Columbus, Ohio – Ohio Governor Ted Strickland today presented his budgets for the Ohio Bureau of Workers’ Compensation and the Ohio Industrial Commission, including significant reforms of the governing and oversight structure of the BWC.
The Ohio Industrial Commission recommended budget for fiscal years 2008 and 2009 is $61.8 million each year. OIC conducts hearings on workers’ compensation issues and is responsible for providing fair, impartial and easily accessible resolutions to disputes.
The total recommended budget for the Bureau of Workers’ Compensation for fiscal years 2008 and 2009 is $328.9 million and $329.2 million respectively.
“We must rebuild trust and accountability in the Bureau of Workers’ Compensation, and this budget will allow us to reform the Bureau,” Strickland said. “To be successful, we must ensure integrity, professionalism and efficiency in the BWC system.”
The Ohio Bureau of Workers’ Compensation underwrites insurance coverage for work-related injuries and illnesses for public and private sector employers conducting business in Ohio and oversees the workers’ compensation programs for self-insured employers.
Strickland’s budget replaces the current Bureau of Workers’ Compensation Oversight Commission, which primarily has advice and consent powers, with an independent, external board of directors. The independent board will act as the primary fiduciary of the fund and will be held accountable for its operations.
The independent board of directors will be comprised of 15 members, including business and labor representatives, financial experts and four non-voting legislative members. The governor will appoint the 11 non-legislative members of the board.
“The board members will exemplify the professionalism and broad expertise needed to run BWC with sound judgment and without influence from special interests,” Strickland said. “The board’s oversight powers will span the entire BWC, ensuring comprehensive review of all practices and providing the checks and balances necessary to effectively run the Bureau.”
The governor’s proposal establishes three subcommittees to provide independent advice and verification of BWC financial and operational performance: an audit committee, an investment committee and an actuarial committee.
The audit committee will interview and recommend to the board of directors the accounting firm performing the annual audit and evaluate the annual audits. The investment committee will be in charge of assuring proper fiscal management for the Bureau of Workers’ Compensation Fund. The actuarial committee will work to guarantee that the bureau’s rate-setting operations are carried out at the highest level of integrity.
The governor will meet annually with the entire board for the purpose of discussing the performance of the BWC administrator. The governor will retain the authority to hire and fire the administrator; the hiring of the administrator will be subject to the advice and consent of the Ohio Senate.
The budget also proposes creating the position of deputy inspector general for the Bureau of Workers’ Compensation and the Industrial Commission, which will serve as the internal inspector for those agencies. The deputy inspector general will be appointed by and answer directly to the Ohio inspector general.
“The plans set forth in my budget signal a common-sense approach to restoring the accountability and transparency in the Bureau of Workers’ Compensation that Ohioans deserve,” Strickland said.
The Ohio Bureau of Workers’ Compensation is the largest exclusive state-funded workers’ compensation system in the United States, with more than $19 billion in assets.
In fiscal year 2006, BWC provided workers’ compensation coverage to more than 288,000 employers, processed more than 188,000 new claims and paid out more than $1.9 billion in benefits. Premiums and assessments from employers were more than $2.1 billion.
The complete Bureau of Workers' Compensation and Industrial Commission proposed budgets will be available today at: http://www.obm.ohio.gov/