Fla. CFO Concerned as Gov. Proposes Workers’ Comp Fund Sweep

In response to Gov. Charlie Crist’s budget recommendations for the 2008-2009 fiscal year, Florida Chief Financial Officer Alex Sink expressed concerns over proposals to reduce the Workers’ Compensation Administration Trust Fund.

“While I understand the current challenge to find resources in this year’s budget, I am concerned about the recommendation to sweep $129.5 million from the Workers’ Compensation Administration Trust Fund,” Sink said. “Through efficient management and reform of the Workers’ Compensation system, our state has been able to reduce Workers’ Compensation Administrative Trust Fund assessments from 2.75 percent to 0.25 percent, which is a 91 percent reduction over an eight-year period. A trust fund sweep of this magnitude will require the state to raise Workers’ Compensation assessments—taxes—on Florida businesses as early as January 2009. I look forward to working with the Governor and the Legislature to prevent assessment increases on Florida’s business owners, many of whom are struggling to balance their own budgets.”

Source: Florida Department of Financial Services