California Lawmakers and Gov. Arnold Schwarzenegger (news - web sites) are near a deal to reform a workers' compensation system whose high costs, critics claim, have been a drag on the local economy, the state's Assembly speaker said on Friday. "I'd say we're 90 percent of the way there," Assembly Speaker Fabian Nunez told Reuters. "I don't see why we wouldn't have workers' comp reform by the end of the month." Democrat Nunez's optimism comes amid a flurry of talks between lawmakers and the Republican governor on the state's insurer of last resort for workplace injuries. Both sides have described the negotiations as very positive. On Thursday Schwarzenegger said he would be open to a deal if lawmakers find a way to cut 25 percent to 30 percent of the system's costs. Schwarzenegger had wanted to cut expenses by about 50 percent as he made reform a top priority. Mike in Brazil California employers have charged that the system's costs are out of control. For every $100 of salary, they pay an average of $6.33 in workers' comp charges, compared with a national average of $2.46, according to the Small Business Action Committee. The governor has said he would lead a statewide initiative to overhaul the system if he does not reach agreement with legislators. However, he prefers a legislative deal to pass cost savings on to employers quickly, spokesman Vince Sollitto said. "We're focused on changing the system, which will drive savings ... It means not playing at the margins," he said. 8th street latinas A reform package would reduce the cost of doing business in California and boost job growth, said Joe Hurd, an economist with the UCLA Anderson Forecast. "We have a state problem of employment, so if this reduces the cost of employment at the margin, this may allow employers to hire more or not lay off as many employees," Hurd said.