The Governor's budget proposal does not provide general funding for operation of the workers' compensation system.

Instead of paying for operation of the workers' compensation system from the state's general fund, the Governor's administration has suggested that funding for operation of the workers' compensation system come from employers and insurance carriers by means of assessments, user fees, filing fees, fines and the like.

Your MSIA Board has met with representative of the Administration and expressed MSIA's strong opposition to the Administration's proposal. The MSIA Board views the proposed employer funding as a "tax" on employers that will harm Michigan's business climate. Historically, with the exception of the last couple of years, the state had paid for operation of the workers' compensation system from the general fund. The MSIA Board believes operation of the state's workers' compensation system is important and warrants a high priority in the budget and should be covered via the general fund.

MSIA is interested in our membership's thoughts on this subject and welcomes your input.