---

 ![](https://www.citywatchla.com/media/yootheme/cache/f7/015n-f7a3baa2.jpg)

 [ LA WATCHDOG ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=12)

#  Liability Claims: Honest Budgeting is Required

February 20 2025

Written by Jack Humphreville.

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

LA WATCHDOG - The massive increase in liability claims is one of the reasons this year’s City’s budget is in the red by almost $300 million. According to Controller [Kenneth Mejia’s letter](https://www.citywatchla.com/los-angeles/30380-a-letter-from-controller-mejia-to-mayor-bass-the-city-council-and-all-angelenos) to Mayor Karen Bass, legal liability judgments and settlements are estimated to be $301 million for this fiscal year that ends on June 30. This compares to budgeted liability claims of $87 million, a difference of over $214 million.

While this overage is expected to be covered by unappropriated balances (specified reserves), the major portion will be funded by tapping the already depleted Reserve Fund. It will also require a cut in basic services such as the repair of our streets and sidewalks and the construction of homeless housing.

For the fiscal year that ended on June 30, 2024, legal liability judgment and settlements were $240 million, $163 million more than the $87 million specified in the 2024 City’s adopted budget.

There has been a significant escalation in liability claims. For the previous five years (2019-2023), the average liability claim was $115 million. There are many reasons for the rise in liability claims: an increase in the number of settlements and judgments, an unlevel playing field favoring the plaintiffs’ bar and runaway juries (California is considered a Judicial Hellhole), whistleblower litigation, the failure of the City to maintain its infrastructure, judgments against the Police Department, and numerous workplace related claims by City employees.

There are many issues surrounding the escalation in liability claims and its impact on the budget that are beyond the control of the City. There is, however, one easy way to lessen the commotion surrounding the impact of liability claims.

When the Mayor and the City Administrative Officer are developing the Proposed Budget, they need to develop a realistic and honest budget estimate for liability claims, unlike in past years where the budget line item was underestimated.

According to the City Attorney’s Budget Request that was presented to Mayor in November and that is being used to develop the Mayor’s Proposed Budget that will be submitted to the City Council on April 20, there is a liability claim line item for $307 million, substantially more than the previous budget estimate of $87 million. This request is easily justified given this year’s liability claim of $300 million.

Will the Mayor and CAO develop a balanced, transparent, and honest budget that relies on a reasonable estimate for liability claims? Stay tuned.

\[Note: This does not include the significant impact of the wildfires on the City budget or liability claims that will be determined over the next two months.\]

*(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee, the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and a Neighborhood Council Budget Advocate. He can be reached at: <lajack@gmail.com>.)*

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 First Name

 [ ![Home - HHR Rent is too High - SB-2](https://www.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://www.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2")

[![](https://www.citywatchla.com/images/banners/something%20you%20should%20know2.jpg)](https://www.citywatchla.com/podcasts)

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/a9/070g-a9407aaa.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33278:they-said-it-made-no-sense-then-they-voted-yes&catid=327)

### [They Said It Made No Sense. Then They Voted Yes.](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33278:they-said-it-made-no-sense-then-they-voted-yes&catid=327)

INVESTIGATIVE ANALYSIS - Sacramento has streamlined housing approvals so aggressively that residents rarely get a heari…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/20/070h-20f29015.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33277:trump-world-from-assassination-abroad-to-chaos-at-home&catid=395)

### [Trump World. From Assassination Abroad to Chaos at Home](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33277:trump-world-from-assassination-abroad-to-chaos-at-home&catid=395)

GELFAND’S WORLD - We’re at a moment when all sorts of political questions are coming to a head. And if that old phrase…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/88/071n-88bb0b90.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=312)

### [Follow the Money: How Does a $3,662 Apartment Become “Affordable Housing”?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=312)

INVESTIGATIVE ANALYSIS - ED 1 Is Redeveloping Los Angeles—One Neighborhood at a Time You know that persistent, annoyin…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/4b/070i-4ba64015.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

### [Newsom’s Next Immigration Gamble: Defy Federal Law And Dare Washington To Fight Back](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

MY THOUGHTS - Gov. Gavin Newsom is about to decide whether California should take another extraordinary gamble with fed…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/44/071d-441a7ed2.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

### [As California Debated Sharing Data On Drivers, Homeland Security Subpoenaed 17 Million Records](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

TECHNOLOGY - California lawmakers wrestled with a difficult question earlier this summer: Could the state safely share…

---

##  [ LA WATCHDOG ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=12)

 [ ![](https://www.citywatchla.com/images/stories/Sept-2026/071o.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33299:vote-no-on-charter-amendment-la&catid=12)### [Vote NO on Charter Amendment LA](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33299:vote-no-on-charter-amendment-la&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/070j.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33280:vote-no-on-the-highly-regressive-10-3-4-sales-tax&catid=12)### [Vote NO on the Highly Regressive 10¾% Sales Tax](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33280:vote-no-on-the-highly-regressive-10-3-4-sales-tax&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/067j.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33246:refund-rec-parks-vote-yes-on-charter-amendment-prk&catid=12)### [Refund Rec &amp; Parks: Vote Yes on Charter Amendment PRK](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33246:refund-rec-parks-vote-yes-on-charter-amendment-prk&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/064h.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33202:proposition-38-should-taxpayers-finance-medical-research&catid=12)### [Proposition 38: Should Taxpayers Finance Medical Research?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33202:proposition-38-should-taxpayers-finance-medical-research&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/July-2026/059m.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33110:citys-assessed-value-increases-to-926-billion-despite-the-palisades-fire&catid=12)### [City’s Assessed Value Increases to $926 Billion Despite the Palisades Fire](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33110:citys-assessed-value-increases-to-926-billion-despite-the-palisades-fire&catid=12)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>