“Workers’ Compensation Costs” (WC) ranks as the 10th most important problem in this survey, down from its 3rd position in the 2004 survey. About one-quarter of business own- ers regard WC costs as critical, one-third lower than four years ago. In some states, such as Arizona and California, WC systems have been reformed and rates lowered. Also, safer work- places due to improved working environments and a shift in the employment base from more hazardous manufacturing jobs to relatively safe service positions contribute to lower rates. However, it would be a mistake to assume that WC issues have faded as a major.