The cases of nearly 7,000 juveniles who claim they were sexually assaulted at Los Angeles County facilities won a $4 billion settlement.
This settlement, in conjunction with likely losses in federal funding — which cover 13% of the county’s budget due to its sanctuary jurisdiction policies — leave the county anticipating major budget cuts and the issuing of new debt.
“This is the costliest financial settlement in the history of LA County and will have a significant impact on the County’s budget for years to come,” said the county in a statement. “The County’s plan to pay for the settlement includes cash from reserve funds, issuance of judgment obligation bonds and proposed cuts in departmental budgets.”
“The financing will require annual payments totaling hundreds of millions of dollars through 2030 and substantial continuing annual payments through fiscal year 2050-51,” continued the county.
The settlement must be voted on by the five-member Los Angeles County Board of Supervisors after a Claims Board vote anticipated Monday. The Board of Supervisors vote is scheduled for April 29.
The $4 billion settlement covers nearly 7,000 sexual assault and mistreatment allegations stretching back to 1959 in Los Angeles County’s foster care and juvenile detention facilities.
The cost of the settlement surpasses the $2.6 billion Boy Scouts of America case, which led the organization to change its name to Scouting America amid bankruptcy proceedings.
With the state allowing deferred property tax payments due to the local wildfires, the county could find itself short of revenue that it otherwise would and likely will receive, which will put more strain on the county budget.
The county’s current budget is $49.2 billion, with 13% of funding coming from the federal government and 19% from property taxes.
Given the Trump administration’s withholding of some federal funding for sanctuary state jurisdictions and the state’s deferral of property taxes for fire-impacted parts of Los Angeles County, the settlement could put significant pressure on the county’s budget.
