Santa Monica city leaders are considering declaring a fiscal emergency due to a severe budget crisis. The city has paid out more than $229 million in settlements related to sexual abuse by Eric Uller, a former police dispatcher. Uller, who worked with children at a police nonprofit’s after-school program, was found to have molested at least four boys, with allegations from many more emerging. He died by suicide in 2018 before facing trial.
The city continues to face claims from over 180 additional victims, further straining its finances. The settlements have significantly depleted Santa Monica’s budget reserves, leading to a downgrade in the city’s bond rating by S&P Global. Insurance has covered only about 10 percent of these expenses, and city officials have discussed selling assets, such as a library, to replenish funds.
In addition to the legal payouts, Santa Monica’s financial woes are compounded by reduced city services and unfunded capital projects following budget cuts during the COVID-19 pandemic. The city’s approved budget for the 2025-2026 fiscal year shows expenditures exceeding revenues by nearly $11 million.
The city council is expected to discuss the fiscal emergency declaration in a meeting on Tuesday (September 9). Councilmember Dan Hall expressed concern about the city’s financial future, warning that without bold action, the city might face bankruptcy.
Santa Monica’s challenges are part of a broader trend in California, where public institutions face mounting legal claims related to child sex abuse.
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