Gov. Jay Inslee called lawmakers back to Olympia for a special session today designed to secure the Boeing 777X and its carbon fiber wing for Washington state. The proposed legislation complements the agreement reached by Boeing and the Machinists union for an eight-year contract extension assuring continued labor peace and changes benefiting the company and union workers.

Together, the legislation and contract agreement assure Washington’s aerospace future for decades to come. Despite earlier reports suggesting that the contract alone would secure the work, the Seattle Times reports the governor’s office responded with letters from Boeing and the Machinists that link legislative action to the final decision.

Key issues to be addressed in the special session, according to the governor include:

A bipartisan transportation revenue package.

Extension of all commercial airplane tax incentives until 2040 and expansion of the current sales and use tax exemption on construction of buildings to manufacture “superefficient airplanes” to include all commercial airplanes and suppliers of wings and fuselages.

Education and workforce development investments to boost enrollments in aerospace fields at community and technical colleges, train workers for manufacturing of composite wings and complete the Central Sound Aerospace Training Facility in Renton.

Streamlined permitting actions that will speed up development and expansion of facilities at large manufacturing sites around the state.

Developing balanced, practical solutions that achieve water quality goals (also referred to as fish consumption).

More detail on the 777X package here. No legislation is required to address the fish consumption issue. The permitting, education and extension of tax incentives will likely find bipartisan support. Rep. Reuven Carlyle has said the tax incentive language comes with “rock-solid” guarantees.

That leaves transportation the likely sticking point in a short session. The governor is looking for $10 billion over ten years.

The governor said lawmakers have a “framework” of a deal on transportation and he’s confident the last few areas of disagreement can be resolved in the next week. He said there was agreement to raise roughly $10 billion in new taxes and fees over 10 years — although he said that could grow or shrink.

The Senate response at the press conference was cautious.

 Senate Majority Leader Rodney Tom said unlike the other aid to Boeing, the transportation package is less critical to finish immediately and could wait for a “phase two.”

The Olympian newspaper has more today.

 Senate Republican Floor Leader Joe Fain of Auburn said early in the day that the Senate plan is to vote on the two tax and workforce training bills on Saturday and then go home. Democrats in the House haven’t stated a schedule preference, but House Majority Leader Pat Sullivan, D-Covington, said this week the House could vote on the two major bills Saturday.

Gov. Jay Inslee is encouraging the lawmakers to keep working next week on a transportation plan.

We’ve detailed before the economic importance of Boeing, most recently in a 2009 WashACE competitiveness brief, What If Boeing Left Washington?

A recent report for the Washington Aerospace Partnership by Community Attributes Inc. included the finding that

 …the aerospace industry in Washington state is a crucial driver of economic activity, generating $76 billion in annual revenues and employing 135,200 workers across the state.

Members of the IAM will be voting on the proposed contract next week. The union posted a detailed summary (linked here through the Everett Herald). According to the Herald voting will take place Wednesday, November 13. A key tradeoff involves pension changes, with a significant bonus sweetener.

The amended contract includes “cessation of pension accruals for current employees and the establishment of an alternative company-funded retirement plan,” the union said. “Additionally, within 30 days of ratification, all members would be paid a $10,000 signing bonus.”

In a press release yesterday, AWB president Don Brunell makes an important point.

The issues the Legislature will take up starting this Thursday are key for large employers like Boeing, but they also have direct impacts on medium and small businesses and every day citizens. A safe, reliable transportation system is essential to building strong communities and the movement of goods and services for businesses. Strengthening our workforce development efforts will also heighten our focus on education and ensuring graduates are prepared for successful careers. These are issues that benefit not only Boeing, but all of Washington state.

In all, yesterday’s announcement and the bipartisan expressions of legislative support represent positive developments for our state and its economy. Good news indeed. But there’s work to be done to assure success.