Governor Sets Midnight Deadline for Legislative Workers’ Comp Deal

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, March 26, 2004 Share this on FacebookTweet thisEmail this to a friend

On Wednesday, March 24th at a shopping center in Roseville (near Sacramento), Governor Arnold Schwarzenegger announced that the Legislature had until midnight March 26th to agree to a workers’ compensation reform plan. He said that if no agreement is reached, he will push ahead with the business-backed initiative that imposes a series of cost-cutting changes on the state's 91-year-old system of caring for job-related injuries.

The Governor has already revised his original demand for $11 billion in savings down to about $5.4 billion in response to the Workers’ Compensation Insurance Rating Bureau's recalculation of insurer's loss costs from $24.9 billion to $17.9 billion.

The Governor also said Wednesday that he is willing to consider state regulation of workers’ compensation insurance rates as part of legislation to control the skyrocketing cost of dealing with workplace injuries. “It's definitely something to consider,” he said.

Workers’ Compensation reform is now firmly in the hands of the big five. Whether the issue goes to the ballot will be determined by their ability to reach a legislative agreement on workers’ compensation reform.
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