Monday, October 9th, 2000 — For the second consecutive year, California Governor Gray Davis has rejected an omnibus proposal supported by organized labor and applicant attorneys to increase workers' compensation benefits, saying the plan was too costly and lacked sufficient reforms for the state's strapped insurance system.
Meanwhile, backers of the rejected plan said they are considering going to the ballot box to settle the dispute.
The Democratic governor said he would consider another benefits increase proposal next year. The interests most closely concerned with the issue—employers, insurers, attorneys and labor groups—have already begun negotiations on next year's package.
"Bills intended to assist workers, a goal I embrace, must not at the same time overburden businesses, which must succeed in order to provide jobs for those workers," Gov. Davis said