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Bay Shore board authorizes $3.75 million Child Victims Act settlement, may replenish insurance reserve up to $2.5 million
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Summary
The Bay Shore Union Free School District board approved payment of $3.75 million to settle a Child Victims Act claim and authorized a potential transfer of up to $2.5 million from the general fund to the district's insurance reserve at fiscal year close.
The Bay Shore Union Free School District board voted May 28 to approve a $3,750,000 settlement in a claim brought under the Child Victims Act and authorized a transfer of up to $2,500,000 from the general fund into the district's insurance reserve at the close of the 2024–25 fiscal year if funds are available.
The action came during a short business session in which the board also authorized the president (or vice president) to execute the settlement agreement and release. The motion to disburse the settlement and the companion motion to authorize the potential transfer each passed on unanimous voice votes: “Aye. Aye. So carried,” the board recorded.
The district statement read at the meeting said the board had settled 18 cases without insurance to date, five cases fully insured by the current carrier and three settled by former carriers. The statement said the district intends to approach claims “with understanding and fairness for all those impacted by cases brought pursuant to the Child Victims Act,” while balancing fiscal responsibility for the Bayshore community.
Board action details: the board moved to (1) authorize disbursement of $3,750,000 to resolve the single Child Victims Act claim presented and (2) authorize, if funds are available at year end, transfer of up to $2,500,000 from the general fund to replenish the insurance reserve. Both motions passed after a motion and a second; no roll-call names were recorded in the public transcript.
Why this matters: settlements under the Child Victims Act have both fiscal and reputational effects for school districts. Using the insurance reserve now and authorizing potential replenishment preserves the board’s flexibility to meet the payment while signaling intent to restore reserve levels if the general fund can support it at year end.
No additional details about the plaintiff, the underlying allegation, or the settlement terms beyond the payment amount were discussed in public session. The board also noted that insured settlements historically did not require board action.
The district did not set a public timeline for replenishment beyond the conditional authorization at fiscal close; no further votes or administrative steps were announced at the meeting.
