The BP oil spill has had long-lasting, industry-changing effects on the environment, economy and residents of the Gulf of Mexico. But others near and far are feeling effects of a different kind -- BP stockholders, including the Ohio Bureau of Workers' Compensation Fund, are facing diminished or devastated portfolios, depending on their holdings. Many people will rightly say that the result is fair: money can be replaced, while livelihoods, habitats and wildlife may never be. But the fact remains that a striking blow to the BWC at during this economic downturn means that injured Ohio workers may also bear the brunt of the catastrophe in the Gulf.

The Norwalk Reflector reports that BWC had already suffered significant losses after AIG lost nearly 90 percent of its value from late 2007 to 2008. The loss of BP stock value only adds fuel to the flames for the Ohio BWC's workers comp claims fund. 

BWC, along with the Ohio state pension funds, and other state funds across the nation, has dealt with the contraction in the stock markets, just like individual stockholders. State fund routinely invest money in the stock market to gain a profit that can be used for payments based on the mission of the fund. In the case of the BWC, the fund is used to pay work comp claims for injured workers. When the fund's holdings contract -- like what has happened with BP's stock -- the fund has less money to pay out claims. It remains to be seen whether the Ohio BWC will have to adjust work comp benefits because of the recent losses.

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BP stock price drop hits state investment holdings