HomeMy WebLinkAbout2002-04-22 02-184 RESOLVEDate: 4-22-02
Item/Subject Resolve, Calling Upon the Maine Legislature to Act to Prevent Increases In Workers'
Compensation Casts.
Responsible Department: City Council
The attached resolve addresses a workers' compensation Issue currently under debate in Augusta.
This Issue resulted from a recent Law Court deasion that found that pre-existing, non -work related
conditions are to be considered in determining an employee's level of permanent impairment. It is
estimated that this decision will increase workers' compensation costs by approximately 15% and
open employers to past liabilities back to 1993.
The legislature will be considering this issue on April 24" as It returns to Augusta for `iv W day
The attached resolve requests that the legislature address this court decision and take the necessary
steps to ensure that employer costs will not increase while maintaining a workers' compensation
system that continues to provide appropriate benefits W workers who have been injured on Me job.
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Manager's Comments:
Ory Manager
Associated Information: Resolve
Finance Director
Legal Approval:
ON Ilcl[or
introduced for
X Passage
First Reading Page_ of
Referral
02-194
Assign to Cowclior eaxclaBcw Aprll 22. 2002
CITY OF BANGOR
(TITLE.) RESOLVE, Calling Upon the Maine Legislature W A W Prevent Increases in Workers'
Compensation Costs.
WHEREAS, Municipalities are struggling to balance budgets in Me face of escalating costs for
education, road maintenance, and basic municipal services; and
WHEREAS, Municipalities are overburdened by under funded and/or unfunded legislative mandates;
and
WHEREAS, The cost of otenrg health irourance to municipal employees is spiraling out of control
and severely straining local budgets; and
WHEREAS, Flier years of decline, workers' compensation insurance rates and cosh have increasetl
significant over the past two years; and
WHEREAS, The Maine Supreme Law Court rendered a decision in the couch Care on February J,
2002 requiring the consideration of pressdsbng, non -work related conditions for the
okulabon of workers' compensation benefits; and
WHEREAS, The National Council of Compensation Insurers, the organization whose
recommendations provide the basis upon which premiums are based in Maine, has
estimated that workers' compensation premiums will increase by fifteen percent for all
employers and retroactive cost will be belween $1W and $290 million because of the
Kotch Rol and
WHEREAS, Municipalitles will be faced W reduce services or increase already overburdenetl
property taxes W pay for any increases in workers' compensation premiums.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CIT/ OF BANGOR, THAT;
We hereby urge Me Maine State LegislaMre W Immediately address the Kotch decision and to take the
necessary steps to ensure that employer cash will not increase while maintaining a workers'
compensation system that continues W provide appropriate benefit to workers who have been injured
white on the job.
Itn CITY Comm
April 22. 2002
Notion Mede and Eecaaded
for Passage
Passed
Cy GLERK
02-186
R E A 0 1 V E
Title, failing upon the Raine Legislature
to Act to Prevent Increases in Worker's
Compensation Costs
Assigned to
r Councilor