What began as a moral imperative has become a fiscal emergency, draining California’s public schools of the dollars meant for students.
Assembly Bill 218 was written to deliver justice for survivors of sexual abuse, but its design opened the door to a costly and unbalanced system — one that rewards trial lawyers while punishing classrooms across California.
During the last legislative session, lawmakers attempted to craft a solution to address the law’s unintended consequences. But pressure from trial lawyers, who stand to make billions from AB 218 lawsuits, blocked any meaningful reform.
The consequences of inaction are mounting: Every day reform is delayed attorneys profit while classrooms lose vital resources, and California’s students continue to bear the cost.
Even AB 218’s author, former Assemblymember and current California Labor Federation President Lorena Gonzalez, acknowledged the shortsightedness of legislators when the bill passed six years ago, saying that, while her goal was to protect children and ensure victims had a path to justice, “some unscrupulous attorneys are treating (AB 218) like a feeding frenzy.”
Survivors deserve justice — no one is disputing that. But every dollar that goes toward attorneys’ fees is a dollar not reaching these survivors. These funds should be helping victims rebuild their lives, not enriching attorneys seeking to profit from their pain.
The cost impact on California’s school districts cannot be ignored. Take two districts with similar demographics: if one pays a $1 million claim and the other does not, the first may see teacher cuts and student support programs eliminated, often within a year. Those are real impacts that create lasting change to already vulnerable communities.
The California Association of Joint Powers Authorities found that lawsuits against public entities have exploded in cost, with payments for large claims quadrupling since 2018-19 and projected to triple again by 2026-27.
The consequences are devastating. A statewide estimate by the state’s Fiscal Crisis and Management Assistance Team put total school district liability at more than $3 billion, much higher when you factor in recent settlements in Los Angeles County.
The Los Angeles Unified School District last year authorized more than $500 million in bonds to cover settlements.
This is not just a Los Angeles problem. School districts statewide are getting claims and taking years to settle. Every week, we hear about more multimillion-dollar settlements. Montecito Union School District settled a decades-old sexual abuse lawsuit for $7.5 million, or about 40% of the district’s annual budget.
This does not just impact districts with AB 218 cases.
School districts generally contribute to a shared insurance risk pool. When that pool faces unexpectedly large claims, the cost per participant goes up. Districts that have never faced an AB 218 claim are now being hit with skyrocketing costs related to their insurance.
In some cases, schools have received bills equivalent to a teacher’s salary or requiring them to forego cost of living raises for a year, for coverage tied to abuse cases from decades ago.
Most parents are unaware this is happening. They’re not told how upwards of 40% of the settlements go to attorneys. Nor do they know these costs aren’t covered by deep-pocketed insurers; they come from today’s school budgets.
This is not about denying victims justice. Abuse is unacceptable. Survivors deserve compassion, compensation and support.
The problem is that AB 218 created an unbalanced legal system that makes it nearly impossible for schools to defend themselves against decades-old claims, where perpetrators may be deceased, witnesses unavailable and insurance records long gone.
That imbalance has allowed attorneys to turn lawsuits into a cottage industry, with today’s students paying the price.
Other states have found a better balance. Maryland capped attorney fees while ensuring survivors still receive compensation and ongoing mental health care. That’s a model worth examining here in California.
Gov. Gavin Newsom and the state Legislature have consistently prioritized school funding, with recent investments in literacy and expanded learning. Unless there is reform to AB 218, more of those dollars will keep getting diverted to trial attorneys rather than directed to the classroom.
Edgar Zazueta is executive director of the Association of California School Administrators. He wrote this for CalMatters.
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