Wednesday, August 11, 2010
I-1082 Creates Economic Advantages
The Business Examiner reports the Office of Financial Management predicts an economic upturn in the state's economy and revenue if Initiative 1082 passes in November.
The Chamber supports privatization and competition in the workers' compensation insurance market and urges Chamber members to vote for I-1082. More from the Business Examiner below:
"A state government report indicates a vibrant competitive market for workers' compensation insurance would be created if voters approve Initiative 1082.
"The Office of Financial Management released its Fiscal Impact Statement yesterday analyzing Initiative 1082 as part of the state Voters' Guide process.
OFM predicts private insurers would acquire slightly more than half of the workers' compensation market by 2014 as businesses flee the existing state-run monopoly. With a reduced case load, "… state expenditures for claims costs will correspondingly decrease," according to the report.
"The report estimates 320 insurers and as many as 500 insurance agents and brokers would ultimately be licensed by the state to sell workers' compensation insurance if private competition is allowed. That new business activity is expected to generate at least $20 million in annual tax revenue to support the state's general fund budget. "