Nassau County, N.Y.'s fiscal control board has approved its $2.95 billion 2016 budget, while mandating quarterly reviews to track if revenue and spending levels are on the right track.
The Nassau Interim Finance Authority passed the county's spending plan unanimously on Dec. 4 after previously rejecting it on Nov. 19 because it relied on $81.3 million in uncertain budget assumptions. The revised budget includes $36.8 million in new revenues and spending cuts. NIFA Chairman Jon Kaiman said the agreement enables the board to examine the Long Island county's finances every three months and impose cuts to close a budget deficit if necessary.
"We are prepared to take immediate action if we feel the county is failing," said Kaiman. "It gives us more comfort to take action in real time instead of waiting."
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." Nassau County Executive Ed Mangano had proposed a 1.2% property tax increase to balance the budget but the county legislature opposed the plan.
Nassau County is located just east of New York City and is rated A2 by Moody's Investors Service.
