Suffolk County’s larger than estimated deficit is a credit negative, Moody’s Investors Service said in a report last week.
“In addition to further reducing the county’s reserve levels, it indicates that the county’s 2012 budget, which already faced a significant structural gap, is even further out of balance,” the report said.
Suffolk Comptroller Joseph Sawicki reported on April 16 that the Long Island county ended 2011 with a $60 million deficit, twice the amount of previous estimates.
Drivers of the larger deficit include overestimating revenues, including sales tax revenue, which officials expected to grow 4.5% but actually grew 3.6%, Moody’s reported.
The county, which declared a fiscal emergency in March, is rated at A1 by Moody’s, with a negative outlook.
“The county will face ongoing budgetary constraints in a weak economic environment, growing fixed expenditures and a high demand for services,” Moody’s said in the report.— Tonya Chin
WTC Broadcast Setup OK’d
The Port Authority of New York and New Jersey Board on Thursday approved an agreement with the Durst Organization to allow a new broadcast facility to be built on top of One World Trade Center.
Under the agreement, Durst — the authority’s partner in One World Trade — will oversee the construction and operation of the broadcast facility for television and radio broadcasters.
The organization will invest the approximately $34 million needed to create the broadcast and antenna facility and to market and operate it together with its existing broadcast facility at 4 Times Square.
“We think it’s going to be a substantial revenue enhancer and will provide significant value to broadcasters,” executive director Patrick Foye said after the port’s board meeting.
Upon completion, the broadcast facility is expected to generate more than $10 million annually.
Given the height of the tower — expected to be 1,776 feet, including the 408-foot antenna — the facility will generate significant interest from major broadcasters, the authority said in a statement.
Weather permitting, One World Trade Center is expected to surpass the Empire State Building in height on Monday, Foye said.
