Santa Monica, California officials voted Tuesday to adopt a resolution declaring fiscal distress, as mounting sexual abuse settlements have destabilized the city’s finances, echoing strains that have already pushed other local governments deeper into debt.
A report prepared by Santa Monica’s acting city attorney said that the affluent coastal enclave projects a structural deficit that could persist for years as decreased revenue and increased liabilities continue to weigh on its budget.
The budget imbalance has been exacerbated by four rounds of settlements, totaling over $229 million, that have been paid to victims of alleged sexual abuse purportedly committed 20 to ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.