The Nassau County Interim Finance Authority imposed a control period on Nassau County, N.Y., on Wednesday.
The control period gives the NIFA board the power to approve all borrowings and requires board approval for all contracts.
The county, a wealthy suburb of New York City located on Long Island, is required to submit a revised financial plan by Feb. 15 that does not include certain revenues, cost-saving initiatives and contingencies that NIFA deems risky.
The six-member board unanimously approved imposing the control period after chairman Ronald Stack read the resolution to the board at a public meeting in Uniondale,. Stack said the county’s $2.6 billion budget for fiscal 2011 has a $176 million deficit under generally accepted accounting principles, which is in excess of the 1% deficit threshold under NIFA’s statute. Under cash accounting, the county has a $50 million deficit, Stack said.
John Ciampoli, attorney for County Executive Ed Mangano, called the move “astonishing.” He said he would consult with Mangano over possible legal challenges to the action.
