Workers Comp Reform Saves State and Local Government Billions
With all the current angst in California over taxes and government spending priorities, one might reasonably ask if there is any good news at all about government finances in the Golden State. Indeed there is. Governments throughout California have realized substantial benefits from the reforms of the Workers Compensation system.
These reforms, which were a key platform of Governor Schwarzenegger’s first term, were broadly recognized as improving the states business climate. Of course, an improved business climate stimulates economic growth and job creation, which in turn leads to a host of positive financial outcomes for governments in California, not the least of which is increased government revenue from taxes coupled with lower demand for government provided social services and unemployment payments.