Budget Goof Means CA DWC Out of Money in 5 Weeks

Due to a major budgetary oversight, the California Division of Workers' Compensation may not be able to keep the lights on in five weeks. A clerical error in the budget signed by former Governor Gray Davis' means the DWC is short $54.6 million.The error occurred after Davis signed AB 227, which made the DWC's $103.4 million budget 100% user funded. But the actual budget, signed into law 10 days later, included the old funding formula, which means that only 20 percent of the operating budget will come from the employer assessment.Since the budget was signed after AB 227 was signed, legally, the...