Posted on 05/02/2006 6:36:41 PM PDT by FairOpinion
More good news about the economy was released Monday. Manufacturing expanded nationwide and March showed an all-time high in consumer spending, indicating an awakening from an end-of-year slumber.
In California, real estate has pushed a new- home construction boom that's increased jobs in that sector. But it's not the only economic indicator.
Almost across the board, California industries say expansion and employment rests on the rollbacks in state workers' compensation rates, poised to dip even further.
Drops have been driven by changes put in place two years ago. Those included an HMO-type physician network specifically addressing work injuries, uniform treatment guidelines and benefits and a higher threshold for permanent disability status.
Most businesses reported as much as a 40 percent drop in rates, allowing owners to reinvest those savings in their companies. Economic analysts say the high cost of workers' compensation in California had driven many businesses to other states and cite the program overhaul as a major reason for the state's economic recovery. That fact is borne out by the creation of more than 570,000 new jobs in the state since SB 899 was enacted.
Yet, there's some talk in the Legislature about rolling back the workers' compensation reform that Schwarzenegger and the lawmakers worked through successfully. A new survey of businesses confirms that the very reform was the catalyst for recovery. Out of 267 respondents, 87 percent feel the reforms have had a positive impact on their business (with 43 percent saying the reforms have had an "extremely positive" impact.
Critics argue that the biggest economic benefit has been to insurance carriers, posting record profits. It follows that fewer claims equate to fewer pay-outs, ergo, higher profits.
Unlike some industries - oil, for instance - savings to insurers have been passed on to consumers, in this case, rate payers.
This summer could bring another cut to insurance rates if Insurance Commissioner John Garamendi takes seriously advice to push insurers to cut rates by 16.4 percent on the recommendation of the Workers' Compensation Insurance Rating Bureau of California, the big voice in the industry.
The only fly in all this economic unguent that has soothed businesses large and small throughout the state are reports that some injured employees are having a tough time getting treatment and compensation while off the job recovering from injuries received in the work place.
That needs to change because with record profits and low insurance rates, there's no reason not to treat injured workers as quickly and thoroughly as possible. Not only is it the right thing to do, it will put them back to work much quicker. That ought to be the overriding goal. Then, it's money well spent all-around. ---------
Yet, there's some talk in the Legislature about rolling back the workers' compensation reform that Schwarzenegger and the lawmakers worked through successfully. A new survey of businesses confirms that the very reform was the catalyst for recovery. Out of 267 respondents, 87 percent feel the reforms have had a positive impact on their business (with 43 percent saying the reforms have had an "extremely positive" impact. "
Arnold helped improve CA's business climate and turn CA economy around.
It doesn't matter if the employer is forced out of California...the only thing important is the "worker" whether they have a job or not!
That's the Democrats for you -- they want to kill the goose that lays the golden egg -- the businesses who give employment and ehlp the economy of CA.
I wish mine had dropped that low;mine dropped about 6%.This was my main reason for supporting Arnold.He IS NOT a conservative , but he IS pro business and about the closest to a conservative this state will vote for.
I am hoping for another 16% drop in rates;then our rates will be about in line with some other surrounding States.Grey Davis was a total DISASTER.Under his term, my rates had doubled.
Don't even get me started on what he did to my liability insurance rates,[which have at least stabilized under Arnold]
It's good to hear from business people, such as yourself.
One, who also understands that Arnold doesn't have a magic wand he can wave to "make everything all right", and one who saw first hand and understand the damage Democrats do to businesses and the state.
A forty percent drop after a 300% increase is hardly cause for massive celebration when all Arnold had to do to get a real reduction was copy Arizona's law and put it on the ballot.
Well, the Democrats were the ones who increased it 300%, is that a reason to put them in power again?
Oh boy! Dueling non-sequiteur rhetorical questions!
Is holding the governor's chair reason to silence and alienate the conservative base of the Republican Party?
Should a small minority of the Republican Party dictate its policies?
Should a Republican governor appoint a majority of Democrats to State offices?
Want more?
I hope your rate drops soon--I was a skeptic until our latest premium came due--it finally dropped about 40%. What that has allowed us to do is hire more employees. Good for California.
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