Additional Money Will Prevent Need for Property Tax Hikes from LIPA Settlement
By Kayleigh Anderson
A jointly sponsored bill borne from the Long Island Power Authority’s (LIPA) settlement with the Huntington Town Board passed both chambers in Albany and is currently awaiting the governor’s signature.
Assemblyman Keith P. Brown (R,C-Northport) and State Senator Mario R. Mattera (R,C-Hauppauge) introduced a bill would allow the Northport-East Northport School District to create a reserve fund to prevent the need for property tax increases because of the LIPA Tax Certiorari Settlement and the resulting decrease in revenue from the Northport power station.
On June 4, the state Senate passed Mattera’s bill.
“The passage of this crucial legislation marks a significant step forward in our commitment to supporting the Northport-East Northport Union Free School District and its students,” Mattera stated. “The LIPA tax grievance case threatens to impose undue burdens on our taxpayers and jeopardize essential educational services. By establishing this reserve fund, we are proactively ensuring that the school district remains financially stable and shielded from unexpected fiscal pressures.”
Brown’s bill was passed by the Education, Ways and Means and Rules Committees unanimously before it went to a floor vote. On June 9, the Assembly passed the bill 145-0.
“I am very pleased this bill passed in the Assembly and Senate,” said Brown. “The LIPA tax grievance case will have a crippling effect on taxpayers and our students. That’s why we could not afford inaction.”
On September 3, 2020, the Huntington Town Board voted in the eleventh hour by a 4-1 vote to accept its settlement with LIPA. As a result, LIPA’s taxes were reduced by $40 million over from 2020 to 2027 — from $86 million to $46 million — and the utility paid the town $1 million a year from 2021 to 2023. In addition, LIPA paid the school district $145 million and had a lower assessed valuation for seven years so that taxes would remain the same at $46 million.
Long Island Life & Politics has made numerous calls to LIPA and the school district, but did not respond as of press time.
The Settlement glide path will phase out over the next several years. Brown said this bill will ensure necessary funding remains on hand for the school district when needed.
“This Reserve Fund will ensure that when the glide path ends, our taxes will not skyrocket and force the school district to cut services or programs that are desperately needed by our students.” Brown said.