State Representative Joey Andrews is looking into what he can do to help Bridgman Public Schools after a settlement was reached this week between American Electric Power and Lake Township that will result in a reduction in the amount of taxes AEP will have to pay for the Cook nuclear power plant.
The dispute between AEP and the township was over the value of the plant. The settlement announced this week will mean a 12% reduction in the plant’s taxable value, resulting in a revenue loss to Lake Township, Lake Michigan College, Berrien RESA, Berrien County, and Bridgman Public Schools.
Bridgman Superintendent Shane Peters said this week the district will have to cut $1.2 to $1.8 million from its budget by June to adjust. Representative Andrews says there may be a way to help BPS.
“The schools are really constrained in how they can raise resources, and Bridgman Schools is one of the best schools in the state,” Andrews said. “So, real shame to have them take a heavy hit. And so, I’m hoping we can find some different ways to help them out.”
Peters said this week Bridgman Public Schools can’t collect the usual 18 mills in taxes from non-homestead properties that most districts can because of the large tax base in the area. That puts the district out of formula for Proposal A. However, he said Andrews is working on legislation that would allow school districts that are not in formula with Proposal A to levy as much as they need.
In the case of Bridgman, Peters estimated it would be around 12 or 13 mills, rather than its current 8.4. The district is locked into that number by the 1994 voter initiative. Changing that to let out of formula districts to levy more than they’re currently allowed would require a change to the state constitution. Since doing so would require a two thirds majority of both the state House and Senate, it’s questionable whether Andrews will be successful.