Letter to the Port Jefferson community regarding the Child Victims Act

Dear Port Jefferson School Community, 

I am writing to inform you about an important matter that significantly impacts our school  district’s financial health and, ultimately, our students. In 2019, Governor Andrew M. Cuomo  signed the Child Victims Act (CVA) into law. This legislation created a “look-back window”  allowing victims of sexual abuse to file civil litigation against alleged abusers and institutions  that may have enabled such abuse, regardless of when the incidents occurred. The look-back  window opened in August 2019 and closed in March 2021, resulting in over 10,000 claims filed  against various institutions, including numerous school districts across New York State. Port  Jefferson had seven claims filed during this period.  

While the CVA was enacted with the critical goal of providing justice to survivors of abuse, it  has also led to unintended financial consequences for school districts like ours. Port Jefferson  settled all of the CVA-related lawsuits in November of 2024, totaling 16.5 million dollars. In  order to pay for this settlement, the District was able to utilize 5.1 million dollars from our  reserve funds and additionally, borrow a one-year Bond Anticipation Note (BAN) for 11.4  million dollars. A BAN is a short-term financing option that allows the District to make an  interest-only payment for one year. 

During our first work session budget presentation on Jan. 28, 2025, Deputy Superintendent  Sean Leister outlined the District’s plan for making this first BAN payment of $370,445 in the  2025-2026 school year. A copy of the presentation and video link of the meeting can be accessed  from our website. Beginning in the 2026-2027 school year, the District will need to convert the  11.4 million dollar debt into a fourteen-year long term bond unless we have some legislative  relief.  

These substantial future bond payments will place a heavy financial burden on our district,  impacting our ability to deliver the quality education our current students deserve. While we  remain deeply sympathetic to the victims and recognize the seriousness of the allegations, we  believe it is unjust for our present-day community and students to shoulder this financial burden. 

To address this issue and advocate for fair solutions, we are urging our elected officials to support the following measures at the state level: 

1. Partial Reimbursement: Establish a budget initiative to offer partial reimbursement  for CVA settlements or judgments. This can be accomplished through a formula similar  to the existing building aid model for school infrastructure. 

2. Tax cap exemption: Allow districts a tax cap exemption specifically for CVA related expenditures. 

3. CVA fund: Create a dedicated fund to reimburse uninsured school districts for  settlement and judgment expenses under CVA. 

4. Liquidation Bureau: Expand the look-back period for school districts to submit  insurance claims to the New York State Liquidation Bureau. This bureau is an entity that  receives no funding from the taxpayers and protects policyholders of insurance  companies that have been declared insolvent.  

5. Access restricted reserves: Allow districts to access restricted reserve funds through a Board of Education resolution for payments of debt associated with CVA judgments or  settlements. 

Any one of these solutions could provide much needed relief to our district and lessen the long term bond implications. These proposed legislative solutions seek to balance justice for CVA  victims with the need to preserve educational resources for current and future students. We ask  for your support and advocacy to ensure that the education of our students remains a top priority,  free from the unpredictable financial hardships that result from events beyond all of our control. 

Please consider reaching out to state legislators and advocating alongside us for these necessary changes to protect our schools and our students. Templates can be found on  our website along with directory information for our local elected officials.  

Thank you for your continued support of our district and our mission to provide a high-quality  education for all students. 

Sincerely, 

Jessica Schmettan 

Superintendent of Schools