Legal settlements in law enforcement civil rights cases over the past five years have severely depleted Albuquerque, N.M.’s risk management fund, which pays for uninsured losses.
In a letter to city officials, state Auditor Tim Keller wrote that the city needs to increase funding for the risk management fund to $6.3 million a year to cover the fund’s $40 million shortfall. The annual audit of the city budget shows that Albuquerque has made $62 million in payouts since 2010.
The city has budgeted between $2.1 million and $3.6 million a year to bolster the risk management fund in the past three years, which Keller wrote was insufficient with the rate Albuquerque is spending.
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