EDITORIAL CALIFORNIA'S NEXT CRISIS GOV. DAVIS SETS HIS SIGHTS ON WORKERS' COMP REFORM.

IN a state with more than its fair share of crises - like the energy crisis and the budget crisis - there's now one more to deal with: The workers' compensation crisis.

But unlike some of California's other crises, there appears to be a serious effort in Sacramento to do something about this one, with Gov. Gray Davis taking the lead.

Davis has proposed a series of legal reforms, which, if quickly enacted, could help to slow down the skyrocketing workers' comp premiums that are wreaking havoc on both private- and public-sector employers.

It's a great first step, but a far cry from a permanent solution.

California's 90-year-old workers' comp system has been spinning increasingly out of control for the better part of a decade - since the last time Sacramento ``reformed'' the system without fixing it. The problems are many, and they won't be resolved easily.

Abuse is rampant, with employees faking injuries, medical practitioners overcharging the state and lawyers exploiting the system for their own monetary gain. Meanwhile, the state's regulatory apparatus has done a horrendous job of policing the system, and Sacramento has jacked up benefits without making any effort to rein in costs.

The results speak for themselves.

The premiums California employers pay into the system have climbed from $5.7 billion in 1995 to $15.5 billion today, and they could crack $20 billion by the end of the year. Some employers in Los Angeles County have seen their workers' compensation expenses increase 400 percent.

The outrageous rates have driven some private employers clear out of California. They've also forced many local governments either to cut public services or raise taxes just to keep up with the costs.

Los Angeles County has seen its workers' comp expenses nearly double since 1996-97. In the city Police Department, a staggering one in 10 cops is on disability leave - a crucial blow to a department that's already painfully undermanned.

Davis' proposed reforms, which would rein in premiums, reduce costs and crack down on fraud, will temporarily alleviate the current crisis, but it won't resolve it. For that, the Legislature needs to look into the workers' comp question and draft more comprehensive legislation.

If there's a lesson to be learned from some of California's other crises, it's that the worst thing the state can do is take its sweet time.

That approach has nearly bankrupted California twice already.

Davis is wise not to wait any longer on the workers' comp fiasco, and for putting the debate on the public table, where it belongs. Now it's up to the Legislature to follow suit.