Workers Comp Zone


After passing a budget, the California Senate has now adjourned.

Carrie Nevans, the AD of California’s Division of Workers’ Compensation, was not confirmed before the Senate adjourned.

Without confirmation, Nevans will presumably have to step down soon. In politics, anything is possible, of course. But unless the Governor calls a special session and vetos the budget agreement handed him yesterday (an agreement that kicks the California budget crisis down the road but does not solve the underlying problems), there will be no vote on Nevans.

So her tenure is likely to end with a whimper rather than a bang.

Meanwhile, keep your eyes on the drama unfolding in New York (where I am at the moment). A.I.G’s may be filing for bankruptcy in the next 48 hours absent a dramatic move by the Federal Reserve. Weak financial results at Goldman Sachs and Morgan Stanley make it unlikely that investment banks will be able to raise capital to save AIG without explicit guarantees by the Fed.

Stay tuned.

Julius Young
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Category: Political developments