First, this department is committed to fulfilling this economic objective, while restoring wild salmon populations, through the use of new management tools. Second, I would also like to address what I call our "performance measures" or indicators of our success at achieving this objective.

The context within which the management of fisheries takes place is affected greatly by the recent listings of 15 salmon populations.

There are only a limited number of tools that are available to the department in fishing under this constraint, but those tools are very powerful. In fact, in some cases, the department's application of these tools has revolutionized fishing up and down the west coast. What are they?

The main tool is the selective nature of our fisheries both on the recreational side and on the commercial side. The most recent addition has been the advent of the mark-selective fisheries. This kind of fishery is possible through the mass-marking of hatchery-origin salmon (removing the tiny adipose fin in young fish). Adult fish without the adipose fin are retained while those fish with an adipose fin are released to spawn in our rivers.

Washington operates about 50 selective fisheries and is trying to add additional fisheries as funding permits. The newly permitted steelhead fishery in the Upper Columbia River is one example. The next might be a selective fishery for jack chinook salmon on the Snake River in 2004.

The next major tool is Washington's hatchery system which provides the bulk of fishing opportunities.

With those two major tools in place Washington can look forward to increased opportunities into the future. Yet the funding outlook is bleak.

Now I want to review what I had earlier described as some of the indicators at our success at employing the two major tools to generate revenue in our state.

Here is where Washington ranks nationally in spending by sportfishers at $850 million per year. We rank number 8 in the nation, and are ranked number 1 in the Pacific Northwest; and we are accomplishing this success despite being the smallest of the states on the top ten list and despite the fishing restrictions imposed by the federal ESA.

Another view of the importance of fishing to Washington's economy is provided by our national ranking for the purchasing of boats, motors and other accessories. We rank 9th in the nation! As for the previous fishing expenditures, the sales tax on these purchases flows into the state as general fund revenue!

Other revenue comes into the state from the activities of the commercial sector. Again, despite our small size as a state and ESA restrictions, Washington ranks 7th in the nation in terms of the ex-vessel value of its commercial catch. These values are not directly comparable to the previous values for recreational fishing because of different sources for the values, but nonetheless indicate a substantial addition to the states economy.

To summarize the fisheries benefits to Washington-

There are also considerable benefits to the state from the wildlife side as well. Here for example are the expenditures from viewing wildlife. This state ranks 7th in the nation at almost a billion dollars per year, and again, we rank first in the Pacific Northwest.

Wildlife are a source of recreational opportunity for millions of the state's citizens each and very year.

In summary, the economic impact to the state from recreational fishing, hunting and wildlife viewing totals $2.18 billion dollars annually. For a biennium, that figure doubles to about $4.4 billion in economic value. Remember the sales tax and motor fuel tax from these activities flows into the states coffers.

Revenue from fishing and wildlife related activities is not only important to Washington, but is also important to the Pacific Northwest States of Oregon and Idaho. Washington leads or is close to leading in each category and its annual value of $2.2 billion is tops. Oregon follows at $1.7 billion and Idaho at $0.8 billion.

I believe for each of the Northwest States, and certainly for Washington, that the main impact of fishing and wildlife related revenue hits the small business side of our state. The critters are where the habitat is intact, and that intact habitat is found in the rural areas of our states. For some of our rural inland and coastal communities where small businesses dominate, fishing and wildlife related activities provide a substantial part of their cash flow.

So what is the value of fish and wildlife activities to the state? Combining the recreational survey results with the commercial ex-vessel values, the value is about $4.83 billion in direct expenditures per biennium, which supports about 48,000 jobs. The economic value is split roughly equally between the fish and wildlife sectors of our activities. And that is an important outcome for a fish AND wildlife agency.

Moreover, this economic engine continues to create value as dollars cycle through the economy of local communities. So taking the about $4.6 billion in direct economic benefits for a biennium and then applying estimates of the additional economic value results in a total estimated biennial economic impact of fish and wildlife activities of $8.8 billion.

The total economic impact to Washington for every $1 spent within the agencies total budget is $31. And for every $1 spent from the state's general fund, $106 in biennial economic impact is generated.

Not only does the state's economy benefit as a whole from fish and wildlife related activities, the sales tax revenues generated from these activities add to the state's general fund. For every $1 of general fund spent by the department on fish and wildlife activities, $3 is returned to the general fund. That $3 return doesn't include the nearly $20 million in motor fuel taxes paid by fishers and wildlife enthusiasts.

Simply put, sound resource management translates to huge economic benefits for Washington communities and to the families that live and work in those communities.

Thank you for your support. I look with keen interest towards your industries continued involvement in sound resource management. That sound management is good business for all Pacific Northwest States and good for your industries bottom line.