Dems, Republicans at odds over NIFA takeover

Richard Jacques

Democrats demanded Monday that County Executive Ed Mangano stop a potentially costly lawsuit against the Nassau County Interim Finance Authority – just before Republicans ripped NIFA’s price tag to taxpayers.

“Today we are calling in the county executive to put an end to the lawsuit,” said Deputy Minority Leader Kevan Abrahams (D-Hempstead). “Quite frankly we can’t afford it, we are a cash strapped county which doesn’t have too many resources.”

Abrahams said Moody’s, which performs financial research and analysis on commercial and government entities, indicated that a possible downgrade is possible because the Mangano lawsuit suggests that there is no collective leadership in the county.

Standing with nine members of the legislative Democratic minority in Mineola, Nassau County Legislator Judi Bosworth (D-Great Neck) said she is troubled by the county executive’s decision to sue NIFA.

“It’s going to be costly. It will be lengthy and just and it’s just going to embroil us in litigation for the foreseeable future,” Bosworth said.

Mangano’s lawsuit challenges NIFA’s recent decision to implement financial controla over Nassau’s finances.

Bosworth and other Democrats complained that some of Mangano’s attorneys listed in the suit are from his former law firm, Rifkin-Radler.

Minutes after the Democrats spoke, Nassau County Legislative Presiding Officer Peter Schmitt (R-Massapequa) reaffirmed the Republican position that the budget is balanced and NIFA’s action is unwarranted.

Schmitt said a 1 percent deficit is a low threshold for invoking the takeover by a control board of a local government, according to Fitch, an international bond ratings agency. He said Standard and Poor’s, which publishes financial research and analysis on stocks and bonds, affirmed Friday Nassau’s A-plus credit rating and stable outlook.

“We’ve heard a lot about Moody’s. I think Fitch and Standard and Poor’s have weighed in here and reaffirmed what I have said all along … that the 2011 budget is balanced,” said Schmitt.

Schmitt demanded that NIFA reveal the amounts of the contracts that have been entered into with Skadden, Arps, Slate, Meagher & Flom, LLP & Affiliates, and the accounting firm of Grant Thornton.

“What it costing the taxpayers of this county per hour?” said Schmitt. “Why did they find it necessary to go out and hire two of the most expensive forms in the country?”

According to Schmitt, the law firm of Skadden-Arps, home to NIFA outside-counsel Judith Kaye, charges upwards of $1,100 per hour for legal services and is know to be one of the most expensive law forms in the country. Grant Thornton, is the fifth largest accounting firm, and is know worldwide for its revenue-generating capabilities.

Schmitt called on NIFA to vacate their rented office space on Franklin Avenue which he said was the most expensive real estate in Nassau County.

“It is the county resident’s sales tax dollars that they are spending. It needs to stop.”

Schmitt said if NIFA fails to disclose the information regarding the contracts he will ask the county comptroller to audit their entire operation.

Democrats said NIFA’s legal fees were not the issue.

“No one has balked at the fact of what they spent in terms of their staffing or their legal fees for 10 years,” said Abrahams. “Obviously now they felt the need to gear up in regards to change from oversight board to a control board.

They felt the need to add more lawyers … we have no problem looking into that.”

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