California Insider

Ken Khachigian, the former Reagan speechwriter, told me earlier this year that he thought the governor blundered by forcing a special election without first spending a year trying to educate the voters and cajole the Legislature into passing his reforms. I guess you could say that Tuesday's results proved him right. But he's not gloating. Instead, he's offering insights and advice for the gov going forward. His brief piece is worth reading.

The workers' comp reforms passed in Sept. 2003 and April 2004 might turn out to be the most dramatic pieces of legislation in recent times. Together they have already combined to lower the cost of treating injured workers and their benefits by 50 percent, and, eventually, most of those savings should find their way into the rates charged by insurers, saving the people who create jobs in California billions of dollars. Representatives for injured workers say the legislation went too far. Perhaps. But one thing is clear: no other legislation in recent history has accomplished its stated goals so well. It's worth remembering in light of Tuesday's results that the second part of that workers' comp reform package never would have been enacted if Schwarzenegger had not credibly threatened to take the issue to the voters.

Dan Walters says Schwarzenegger surrendered to the Democrats in the Legislature Thursday. I don't quite see it that way. I would describe it more as a tactical retreat, pulling back in hopes of regrouping to fight another day.

Members of the union that represents state attorneys have ratified a new contract that increases their pension plan contribution to 6 percent of pay and lets new employees opt for higher salaries in lieu of particpating in CalPERS.