In the 1992 presidential race, Bill Clinton’s campaign had a controversial but effective slogan: “It’s The Economy, Stupid!” As state lawmakers reconvene for a special session in Olympia, the message is only slightly different: “It’s The Economy and Jobs.”

Gov. Locke and lawmakers are still reeling from Boeing’s decision to move its headquarters to Chicago. Despite all the warnings, elected officials never saw it coming until it was too late. No one actually thought Boeing would leave its roots in Seattle — but it did.

Now elected officials in Olympia are convening task forces to make sure that the rest of Boeing’s operations stay in Washington and that the new 7E7 econo-jet is built here. They realize that other states are trying to lure away Boeing’s facilities and jobs, and they know if they don’t act, Boeing will have little choice but to move.

Gov. Locke and legislators took a giant step forward during the regular session by passing a transportation funding program and reinstating sales tax incentives for manufacturers. Still, other critical competitive issues must be resolved in the special session if we are to regain our competitive edge.

For example, Boeing’s Commercial Airplane President Alan Mulally told investors in Seattle recently that Washington’s unemployment insurance and workers compensation systems must be reformed.

This is not new. Mulally testified last year at the opening of the 2002 legislative session that Washington’s unemployment insurance (UI) system is the most costly of any place it operates worldwide — and that was before UI taxes automatically increased by an average of 16 percent in January.

Another cost driver is workers’ compensation. Recent rulings by the State Supreme Court have caused workers’ comp costs to skyrocket for thousands of employers across the state, and even though Boeing is self-insured, those rulings are driving costs up for Boeing, as well.

Another problem for Boeing is the Business and Occupation (B&O) tax, which is levied on a company’s gross receipts, regardless of whether the firm made a profit. Even though orders for commercial airlines have plummeted, Boeing and thousands of other businesses across the state must pay B&O taxes even if they’re losing millions of dollars.

Washington employers are already facing $400 million in higher taxes and fees, not counting increases in energy, healthcare and liability costs. When the legislature begins its special session, lawmakers must not make the situation worse. Raising taxes will only further hurt employers and struggling families. If legislators avoid the tough decisions just to get by, they will be sending a signal to Boeing and other employers that Washington is not serious about being competitive.

Many years ago, the slogan in our state was: “What’s good for Boeing is good for the rest of the state.” Even though our economy has diversified since then, the slogan is still true today. Boeing officials have said as much.

Let’s hope legislators are listening.