The Washington Counties Risk Pool covers nearly two-thirds of the state’s counties, including mostly mid-sized counties stretching from Grays Harbor to Spokane. Its members’ claims liabilities climbed from $67 million in 2024 to $123 million last year, the auditor reported. The pool also increased its base rate to member counties by 35% this year, bringing in an additional $17 million from their general funds. Rate increases from 2022 through 2024 totaled $22 million.

The state auditor warned that the pool did not have enough cash and investments at the end of 2025 to cover its unpaid claims, increasing the possibility it could be unable to pay them. The number of claims filed against the pool rose to more than 700 in 2024, up from fewer than 500 in 2020.

County officials say a 2024 state law expanding the time limit for filing certain lawsuits has made future costs especially difficult to predict. The change opened the way for claims alleging sexual abuse dating back decades, according to Chuck Boyd, the pool’s executive director. Counties are preparing to ask the Legislature to revise laws and court rulings they say have increased their exposure to liability.

“The biggest thing is the unpredictability,” Boyd said, adding that the counties were reacting to changes they did not control and that the state had not funded.

Derek Young, director of the Washington State Association of Counties, said some members are running deficits, drawing down reserves and cutting services. He described the pressure on county budgets as part of a broader liability crisis affecting local governments.

The state government is facing its own insurance costs: its self-insurance fund paid more than $1 billion in judgments and settlements over three years and began the current fiscal year with a reported $1.7 billion gap against expected claims liabilities. The state budget included $1.1 billion to support the fund.

The effects vary by county. King County, which is self-insured, says it is adequately funded for its liabilities. Its attorneys handle many cases, limiting the need to hire outside lawyers, according to county risk-management director Jessica Kozma.

Pierce County, also self-insured, says lawsuits have significantly affected its budget but have not yet led to major cuts in services. The county faces nearly $1 billion in potential damages, most involving sexual abuse allegations at a juvenile detention center, and spends an additional $1.6 million annually on increased work in the prosecutor’s office. Its annual budget is $463 million.

On Oct. 13, the Pierce County Council adopted a legislative agenda that makes tort reform a priority for the 2027 session. County Executive Ryan Mello previously supported a proposal requiring civil arbitration for tort claims against government entities; that bill did not pass.

A committee appointed to study tort reform is scheduled to deliver recommendations on Nov. 1. Some lawmakers, attorneys and victims’ advocates have criticized the process for not including victims’ perspectives.

Supporters of changes say Washington’s laws expose public agencies to unusual liability. Young, for example, argues that under the state’s approach to shared responsibility, a county found partly at fault in a case could be responsible for damages another defendant cannot pay.

Trial lawyers dispute that counties have accurately described what is driving their costs. Kelli Carson, government affairs director for the Washington State Association for Justice, said other factors include a 2021 law allowing attorneys to contact potential clients about lawsuits and the bundling of claims. She also said some counties’ decisions to reject settlements and proceed to trial can lead to larger judgments.

Carson warned that restricting lawsuits against government agencies could deny sexual abuse survivors a path to justice. The counties’ risk pool says it intends to settle claims fairly and is not seeking to prevent victims from pursuing their cases. Boyd said the goal is to find a solution that compensates people who were wronged while addressing the financial strain on counties.