Sussex County, Delaware, Agrees to Reexamine Tax Base in Settlement of Education Equity Lawsuit
The county government pledged to update property assessments in a move that completes resolution of a statewide legal campaign aimed at increasing resources for underserved students across the state. The plaintiffs were represented by a team from Arnold & Porter.
April 16, 2021 at 02:29 PM
3 minute read
The original version of this story was published on Delaware Law Weekly
Sussex County's finance director has agreed to conduct real property assessments, concluding the final chapter of a three-year-long case alleging educational inequality has plagued Delaware's public schools.
The signed agreement Delawareans for Educational Opportunity and the NAACP Delaware Conference of Branches made with Sussex County Finance Director Gina Jennings was approved in the Court of Chancery on April 14, and the updated assessments are expected to impact property taxes by fiscal year 2025.
"This agreement brings our years-long litigation to a close, and we couldn't be happier about the end result," said Mike Brickner, executive director of the ACLU of Delaware. "By 2025, Delaware's low-income and English language learner students, and students with disabilities, will have significantly improved resources to help provide them the education they deserve. This is an historic win for all of Delaware's public schools."
The suit was filed in January 2018 in an effort to allocate more resources to Delaware's low-income students and those who are learning English or have disabilities, a majority of which were found to not be meeting Delaware Department of Education standards in math and English language arts.
Claims were brought against finance directors in the state's three counties, the city of Wilmington and Gov. John Carney. The issue of local school funding went to trial in June of 2019, and in May 2020, Vice Chancellor J. Travis Laster found use of property tax assessments from the 1970s violated the state's constitution.
Peta Gordon of Arnold & Porter Kaye Scholer said the liability petition was a tipping point in the litigation and set a framework for later settlements.
"We're delighted with it," Gordon said of the final settlement. "The counties have all consensually settled, both because they think it will result in more equitable taxation as well as a significant benefit to help the schools in Delaware."
Claims against the state were settled in October, and New Castle and Kent counties agreed to conduct similar property value assessments in January and February, respectively.
"We've worked with the State of Delaware and each of Delaware's three counties to reach a major achievement for students: funding for a better education," said Jea Street of Delawareans for Educational Opportunity. "Delawareans for Educational Opportunity and the NAACP have been fighting for years to bring greater equity to Delaware's students, and the four agreements we've been able to reach over the last year bring us, literally, decades closer to that goal."
Beginning in September, Jennings—or whoever her successor is, if she leaves the finance director position at any point—will be required to send quarterly progress reports to Delawareans for Educational Opportunity and the NAACP until the assessment is done. Jennings was represented by Krista M. Reale of Margolis Edelstein, who was not immediately available for comment on the settlement.
The county can ask for an extension if it's been unable to complete assessments by that point but has made a reasonable effort, and the plaintiffs can seek expedited proceedings before the court if they determine the county isn't doing what it should be to complete the assessment process.
Jennings and Sussex County don't have to admit liability under the settlement, but it also doesn't allow for the appeal of a May 2020 order finding liability.
Delawareans for Educational Opportunity and the NAACP Delaware Conference of Branches were represented by Richard H. Morse of Community Legal Aid Society Inc. with assistance from Arnold & Porter and the ACLU of Delaware.
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