City to Save $430 Million on Lawsuits Following Pressure from Governmental Operations Chair KallosSubmitted by josh jamieson on Tue, 05/17/2016 - 4:21pm
New York, NY – Taxpayers will save $430 million in settlements and judgments that the city had planned to pay for lawsuits over the next five years following pressure from Council Member Ben Kallos.
The Law Department plans to expand a “Vertical Case Handling” pilot that assigns individual attorneys to cases from beginning to conclusion with an investment of $18 million. For the previous two years of questioning Governmental Operations Committee’s Chair Kallos challenged the Law Department’s assertion that despite a 2014 policy and funding decision to more aggressively fight frivolous lawsuits, the City expected to pay out ever-increasing amounts of money to settle lawsuits.
“This is a nearly half a billion dollars that can be repurposed toward universal free lunch for our public school kids, facilities for our seniors, and affordable housing for all,” said Council Member Ben Kallos. “I want to thank the Corporation Counsel Zachary Carter and the Director for the Office of Management and Budget Dean Fuleihan for working with me and my committee to provide a return on investment of tax dollars to reduce planned spending on judgments and claims payouts.”
For the coming fiscal year, Fiscal Year 2017, the Executive Budget contains a $70 million decrease in planned spending, which grows to $430 million by Fiscal Year 2020.
Judgments and Claims Budget
Fiscal Year (FY)