YDC claims administrator outlines backlog, budget and suggests mediation to speed settlements

John Broderick, appointed YDC claims administrator, told the Senate Finance Committee that the claims administration established under the statute (identified in materials as 21 M11A) has processed roughly 1,100 filings since the opening of intake. He said 296 claims have closed with awards, 31 were dismissed or withdrawn and 808 remain pending as of the March 31 quarterly report.

Broderick said the administration follows valuation grids and statutory caps the legislature approved, and described a multi-track resolution process that includes claimant intake, hearing-team resolution proceedings and direct settlements coordinated with the attorney general’s office. “The legislation, as I’ve said many times, is ingenious,” Broderick said, describing the system as “trauma informed and victim centered” while noting the program’s heavy workload.

Broderick and Jen Foley, general counsel for YDC claims administration, told senators the fund’s operations budget and the settlement appropriations are separate. The administration’s operating budget is paid through an interagency mechanism with the Judicial Branch and the Attorney General’s Office; Broderick said his office has proposed an operations budget of about $2,500,000 per year. He said that historically their operations have come in under budget.

On the settlement fund, the materials and Broderick’s presentation reported an aggregate appropriation of $165,000,000 made available so far, from a combination of earlier legislative action and a recent $5,000,000 addition approved by the governor following joint fiscal approval. Broderick told the committee that roughly $23,000,000 to $24,000,000 remained in appropriations at the time of his report but he noted the administrator is holding a buffer and that not all of that balance is available for new awards.

Broderick said the fund administrator has estimated a minimum of $26,000,000 is needed for committed installments and resolved claims that will require payments in the next fiscal cycle. Separately, the administration advised the committee it sees $150,000,000 as a reasonable funding level to request for the next two fiscal years, describing that figure as “abiding by what the statute set in place” (the statute’s annual amount was referenced during testimony).

Broderick described operational challenges that are slowing resolutions: the filing period remains open through June 30, and the number of incoming claims is rising. He said the attorney general’s office has conducted many higher-value direct settlements early in the program but that direct settlements have slowed recently; he urged greater coordination and participation by the attorney general’s office to accelerate throughput. “I think they need to be a little more engaged to resolving cases,” Broderick said.

On case-processing options, Broderick and counsel described three principal resolution pathways: direct settlement through the Attorney General’s Office, an administrator resolution proceeding, and an approach recently developed where counsel agree on award amounts but disagree on payment terms — the administrator then determines outstanding payout terms. Broderick recommended expanding mediation as an elective option claimants could choose; he said mediation could hasten resolution without requiring hearings for every file.

Legal fees and payment timing drew sustained committee discussion. Broderick said the statute gives the administrator discretion over how attorneys’ fees are paid and that he has used that discretion to negotiate multi-year fee payments in many cases. He noted the House added language in HB2 to require attorneys’ payments match claimant payment terms starting July 2025, and he suggested the legislature could either clarify the statute or provide specific direction about fee-payment timing to reduce administrative ambiguity.

Broderick and Foley told senators the administrator and hearing teams apply valuation grids (including frequency multipliers, aggravating and mitigating factors) and statutory caps when determining awards, and they explained the distinct per-day calculation for unlawful restraints (statute provides $300 per day under one abuse category). They emphasized that not all claims result in awards; some are closed or withdrawn during intake or evaluation.

Broderick closed by asking the committee to consider more resources and statutory clarity to speed resolutions. He said the fund’s cost effectiveness — compared with fully litigating many cases in court — is a program strength and that the administrator will continue to follow the statute and the valuation workbooks approved by joint fiscal.

Ending: Senators asked follow-up questions about the size and availability of remaining appropriations, the proposed 150 million appropriation proposal for the next biennium, the administrator’s request to expand mediation channels, and the practical effect of House changes to attorney-fee payment rules. Committee members heard administration counsel offer to share more detailed documentation on valuation grids, budget mechanics, and how pending claims distribute across counsel and law firms.