The Republican governor's statements drew immediate support from Democratic Insurance Commissioner John Garamendi.

In a statement, Mr. Garamendi said that "The Governor is correct. We must complete last years' reforms, which resulted in a $5.5 billion reduction in the cost of claims."

Mr. Garamendi continued that "Every Monday morning quarterback knows that winning the first half is good, but it means nothing unless you finish strong. The legislature and the Governor have until February to complete the reforms I've outlined in my roadmap."

He stated that the legislation must be passed so that California businesses can realize substantial reductions in workers' comp costs as early as July 2004.

"California's economy simply cannot fully recover unless its dysfunctional workers' compensation system is repaired. I look forward to working with the Governor on this effort," Mr. Garamendi said.

Mr. Schwarzenegger said in his address that his proposal brings California's workers' comp standards and costs in line with the rest of the country, emphasizing "the importance of health care and doctors rather than lawyers and judges."

This year, he said, California has "the highest unemployment insurance costs in the nation. Our system is flat broke. So that people could get their checks, last month I had to ask Washington for a billion dollar loan to bail us out. Unemployment checks are an important part, an important safety net."

He added, "We must fix the system, and I need your help."