The cost of victim compensation for past crimes against children resulting from AB 218 is sobering. Estimates of the direct liability of K-14 schools are more than $3 billion. Counties, cities, districts and non-profit service providers are faced with exposure that is expected to exceed the K-14 liability many times over. How will agencies already challenged with structural imbalances pay for the deluge of judgements and settlements? This program will bring into focus the magnitude of the financial storm facing agencies across California, and it will also examine the condition of the insurance safety net that is recognized as the first line of fiscal defense. Lastly, experienced issuers and market professionals will explore the public finance strategies that agencies may use to overcome a fiscal challenge that may appear insurmountable.
Presentation Materials
Full Slide Deck
- Session 1 | Magnitude of the Fiscal Storm: Potential Effects and the Agencies Impacted
- Session 2 | Insurance: Weakness in the Front Line of Fiscal Defense
- Session 3 | Payment Strategies for Settling Claims and Paying Judgements
Speakers
- John Chino, Senior Vice President, Arthur J. Gallagher & Co.
- Helen Cregger, Vice President, Senior Credit Officer, Moody’s Investor Services, Inc.
- Don Field, Partner, Orrick Herrington & Sutcliffe Select Language
- Mike Fine, Chief Executive Officer, Fiscal Crisis & Management Assistance Team (FCMAT)
- Dave George, Chief Executive Officer, Schools Excess Liability Fund (SELF)
- Karma Pemba, Managing Director, RBC Capital Markets
- Michael Pott, Chief Operating Officer/Chief Legal Counsel, Public Risk Innovation, Solutions, and Management (PRISM)
Additional Resources
- SB-577 Bill Text, California Legislative Information (2025)
- SB-848 Bill Text, California Legislative Information (2025)
- Childhood Sexual Assault: Fiscal Implications for California Public Agencies, Fiscal Crisis & Management Assistant Team (2025)
- Sexual Abuse Cases Will Add to Financial Pressures; Debt Financing May Provide Relief, Moody's Ratings (September 16, 2025)
- An Introduction to Judgement Obligation Bonds in California: Financing Tort and Other Involuntary Obligations, Orrick, Herrington, & Sutcliffe (October 10, 2025)