Nassau County Gets Reluctant OK for $2.6B Budget

Nassau County, N.Y., finally got the budgetary go-ahead from its state-appointed oversight board, but the overseer is far from happy.

The Nassau Interim Finance Authority, which assumed fiscal control over the county in January, approved by a 5-to-2 vote the county’s $2.6 billion fiscal 2012 budget and four-year fiscal plan.

The plan includes $450 million of borrowing over four years to cover tax refunds, employee severance expenses and court judgments.

“The approval of this budget plan, developed by the county in consultation with NIFA, will put Nassau on the road to recovery,” County Executive Edward Mangano said in a statement after Thursday’s vote in Uniondale.

But NIFA chairman Ronald Stack, though he voted for the budget, had reservations. “This plan is far from perfect,” he said. “No matter what we do, though, risks remain.”

However, the budget assumes $150 million in savings from layoffs or concessions. Mangano has warned that the county could lay off 400 workers, demote a further 200, and close two police precincts, which he has yet to identify, if unions don’t agree to $150 million worth of givebacks — half by Dec. 15, the remainder by Feb. 1.

George Marlin, a board member frequently critical of county spending, voted for the plan, but had harsh words for Nassau officials. “In my judgment, the county has no credibility because time and again, in dealing with fiscal matters, the county has been disingenuous, deceptive and delusional,” he said.

But he and others who approved the budget said failure to do so could force the Long Island county to miss payroll and essentially shut down.

In its review of the multi-year financial plan, NIFA praised the county for agreeing to use any significant revenue upside, regardless of source, to borrow less rather than spend more.

Leonard Steinman and Thomas Stokes voted against the budget, saying it relied too heavily on borrowing.

The 21-member county Legislature must approve any bond sale by a supermajority of 13 members. In late October it approved Mangano’s budget by 11 to 8.

Mangano remained hopeful that the county and unions could reach middle ground.

“There is still a small window for Nassau’s union presidents to come forward with voluntary concessions that avoid severe layoffs,” the executive said in a statement. “I do not take joy in laying off a single employee or demanding concessions; however, the approved 2012 budget sets a payroll allocation that must be met.”

“They’re asking for the world and it’s not feasible,” said James Carver, president of the Nassau County Patrolmen’s Benevolent Association. In a series of commentaries on the PBA’s website, Carver has railed at the county over the proposed budget cuts.

NIFA also cited the correctional center as a departmental revenue risk. Nassau now expects to realize $6.3 million in new revenue from housing additional inmates from the federal government and neighboring Suffolk County.

“These new revenues are subject to execution risk as the amount of revenue is dependent on actual inmate census,” NIFA said.

Nassau’s general obligation bonds are rated A1 by Moody’s Investors Service, A-plus by Standard & Poor’s, and AA-minus by Fitch Ratings.

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