Lawsuits targeting taxpayer-funded services siphon billions from schools, public safety, and other critical community programs. California can protect injured parties while closing legal loopholes that fuel excessive litigation against public agencies and divert resources away from community services.
Lawsuits targeting taxpayer-funded services siphon billions from schools, public safety, and other critical community programs. California can protect injured parties while closing legal loopholes that fuel excessive litigation against public agencies and divert resources away from community services.
The Problem
A Growing Crisis for Public Services
Public entity liability costs in California have more than quadrupled in the past decade and is projected to grow another 65% by 2027-2028 - exceeding more than $2 billion in annual exposure. The trajectory is unsustainable. Every dollar spent on excessive litigation is a dollar taken away from classrooms, public safety, emergency response, infrastructure, and care for the most vulnerable.
$2B+
In annual public sector liability
4.5X
Claims cost increase in the last decade
+65%
Projected growth by 2027-28
50%
Up to half of settlements & verdicts go to attorney fees
Costs Come Directly from Public Services
Schools & Libraries
Funding for libraries, classrooms, students, and educators is reduced.
Public Safety
Fewer resources for police, fire, emergency response, and community safety.
Roads & Infrastructure
Critical repairs and maintenance are delayed or deferred.
Community Services
Vital programs for social services and vulnerable populations are cut.
What’s Draining Community Services?
Deep Pocket Targeting
Lawyers target the perceived deep pockets of taxpayer-funded public agencies dragging them into lawsuits even when there is minimal involvement.
Disproportionate Liability
Under current law, a public agency found even 1% at fault can be required to pay the full cost of economic damages – even when others are more responsible.
Attorney Fee Structure
Attorneys take a shocking portion of settlements and judgements, diverting upwards of 50% of proceeds away from victims.
Medical Bill Inflation
Artificially inflated medical billings and treatment liens, and associated tactics, manipulate juries and inflate settlement demands and awards.
We support justice—and strong communities. Injured parties deserve fair compensation and their day in court. But the current system is out of balance—diverting billions away from essential services.
A Balanced Solution
Reasonable Limits on Damages
Establish defined limits that ensure fair compensation while preserving the ability to deliver essential services.
Proportional Liability
Require public entities to pay only their fair share of damages based on their actual level of responsibility.
Stronger Evidence Standards
Strengthen standards for claims involving older incidents where records and evidence may be incomplete or unavailable.
The Time to Act is Now!
Without reform, rising liability costs will continue to threaten essential services and financial stability across California.
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