The new reforms, which take effect on Jan. 1, 2003, will eventually pump an extra $2.5 billion into the statewide compensation system, raising maximum benefits for injured workers from today's $490 a week to $602 next year and $840 in 2006. After 2006, automatic hikes would follow the state's average wage increases. The bill also doubles death benefits to a maximum of $320,000. Where, pray tell, is this money to come from??? The state is $27 Billion in the red! This benefit increase is pasted into the system with no funding source or premium increases.
"Where, pray tell, is this money to come from??? The state is $27 Billion in the red! This benefit increase is pasted into the system with no funding source or premium increases." Workers' Comp is paid by employers, not the state. This doesn't cost the state of California a penny, except in its direct role as an employer. Workers' Comp premiums paid by employers to insurance companies have skyrocketed as a result of this bill, but it has no effect on California's state budget.