Schools and local agencies face massive costs from decades-old abuse lawsuits.
California’s public schools and local governments are now under mounting financial strain as a result of lawsuits allowed by a law passed six years ago. The measure, Assembly Bill 218, extended the time that victims of childhood sexual assault could bring forward claims. The intent was to give survivors more opportunity to pursue justice, but the result has been an unexpected financial shock for agencies required to defend against decades-old allegations.
AB 218 raised the filing age limit for childhood sexual assault claims against public institutions from 26 to 40. It also opened a three-year window, ending in late 2022, during which anyone of any age could submit a claim connected to past abuse. Since then, thousands of cases have surfaced against schools, juvenile centers, and other facilities, many involving incidents said to have occurred decades earlier.
Los Angeles County faced one of the most dramatic outcomes, agreeing to a $4 billion settlement with more than 6,000 claimants. The size of that payout will require county funds to be directed toward the settlement until 2051. Other counties and districts across California are bracing for similar financial exposure. A January report from the state’s school auditing agency estimated that public schools and charter schools could be liable for $2 billion to $3 billion in costs tied to these lawsuits.
For San Diego County, more than 200 claims have been filed involving juvenile detention and foster care facilities. Most cases are still in progress, though some have been dismissed. Officials note that the county is largely self-insured, which means money for settlements and judgments comes directly from the general operating budget. Insurance is available through a statewide risk pool, but coverage for older claims is often unavailable, leaving agencies with little choice but to absorb the costs.
San Diego Unified School District has already faced more than 30 claims involving teachers and other employees dating back to the 1960s. Seven cases have closed, costing the district $6.5 million in settlements. Other cases remain unresolved, and in some instances, administrators are still trying to identify which insurer might have been responsible decades ago. The lack of clear records and the disappearance of past insurance companies complicates the process further.
Poway Unified, which has not yet paid out any settlements, is still feeling the impact. As part of a risk pool, it shares costs linked to other districts’ claims. Contributions tied to the pool have risen by millions in recent years, and the district has also faced nearly a million dollars in higher insurance premiums. These rising expenses contributed to more than $10 million in budget cuts for the new school year, including staff reductions.
Officials across the state say the problem is not limited to agencies with direct claims. Risk pools, which spread costs among members, pass on higher costs to all participants. Insurance carriers, meanwhile, have pulled out of California in large numbers. The state’s reinsurance market has shrunk sharply, leaving fewer companies willing to underwrite policies. Those still offering coverage have raised prices and tightened terms, pushing agencies to look overseas for insurance at even greater expense.
Supporters of AB 218 stress that the law was designed to hold institutions accountable and give survivors a fair chance to seek redress. Former Assemblymember Lorena Gonzalez, who introduced the measure, said the purpose was to push agencies to take abuse allegations seriously. At the same time, she has voiced concern that some law firms have turned the new legal environment into a business model, heavily advertising to attract clients.
Local officials and insurance pool directors are now urging the state to consider changes that could ease the financial burden while still compensating victims under AB 218. Proposals include capping settlements, limiting attorney fees, or creating a statewide compensation fund modeled on the one used for victims of the September 11 attacks. Such a fund could spread costs across agencies more evenly and prevent any single district or county from bearing overwhelming responsibility for decades-old cases.
The situation highlights the tension between accountability for past wrongs and the ability of current institutions to serve communities today. With insurance options shrinking and costs continuing to climb, school districts and counties are being forced to cut programs and staff in order to manage claims that trace back generations. Many local leaders agree that survivors deserve recognition and compensation, but they question whether today’s taxpayers and students should shoulder the financial fallout from events that occurred long before.
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New California bill gives sexual abuse victims hope for justice
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