The real problem is that government monopoly in the licensing and regulation business is simply too much power.
What intrigues me is the suggestion that the report will suggest eliminating one-third of state jobs.
Yeah... like what Geramandi just did:
Anthem, WellPoint lose more ground
By Russ Britt, CBS.MarketWatch.com Last Update: 5:37 PM ET July 27, 2004
LOS ANGELES (CBS.MW) -- In the wake of a California regulator putting a roadblock in front of their merger plans, Anthem and WellPoint Health Networks saw their shares fall further Tuesday.
Better than expected second-quarter earnings for both Anthem (ATH: news, chart, profile) and WellPoint (WLP: news, chart, profile) came as little relief. On Friday, California Insurance Commissioner John Garamendi announced he's opposing Anthem's proposed acquisition of WellPoint's Blue Cross Life & Health Insurance entity, based in the state.
Garamendi said that California's policyholders would wind up paying for the union. The companies deny that policyholders would foot the bill.
Indianapolis-based Anthem's stock dropped $6.38, or 7.2 percent, to $81.78. Thousand Oaks, Calif.-based WellPoint (WLP: news, chart, profile) fell $6.18, or 5.9 percent, to $99.03.
The most positive aspect of the proposal is reducing the state government workforce by a third. Most of the bureaucracy is simply superfluous and stands in the way of California's economic renaissance. Fewer departments would mean greatly accountability and more improved delivery of public services. The Democrats and public employee unions are going to fight this common sense reform tooth and nail both cause it would eliminate a source of patronage and reduce overall union clout. I would be very surprised if these proposed changes ever see the light of day.