The Division of Industrial Accidents administers the Commonwealth's workers' compensation system. The Division ensures that medical treatment to injured workers is provided in a timely manner, while balancing the needs of employers to contain workers' compensation insurance costs.

The Workers' Compensation Reform Act, signed by Governor Weld in 1991, is largely credited with the reduction of insurance premiums for the first time since 1972. As a result of this Act, new Workers' Compensation claims have decreased from 40,000 in Calendar Year 1991, to 23,000 in Calendar Year 1996. This decrease is a direct result of strict anti-fraud provisions and increased enforcement.

Objectives

In response to the reduction in workers' compensation cases, the Division will reduce the number of administrative law judges and support staff in Fiscal Year 1998. This step will provide employers with a lower assessment rate for workers' compensation, making the Commonwealth an even more competitive state for business expansion.

Budget Recommendations

Due to the significant decline in the number of industrial accident cases, the Fiscal Year 1998 funding recommendation for the Division is $2.21 million less than in Fiscal Year 1997. Revenues from assessments will decline by the same amount. The recommended level of full-time equivalent staff (FTEs) positions is 301, representing a decline of twenty-four FTEs from Fiscal Year 1997.

Budgetary Direct Appropriations

DIVISION OF INDUSTRIAL ACCIDENTS
7002-0500	For the operation of the division of industrial accidents; provided, that the General Fund shall be reimbursed the amount appropriated herein and for associated indirect and fringe benefit costs from assessments levied pursuant to section sixty-five of chapter one hundred fifty-two of the General Laws	17,000,000

Trust and Other Spending

9440-0204

GENERAL INDUSTRIAL ACCIDENT FUND

41,047,600

9440-0290

WORKERS' COMPENSATION TRUST FUND

3,024,400