04/26/2024

California can’t sidestep federal tax impact

Los Angeles has spent soaring amounts in recent years to end legal disputes over dangerous roads, police misconduct and other alleged wrongdoing, depriving the city of money that could fund other pressing needs.

Last budget year, the city paid out more than $200 million in legal settlements and court judgments — a record amount that was more than the city spent on its libraries or fixing its streets.

The annual total is expected to drop sharply in the budget year that ends Saturday, but remains much higher than just a few years ago.

The surging cost of legal payouts has been a drain on the city budget as elected officials struggle to address serious challenges, including a backlog of broken streets and mounting demands to combat homelessness.

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