Nassau County to pay 2 towns $6.3M to settle disputes over Fashion Institute of Technology costs - Newsday

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Nassau County is set to pay $3.9 million to the Town of Hempstead and $2.4 million to the Town of North Hempstead to settle a yearslong lawsuit over who pays for students to attend the Fashion Institute of Technology in Manhattan.

The dispute arose nearly a decade ago. It centers around whether the county had the authority to pass along to its towns the cost of sending students to the art, design and business school, which is part of the State University of New York system. State law stipulates that if a Nassau or Suffolk resident attends FIT, the counties must pay New York City to cover some of the costs.

The Nassau Legislature is expected to approve the settlement Monday.

Officials said it would put to rest litigation that began in 2015, when the two towns sued the administration of former County Executive Edward Mangano for withholding their portion of the county's sales tax revenue to cover tuition reimbursement fees.

“The proposed settlement is the culmination of years of controversy about the allocation of funds for students who attended FIT. This will put an end to the controversy and fairly allocate the funds to the Town of Hempstead and Town of North Hempstead,” said Christopher Boyle, spokesman for County Executive Bruce Blakeman.

Town of North Hempstead spokesman Gordon Tepper said the town board would vote Tuesday on whether to accept the settlement.

Town of Hempstead spokesman Greg Blower said the town board voted to accept the settlement last Tuesday.

“Hempstead Town is pleased to reach an amicable agreement with Nassau County concerning FIT subsidies,” Blower said.

The state's "chargeback" system allows residents of one county to attend community college in another county within the state. The cost of attendance across SUNY's 30 community colleges is similar, with the exception of FIT, which costs more.

New York City's chargeback for nonresidents to attend FIT is $16,800. By comparison, Nassau's chargeback for nonresidents to attend Nassau Community College is $8,630, according to SUNY spokeswoman Holly Liapis.

Nassau and Suffolk officials long have questioned having to pay New York City to send students to FIT.

Before the 2013 state budget season, Mangano and Suffolk County Executive Steve Bellone appealed to then-Gov. Andrew M.Cuomo and the State Legislature to eliminate the chargebacks the counties must pay to FIT. They argued the fashion school is not a community college because in addition to two-year degrees, students can earn four-year and graduate degrees.

County officials had said it was unfair to pay for the third and fourth years of attendance at FIT.

An appellate court decision in 2013 forced local governments to pay for their students to attend FIT, reversing an earlier ruling that had freed local governments from having to pay for students who went beyond two-year associate degrees.

Boyle said the towns now reimburse the county for what the county pays to New York City based on how many FIT students reside in the towns.

The number of students from Nassau and Suffolk counties attending FIT has declined in recent years.

In fall 2017, Nassau sent 658 students, while Suffolk sent 633. In Fall 2022, Nassau sent 460 students and Suffolk, 471.

Towns in Suffolk also reimburse the county for FIT chargebacks.

Suffolk County spokeswoman MaryKate Guilfoyle said a dispute between the county and Brookhaven Town over $10.8 million in out-of-county college tuition reimbursement payments to community colleges, including FIT, has been settled. The county in 2020 said Brookhaven had failed to make the payments for the past three years.

With Vera Chinese