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Missed Deadline For Work Comp Makeover Not Likely To Terminate The Terminator
By John Franklin - March 2, 2004

Governor Schwarzenegger is expected to power forward with pressure on lawmakers to continue negotiating a Workers' Compensation makeover in spite of the fact they've missed his deadline of March 1st. 

The word in Sacramento is that lawmakers are making excellent progress towards a plan to markedly reduce the premiums paid by employers in California, which are the highest in the United States.

Now that the deadline has been missed, aides say that Schwarzenegger will follow through on his ultimatum by taking the first steps to place his plan on the November ballot. 

On and on, to date, Insurance Commissioner John Garamendi, labor leaders, the medical community, and employers groups have pressed their proposals to reduce costs for California's inflated system.  This is a system which treats thousands and thousands of employees injured on the job every year, and often treats them for more than what was caused on the job.

The proverbial problem for lawmakers now is the fact of huge vested interests.  Legislators can't easily be so cavalier as to just blow off these large contributors.  But, serious negotiations aren't even expected to happen until next week. 

Business leaders are hoping a plan is approved by the end of March so that savings can start happening by summer. 

Experts believe the tone of negotiations will be set by Tuesday's vote on Propositions 57 and 58, which are Schwarzenegger's 15 billion deficit-reduction bond and spending cap.  If he can win these he will have demonstrated his power to win votes, and it will buoy up his bargaining position. 

Big sticking points do remain, including stricter guidelines for determining permanent disability benefits and an independent medical review program. 

"We are literally writing the counterproposals," said Sen. Richard Alarcon, D-Sun Valley, chairman of the Senate Labor and Industrial Relations Committe and a key player in the Workers' Compensation negotiations.  "I have never been more confident that we'll have a very large reform package."

Sen. Charles Poochigian, R-Fresno, who is carrying the governor's reform proposal in the Senate has said he's open to alterations in his bill.  What he means is there's room for conversation and compromise, but not if these reforms do not lead to palpible, actual, concrete savings. 

 
 

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