Oregon Public Broadcasting

Washington Governor Chris Gregoire wants to create 40,000 new jobs and close several state facilities to save money. She also wants to enact a new system of evaluating classroom teachers. 

Those are among the initiatives the Democratic governor outlined Tuesday in her annual state of the state address.

On jobs, Gregoire says she has a plan to use the tax code to encourage small businesses to start hiring.

Chris Gregoire: "Many owners want to hire employees, but they need our help. And that's why I am proposing a new employee tax credit for each small business that hires a new full-time position."

Gregoire offered no details on her tax credit plan or how much it would cost. She also reiterated her support for raising other taxes to help close a $2.6 billion budget shortfall.

Republicans, in their response to the State of the State, said any increase in taxes is a bad idea. They also called for reforms to the state's workers' compensation system -- describing it as the second most costly such program in the nation.