Lawsuits, settlements against Missouri have cost $115 million, auditor says

State Auditor Nicole Galloway says an audit of lawsuits and settlements involving the state have cost Missourians more than $115 million over a six-year period. It also found installments out of a fund used to make lawsuit payments against the state were consistently higher than budgeted amounts.

In fiscal 2017, for example, the actual amount spent was more than $17 million higher than what was budgeted. These payments are funded by general revenue, which also funds services such as K-12 and higher education. Over a six-year period, expenses from the fund totaled more than $79 million.

“The legislature is essentially budgeting by guesswork, often using the same figure year after year, ignoring a history of high legal expenses,” Galloway said.

Galloway’s office also examined settlements and payments outside of the state settlement fund. In less than three years, these payments totaled another $36 million by 13 entities including state universities, the Department of Transportation and Department of Conservation.

Galloway said the Office of Administration, which administers the fund in partnership with the Attorney General’s Office, relies on an outdated system that lacks the ability to produce basic electronic reports. She said this makes it difficult to monitor the nature of the cases and identify if an agency is experiencing a high volume of a particular type of claim.

The complete report and additional information about settlements outside of the Legal Expense Fund can be found online.

Read more: Missourinet

Tags:, , , ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students

Learn more