Gov. Jerry Brown Proposes Eliminating Standards Board, Insurance Advisor

In an effort to save the state about $500,000, California Gov. Jerry Brown has proposed eliminating the Office of the Insurance Advisor and the Occupational Safety and Health Standards Board, according to his proposed May Budget Revise.

The Office of the Insurance Advisor within the State and Consumer Services Agency provides the governor’s office with independent policy advice on insurance matters and makes policy recommendations. The governor stated he believes the functions can be performed by existing staff, and by eliminating the OIA, the state would decrease $250,000 of reimbursements and 1.9 personnel years in 2011-2012.

Upon eliminating the Occupational Safety and Health Standards Board, also known as the Cal-OSHA standards board, responsibility for rulemaking and standards development to the Division of Occupational Safety and Health within the Department of Industrial Relations. This is similar to the federal model for standards development, including stakeholder advisory panels, the governor stated in his proposal. The change would result in a decrease of $324,000 other funds and 1.9 personnel years in 2011-2012, the governor’s office predicted.

Among other insurance-related changes proposed in the May Budget Revise, the governor suggested eliminating:

• The Unemployment Insurance Appeals Board, which includes seven members; and
• The Managed Risk Medical Insurance Board, and instead have the MRMIB’s executive director report to the secretary of the California Health and Human Services Agency and other programs transfer to other departments.

“California has struggled with massive budget deficits for most of the past decade … largely the result of a reliance on one-time solutions, borrowing, accounting maneuvers, and cuts or revenues that were illusory and therefore did not materialize,” the governor wrote. “Making matters much worse, the Great Recession reduced the state’s revenue by 30 percent.”

He said his revised budget proposal helps to close the deficit and addresses ongoing fiscal problems by moving government services closer to the people and streamlining state government. Notably, the budget revise increases funds for education.

Topics California