Context:

California's Assembly Bill 218 has triggered a significant financial crisis for various public institutions by expanding lawsuits related to child sexual abuse, leading to major payouts. Santa Monica and Los Angeles County are among those severely affected, with settlements reaching hundreds of millions and even billions of dollars. The financial strain has caused cities to consider drastic measures like selling public assets and has led to credit downgrades. Despite the law's intention to provide justice for victims, the financial burden on current public services and institutions is prompting calls for legislative adjustments. The situation highlights the tension between compensating past victims and maintaining financial stability for public entities, sparking debates on how best to balance these needs without bankrupting the state.

Dive Deeper:

• Santa Monica is struggling financially after paying nearly $230 million to settle claims against Eric Uller, a volunteer who molested numerous boys. The city's budget reserves are low, leading to a credit rating downgrade and discussions about selling public assets to cover costs.

• Los Angeles County agreed to a historic $4 billion settlement for nearly 7,000 sexual abuse claims from its juvenile detention and foster care systems, illustrating the widespread impact of A.B. 218 across California.

• The 2019 law, inspired by the #MeToo movement, removed age limits for filing childhood sex abuse lawsuits and opened a three-year window for expired claims, resulting in a surge of litigation against public institutions.

• School districts face up to $3 billion in claims, with some, like Montecito Union, risking financial collapse due to uninsured liabilities. The situation has prompted calls for a state victims' compensation fund.

• The financial impact of A.B. 218 has led to fiscal strains for local governments, exacerbated by other pressures such as wildfires and federal funding cuts, prompting officials to seek legislative relief.

• Efforts to amend the law have faced opposition from trial lawyers, highlighting the contentious debate between victim compensation and the financial viability of public institutions.

• Key figures involved in the legislation, like Lorena Gonzalez, express concern over the rapid increase in litigation, advocating for solutions that address abuse without risking the financial stability of the state.