Symbolism of Workers’ Comp

From boardrooms to factory floors, worrying about California’s economic problems and job losses continues. Sacramento pays lip service to dealing with this economic misery, but its action doesn’t match its talk.

Through his Little Rock summit of business and economic leaders last December, President Clinton scored big in educating the public about the nation’s economic problems. Now, California’s political and business leaders are seeking to develop a similar broad consensus about the state’s economic problems by holding meetings.

Orange County industrialists and economists, for example, held an economic summit last Friday in Irvine. They served notice to Assembly Speaker Willie Brown, who attended the conference, that they see the state as being awash in unneeded regulation and ripe for more suffering unless there is drastic reform.

Brown himself is organizing an economic summit. The goal of that conference, in Los Angeles Feb. 16 and 17, will be to set an economic agenda for California. Gov. Pete Wilson will make the opening address.

All these laudable efforts at consensus could become a mockery if, ultimately, Sacramento shrinks from its responsibility to act. Certainly some of the economic problems are due to a cyclical recession, others to structural changes in the defense, banking and retail industries. These forces are not open to instant remedy, but one of the reasons for the high cost of doing business in California--the fraud-ridden workers’ compensation system--could indeed be addressed by Sacramento immediately.

California’s $11-billion workers’ compensation system is the nation’s third most costly, but benefits to the injured rank a dismal 35th among the states. Fraud and misuse have driven employers’ costs to outrageous levels. The public sector suffers too, because state and local governments must pay the same high premiums.

The governor and Legislature failed to reform workers’ comp last year because of partisan bickering in an election year. The political gridlock over workers’ compensation became a symbol of Sacramento’s inability, or unwillingness, to get the economy moving again. By the same token, real reform of the system would go a long way toward restoring business confidence in California. It’s long past time to get started.