Washington Budget Crisis

Locke's second term was more challenging. In the spring of 2001, Boeing decided to move its headquarters out of Seattle to Chicago, 85 years after its founding in the Northwest region. This, coupled with the September 11 attacks, had a serious impact on Washington's economy.

In order to deal with the worst state recession in two decades, Washington drove up state government spending, ending up with a $1.6 billion budget deficit. Choosing not to raise taxes across the board to close the deficit, Locke urged legislators to consider an $8.5 billion transportation infrastructure relief package. The now Democrat-controlled legislature put a part of his plan, a 9 cent gas tax increase, on a ballot referendum instead. It failed.

By 2003, the state deficit had reached $2.7 billion, but Locke was still able to negotiate a budget by postponing spending for a 2000 educational initiative, cutting 2,500 state jobs and deferring pay raises for state employees. In order to create more jobs, he brokered a deal with Boeing, providing the aeronautics company with a $3.2 billion tax break if it manufactured a new fleet of jets in Washington state. Then, late in the year, voters finally agreed to the governor's gas tax increase, raising the price at the pump 5 cents per gallon.

Locke could have run for a third gubernatorial term. But citing family reasons, Locke joined the law firm of Davis Wright Tremaine, where he focused on China and energy issues.

U.S.-Chinese Relations

As a source of pride in the Asian community, Locke has used his position to reach out to the Chinese government. While Locke served as governor, he made three trips to China on trade missions. In October 1997, Locke sat down to chat with Chinese President Jiang Zemin. He discussed trade between Washington state and China, pushing the state's agriculture and hawking Boeing jets.

This unusual access continued after Locke became a lawyer and private citizen. He made several trips to China to develop connections with the country for American businesses, and also helped Chinese companies gain a foothold in the U.S. market. In 2006, he convinced President Hu Jintao to visit Seattle, meet state officials and visit local businesses in the area. Locke even carried the Olympic torch during the relay in China prior to the Beijing Olympics.

The Census

Locke is heading the agency in charge of the 2010 Census. It's tricky political territory, and Locke discussed it with the Washington Post's Lois Romano in 2009:

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