[DByers]

Yes, The WC system is in the tank. Ofcourse look at the general state of CA. My customers are Electrical Contractors for the most part (Im in supply). Within the last year several have downsized to help reduce the cost of WC. Some have gone out of business, gone to work for someone else, moved to Texas or Florida (they seem to the most moved too states), most have raised their rates. The big problem right now is the unlicensed and uninsured doing work. Home owners are more than wiling to take the risk, which is huge, to get the work done a little cheaper. That work also tends to be under the table, so no taxes are being payed. Most of these guys are handymen and are "doing it on the side". Just trying to pay the bills they say.
As I understand it, there are only 2 company's left that will actually write you WC insurance if you are in the contruction trade. So their rates are sky rocketing.
Dont look for the WC problem to be addressed anytime soon, we have to get a government in Sac town that can actually do something first.
Just my .02