Nassau County Executive Ed Mangano finally saw the writing on the wall last week and dropped the county’s lawsuit aimed at blocking the Nassau Interim Finance Authority from taking control of the county’s finances.
With his back to the wall, Mangano said that his administration had a “very promising discussion with NIFA’s counsel regarding review and administration of contracts.”
But the legal battle that has now ended is another drain on the county taxpayers at a time they can least afford it.
The citizens of Nassau County must pay the fees for attorneys on both sides of this fight. NIFA retained the firm of Skadden, Arps, which named New York’s former Chief Judge Judith Kaye as lead counsel. NIFA has already racked up $400,000 in legal fees.
The county retained Rivkin Radler, Mangano’s former law firm. So far the county has not disclosed how much it has paid for this outside counsel. It’s safe to assume that the taxpayers will wind up paying more than a million dollars for a fight the county never had a chance of winning.
Before Mangano dropped the suit, NIFA Chairman Ronald Stack released a statement in which he said, “As a result of the county’s lawsuit NIFA was required to pay to its attorneys money that could have been used to help solve the County’s fiscal crisis.”
Stack rejected the county’s claim that its budget is balanced and it doesn’t need NIFA’s help.
“The deficit is real,” he said. “The deficit is substantial. It is not a NIFA deficit. It is not a ‘paper deficit.'”
Although it is easy to understand why NIFA had to retain legal counsel, we question why the county had to pay for outside help. And although it may be legal, the hiring of Mangano’s former firm raises ethical questions.
It should not have taken long for the lawyers at Rivkin Radler to tell their old boss that this was a battle the county couldn’t win.
As unpleasant as it may be, NIFA had every right to impose emergency controls. Although it now appears that the county is ready to work with NIFA, other lawsuits are likely.
The Civil Service Employees Association and the Nassau Police Benevolent Association have threatened to fight in court to reverse wage freezes imposed by the county.
Last week Mangano submitted a tough new budget that included 200 layoffs, the reduction of 500 positions, a 13-day furlough in which employees lose a day’s pay each pay period, a wage freeze and a double-digit property tax increase.
Although the unions won’t be happy with the furlough and wage freeze, they should recognize that something has to be done and this plan is better than massive layoffs.
Unfortunately, according to NIFA, even these painful measures may not be enough to erase a $176 million deficit. But at least the county and NIFA are now working together.
A Blank Slate Media Editorial
