Substantial cuts will be coming to Bridgman Public Schools as a result of the tax settlement reached this week between American Electric Power and Lake Township.

AEP disputed the assessed value of the Cook nuclear power plant to seek a reduction in its taxes. The settlement places the plant at its 2022 value, about 12% less than what it is now. Speaking to the community Wednesday, Bridgman Public Schools Superintendent Shane Peters says this will mean a loss of about $1.2 million for the district, making cuts of between $1.2 and $1.8 million necessary by June 30.

Peters promised staff won’t be laid off in waves, like they are in some other organizations.

“If we’re going to do cuts, we’ll do them all between now and June 30th, be done, reimage the district, refocus the district, and move on,” Peters said.

Peters said once the cuts are made, the district will be stable.

Peters said at the heart of this issue is Bridgman’s status as out of formula with Proposal A. Due to the community’s large tax base, Bridgman is locked into a low non-homestead millage rate of just 8.4 mills. He said most other districts can levy up to 18, but Bridgman is stuck with the lower figure. As a result, Peters said without the Cook plant taxes, it’s left with no options but to cut

“Staffing reductions will occur at all levels,” Peters said. “Administrators, teachers, support staff. But there will also be some program reductions in athletics, curriculum, technology, and transportation.”

Peters stressed athletics and transportation will not be cut entirely. They will, however, see reductions. He also pledged academic achievement will remain the primary goal of Bridgman Public Schools, which outperforms most other nearby districts. To maintain quality, he said the next few years will be a balancing act until revenue starts to creep back up again in 2028.

One possible solution could be legislation now being worked on by state Representative Joey Andrews that would allow Bridgman and others like it to levy up to 18 mills on non-homestead property, even if they’re out of formula for Proposal A. However, that would be a tall order, requiring a two thirds vote in both chambers of the Legislature.