The AB 218 Crisis: When Good Intentions Undermine Education and Justice

The Unintended Consequences of a Well-Meaning Law

California’s Assembly Bill 218 was born from a moral imperative: to deliver justice for survivors of child sexual abuse. Passed six years ago, the legislation aimed to provide a path for victims to seek compensation and accountability. However, what began as a noble effort has spiraled into a fiscal emergency that threatens the very foundation of California’s public education system. The law’s design has created an unbalanced legal environment where trial lawyers profit enormously while classrooms suffer devastating budget cuts.

The Mounting Financial Toll

The financial impact on California’s school districts is staggering and accelerating. According to the California Association of Joint Powers Authorities, lawsuit payments against public entities have quadrupled since 2018-19 and are projected to triple again by 2026-27. The statewide estimate by the Fiscal Crisis and Management Assistance Team reveals that total school district liability exceeds $3 billion, with recent settlements in Los Angeles County pushing this figure even higher. The Los Angeles Unified School District alone authorized more than $500 million in bonds last year to cover settlements, representing resources that should be serving students directly.

This crisis extends far beyond large urban districts. The Montecito Union School District faced a $7.5 million settlement for a decades-old abuse case, amounting to approximately 40% of the district’s entire annual budget. Such settlements force impossible choices between compensating victims and maintaining educational quality. The problem is compounded by the structure of school district insurance pools, where all participating districts face increased costs regardless of whether they’ve faced AB 218 claims themselves.

The Legal System’s Imbalance

AB 218 created a legal environment that makes it nearly impossible for schools to defend themselves against claims dating back decades. When perpetrators may be deceased, witnesses unavailable, and insurance records long gone, school districts operate at a severe disadvantage. This imbalance has allowed some attorneys to treat the law as what former Assemblymember Lorena Gonzalez called a “feeding frenzy.” Shockingly, upwards of 40% of settlement funds go to attorneys rather than survivors, distorting the law’s original purpose of helping victims rebuild their lives.

The Human Cost of Legal Excess

The real tragedy of this situation lies in its dual victims: the survivors who receive diminished compensation and the students who lose educational opportunities. When schools face massive settlements, the consequences are immediate and devastating. Teacher positions are eliminated, student support programs are cut, and educational quality declines. These impacts disproportionately affect vulnerable communities that can least afford additional educational disadvantages.

Most parents remain unaware that settlement costs come directly from today’s school budgets rather than from deep-pocketed insurers or separate funding sources. The quiet diversion of resources means that while Governor Gavin Newsom and the Legislature have prioritized school funding through investments in literacy and expanded learning, these gains are being eroded by the financial drain of AB 218 litigation.

A Path Toward Balanced Reform

The current situation represents a failure of policy implementation that demands immediate legislative attention. Other states, notably Maryland, have demonstrated that alternative approaches can balance the needs of survivors with protection for educational institutions. By capping attorney fees while ensuring survivors receive adequate compensation and ongoing mental health care, Maryland provides a model worth examining.

Reform must focus on several key principles: ensuring survivors receive meaningful compensation rather than seeing most funds diverted to legal fees, protecting educational resources for current students, and creating a sustainable system that addresses historical wrongs without jeopardizing future educational quality. The solution requires courageous leadership willing to stand up to powerful trial lawyer interests that currently block meaningful reform.

The Moral Imperative of Fixing AB 218

This crisis represents more than just a fiscal challenge—it poses fundamental questions about justice, responsibility, and educational priorities. Survivors of abuse unquestionably deserve compassion, support, and fair compensation. However, the current system fails both survivors and students by allowing legal profiteering to undermine both justice and education.

The need for reform transcends partisan politics and speaks to our core values as a society. We must create a system that truly serves survivors while protecting the educational opportunities of California’s children. This requires acknowledging that the current implementation of AB 218 has created unintended consequences that demand correction.

Conclusion: Prioritizing People Over Profit

The AB 218 situation exemplifies how well-intentioned legislation can produce disastrous outcomes when implementation details are overlooked. As California moves forward, we must remember that both abuse survivors and students deserve protection and support. The current system serves neither group adequately while enriching legal interests. By learning from other states’ experiences and focusing on balanced reform, California can create a system that delivers real justice to survivors without sacrificing educational quality for current students. The time for reform is now, before more classroom resources are diverted to legal fees and more educational opportunities are lost to a broken system.