The fiscal control board for Nassau County, N.Y. has rejected its $2.95 billion budget proposal, saying it relies too much on uncertain revenue assumptions.
The seven-member Nassau Interim Finance Authority voted unanimously on Nov. 19 to not accept the spending plan and directed legislative leaders and County Executive Ed Mangano to make additional cuts.
The county legislature had voted to strip Mangano's proposed 1.2% property tax increase and replace the funds with anticipated new revenue and new fees. The GOP-controlled legislature then voted to override fellow Republican Mangano's veto of the legislature's tax plan.
NIFA, which took control of Nassau's finances in early 2011, warned in an Oct. 16 letter that it would step in and impose a hiring freeze along with other cuts if changes were not made to the 2016 budget proposal saying it would contain "a $50 million dollar hole" with "risky propositions and "questionable projections."
The control board said in a Nov. 19 report that the budget relies on $81.3 million in anticipated revenue including $20 million from planned temporary mini casino featuring video lottery terminals.
"The county has adopted a financial plan for NIFA's consideration that would continue a structural imbalance between county expenditures and revenues through 2019," said NIFA board members in a statement. "The control period cannot last forever. The county's financial planning must be put on a reasonable path toward balance with some visible horizon."
