Los Angeles Unified School District (LAUSD) is borrowing more money. The district approved an additional $250 million in bonds. This is for settling sexual misconduct claims. This new bond adds to a previous $500 million authorization. The total borrowed for these claims now reaches $750 million. The overall cost, including financing, could exceed $1 billion. LAUSD will pay these bonds from its general fund. This repayment will spread over a decade. It aims to lessen immediate budget strain.
This surge in payouts stems from a state law. Assembly Bill 218 passed in 2019. It opened a legal window for lawsuits. These claims involved childhood sexual abuse dating back decades. The law extended the statute of limitations for filing. This allowed many more victims to come forward. It has overwhelmed school districts across California. Thousands of claims have been filed statewide. These involve various public and private entities.
LAUSD itself faces a significant number of these claims. Between January 2020 and mid-2025, about 370 people filed child abuse claims. Many allegations date back many decades. Some claims involve abuse from the 1940s through the 1970s. Others concern abuse in the 1980s. The district has settled many cases. Earlier settlements total hundreds of millions of dollars. For instance, the Miramonte Elementary scandal alone led to significant payouts. Past claims have cost LAUSD over $372 million between 2012 and 2024. More than 275 claims remained active as of mid-2025. The district continues to manage these ongoing cases. It aims to satisfy judgments against it. Superintendent Alberto Carvalho stated funds are being exhausted. He noted the district cannot always defend older cases. The judgment obligation bonds offer a way to pay these costs. This instrument acts like a loan from investors. It funds claims as they arise.
This situation is not unique to LAUSD. It reflects a larger trend impacting the West Coast. California school districts and other government agencies face immense financial pressure. Los Angeles County recently agreed to a $4 billion settlement. This covered over 11,000 victims of abuse in county-run facilities. It was the largest sex abuse settlement in U.S. history. Legislative bodies are now considering changes to AB 218. Critics argue the law is financially straining local governments. Rising insurance premiums also affect districts statewide. Some report yearly costs jumping by over $1 million. This forces difficult budget decisions. Schools have cut programs and deferred maintenance. They have also left teacher vacancies unfilled. Investigations are also underway. LA County’s District Attorney is looking into potential fraud in its massive settlement. This current news highlights the extensive financial fallout. The state law has opened floodgates for decades-old allegations. It seeks justice for survivors. However, it creates significant costs for current taxpayers and students. Lawmakers are weighing reforms. They aim to balance justice with fiscal stability. This ongoing issue continues to unfold across California.
The LAUSD’s decision to borrow more funds underscores the deep financial impact. These claims represent a long-term liability. The district must manage these costs. This comes as it also faces other budget challenges. The future may bring further legislative action. It also raises questions about how these costs affect education services. The financial strain on public agencies remains a critical current concern.
