on transportation issues," said Rep. Doug Erickson, R-Ferndale. "George Bush has a higher approval rating than the Legislature does on transportation issues."