Article ID: 9de699be752608a2f5f31aefc062edfcdcf471cea18d96cca3471462d325ede2
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URL: https://www.businessinsurance.com/calif-budget-proposal-bill-aim-at-struggling-comp-fund/
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Calif. budget proposal, bill aim at struggling comp fund - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Calif. budget proposal, bill aim at struggling comp fund by Louise Esola Workers Comp Coverage Feb 6, 2026 California Gov. Gavin Newsom’s proposed 2026-27 budget and a bill sent to committee Monday both take aim at mounting pressures on the state’s workers compensation system, focusing on rapid growth and rising costs in the Subsequent Injuries Benefits Trust Fund. Together, the budget proposal and A.B. 1576 reflect increasing concern among state officials and lawmakers that the decades-old program, which provides additional benefits to workers who suffer multiple industrial injuries, has expanded beyond its original scope and is straining administrative and financial capacity. The budget proposes a major infusion of resources for the trust fund, including $12.7 million from the Workers’ Compensation Administration Revolving Fund and 57 new positions in the 2026-27 fiscal year to address a growing backlog of cases. Funding and staffing would ramp up over time, reaching $36.5 million and 177 positions by 2030-31 on an ongoing basis. At the same time, A.B. 1576 would revise how subsequent-injury benefits are calculated and administered. The bill proposes updates to eligibility and payment rules for permanent partial disability benefits and would make structural changes to how the trust fund is overseen. Among its provisions, the measure would transfer trusteeship of the fund from the State Compensation Insurance Fund to the director of the Department of Industrial Relations and require the Division of Workers’ Compensation to maintain a qualified medical evaluator database and related administrative standards. Budget documents warn that without changes, annual trust fund benefit payments are projected to grow from $87 million in 2019-20 to $1.3 billion by 2029-30, while employer assessments that finance the program could rise from $112 million to $1.5 billion. Annual claims have increased from about 1,000 in 2015 to roughly 5,400 in recent years. State officials say the proposed funding would help stabilize operations in the short term, while lawmakers consider broader statutory reforms. No hearing date has yet been scheduled for A.B. 1576. 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