August 2003 PRI Ideas in Action
Policy Update and Monthly Impact Report

PRI continues to impact public policy in California, the nation, and abroad. The following is just a sample of PRI's recent contributions.

If you would like to receive this monthly update by email, please contact Carrie Levy at clevy@pacificresearch.org

Key Issue Workers’ Compensation Insurance Policy Briefing
The Workers' Comp Reform Conferees in the state legislature finally passed a bill on September 9 promising $5 billion in savings to the system. Highlights of the language include:
• Requiring all employers to adopt utilization review systems consistent with the American College of Occupational and Environmental Medicine Medical Practice Guidelines.
• Repealing the existing vocational rehabilitation statute as part of a repeal of the VR mandate.
• Limiting chiropractic treatment to 30 visits and physical therapy treatment to 24 visits.
• Creating a new outpatient facility fee schedule based on Medicare with a 120 percent conversion factor.

PRI Perspective
While some of these actions will help to curb rising medical costs, several of which were advocated in PRI’s August 10 San Francisco Chronicle article “Workers’ Comp Rules Invite Abuse,” the bill does not go far enough. Industry observers are skeptical that it will actually achieve the $5 billion level of savings. Had other steps been taken along the lines recommended by PRI in the Chronicle article, including mandating objective medical findings to determine permanent disability and curbing significant litigation costs in the system, it would have been possible to realize savings far in excess of the $5 billion the bill aims to achieve.

PRI Impact
• August 10, “Workers’ Comp Rules Invite Abuse,” by Lawrence McQuillan and Andrew Gloger, was published in the San Francisco Chronicle.
• Lawrence and Andrew's article "California's Tax Follies" was reprinted in the Summer 2003 issue of Intellectual Ammunition, a national public-policy magazine.
• PRI’s work has also been published or cited in CNN Money, Black Enterprise Magazine, Sacramento Bee, Orange County Register, San Francisco Business Times, Heartlander, and CaliforniaRepublic.org

Technology

Key Issue Intellectual property in a digital world

Policy Briefing
The digitization and Internet distribution of intellectual property like books, music, and movies have made it easy to access these goods without paying for them. Many different solutions to the problem have been proposed including legislation, new business models, and technological solutions.

PRI Perspective
Intellectual property is an integral part of the U.S. economy, so it is important that intellectual property holders are paid for their works. However, new legislation that lets government design technology parts or that allows private corporations to hold police-type investigative powers is flawed. The best way to deal with this problem is through technological solutions and new business models.

PRI Impact
• Policy director Sonia Arrison and other PRI scholars have been published or cited in New York Times web edition, CNET News web edition, MSNBC web edition, CBS Marketwatch, Yahoo! Finance, ZDNET E-Business, Popular Mechanics, Communications Daily, CNN Money, Black Enterprise Magazine, Boston.com, National Hispanic Corporate Council, Advertising News, Tech Central Station, and Reason.
• On August 4, Sonia was interviewed on music piracy for an hour segment on Talk 1010 radio; later in the month she recorded a piece on intellectual property and music downloads for KQED commentary (the NPR affiliate).
• On August 18, Sonia spoke on intellectual property issues at the annual Progress and Freedom tech summit in Apsen.

Education Studies

Key Issue: State Test Scores

Policy Briefing
On August 15, the California Department of Education released the results on the 2003 state standardized tests. Although test scores were up somewhat from the year before, overall scores were way below the state’s targeted goals and other indicators of student performance still lag badly behind.

PRI Perspective
While scores were up incrementally in most grades, on the state’s main English/language arts test every grade tested failed to reach the 40 percent mark of students scoring at or above the proficient level, which is the state’s benchmark goal. Looking at other achievement indicators, last year nearly 60 percent of entering freshmen in the California State University system needed remedial instruction in English and/or math. The high-school graduation rate is less than 70 percent. Yet, in the past decade total inflation-adjusted per-pupil spending has risen nearly 30 percent. In order to improve the performance of students, California needs to focus on what has been shown to work. This means instead of throwing tax dollars at problems, schools must implement the state’s rigorous state academic content standards in the classroom.

PRI Impact
• Policy director Lance Izumi has been named to the national teacher quality task force and will be traveling around the country speaking to government officials and education leaders about school performance and accountability issues.
• On August 5, PRI released the California Education Report Card: Index of Leading Indicators, Third Edition, by Lance Izumi and Matt Cox. This report gives a comprehensive overview of California’s education performance.
• PRI’s Report Card has already been featured in National Review Online, Orange County Register, San Francisco Chronicle, San Francisco Business Times, and the Fordham Foundation newsletter.
• Lance has been interviewed by the Sacramento Bee and CNSNews.com. He met with the San Francisco Chronicle editorial board. And he was a guest on the “Roger Hedgecock Show” on KOGO-AM in San Diego and gave a commentary on KQED-FM.
• On August 20, PRI co-sponsored a seminar at the State Capitol on the findings of the California Education Report Card. Other co-sponsors included Assemblyman Ray Haynes and the Howard Jarvis Taxpayers Association. Lance spoke to an audience of 25 legislative staffers and representatives of the California Department of Education.

Other Recent Coverage

Health Care
• Sally Pipes and Chris Middleton co-authored op-eds published in National Review Online, Beaver County Times, Pantagraph, Vindicator, and Soc. Retirement.
• PRI’s work was also mentioned in the New York Times Forums and Townhall.com.
• Sally was interviewed on RADIO WHOW WMT (Des Moines, IA) and RADIO WDAY (Fargo, ND).
• Sally met with the editorial boards of the Indianapolis Star and Milwaukee Sentinel to brief them on her upcoming book on health care.

Environment
• In August, PRI’s work on air quality was covered in Environment and Climate News, Times-Reporter, and Montana Standard.
• PRI’s recently released study Saving Endangered Species Privately, by Michael De Alessi, was covered extensively by United Press International. PRI co-published the study with the Reason Public Policy Institute.