The Nassau County Interim Finance Authority argued that Nassau County’s motion for preliminary injunction to block a takeover of its finances should be denied, according to court filings.
NIFA, an oversight board that last month imposed a control period on the county, said in its response that it had acted within its authority under statute, had not acted arbitrarily or capriciously, and that the county had not demonstrated that the authority’s actions would cause irreparable harm.
NIFA also argued that the challenge could harm New York because oversight boards are an essential tool of the state.
County Executive Ed Mangano criticized the authority’s response, calling it an attempt to circumvent the democratic process. “NIFA’s answering papers expose their agenda to impose a new, nonelected layer of government upon the residents of Nassau County that will never be held accountable to taxpayers,” he said in a release.
The suit, filed earlier this month, prompted Moody’s Investors Service to put the county’s A1 rating on review for possible downgrade.