October 16, 1996
The Division of Workers' Compensation (DWC) has completed a review of its facilities and has decided to close two facilities over the next 15 months. The Pasadena office will close on January 15, 1997, and the Anaheim office will close on January 31, 1998. DWC plans to keep all other offices open, though expenditures will be reduced for some locations through space and/or price reductions.
These decisions were made after a review of all facility options available over the next two years, according to DWC Administrative Director Casey L. Young. For several years, DWC's budget has been adversely affected by facility decisions made after the 1989 workers' compensation reforms, he said, pointing out that new offices were opened without the necessary long term funding to support the leases that were signed. As a consequence, DWC has been forced to slash other expenditures, primarily by holding positions vacant, in order to "fund" these facilities costs.
"It is never an easy decision to close an office," Young said. "However, we simply cannot afford to fill needed positions or make necessary investments in training our employees if we do not reduce other expenditures. The facilities category, by far the largest non-personnel cost, is the only place to find meaningful expenditure reductions.
"It is important to note that the decision to close Pasadena and Anaheim is not a reflection on these offices or the employees who have worked so hard to earn the excellent reputations these offices enjoy," he emphasized. "The decision was made because the personnel and workload in these offices are most easily transferred to other existing nearby facilities. This will not cause any layoff of DWC employees. To the contrary, it will allow us to fill positions that would otherwise remain vacant.
"I know DWC employees and others in the workers' compensation community have been anxious about the persistent rumors of possible office closures. This plan should eliminate the uncertainty and give everyone the information they need to plan," Young concluded.