L.A. could be 'GOING BROKE' after blowing past yearly liability budget in just 3 months, controller says

US

The city of Los Angeles is paying out lawsuit settlements at a dangerous rate, according to City Controller Kenneth Mejia.

Mejia posted to X, formerly Twitter, on Thursday to announce a “CITY OF LA GOING BROKE ALERT,” pointing to problems in the liability claims budget.

In spite of L.A. having a budget of $87 million for lawsuits and settlements for the fiscal year, the city has already paid out $97 million — in just three months.

Of that $97 million, $59.4 million was for the Los Angeles Police Department alone.

The “miscellaneous” category came in second with $21.7 million, though Mejia noted the vast majority of that amount was for two specific incidents.

“There are ~400 accounting transactions for misc. that make up the $21.7 million,” Mejia responded to a commenter. “Here are the 2 largest that make up $18M (83%).

  • $10.5M: A fixture at the top of a street lamp fell on a person’s head
  • $7.5M: Person lost arm after attack from an adopted animal shelter dog.”

As Mejia pointed out, the $10.5 million did not come out of the budget of the L.A. Bureau of Street Lighting, nor did Los Angeles Animal Services pay $7.5 million or police pay nearly $60 million.

“Liability claim payouts aren’t taken out of the budgets of the individual City Department that gave rise to the liability – instead, they mostly come out of the General Fund which is mainly used to fund city services and resources for Angelenos,” Mejia said.

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