WORKERS COMP HEAD RESIGNS - Failure Of Legislature To Deal With $3 Billion Shortfall

(03/19/2003)

Dale Newell, the executive director of the Worker's Compensation Division, has resigned. Newell's resignation letter gave two reasons for his departure. One was the Legislature's failure to pass a workers' compensation reform bill during the 60-day session that ended March 8. The other was the governor's setting up a committee of administration officials to review the division's operations. Democrats and Republicans blamed each other for failure to deal with the pressing problem. Newell's boss, Employment Programs Commissioner Bob Smith, said his resignation was a surprise. Newell's agency is facing a deficit approaching $3 billion. An independent study says it will be bankrupt in twelve months. With his extensive experience, Newell - a retired insurance company executive - represented the best chance the state has had in several years to get those facts, stated Steve Roberts, president of the West Virginia Chamber of Commerce. House Speaker Bob Kiss, who said at the beginning of the session Worker's Comp would be quickly dealt attention, said Newell was talented, but didn't see his resignation as a setback. Gov. Wise is expected to call a special session to deal with the problem. Some officials say the fund may become become a "bankruptcy" test.

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