The Coalition to Protect Community Services, a statewide alliance of cities, special districts, and local government organizations led by the California Joint Powers Insurance Authority (California JPIA), announced today that its membership has grown to 67 local government agencies, reflecting mounting concern over the rising liability costs squeezing local government budgets across California.
The coalition is urging the California State Legislature to pass common-sense proportionate (several) liability reform for local municipalities. Under California’s current joint and several liability rule, a city found just 1 percent at fault can be forced to pay 100 percent of a plaintiff’s economic damages when other responsible parties cannot pay.
Every dollar consumed by disproportionate judgments and inflated settlements is a dollar unavailable for police and fire protection, road maintenance, parks, libraries, and senior and youth programs.
The mounting fiscal pressure on local governments from expensive liability claims is steep. Insurance premiums paid by local agencies have grown 370 percent, from $115 million in 2016 to $541 million in 2025. Since 2019, public entity liability costs have more than tripled, now exceeding $7 billion in known exposure.
“Local governments are being asked to pay for harm they did not cause, and the bill is landing on the people we represent and the services they depend on,” said Margaret Finlay, president of the California JPIA and councilmember for the City of Duarte. “This is a solvable problem, but the window is closing. The longer the Legislature waits to act, the more our members are forced to choose between paying inflated settlements and funding the public safety and infrastructure their communities count on. We are calling on the Legislature to act this year.”
About the Coalition to Protect Community Services
The Coalition to Protect Community Services is a statewide alliance of cities, special districts, transit agencies, and local government organizations working to address the growing fiscal crisis of runaway liability costs. Led by the California Joint Powers Insurance Authority, the coalition advocates for reforms that ensure local governments pay only their actual share of fault, preserving limited taxpayer dollars for the essential public services residents rely on. To learn more, visit the website.