Public Statement on Senate Bill 577 (Laird) — Public Agency Liability Reform

Public Statement on Senate Bill 577 (Laird) - Public Agency Liability Reform<_sc3a_dot _xmlns3a_sc="http://www.sitecore.net/sc">

Sacramento, CA (August 31, 2026) - Today, a coalition representing public agencies including schools, cities, counties, and joint powers authorities offered their assessment of Senate Bill 577 (Laird), which was amended on August 27 and passed out of the Legislature in the closing days of the 2025-26 session. The coalition indicates where SB 577 falls short of protecting public agencies from the financial cliff that current state laws have created, including Assembly Bill 218 (Chapter 681, Statutes of 2019). Leaders from statewide organizations speak to what is required to provide justice and compensation to survivors of childhood sexual abuse while also protecting the educational opportunities and public services upon which current and future Californians depend.

What education and local government stakeholders are saying about SB 577 passing the Legislature:

"ACSA appreciates the leadership shown by the Legislature this year in taking on an exceptionally complex and difficult issue. However, additional action is needed to prevent a fiscal cliff that threatens the resources schools need to serve today's students. Other states, including Oregon, Maryland and Colorado, have taken steps to establish defined benefits after seeing significant public resources diverted from classrooms and other essential services. We stand ready to continue working with lawmakers and stakeholders toward a sustainable solution that ensures survivors have a pathway to justice while also protecting every student's right to a high-quality public education."

Dr. Edgar Zazueta, Executive Director
Association of California School Administrators (ACSA)

"ACSA appreciates the leadership shown by the Legislature this year in taking on an exceptionally complex and difficult issue. However, additional action is needed to prevent a fiscal cliff that threatens the resources schools need to serve today's students. Other states, including Oregon, Maryland and Colorado, have taken steps to establish defined benefits after seeing significant public resources diverted from classrooms and other essential services. We stand ready to continue working with lawmakers and stakeholders toward a sustainable solution that ensures survivors have a pathway to justice while also protecting every student's right to a high-quality public education."

Marinda Griese, President
California Association of Joint Powers Authorities (CAJPA)

"The Legislature has acknowledged some of the consequences of AB 218, but that is not the same thing as fixing California's public-entity liability system. Independent data shows costs are climbing at an unsustainable rate, and this bill does not bend that trajectory. SB 577 is the beginning of a much longer conversation about protecting the vulnerable, as well as the public services they rely on, and we won't stop fighting for both."

California School Boards Association (CSBA)

"CSBA is not asking California to choose between survivors and students. We are asking lawmakers to preserve survivors' rights and meaningful compensation while creating settlement caps that protect schools and other public agencies from financial collapse," said California School Boards Association (CSBA) President Dr. Debra Schade. "Current law presents an existential threat to the future of school districts and county offices of education, and its unintended financial consequences are already threatening educational programs, staffing levels, school district solvency and the stability of California's school insurance market. While SB 577 is a noble effort at compromise, there is only one solution that balances both the needs of victims and those of current and future students - comprehensive tort reform. In 2027, we urge the Legislature to advance a comprehensive tort reform package for civil actions against public entities."

Carolyn Coleman, Executive Director and CEO
League of California Cities (Cal Cities)

"Cal Cities appreciates the Legislature's efforts to address an exceptionally complex and difficult issue," said Carolyn Coleman, executive Director and CEO of the League of California Cities. "Public-entity liability costs have tripled over the last seven years, putting a huge pressure on cities which are already struggling to deliver essential services to residents. SB 577 falls short of the meaningful reforms needed to address the growing liability pressures facing California's cities. More work remains to create a fair and sustainable framework that protects survivors and preserves essential local services."

Miles Menetrey, Chair and Mariposa County Supervisor
Rural County Representatives of California (RCRC)

"The passage of SB 577 does not resolve the fiscal crisis facing California's public agencies," said RCRC Chair and Mariposa County Supervisor Miles Menetrey. "While the bill includes worthwhile prevention and accountability measures, the underlying liability exposure remains and public-agency risk pools continue to face significant pressure. We appreciate the legislators who acknowledged that more work remains. The passage of SB 577 cannot be the end of this effort. We look forward to working with the Legislature next session on durable reforms that protect survivors while ensuring public agencies can continue providing the essential services Californians depend on."

David George, CEO
Schools Excess Liability Fund (SELF)

"A compromise that does not address the growing and unsustainable liabilities facing schools and other public entities is not a meaningful solution. Without real fiscal relief, public agencies remain exposed to mounting costs that threaten essential services and the communities we serve. While we appreciate the Legislature's recent efforts, we must continue working toward real, sustainable solutions that both provide meaningful compensation to survivors and protect the essential public services our communities depend on."