Island Park school district weighs options after LIPA suit

The Island Park School District has concluded its decade-long litigation with the Long Island Power Authority challenging the agency’s efforts to reduce the taxes it pays on the E.F. Barrett Power Plant, finally agreeing to a settlement. According to its terms, LIPA will make $9 million in direct payments to the district over the next four years.

Board of Education trustees past and present have gone back and forth with LIPA and Nassau County in an effort to mitigate the financial burden that reducing taxes on the plant would create for local taxpayers, who would have to make up the revenue shortfall. The board also urged the public to contact lawmakers in the hope of minimizing the loss of property tax revenue.

At a board meeting Oct. 17, District Superintendent Vincent Randazzo, Board President Jack Vobis and District Counsel Robert Cohen each spoke about the settlement agreement, and the history of the litigation. “We lobbied very hard on behalf of the community, and tried to work out the best deal when it appeared at one point that we were going to get nothing,” Vobis said, according to the minutes of the meeting. “Our goal shifted from winning 100 percent to getting the best deal possible.”

He continued, “We had numerous meetings and constant communications with our co-litigants until they all dropped out. There is a great regret that the board has to accept this agreement. (But) we are saying with our utmost confidence that this is the best possible result that we can envision.

The settlement funds are essential to preserving educational programs while mitigating the impact on taxpayers. The payments will help the district minimize the “fiscal cliff” created by an agreement between the county Nassau County and LIPA to reduce taxes on the Barrett plant and a smaller one in Glenwood Landing. The settlement agreement was negotiated with the guidance and support of a special tax counsel and the district counsel.

“The settlement was determined to be the best outcome for the district to continue providing children with high-quality educational programs,” Vobis said. “It also protects our residents from having to pay enormous tax increases over the next four years.”

“We hope that everyone understands what has gone on in the past, what has happened and what brings us to this point here today and hopefully better times going forward,” he added.

Cohen explained what residents could still do to lessen the impact of the decision. “We still have opportunities to lobby the state for additional aid,” he said, “and for changes in the law that will allow us to better allocate monies used in reserve to mitigate the future effects of the county’s settlement with LIPA and the reduced taxes.”

Cohen also thanked the public for its continued support through the years of negotiations. “One of the things that has been tremendously gratifying is the community coming out and going to the hearings and being united,” he said.

Despite requests to the county on behalf of Island Park residents, the district has not been given projected tax increases for average homeowners over the next four years and beyond as a result of the county’s settlement with LIPA. Residents who have specific questions about the impact of the settlement on their taxes can call the county assessor’s office, at (516) 571-1500.

District officials say they are aware that while the settlement funds and the use of reserves will help for the next few years, they are not a permanent solution. They plan to work with state elected officials to find legislative solutions for the loss of revenue caused by the settlement.

Community members were encouraged to call Gov. Kathy Hochul and state lawmakers to request that they help the district find a long-term solution to the loss of property tax revenue, which could include a tax certiorari reserve fund, and state mitigation funding.