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Ad hoc Los Angeles committee flags soaring LAPD liability payouts, explores insurance and performance‑based budgeting
Summary
Ad Hoc Budget and Finance Advisory Committee members reported that police department liability payouts have surged in recent years and discussed policy changes — including shifting liability costs, new insurance models and performance‑based budgeting — as ways to reduce pressure on the City of Los Angeles general fund.
The Ad Hoc Budget and Finance Advisory Committee of the City of Los Angeles spent much of its Feb. 6 meeting reviewing a subcommittee report that says police department liability payouts have risen sharply and are straining city finances.
"LAPD right now has liability payouts that have surged, from $15,000,000 in 2020 to about $107,000,000 in 2025," said Derek Johnson, summarizing the subcommittee's findings and citing city controls office data and local reporting. Committee members said those payouts contributed to total city liability expenditures substantially above budgeted amounts.
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