Nassau County Comptroller Sounds Alarms on Budget

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Nassau County, N.Y.'s proposed $3 billion budget contains nearly $115 million in risky revenue assumptions that could create a "sizable" deficit, according to county comptroller George Maragos.

A budget review released by Maragos on Oct. 5 showed an estimated $114.6 million of budgetary risks for the Long Island county from new fees and uncertain sales tax growth that could create a $134 million budget gap using generally accepted accounting principles. The fiscal plan pitched by Nassau County Executive Ed Mangano would increase spending by 3.22% and include a jump of $25.6 million in debt service costs.

"The 2017 proposed budget contains heightened risk of ending in a sizable deficit," said Maragos in a statement. "The historic reliance on sales tax revenues to pay for increased costs and wages can no longer be relied upon and the new revenue from significantly higher fees and fines will face considerable public opposition and fall well short of expectations."

Maragos noted in his report that Nassau's long-term debt is expected to rise by $50 million and approach $3.7 billion. The county's deferred pension liability is projected to grow to $236 million and Maragos emphasized that if his estimated risk deficit materializes its unreserved fund balance would be "nearly eliminated."

"The County will face difficult choices in 2017 and beyond as structural costs continue to climb and new revenue sources prove more challenging to find," said Maragos. "A rethinking of government is necessary to put the County on a stronger financial footing."

Just prior to the budget review, Maragos switched from a Republican to Democrat and announced plans to run for county executive next year. Mangano, a Republican who was first elected in 2009, has not said yet whether he will seek a third term.

Mangano spokesman Brian Nevin noted in response to the Maragos report that despite predictions of a large deficit last year, Nassau still achieved a $57 million surplus. He also referred to the Maragos projections as "political games" prior to his run for higher office.

Nassau County has about 1.3 million residents and is rated A2 by Moody's Investors Service.

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