October 15, 2005 It was heralded as a new dawn for California. A stunning string of successes in the legislature and on the ballot in 2005 promised that politics as usual in the Golden State was no more. Public and private unions were decimated by a string of defeats, from workers compensation reform in 2004 to the PERS changes approved by the voters in the July 2005 special election. Democrats crumbled during budget negotiations, agreeing to virtually all recommendations in the California Performance Review. Even the Little Hoover Commission caved in to the Governors proposals. The Workers Comp Appeals Board was gone or more appropriately, blown up. Appellate judges were sent their pink slips and told to check for openings with the Office of Administrative Hearings at General Services. It was still business as usual in the district offices.

The Commission on Health and Safety and Workers Compensation, the target of many barbs from frustrated employer representatives, disappeared along with many other boards and commissions. The staff was let go, and research projects were left to the needs of the Administrative Director. Rumors that RAND personnel were seen at Los Angeles area flea markets selling used computer equipment could not be confirmed.

Against this backdrop, and with great expectations, business community leaders assembled at Disneys California Adventure to hear the good news: four more years of growth; four more years of prosperity; four more years making the Golden State golden again.

It was, therefore, somewhat of a surprise to the assembled moguls when a pale, bookish man appeared among them. His suit was rumpled, and he clearly shied away from anyone with a press pass. There was a certain clean-cut familiarity about him, but most of the business leaders couldnt quite remember where they had seen him before. That, of course, changed immediately when one person said, Why, Mr. Rove, its good to see you here at least I think its good to see you here.

Whatever thoughts Roves presence engendered were soon dispelled by the signature entrance of Californias Governor: Terminator music, leather jacket, Harley up the ramp to the podium. Even the sunglasses. Even the buttoned-down crowd went wild. After the frenzy quieted, at least a little, he raised his hands to speak.

Three years ago, the people of California demanded change and they got it.

More applause.

Three years ago, the people of California demanded a government that was accountable to them and not to the special interests and they got it.

Wild applause.

Today I stand before you to say that I thank you all for the privilege of being your Governor.

Delirious applause.

It is a new dawn for California. It is time for all of us to pause and reflect on how far we have come in just four short years.

Someone began the chant Four more years! It took awhile for it to die down.

It is also time to bring on a new generation of leaders and a new vision for the future.

The applause was automatic, even if some listeners in the crowd were hesitant. One business leader looked back at Karl Rove and asked, You know something I dont know?

Rove smiled and said, Why, yes, I do. And he did.

Wednesday, January 3, 2007

Assembly chambers, crowded in anticipation of the Governors State of the State address. Governor Phil Angelides shakes the hand of Lieutenant Governor John Garamendi, Attorney General Jerry Brown, Insurance Commissioner Jackie Speier, and State Treasurer Sean Harrigan. Senate President Pro Tem Martha Escutia and Assembly Speaker Fabian Nuez, both flush with two-thirds majorities in their Houses and a new lease on life with expanded term limits, embrace the new Governor warmly. He stands at the podium.

Distinguished leaders and public servants, before I talk about the State of our California, I want to acknowledge one very special person in the audience. I am certain many of my colleagues in these chambers would agree that all America owes a debt to you, sir the Governor of the Great State of New York, Elliot Spitzer!

A few weeks later, various former labor representatives were confirmed as Secretary of the Labor and Economic Development Agency, Undersecretary of the Benefits Division, and Administrative Director of the Division of Workers Compensation. Appointments sailed through and the government changed hands.

Shortly thereafter, the Appeals Division of the Labor and Workforce Development Agency was treated to a royal entrance by its nine new members, all close allies of the new Governor, two of whom are members of the California Applicants Attorneys Association, one a former general counsel of a labor union.

It was a good thing Arnold did to allow the judges to sit at the pleasure of the Governor, the judges were reminded by the Governors appointments secretary, Mr. Ritchie Ross, just before they had coffee and cake with the new Governor and before their entrance.

Many former workers compensation judges were rehired by the new Administrative Director at local board offices, and the applicants attorneys are being encouraged to bring cases through the system to reverse the trends of the past few years.

Later in the session, a workers compensation cleanup bill was passed on a straight partisan vote. Because of their gains in the 2006 election, it was an urgency measure. The Commission on Health and Safety and Workers Compensation was reconstituted and tasked to develop the appropriate formula for using the AMA Guides while not reducing benefits from the January 1, 2004 levels. According to labor representatives, this was what was always intended. The bill clarified that physicians opinions on whether treatment guidelines were appropriate should be entitled to great weight, and the Administrative Director appointed a medical advisory committee made up of occupational medicine experts to develop new community-based treatment guidelines to replace those adopted by the prior administration.

By the end of the legislative session, workers compensation insurance rates were subject to Proposition 103 and Jackie Speiers Department of Insurance put Larry White in charge of the new unit.

As the assembled lobbyists stood outside the gates at the Senate and the Assembly before the legislature adjourned, a business lobbyist overheard this comment:

Oh well, I guess its time to roll out the Job Killers again.