Santa Monica facing financial struggles after sexual abuses settlements, city says

The city of Santa Monica is facing financial struggles after paying nearly a quarter of a billion dollars to settle sexual abuse cases. 

A staff report showed that the city has paid more than $229 million in settlements. Santa Monica also faces nearly 200 more claims from a former employee, according to the report. 

Mayor Lana Negrete said the recent extension of the statute of limitations on sexual abuse claims has contributed to the city's financial situation, which she did not describe as a crisis.

"This is not an emergency," Negrete said. "It's distress."

City staff said settlements have been mainly paid through the general fund. They are determining how much insurance will cover. 

To resolve the financial situation, the city council will mull over a resolution during its next meeting on Tuesday night to lobby state officials to put a cap on sexual abuse claims. The resolution would also allow the city to work with the California Coastal Commission to raise parking fees, which could generate about $9 million, according to Negrete. 

"It's really important that the state legislature understand what this is doing to not just cities but school districts in terms of creating insolvency," Negrete said. 

Zev Yaroslavsky, director of the Los Angeles Initiative at the UCLA Luskin School of Public Affairs, said it's unlikely for lawmakers to roll things back. 

"It wasn't that long ago that the state legislature extended the statute of limitations to give women an opportunity to go back a little bit more in time to get redressed for their damages," Yaroslavsky said. "I doubt if that's going to be reversed anytime soon."