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Lawmakers Work for a Budget Deal Such sentiments have prompted the Assembly Republicans to tap a group of lawmakers to come up with a workers' compensation reform package at the height of budget negotiating season. "We believe strongly that major reform to workers' compensation has to happen this year," said Dave Cogdill (R-Modesto), adding that final budget negotiations are the point at which Republicans will be best poised to enact reforms. "We don't want to lose that opportunity." State businesses paid roughly $12 billion in workers' compensation premiums in 2001, $15 billion in 2002, and are projected to pay $20 billion this year, according to the chamber. Some businesses have seen rates jump as much as 900% in two years. Republicans seek to drive down rates through a number of proposals: by making the determination that a worker is permanently disabled less subjective, by placing more control over how much doctors can bill patients under the system, and by limiting the number and types of procedures that are covered. A number of bills to overhaul workers' compensation were killed in committee after opposition from unions and attorneys who represent injured workers. The drive to overhaul workers' compensation represents one Republican Party objective that could emerge as a bargaining point in budget talks. Another is the party's interest in imposing a government spending cap. Spending Cap The proposal Republicans have advanced would restrict spending so that growth in state programs would be tied to population and inflation. Democrats generally have been wary of that approach, arguing that to impose it this year, after spending is expected to be cut to balance the budget, would make it difficult for the government to restore important services once the economy improves. But Davis has suggested that he is willing to talk about a spending cap, though he prefers to endorse something less restrictive, which he calls a "spending limitation." In interviews last week, the governor acknowledged that he anticipates a negotiation that would involve Democrats giving ground on the spending limits in return for Republican support for taxes. At week's end, Republicans remained unconvinced. Cogdill, one of the most conservative members of the party, said, "At this point we continue to believe that the [budget] problem, including the workers' compensation piece of the equation, can be solved without tax increases." But Republican consultant Dan Schnur said he is advising party leaders to focus on a plan for declaring victory, with or without tax hikes. Holding the line on taxes and not having an alternate plan, he said, could result in Democrats picking off the GOP votes they need to push a plan through as a shutdown looms and public resentment over the impasse grows.
"My guess is there are a number of Republican legislators who would be more than willing to negotiate in other areas if they can go back to their small-business constituents with some victories," he said.
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