Child Victims Act: NYS bill proposes $200M fund to help schools pay judgments
Members of the New York Assembly celebrate after the Child Victims Act passed in the Assembly in January 2019. Credit: AP/Hans Pennink
ALBANY — A legislative bill would put state taxpayers on the hook for $200 million in a special fund to reimburse schools and state-contracted foster care agencies found negligent in child sex abuse cases under the landmark Child Victims Act.
Nonprofit foster care agencies and public schools are facing thousands of claims by adults seeking millions of dollars in compensation through lawsuits and out-of-court settlements under the 2019 act. The act briefly suspended the statute of limitations to allow survivors to seek legal action against public- and private-sector entities that the survivors claim were negligent in protecting children in their care from sexual abuse committed even decades ago.
The proposed Child Victims Fund would partially reimburse schools and nonprofit foster care centers funded by the state not covered by insurance. The schools and foster care centers would have to demonstrate that the judgment or settlement would “place a substantial burden on the districts' or agencies' ability to execute its mission and negatively impact its existing population or services.”
It's an unusually thorny political issue for legislators.
Legislators from both sides of the aisle championed the Child Victims Act five years ago to hold child abusers and their employers accountable, as well as to provide closure and compensation to victims. But now the claims are mounting and threatening the finances of schools and foster agencies, for which funding and support has long been a high priority for the State Legislature.
No one, including fiscal watchdog groups, is publicly criticizing the bill so far and the bill itself has gotten little public attention. Republican legislative leaders declined to comment to Newsday on the propriety of the Democrats' bill.
The bill notes that child sex abuse cases have already forced several Catholic dioceses and the Boy Scouts of America into bankruptcy court.
“Dozens, if not hundreds, of other school districts throughout the state could find themselves in the same situation,” the bills states, citing the New York State School Boards Association. “Based on industry estimates, voluntary foster agencies are facing almost 900 CVA claims, almost 50% for which no insurance coverage exists to pay damages,” the bill further states.
Supporters argue the bill is needed because public schools and foster care agencies shouldn’t be closed or forced to reduce services today for abuse that happened decades ago.
“It’s not for current sixth graders to pay for the sins of the past,” said Sen. Jeremy Cooney (D-Rochester), prime sponsor of the bill in the Senate. He said the bill is gaining support because of the need for more funding for public schools this year, which is a top priority of legislators for the state budget due by April 1.
“We understand the importance of restitution,” Cooney told Newsday. “The question is, at the end of the day, who's going to pay?”
Assemb. Fred Thiele (D-Sag Harbor) said school administrators on Long Island during a recent meeting identified the cost of CVA judgments as a major fiscal problem. On Wednesday, for example, the Herricks Union Free School District reached a tentative settlement with a former student who alleged he was repeatedly sexually abused by a school psychologist in the 1980s, according to the judge presiding over the $10 million lawsuit. A trial in a separate CVA claim against the Herricks school district continues.
A Newsday investigation found 27 Long Island school districts have paid a combined $31.6 million to settle 42 Child Victims Act lawsuits by former students. Another 150 lawsuits are pending.
“It could be seen as bailing out bad actors, but this is the best thing for the kids in school now and for taxpayers,” Thiele told Newsday.
Assemb. Jen Lunsford (D-Perinton), the Assembly’s prime sponsor of the bill, said failure to create the fund would harm services and programs at schools and could shutter foster care agencies, which would require more state funding to compensate.
“If they fail, we have to clean it up,” Lunsford said. “I think we are preventing a large cost to the state by addressing this. I hope we get the victims the justice they deserve without harming children today.”
Under the bill, only schools and nonprofit agencies contracted by the state that had no liability insurance could collect a state reimbursement. But the difficulty of proving that negative, especially from years ago, is one of the criticisms of the bill.
The Coalition for Just & Compassionate Compensation, a survivors advocacy group, said the bill’s intent is laudable, but the legislation needs work. The group said the bill would allow schools and foster care centers to collect state reimbursements by declaring — without conclusive proof — that there was no liability insurance in force at the time of abuse.
That would let schools and agencies, as well as any insurance company they had at the time, off the hook for payment, said David Catalfamo, one of the group's trustees and a former top aide to Republican Gov. George Pataki.
“I think the Legislature should focus on making sure the insurance industry is part of the solution,” Catalfamo said.
The New York Insurance Association, a trade group, declined to comment.
Cooney argues that the fund is the best compromise for a difficult situation.
“I don’t think we’re letting them off the hook because we acknowledge a wrong was done,” Cooney said.
Meanwhile, schools and foster care centers “are really feeling the pressure as the claims are filed in a year of an already tight budget,” Cooney said. “Where are you going to pull it from? It’s very tricky.”
ALBANY — A legislative bill would put state taxpayers on the hook for $200 million in a special fund to reimburse schools and state-contracted foster care agencies found negligent in child sex abuse cases under the landmark Child Victims Act.
Nonprofit foster care agencies and public schools are facing thousands of claims by adults seeking millions of dollars in compensation through lawsuits and out-of-court settlements under the 2019 act. The act briefly suspended the statute of limitations to allow survivors to seek legal action against public- and private-sector entities that the survivors claim were negligent in protecting children in their care from sexual abuse committed even decades ago.
The proposed Child Victims Fund would partially reimburse schools and nonprofit foster care centers funded by the state not covered by insurance. The schools and foster care centers would have to demonstrate that the judgment or settlement would “place a substantial burden on the districts' or agencies' ability to execute its mission and negatively impact its existing population or services.”
It's an unusually thorny political issue for legislators.
WHAT TO KNOW
- A bill in Albany would create a $200 million fund to reimburse schools and state-contracted foster care agencies found negligent in child sex abuse cases.
- Those agencies and schools are facing thousands of claims by adults seeking millions of dollars in compensation under the 2019 Child Victims Act.
- The proposed Child Victims Fund would partially reimburse public schools and nonprofit foster care centers funded by the state not covered by insurance.
Legislators from both sides of the aisle championed the Child Victims Act five years ago to hold child abusers and their employers accountable, as well as to provide closure and compensation to victims. But now the claims are mounting and threatening the finances of schools and foster agencies, for which funding and support has long been a high priority for the State Legislature.
No one, including fiscal watchdog groups, is publicly criticizing the bill so far and the bill itself has gotten little public attention. Republican legislative leaders declined to comment to Newsday on the propriety of the Democrats' bill.
The bill notes that child sex abuse cases have already forced several Catholic dioceses and the Boy Scouts of America into bankruptcy court.
“Dozens, if not hundreds, of other school districts throughout the state could find themselves in the same situation,” the bills states, citing the New York State School Boards Association. “Based on industry estimates, voluntary foster agencies are facing almost 900 CVA claims, almost 50% for which no insurance coverage exists to pay damages,” the bill further states.
Supporters argue the bill is needed because public schools and foster care agencies shouldn’t be closed or forced to reduce services today for abuse that happened decades ago.
“It’s not for current sixth graders to pay for the sins of the past,” said Sen. Jeremy Cooney (D-Rochester), prime sponsor of the bill in the Senate. He said the bill is gaining support because of the need for more funding for public schools this year, which is a top priority of legislators for the state budget due by April 1.
“We understand the importance of restitution,” Cooney told Newsday. “The question is, at the end of the day, who's going to pay?”
Assemb. Fred Thiele (D-Sag Harbor) said school administrators on Long Island during a recent meeting identified the cost of CVA judgments as a major fiscal problem. On Wednesday, for example, the Herricks Union Free School District reached a tentative settlement with a former student who alleged he was repeatedly sexually abused by a school psychologist in the 1980s, according to the judge presiding over the $10 million lawsuit. A trial in a separate CVA claim against the Herricks school district continues.
A Newsday investigation found 27 Long Island school districts have paid a combined $31.6 million to settle 42 Child Victims Act lawsuits by former students. Another 150 lawsuits are pending.
“It could be seen as bailing out bad actors, but this is the best thing for the kids in school now and for taxpayers,” Thiele told Newsday.
Assemb. Jen Lunsford (D-Perinton), the Assembly’s prime sponsor of the bill, said failure to create the fund would harm services and programs at schools and could shutter foster care agencies, which would require more state funding to compensate.
“If they fail, we have to clean it up,” Lunsford said. “I think we are preventing a large cost to the state by addressing this. I hope we get the victims the justice they deserve without harming children today.”
Under the bill, only schools and nonprofit agencies contracted by the state that had no liability insurance could collect a state reimbursement. But the difficulty of proving that negative, especially from years ago, is one of the criticisms of the bill.
The Coalition for Just & Compassionate Compensation, a survivors advocacy group, said the bill’s intent is laudable, but the legislation needs work. The group said the bill would allow schools and foster care centers to collect state reimbursements by declaring — without conclusive proof — that there was no liability insurance in force at the time of abuse.
That would let schools and agencies, as well as any insurance company they had at the time, off the hook for payment, said David Catalfamo, one of the group's trustees and a former top aide to Republican Gov. George Pataki.
“I think the Legislature should focus on making sure the insurance industry is part of the solution,” Catalfamo said.
The New York Insurance Association, a trade group, declined to comment.
Cooney argues that the fund is the best compromise for a difficult situation.
“I don’t think we’re letting them off the hook because we acknowledge a wrong was done,” Cooney said.
Meanwhile, schools and foster care centers “are really feeling the pressure as the claims are filed in a year of an already tight budget,” Cooney said. “Where are you going to pull it from? It’s very tricky.”
Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.
