Microsoft stays loyal to state

[Chmee]

Not sure if this might belong in Computing, but ....

Microsoft vows loyalty to state, urges reform
Better education system sought

By TODD BISHOP
SEATTLE POST-INTELLIGENCER REPORTER

Back in 2003, when The Boeing Co. was contemplating far-flung locations for final assembly of its next-generation airplane, a top company official told local business leaders that a vital component of the state's economy, to use his word, sucked.

The message was similar but the approach much different yesterday as an executive from another Seattle-area corporate giant, having just vowed to cement its presence in the region, told the same group that a key driver of the state's economy, well, really needs to improve.

Brad Smith, Microsoft Corp.'s general counsel, yesterday spoke to the Rotary Club of Seattle about the importance of improving the state's education system. He detailed the state system's deficiencies and called, among other things, for improved funding overall and more enrollment capacity in public universities.

But first he outlined the software company's proposal, submitted earlier this week, to build enough new office space for 10,000 to 12,000 additional employees on its Redmond campus in the next 10 to 20 years.

"We are a global company. We will grow around the world. We will invest around the world. But one thing is abundantly clear: This is our home, and it will remain our home," Smith told the group, to applause.

That was in contrast to October 2003 comments to the Rotary Club by Boeing's commercial airplanes chief, Alan Mulally. Addressing the state of local transportation, Mulally said at the time, "I think we suck." Boeing had already moved its headquarters to Chicago at that point and was looking at various locations for final assembly of the 7E7. Ultimately, Boeing chose Washington, after the state offered a $3.2 billion incentive package.

Smith, talking with reporters after his speech yesterday, said Microsoft doesn't intend to use its campus development plan as leverage to persuade legislators to adopt its education-reform recommendations.

"We've already said we're going ahead," Smith said yesterday. "We explicitly did not have a strategy that said, 'Gee, we'll invest if A, B, C, and D are done.' We said this is something that we'd like to be able to focus on doing. It's just a different approach."

Asked if Microsoft's approach will be more effective than threatening to leave the state, Smith said that "different situations, different issues, different time horizons call for different things, different steps."



Smith's comments on education yesterday were similar to ones he made previously to the Bellevue Chamber of Commerce and the Association of Washington Business. However, the filing of the development agreement this week put them in a different context.

"When it comes to education, in a nation of 50 states, we have not yet broken into the top 40," Smith told the audience, citing Washington's ranking in areas including per-capita spending on K-12 education and per-capita enrollment in public universities.

He added, "If we are going to continue to attract companies large and small, if we are going to continue to create jobs, and if our children are going to have the opportunity to take those jobs once they are created, we're going to have to aim a whole lot higher."

In the recent election, the company supported Initiative 884, an unsuccessful bid to increase the state sales tax to improve education funding. Smith said it's still too early to say what the company's next steps will be to try to improve education funding, although he said it would support any effort in the Legislature to further increase enrollment capacity at the University of Washington and Washington State University.

"I'm not here today to offer any great prescription on our fiscal approach" as a state, he told the group. "Clearly, it is an issue where there needs to be more discussion."

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