Senate OKs Raise in Workers’ Comp

The state Senate on Thursday sent a measure to bolster benefits for injured workers to Gov. Gray Davis, who has twice vetoed similar measures and does not appear to embrace the latest proposal.

The Senate split along party lines in the 25-13 vote that sent SB 71 by Senate leader John Burton (D-San Francisco), to Davis’ desk--setting the stage for a possible showdown between Davis and the Legislature.

Burton’s bill would raise an array of benefits to injured workers over a five-year period as well as implement a variety of cost-saving measures. Maximum weekly benefits for permanently disabled workers under the proposal would climb from $140 to $230 to a range of $230 to $270.

“I think it’s just shameful that we are lower in benefits to injured workers than we are in spending per pupil,” Burton said.

Republican Sen. Ray Haynes of Riverside warned that not only could the measure send businesses packing to Arizona and Nevada, but that it also threatens to throw the state into a recession.

The measure’s fate remains unclear.

Stephen Smith, Davis’ director of the state Department of Industrial Relations, said his agency is continuing to negotiate with organized labor leaders on a compromise. “The governor clearly isn’t comfortable with SB 71,” Smith said.

The governor favors an increase in workers’ compensation benefits, but only if substantial changes are made to the entire system.

But Burton appeared optimistic.

“I think when it’s all over he’ll see the merit in the bill,” Burton said of Davis. “The governor has never told me he’s going to veto the bill.”