Expected Cuts to Workers’ Comp Good News For Village
Organization’s Fees Have Nearly Quadrupled Over Past Five Years

   SAN DIEGO — St. Vincent de Paul Village is anxiously awaiting the outcome of today’s legislative vote in Sacramento on a bill that, if approved, would reduce business costs associated with workers’ compensation rates.

   Since 1999, St. Vincent’s fees for workers’ compensation have increased 370 percent; currently those costs account for $1.4 million of the agency’s $25 million operating budget, $12 million of which comes from private donations.

   President of St. Vincent’s, Father Joe Carroll, is hopeful today’s vote will reduce the Village’s workers’ compensation burden.

   "Every extra dollar spent on administrative expenses is one less dollar funding our life-changing programs and services," he says. "It’s high time our state government rein in these exorbitant rates penalizing California businesses and non-profit organizations like St. Vincent’s."

   Unlike companies that sell product, Father Joe says it’s more difficult for charities to stave off unexpected increases in overhead.

   "We don’t sell widgets, so we can’t increase the cost of an item to offset growing expenses," he says. "We sell warm and fuzzy – that’s what our consumers get in return for their contribution and, typically, warm and fuzzy is the first thing cut from the family budget if it gets too expensive."

   St. Vincent’s has contacted Assemblyman Juan Vargas, D-San Diego, and members of the governor’s staff to garner added support for the bill.

   "It’s no surprise to see so many companies leaving California to set up shop somewhere else," Father Joe says. "We need to create a business-friendly atmosphere to drive commerce back to our wonderful state," pointing out that businesses provide various levels of support to St. Vincent’s.

   Father Joe will available for comment on the workers’ compensation issue after 1 p.m. today.

Please call (619) 540-2004 to set up an interview.