Nassau County’s 2014-2017 multiyear financial plan, released in late September, has drawn mixed reactions and conflicting financial projections from county and state officials.
The plan projects a $2.8 billion balanced budget in 2014, with deficits growing to about $51 million by 2017 – an outcome explained in the plan as the result of employee benefit costs.
The plan also offers praise for Nassau County Executive Edward Mangano’s (R-Bethpage) refusal to raise the county property tax levy, and credits tens of millions of dollars to cost-cutting efforts.
But Nassau Interim Finance Authority director George Marlin, whose organization oversees the county’s finances on behalf of the state, slammed the county plan last week and said the control board’s projections contradicted the county’s numbers.
“Nassau County’s proposed multi-year financial plan for fiscal 2014-2017, in my professional judgment, is seriously flawed,” Marlin wrote in a statement.
The county is far from meeting the terms of its agreement with NIFA to balance its budget by 2015, Marlin wrote.
While the county’s projections are budgeted on a cash basis, NIFA uses a different accounting standard that includes risks and liabilities not included in the county plan – and according to NIFA’s measures, the county’s deficits could balloon to $255 million by 2017.
“What duly elected official wants a non-elected State board to control? Sensible governments would do anything to get out of controls,” wrote Marlin. “But not Nassau. So what if contracts and borrowings have to be approved. So what if wages remain frozen. As long as the County does not have to make the tough decisions. As long as the County can blithely go along la dee da, tomorrow is another day.”
Deputy County Executive for Finance Tim Sullivan, whose office prepared the financial plan, released a statement describing the county’s liabilities as leftovers from former County Executive Tom Suozzi (D-Glen Cove), who is again running against Mangano in the upcoming November elections.
“We thank NIFA for recognizing the cost cutting measures this administration has taken to help close the budget gap inherited from Tom Suozzi,” wrote Sullivan. “County Executive Mangano’s fourth NO tax hike budget continues to pay down the millions in debt inherited from the Suozzi administration.”
Another assessment of the numbers came from Nassau County Comptroller George Maragos, who has criticized Marlin’s past assessments of the county’s performance as unfair and politically motivated.
The comptroller’s office’s analysis of the 2014 budget and multi-year plan projected lower deficit numbers than NIFA, but also warned the county to reduce its reliance on borrowing to pay for the hundreds of millions of dollars in tax refund liabilities still on the county’s books.
Sullivan’s plan called for $230 million in borrowing to pay refunds – a level that Maragos’ office said could endanger efforts to close the budget gap.
“Sustaining these positive trends will not be possible, and will actually be reversed, with the higher level of property tax refund borrowing contained in the 2014 Proposed Budget,” wrote the comptroller’s office in its report.
NIFA, which took control over the county’s finances in 2011 after projected exceeded state limits, has instituted a wage freeze for county employees – currently subject to a federal court challenge – and has veto power over county borrowing.
Former Town of North Hempstead Supervisor Jon Kaiman (D-Great Neck) was recently appointed NIFA chairman by Gov. Andrew Cuomo (D), replacing former chairman Ronald Stack.
