Workers' Comp Win Boosts Schwarzenegger

Yahoo! News ^ | 4/15/04 | Tom Chorneau - AP

[NormsRevenge]

SACRAMENTO, Calif. -

Mixing Hollywood charm with political muscle, Gov. Arnold Schwarzenegger (news - web sites) has engineered a compromise bill for California's worker's compensation system, the most expensive in the nation.

It is the latest in a string of victories for the Republican governor, and observers say the wins could allow him to dictate terms to the Democrat-controlled Legislature on virtually any issue.

"Everyone is giving a wide berth to this guy. He's now viewed as the man who can make miracles happen," said Larry Gerston, a political science professor at San Jose State University. "He carries tremendous sway with the public, and the Legislature is almost in awe of him."

Schwarzenegger and lawmakers reached the tentative deal on workers compensation reform Wednesday. A legislative committee overcame lingering differences and adopted the bill Thursday morning, setting the stage for a Friday vote in the full Legislature.

"There's no question this is not a perfect bill," said Assembly Speaker Fabian Nunez, a Los Angeles Democrat. "What it is is an attempt to reach a compromise on a workers compensation system that's broken, a system that doesn't serve injured workers very well and a system that is costing a great deal of money with premiums increasingly on the rise."

Officials widely credit the governor with pushing through key elements of the bill, including allowing insurers and employers to select pools of doctors injured workers must use.

As he has on other occasions, Schwarzenegger threatened Democrats into negotiating. Backed by an unprecedented fund-raising machine that has brought in nearly $11 million since the recall election, Schwarzenegger vowed he would take the issue to the ballot if Democrats did not come to terms.

The chairman of the California Democratic Party, Art Torres, questioned the effect of Schwarzenegger's growing influence.

"No governor has had at his command the rapt attention of the business community and the enormous donations to do as he wants," Torres said. "To use the initiative process and the strong-arm tactics that characterize this administration, I don't think it is right."

In the six months since he took office, Schwarzenegger has forced the Legislature to repeal a law giving driver's licenses to undocumented immigrants, approve more than $1 billion in midyear spending cuts and place a $15 billion bond measure and a spending cap on the ballot. He then convinced reluctant voters to approve the bonds.

Schwarzenegger still has a number of issues he plans to tackle, including curtailing what he considers abusive lawsuits and a campaign finance initiative. But first he will have to pass a budget, which most observers said will be his greatest challenge.

"The budget is next," said GOP consultant Dan Schnur. "But he's entering the budget fight in precisely the same way he's taken on each of his earlier battles. He's indicated his preferences, drawn a broad perimeter for debate and will end up getting most rather than all he asks for.

"Then he will declare victory and move on that much stronger," Schnur said.

Schwarzenegger will need the momentum, most analysts said, as debate over the budget picks up next month when he releases his revised spending plan.

Although voters approved the $15 billion in borrowing to wipe out the state's existing $9 billion deficit and help with next year's programs, spending remains badly out of balance with tax income. The Legislative Analyst's Office estimates the state faces a $17 billion shortfall in 2004-2005.

Schwarzenegger has proposed a variety of cuts to virtually all state programs as well as borrowing and one-time solutions to cover the gap. He remains opposed to raising taxes as part of the solution.

Democrats, who control both houses of the Legislature, say they would like a mix of cuts and tax increases but have yet to challenge the governor's spending plan in any formal way — a showdown that most expect will eventually happen.

"The budget will be his true test," said Gerston, who expects that Schwarzenegger will eventually soften on the tax issue and force Democrats to accept a number of painful spending cuts.

If so, the governor will have once again achieved a compromise victory and enhanced his political mystique.

"Schwarzenegger understands that the best way to develop clout for his next fight is to win the last one," Schnur said.

[NormsRevenge]

VonDell Bankert, of Concord, who broke her back in a job releated injury in 2003, lies in a coffin during a demonstration against Gov. Arnold Schwarzenegger (news - web sites)'s proposed workers compensation plan during a rally held at the Capitol in Sacramento, Calif., Wednesday, April 14, 2004. Gov. Schwarzenegger and Democratic lawmakers reach a tentative plan to reform the California workers' compensation system that charges the nation's highest rates to employers while delivering some of its lowest benefits to injured workers. (AP Photo/Rich Pedroncelli)

[NormsRevenge]

One less November initiative?

[NormsRevenge]

Gov. Arnold Schwarzenegger (news - web sites), left, signs a poster of himself for a woman during a visit to a Costco store in Sacramento, Calif., Tuesday, April 13, 2004. Schwarzenegger had gone to the store to gather signatures for his workers compensation reform plan that he will put on the November ballot if the Legislature does not reach an agreement. (AP Photo/Rich Pedroncelli)

[Carry_Okie]

If this "win" is anything like Prop. 58, I'll wait for the details before celebrating.

[pogo101]

I'd better not find out that this is one whit less leftist-maddening than the ballot initiative I and my wife signed. That initiative would have qualified for the ballot and passed. So why would Arnold take a deal unless he got everything the initiative was going to do? (An maybe he got it. I have yet to see.)

[NormsRevenge]

Time will tell who benefits most..

I would put my money on the politicos myself,, but that's just me. ;-)

The initiative is still an option... if not now, later.

[alwaysconservative]

The contrast between the photos of the woman hysterically depicting herself in a coffin so as to avoid going to a pooled physician, versus the photo of Governor Schwarzenegger signing a poster of himself for some fans shows just who has the public relations mojo here.

It's very sweet, and all of this is another step in the right direction. Every "win" that the Governor racks up, real or perceived, is affirmation of the Republican agenda as a solution, as contrasted to the Dems who caused the problems in the first place.

[daviddennis]

Well, if she broke her back and has to lie down like that, I guess the old system didn't serve her that well, either.

D

[snopercod]

spending remains badly out of balance with tax income. The Legislative Analyst's Office estimates the state faces a $17 billion shortfall in 2004-2005.

This is a victory? This is fiscal responsibility?

[goldstategop]

We need to cut spending. The Democrats have been reeling since Arnold took office. He's the one setting the agenda and they don't know how to respond.

[dpwiener]

I'd better not find out that this is one whit less leftist-maddening than the ballot initiative I and my wife signed. That initiative would have qualified for the ballot and passed. So why would Arnold take a deal unless he got everything the initiative was going to do?

I'm sure this deal is not as good as the ballot initiative, but it's probably not too bad. While I would also have preferred the initiative, there were several good reasons for compromising:

1. Both sides would have had to spend tens of millions of dollars on the November campaign.

2. The initiative might have lost in November. It will be a crowded ballot, and getting people to vote "NO" is always easier than getting them to vote "YES".

3. Most importantly, California businesses need relief now, not seven months from now. We're talking about many billions of dollars between now and then, which would have been flushed down the toilet (i.e., into the pockets of trial lawyers and crooked doctors). We're talking about many businesses going bankrupt or fleeing the state between now and then.

This is a big win for Arnold. It shows his clout, it shows that the Democrats in the Legislature are terrified of him, and it shows the people of California that there is realistic hope for rescuing us from the disastrous mess that was Gray Davis' legacy.

Even though I voted for McClintock, I'm impressed so far by Arnold and his accomplishments.

[goldstategop]

Politics is the art of the possible. Is this bill perfect? Of course not. But Gray Davis never fixed any problems when he was Governor and Arnold has already put in a balanced budget limit and reformed worker's comp. Now he's set to put the state government on a permanent diet. Like I said, the Democrats don't know how to respond. The only answer and a tired one they have at that, is to increase taxes. When problems the Democrats never bothered to deal with for decades are being fixed, they have a major problem. And if Arnold succeeds in balancing the budget without a tax increase no Democrat is going to be able to beat him in 2006. And you can take that one to the bank.

[pogo101]

I hadn't thought of #3. That's pretty important, isn't it?

Let's hope that the just-introduced separate bill by Nunez to regulate premiums -- something not in the compromise bill -- either fails to get a majority at all (unlikely, given the leftist Legislature) or at least gets a prompt veto.

[Joe Hadenuf]

Even though I voted for McClintock, I'm impressed so far by Arnold and his accomplishments.

I agree. they are now saying the employers costs will be reduced over 30 percent starting immediately as. This is big.

[Amerigomag]

I agree. they are now saying the employers costs will be reduced over 30 percent starting immediately as. This is big.

Take the time to read the legislation before passing judgment. The legislation as proposed will have no immediate impact on insurance premiums. The only thing the legislation does is place a medical judgment in the hands of a select few.

It does not:

Limit judicial relief.
Define injuries
Tie premiums to costs.

History will show that this was a "saving political face" measure for all parties involved and is not a significant reform. It was rather intended to remove support for the initiative.

The initiative is far more comprehensive and everyone should continue to campaign for it's passage in November.

[snopercod]

bump

[Carry_Okie]

The Democrats have been reeling since Arnold took office. He's the one setting the agenda and they don't know how to respond.

Oh come on. That doesn't explain Prop. 58. Arnold has simply delayed the real confrontation to come.