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| | Governor Slashes the DIR’s Allowance
By Robert Warne - September 6, 2002Governor Gray Davis signed for the yacht with AB 749 back in February. But with the budget in, he didn’t allocate any dough to gas it up and now expects its Jan. 1, 2003 maiden voyage to be staffed with a skeleton crew.
When Davis signed the $99 billion budget Sept. 5 it was past due for over 60 days as outlined by the state Constitution.
Senate President Pro Tem John Burton (D-San Francisco) summed up the situation when he told the Los Angeles Times that for Davis in an election year facing a $24 billion shortfall, “It’s a get-out-alive budget.”
The Department of Industrial Relations’(DIR) budget was already trimmed by 10 percent by the Legislature before Davis picked another $7 million out of it.
Using his line-item veto authority, Davis broke out his Ginsu and filleted the $4.6 million directed by the Legislature to go towards the implementation of AB 749.
In the Budget Highlights available from the Department of Finance, Davis provided his reasoning behind cutting the AB 749 money out.
“I am deleting the legislative augmentations provided to the Department of Industrial Relations for AB 749-related activities for training grants, workers compensation studies, and workload in the Division of Workers Compensation. Although I agree that AB 749 will increase the responsibilities of the department, these augmentations have not been fully justified. AB 749 does not take effect until January 1, 2003, and in light of the state’s current fiscal condition, I have instructed the department to absorb the associated workload during the first six months of implementation for these purposes. To the extent that a comprehensive justification based on actual workload needs is available in the future, I would consider funding at that time. I am, however, retaining the $1 million augmentation included in this item for fraud prevention activities.”
By not oiling the DIR machine, Davis only adds to the excitement that awaits the wake of the AB 749 era. It will be interesting to see what the new insurance commissioner will have to say about this. |
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