State makes push for Boeing work

Sebelius signs measure permitting $500 million in bonds

? Gov. Kathleen Sebelius signed a bill Wednesday that represents the state’s effort to attract work on Boeing Co.’s next generation of jetliner to Wichita.

The measure permits the state to issue up to $500 million in bonds on Boeing’s behalf, with the company retiring the bonds with sales tax revenues from jetliner sales and income withholding taxes collected from the paychecks of workers on the 7E7 project.

The mid-sized 7E7 is supposed to be a more fuel-efficient version of Boeing’s 767, and the company hopes to put it into service by 2008. Boeing lobbyist Bill Jarrell said the company would choose from six to 10 sites to produce parts for the 7E7, and Wichita hoped to be on the supply team.

The bill is designed to secure up to 4,000 jobs in the Wichita area.

“Keeping these high-paying, good jobs in Wichita, keeping a portion of the next generation aircraft here in Wichita, is really critical,” Sebelius said during a news conference.

Kansas is not the only state taking steps in hopes of attracting work on the 7E7.

In Arkansas, officials have three potential sites in mind, and Jim Pickens, director of that state’s Economic Development Department, said Tuesday that Arkansas would “aggressively pursue” the aircraft manufacturer.

In Washington state, legislators approved a $4.2 billion, 10-year transportation plan designed in part to address Boeing’s concerns about its ability to move freight, with a 5-cent-a-gallon motor fuels tax increase taking effect on July 1.

Washington Gov. Gary Locke recently signed a bill designed to expedite construction of a 600-foot pier at the Port of Everett, near a Boeing plant. The project is expected to cost between $10 million and $16 million.

“It’s all an issue of being competitive,” Sebelius said. “I think the bonding authority makes us more competitive than we would have been otherwise with other states who would very much like to lure these jobs to their sites.”

Jarrell said bonds probably would be issued at the end of the year. He said it likely would be several months before Boeing announced which sites would supply 7E7 parts.