After requesting a “serious dialogue” with the county regarding budget issues, it was actually the Nassau County Interim Finance Authority themselves who didn’t have much to say on Tuesday.
With the media waiting outside the door, NIFA board members emerged just before 7 p.m. from nearly three hours in executive session and spoke briefly in the auditorium of the Marriot Long Island Hotel and Convention Center in Uniondale regarding the possibility of a takeover of Nassau County books.
In a short statement, NIFA chairman Ronald Stack apologized for keeping the press waiting longer than expected before presenting basically the same message the board presented at the last their meeting in September.
“The board of directors of NIFA continues to be concerned about the 2010 budget,” Stack said, adding that they were worried that Nassau County Executive Edward Mangano’s budget remains unbalanced.
NIFA has cited potential budget risks involving ticket surcharges for the Long Island Expressway and Sunrise Highway, red light camera expansion and additional bonding for tax refunds which the watchdog agency says needs to be addressed.
Since September, budget changes have been made by the county Legislature and Mangano, including an additional $23 million in proposed budget cuts which were announced at a press conference just last week.
“These cuts mitigate the threat of budget risks associated with state legislation,” said Deputy County Executive Tim Sullivan, in response to NIFA’s announcement Wednesday.” Because of strong management practices, the 2010 budget will end with a surplus. Throughout 2011, we will manage our finances and ensure the fiscal year ends in balance.”
Just days before NIFA’s scheduled meeting, Mangano himself said there is “always risks” involved with any budget. And while NIFA has doubts, he seemed confident with is plan.
The county executive is “not very concerned” about the NIFA review, said Mangano communications director Brian Nevin, last week.
The dialogue between county personnel and NIFA increased in the days leading up the Tuesday’s meeting.
On Monday, Nassau County Comptroller George Maragos ripped NIFA, stating the agency ‘could have saved the county at least $5.21 million in 2011 if they had refinanced certain county debt under their management, as was requested by the comptroller.’
According to Maragos, NIFA which was established in 2000 by the state Legislature to oversee the county’s finances and assist in remaining financially stable, has a fiduciary responsibility to ensure that the county pays the lowest interest rate expense possible on the $1.65 billion county debt under its management.
“The inaction of NIFA to refinance county debt and save at least $5.21 million in 2011 is reckless and irresponsible.”
On Tuesday, NIFA board members said Maragos was inaccurate in his statement.
Maragos was “absolutely, totally untrue and frankly uninformed,” said Stack.
NIFA board member Christopher Wright said the Maragos statement was the “third of its kind” and “we would rather have serious dialogue from the county.”
The NIFA issue is one of many making headlines for Mangano recently.
Recent newspaper reports say Mangano wants to raise Nassau’s sales tax by 0.25 percent to 8.875 percent.
The county executive told Blank Slate Media last week that he was not seeking an increase in the county tax rate. Mangano said he has not approached the county Legislature regarding a tax hike and that he simply “inquired” about proposed tax legislation on a recent trip to Albany.
“Is the county executive in support of raising taxes? Absolutely not,” said Nevin. “If a sales tax was to pass and the county executive was to support it, it would just bring in gravy.”
With no plans to raise taxes or let up on significant budget cuts which have defined his first year in office, Mangano multiyear plan calls for no tax increases over the next four years.
“He’ll cut everything to the bone before he does that,” said Nevin.
Optimistic that the cash-strapped county can right the ship and steer clear of possible intervention from NIFA, which could take control of county finances if a shortfall of 1 percent of the total budget exists, Mangano said he has it covered.
“We have contingencies for all the risks,” said Mangano.
Mangano said he is “proud” to have “tackled some monumental problems” inherited when he assumed office in January.
During his first year, Mangano has eliminated the energy tax, removed of a property tax imposed by his predecessor and a reduced the county workforce to its lowest levels since the 1950’s, according to his staff.
The energy tax issue remains fodder for his opponents who say he has not made of for the shortfall in revenues from the cuts.
Mangano said he has offset revenue shortfalls “10 times already” in the last 12 months by reducing costs.
“We made up for the energy tax, it’s just a political football,” Mangano said Friday.
With pension and health care cost on the rise and unfunded state mandates coming down from Albany, Mangano removed a tax burden of $484 billion over four years as part of a multi-year plan after inheriting a budget that was in “terrible shape,” said Nevine. “When those costs are increasing at double digits but our overall budget is increasing by less than one percent, he has made some significant cuts.”
NIFA said it will meet again on Dec. 30 at 10 a.m.. No location was been set for the meeting.
