A Team to Cap the Cookie Jar

As candidates, Laura Chick and Rocky Delgadillo both promised Los Angeles voters they would cut the city’s gargantuan liability payouts. Now, as the newly elected controller and city attorney, respectively, Chick and Delgadillo have begun to sketch their plans to do so.

Good. But here’s the problem: Reducing the city’s annual liability tab--now 4.5% of the city’s total budget--will take a coordinated effort by Chick, Delgadillo and Mayor James K. Hahn, and there’s little evidence of that yet.

Liability payouts have been steadily rising both for city workers hurt on the job and residents injured in accidents for which the city is at fault. Last year’s total, close to $200 million, is up dramatically from $114 million five years ago, and it’s higher, proportionally, than other cities pay out. This leaves less money to repave cracked sidewalks or build libraries.

Why has liability skyrocketed? Hazardous intersections or malfunctioning city trucks often don’t get fixed even after the city has paid out big bucks for accidents they caused. Overburdened city attorneys don’t have time to prepare their toughest defense for the city. Also, there are financial incentives for employees to file for tax-free job-injury benefits.

What can be done? Last June, then-Controller Rick Tuttle outlined eight steps to rein in the city’s liabilities. Few require changes in city ordinances. All depend on forceful, continuing leadership.

For example, the new charter gives Mayor Hahn wide latitude to remove department heads. Hahn ought to make reduction of liability costs a primary goal for every department head and replace those who fail to do so.

Chick, who replaced Tuttle, says department “report cards” on liability payouts and worker safety are her top priority. Delgadillo wants city attorneys handling claims to win more often in court or bargain away less in settlements.

All good ideas, but they need teamwork. Delgadillo should improve communication with city departments so hazards named in lawsuits can be fixed before they cause another lawsuit. Hahn needs to incorporate Chick’s data on claims and risk reduction in evaluations of department heads.

The city treasury is not a cookie jar. Certainly, Los Angeles has a responsibility to try to make those injured by city negligence whole. But not every injury is the city’s fault, and many that are could have been prevented.