More Sticks, Fewer Carrots
In retrospect, the California workers' compensation reform of 2004 represented the high-water mark for Gov. Schwarzenegger and his attempts to govern by initiative. Schwarzenegger and business allies -- especially the carrot producer Grimmway -- went through the process of drafting and collecting signatures for initiative -- with the governor promising to drop the initiative if the legislature gave him the reform he wanted. On the deadline day for turning in signatures, lawmakers gave Schwarzenegger much of what he wanted..
But workers' comp is not one of those things that gets "reformed" and stays "reformed." In California, reform is often a history of back and forth swings, as business and labor react to change the system when it either becomes too costly to business or does not produce enough in benefits for workers. In 2004, the pendulum had swung to the point that business was complaining, as California boasted the highest workers' comp costs for business of any U.S. state. But Schwarzengger's reform may be pushing the pendulum the other way. At the California Progress Report, Frank Russo has an interesting post on how benefits for the permanently disabled have declined. He is pushing legislation sponsored by Don Perata to boost such benefits.
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