Nassau County, N.Y. Comptroller George Maragos is projecting a $61.9 million cash deficit this year unless the county increases revenue or cuts expenses.
Maragos released his 2015 mid-year financial projections on Aug. 4 and called on County Executive Edward Mangano and the Nassau Interim Finance Authority (NIFA) to confront mounting fiscal challenges. Nassau's so-called structural gap, which calculates difference between recurring operating revenues and expenses, is projected to end at a near historic high of $241.3 million, down slightly from $244.8 million last year, according to the
"The County Administration continues to rely heavily on borrowing to compensate for slowing sales tax revenues, and a lack of alternative new revenue sources to meet rising expenditures," said Maragos. "These trends have weakened the County financials and need to be reversed through major structural changes."
Eric Naughton, Nassau County's deputy county executive for finance, said in a statement that proactive measures have been taken to make sure there is no deficit later this year by cutting departmental spending, limiting new hires and implementing new initiatives aimed at increasing revenue.
"Each year the Comptroller's office issues a report that states that if no actions are taken the County will have a large deficit," said Naughton. "Last year his office stated that the deficit could be $76.9 million, but instead we ended the year with a $10.7 million surplus."
Maragos said Nassau's financial fundamentals have gotten worse under NIFA's control and that the fiscal control board's oversight needs to be strengthened. NIFA took control of Nassau's finances in 2011 when the suburban county just east New York City faced a $176 million deficit.
"NIFA must participate in this process," said Maragos. "It cannot remain relatively passive while watching its own county financial metrics deteriorate precipitously for the second consecutive year."
NIFA officials did not immediately respond for comment on the Maragos report.
