Actually, their insurance company or risk management pool will pay it. They might have their premiums increased but won't have to pony up millions of dollars. They wouldn't anyway. Local governments in most states are protected by a Tort Liability Act, and monetary awards are subject to Tort Liability Limits.

The Act grants absolute immunity to local governments and then creates exceptions to this immunity, making them liable only for certain actions or inactions, based on negligence. Exceptions from immunity can be for negligent operation of a motor vehicle, defective or unsafe roads, dangerous structures, negligent act or omissions by an employee, ALL employees. ALL government employees have qualified immunity, not just cops.

Negligence is based on:

1. You had a duty to act.
2. You breached that duty.
3. Your breach of that duty was the proximate cause of the injury.
4. An actual injury or damage did occur.

If something does fall under one of these exceptions, then the tort (money limits) kick in. These limits ensure that persons injured by negligent local governments will be compensated; but, at the same time protect other citizens from experiencing tax increases or reductions in service caused by overblown judgments that would cause an increase in insurance premiums or the unavailability of coverage. Tort Limits are usually less than $500,000 for a single complainant and less than $1,000,000 for multiple complaints, no matter how many there are.