OHIO Workers' comp leader optimistic
The bureau already has exceeded its 2006 financial goals.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- The leader of the Ohio Bureau of Workers' Compensation is optimistic about the agency's future.
William Mabe, who was named administrator a year ago after an investment scandal, said the bureau's finances are in order and new controls have been put in place to keep them that way.
He isn't sure, however, whether he will be the one to continue leading the bureau.
Mabe, who met with Vindicator staff Wednesday, serves at the pleasure of the governor. He said he accepted the post with the intention of serving only for the remainder of Gov. Bob Taft's term but would listen if Gov.-elect Ted Strickland approaches him about staying on beyond this year.
The key question would be whether Strickland's team has the same vision for the agency as he does, Mabe said.
Mabe, 59, makes 165,000 a year. He retired from Nationwide Insurance in 2003 after 25 years with that company, including serving as president of Nationwide Health Plans.
Goals exceeded
Mabe said the bureau has exceeded financial goals that he set for this year.
He wanted revenues to exceed expenses by 424 million this year. Through the first nine months of the year, the figure was 461 million.
Mabe attributed the results to increased collections, improved investment management and reduced expenses.
He said the biggest challenge facing the bureau is increasing health-care costs.
The bureau cut its medical costs by 9 percent this year, when they were rising by 9 percent nationally, he said.
When he started, the bureau was spending 1.29 for every 1 it collected, he said. The bureau now is spending 81 cents for every 1 collected.
Another goal was to increase the bureau's surplus from 700 million to 2 billion. The surplus already has reached 2.2 billion.
Mabe said he thinks procedures are in place to build on the agency's performance this year.
For example, a new investment accounting system has been installed and an internal audit division has been created to make sure procedures are in place to prevent fraud.
Scandal
Former administrator Jim Conrad was forced out in May 2005 after revelations that 13 million was missing or unaccounted for from the agency's 50 million investment in rare coins.
Tom Noe, a coin dealer and Republican fundraiser, was convicted of theft, corrupt activity, money laundering, forgery and tampering with records. He recently was sentenced to 18 years in prison and ordered to make restitution of 13.7 million.
shilling@vindy.com