Letter: Privatization of workers' comp will cost dearly

Specifically through a plan to privatize the State Fund, otherwise known as Employers Insurance Co. of Nevada, formerly known as the State Industrial Insurance System, the system that protects the injured workers in the state of Nevada.

As a 25-year-citizen of Nevada, a homeowner, a consumer, a taxpayer, a voter and a former injured worker, I am concerned that we are being carefully excluded from the facts in this matter. Privatization is being touted as the greatest thing since sliced bread. Let's examine the facts and find out if this is so.

News releases regarding privatization are suspiciously absent of any statistics providing success stories from other states (there are 49 of these), where the state fund may have been dissolved and privatization is now protecting the injured workers. One would think that Gov. Kenny Guinn would certainly provide this information to convince the legislators and those who voted for him that this is a workable and cost-effective plan. Where are those success stories, Gov. Guinn?

At present, all revenues of the state fund are nontaxable as Employers Insurance Co. of Nevada is a tax-exempt state agency. However, under the governor's plan, after Jan. 1, 2000, the company will lose its tax-exempt status. Thereafter, a percentage of all revenues will be forwarded to the federal government via income taxes.

One would easily assume this tax burden may be in the millions of dollars per year!

WILLIAM MULHOLLAND

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