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U.S.|The State Law Taking a Financial Toll on California Budgets
https://www.nytimes.com/2025/05/09/us/california-lawsuits-financial-crisis.html
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The law set off a wave of child sex abuse litigation that has pushed some public institutions to the brink of financial crisis. School districts face up to $3 billion in claims.
May 9, 2025Updated 2:11 p.m. ET
In 2018, an anonymous tip led the authorities in California to Eric Uller, who for decades had volunteered at an after-school program associated with the Santa Monica Police Department. An investigation revealed Mr. Uller, 50, had molested at least four boys on the city’s watch.
Allegations from dozens of others soon emerged, dating to the 1980s and 1990s. Weeks after his arrest, Mr. Uller hanged himself in his apartment on the day he was scheduled to appear in court.
Seven years later, Santa Monica is still paying for his crimes. At last count, the bill had reached nearly $230 million.
That’s how much money the city has distributed to 229 plaintiffs who said they had been sexually assaulted by Mr. Uller. More than 150 additional cases remain.
Budget reserves are now so low that last year the credit rating agency S&P Global lowered Santa Monica’s bond rating. Insurance has covered only about 10 percent of the city’s expenses. At a budget workshop in March, the City Council discussed selling a library to replenish a fund it had depleted to pay sex abuse claimants.
“I’m afraid that we’re careening toward bankruptcy,” Dan Hall, a city councilman, told his colleagues.
