Audit Shows Risk Management Fund for New Mexico City Being Drained by Suits

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.

In a written response to Keller, Chief Administrative Officer Rob Perry said the city has adopted policing reforms to reduce the number of claims against the department.