December 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 or 415/955-6136.

EDUCATION STUDIES KEY ISSUE: SPENDING POLICIES
Policy Briefing
At the national level, Republicans in control of the legislative and executive branches have increased government spending significantly.

In California, however, Republican Governor Arnold Schwarzenegger has urged cuts in government spending, including reform of education finance.

PRI Perspective
Reducing the size of government is one of PRI’s core beliefs. As a corollary, unless government spending is reduced, the size of government cannot be reduced. This principle of reducing government and allowing the market to take its course, which at one time was a key tenet of the national Republican Party, is now being systematically ignored by Republican leaders in Washington.

Republicans and others still committed to fiscal prudence and common sense would do better to look to Sacramento where Arnold Schwarzenegger is, so far, fighting to pare down spending. Governor Schwarzenegger has even indicated that he is interested in overhauling Proposition 98, the ballot measure that guaranteed education a huge chunk of the state budget.

The governor needs to stay true to his budget-cutting instincts and take the fight to the liberals in the legislature.

PRI Impact
• On December 26, the Orange County Register published Lance’s op-ed “The Great GOP Divide” on the profligate spending policies of national Republicans versus Gov. Schwarzenegger’s efforts to cut the California state budget.

• On December 23, KQED-FM broadcast Lance’s commentary contrasting the spending policies of national Republicans and Gov. Schwarzenegger.

• On December 19, CaliforniaRepublic.org reprinted Lance’s Capital Ideas column “Will the Real Republican Party Please Stand Up?”

• On December 15, as part of his duties as a member of the U.S. Department of Education’s Teacher Assistance Corps, Lance met with the executive director of the Idaho State Board of Education and Idaho state education officials to discuss that state’s teacher quality programs in relation to the federal No Child Left Behind Act.

BUSINESS AND ECONOMIC STUDIES KEY ISSUE: WORKERS’ COMPENSATION REFORM
Policy Briefing
Skyrocketing system costs remain a major obstacle to job creation and economic growth in the state, despite the recent passage of legislation reforming California’s workers’ compensation system. California companies pay, on average, $5.85 in workers’ comp premiums per $100 of payroll. This is significantly more than our neighboring states: 94 percent more than Nevada, 184 percent more than Oregon, and a staggering 259 percent more than Arizona.

California Insurance Commissioner John Garamendi and Governor Arnold Schwarzenegger have each released reform plans. The governor convened a special session of the state legislature on November 18 to address the workers’ comp crisis, and legislation has been introduced modeled after the governor’s plan. Clearly, both political parties recognize the gravity of the problem. But what steps should be taken next?

PRI Perspective
There are many reforms that still need to be made, chief among them:

• Only compensate injuries that are “predominantly caused” by the workplace – meaning more than 50 percent caused by the job – not “proximately caused” as is allowed today.

• Change the medical-care standard from “cure and relieve” to “medically necessary,” the same standard that applies to group health insurance.

• Restructure the permanent disability rating system along the American Medical Association guidelines for determining physical impairment used by most states.

PRI Impact
• PRI released a new study on December 17 by Lawrence J. McQuillan and Andrew M. Gloger titled How to Fix California’s Broken Workers’ Compensation System. The study provides concise, easy-to-read recommendations, including the three above, for immediate, effective, and common-sense reform of the workers’ compensation system. It has served as the basis for legislative and media outreach.

OTHER CURRENT ISSUES

Technology
• Sonia Arrison’s op-ed on Internet taxes was published in National Review Online.

• Sonia’s piece on ICANN, the Internet Corporation for Assigned Names and Numbers, appeared in CNET News.com and was discussed on the influential Summation blog.

Health Care
• PRI President Sally C. Pipes was interviewed by radio stations across the U.S. on key issues in health care, including the Medicare bill, drug pricing, and reimportation of pharmaceuticals from Canada.

Environment
• PRI released a paper on the efforts of state attorneys general, including California’s Bill Lockyer, to force the EPA to impose regulatory controls on vehicle emissions of carbon dioxide. The paper, Attorneys General vs. the EPA, by Sally Pipes and Benjamin Zycher, was released at a press conference at the state Capitol.

• Sally’s op-ed on the Kyoto Protocol was published in the Houston Chronicle.

• PRI Fellow Michael De Alessi’s op-ed on the 30th anniversary of the Endangered Species Act was published in the Washington Times.