Local communities are feeling the impact after a tax settlement was reached between AEP and Lake Charter township.
After a discrepancy in the assessed value of the Cook Nuclear Plant, AEP disputed that value seeking a reduction in their property taxes.
Lake Charter township and American Electric Power reaching a settlement to reduce the plant's appraised value by 12%, bringing it back to their 2022 level.
Part of Bridgman Public School's funding comes from property taxes based on the value of the Cook nuclear plant.
With that settlement, the plant's appraised value will be lowered starting in 2025 and will not rise until 2028.
Beginning in 2025, the district will see a $1.2 million loss in funding.
Bridgman Schools Superintendent says that while it will be a challenge to lose that funding for two years, it could have been a much worse situation.
"I think not asking for reclaiming taxes in 22, 23 and 24 is also a win. And also the agreement not to reclassify property into industrial personal property is probably the biggest win that you know, that reclassification of property to IPP would have most likely closed the 18th best school district in the state of Michigan," Superintendent Shane Peters said.
That reduced funding means the district must make staffing and program reductions.
But Peters says that they will not leave employees that are let go without opportunities.
"Let's be honest, everybody's looking for quality teachers, and you're not going to find any more quality teachers here in Bridgman. So those that would be unfortunate to be reduced staffing, we would do everything in our power to provide them opportunities and make connections and calls to local districts," Peters said.
Community members sharing their thoughts at the meeting.
One says that the loss of funding did come as a surprise.
"We have worked hard to maintain top quality education for the students the whole while. So the funding comes as a little bit of a surprise that we're going to have to just work a little harder to get it back to where it needs to be," Diane Kurek said.
Superintendent Peters says the district will work to reach an agreement with AEP in hopes of getting some of the lost funding back for the 2026 and 2027 years.
The settlement still requires approval from the state before going into effect.