Cold Spring Harbor Residents To Vote On Liquidating $7.6M

COLD SPRING HARBOR, NY — Residents within the boundaries of the Cold Spring Harbor School District community will vote on Nov. 16 to decide whether to liquidate the $7,667,594 2020 Capital Reserve for use toward lawsuit settlements, the school district announced.

If voters approve the proposition, the reserve funds will be used toward paying legally required settlement agreements with two former students from more than 40 years ago who filed lawsuits against the district under the extended Child Victims Act enacted in August 2020.

The first claim was made in January 2021, while two more were made in March 2021. The plaintiffs from each case accused three different teachers — who have all since died — of abuse over 40 years ago. The district reached settlement dates earlier this year.

The first case was settled for $300K and paid, according to the district.

To finance these two settlement agreements, the district will use $1,840,716 from its Liability Reserve Fund and $4,489,284 from the district’s Unassigned Fund Balance, leaving a balance of $7,670,000.

The second case settled for $8 million — the second and final payment of $6.5 million is due in June 2024. The third case settled for $6 million — the second and final payment of $3 million is due in June 2024.

Confidentiality and non-disparagement agreements prevent the district from sharing further information.

The district must finance this remaining balance with bonded indebtedness, it wrote.

"By liquidating the 2020 Capital Reserve Fund, the board of education is recommending paying off the bonded indebtedness immediately and avoiding long-term interest costs and any budgetary implications of this debt," the district wrote.

If the proposition is not approved by voters, the district will still need to finance the $7,670,000 to pay for both CVA settlement agreements through bonded indebtedness. The district said it would need to add principal and interest payments of approximately $840,000 to the budget.

"This would likely result in cuts to other areas of spending to balance the budget and would hinder the goal of not impacting current student programs," the district wrote.

More information on the claims and settlements can be found on the district's website, as well as in a brochure mailed to all residents in both English and Spanish.

All Cold Spring Harbor Central School District residents were encouraged by the district to vote on Nov. 16, from 6:30 a.m. to 8 p.m., at the Ralph Whitney Field House at Cold Spring Harbor Jr./Sr. High School.