Nassau County Comptroller George Maragos is projecting a deficit risk of $49.1 million if changes are not made to the proposed 2016 budget.
Maragos released a report Oct. 9 saying the county’s fiscal plan to achieve a balanced budget through initiatives like fee increases and planned video lottery terminals may not be sufficient to overcome anticipated lower sales tax revenues and structural cost increases.
County Executive Ed Mangano has proposed a $2.95 billion budget that would rely on $20 million in new revenue from a planned temporary Nassau Regional Off-Track Betting casino with video slot machines. Nassau legislators have voiced opposition to a 1.2% property tax hike included in Mangano’s budget plan.
“The 2016 proposed budget has little flexibility and leaves no room for error,” said Maragos in a statement. “A possible 2016 year-ending deficit may deplete the County fund balance.”
Maragos projects that county fundamentals will remain “weak” with long-term debt approaching $3.9 billion and a structural gap expected to reach $141 million. The comptroller’s analysis also estimates that deferred pension liability will grow to $240 million and the property tax liability could increase to $305 million.
“The 2016 budget will require additional initiatives to end in balance,” said Maragos in a statement. “The weakening County financials and the growing debt can no longer be ignored. A credible multi-year plan is now essential to avoid more painful consequences later.”
The press office for Mangano did not immediately respond to a request for comment on Maragos’ report.
