Dear Port Jefferson School Community,

I am writing to provide an important update on the ongoing financial impacts of the Child Victims Act (CVA) on our school district. As you may recall from my previous communication, the CVA was signed into law in 2019, creating a “look-back window” that allowed survivors of sexual abuse to file civil claims against alleged abusers and institutions, regardless of when the incidents occurred. This window led to over 10,000 claims statewide, including seven against Port Jefferson.

While the CVA’s intent to deliver justice to survivors is vital, it has created significant and unintended financial challenges for school districts like ours. In November 2024, we settled all seven CVA-related lawsuits for a total of $16.5 million. To cover this, the District utilized $5.1 million from our unassigned reserves and issued an $11.4 million Bond Anticipation Note (BAN) for the 2024-2025 school year. A BAN is a short-term financing tool that requires only interest payments initially. The initial note came due in late January 2026. At that time, we issued a new BAN, which will mature in January 2027 and requires a payment of approximately $650,000 in the 2026-2027 school year. 

Our current plan is to convert this debt into a long-term bond in January 2027. Thanks to recent legislative progress, we now have more flexibility, new legislation finalized in late December authorizes up to 30-year bonds. We anticipate issuing a 28-year bond to spread out the payments and reduce the annual burden on our budget. These bond costs do not impact the tax levy. Bond payments must be made within the 2% tax cap. This means we cannot raise taxes to pay for the bond and must make reductions in expenditures in our budget to cover the cost. That said, we will continue to investigate and pursue all viable options to minimize the long-term impact on our District.

To seek relief, we are advocating at the state level for additional support. In particular, we urge our community to join us in supporting the New York State School Boards Association’s (NYSSBA) position on Assembly Bill A10065 and Senate Bill S8174. These bipartisan bills would authorize the New York Liquidation Bureau to establish a reimbursement program for eligible local educational agencies, like ours, facing liabilities from CVA claims where the original insurers have become insolvent. This would help cover costs without further straining local taxpayers or educational programs, ensuring equity and protecting our District’s financial health.

Your advocacy is crucial. Please consider contacting our elected officials to express support for A10065 and S8174. Templates for letters, emails, or calls are available on our website, along with contact information for key representatives, including Governor Kathy Hochul, Senator Anthony H. Palumbo, Congressman Nick LaLota and Assemblywoman Rebecca Kassay. By voicing your support, we can collectively push for solutions that balance justice for victims with the sustainability of our schools.

Thank you for your ongoing commitment to our District and our students. Together, we can navigate these challenges and prioritize their education.

Sincerely,

Jessica Schmettan

Superintendent of Schools