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Comptroller projects county’s end-of-year deficit to shrink

Jessica Parks
Nassau County Comptroller Jack Schnirman (Photo courtesy of the Nassau County Comptroller's Office)

Nassau County is expected to end 2019 with a single-digit deficit in operating costs that is nearly $23 million less than last year’s red ink figure.

Jack Schnirman, the Nassau County comptroller, released a mid-year financial report Thursday that predicted the end of the year deficit would be $4.6 million in 2019. The county ended 2018 with a $27.5 million deficit. 

“Our report and analysis show the county’s budget performance is projected to improve throughout the rest of 2019. As we said when we released the 2018 numbers, however, we must carefully monitor the factors that led to that improvement to determine if they are sustainable,” Schnirman said.

The financial improvements were primarily the result of less spending on workforce-related costs, according to the report. The money saved from unfilled positions across the county with a slight offset from higher overtime pay and Police Department termination pay amounted to $66.7 million in savings. 

Another $13 million in savings is credited to a non-recurring Worker’s Compensation settlement of state liability recognized in 2019 for $15 million, which was partially offset by $2 million in settlements the county has to pay this year. 

The comptroller’s report identifies factors that pose a risk to the county’s financials. The largest risk is a missing $17 million in budgeted revenue from the county’s off-track betting corporation. 

“The missing payments from OTB represent a threat to the county’s financial condition and I have directed my staff to further examine this issue,” Schnirman said.

Another $13.7 million in departmental revenue could be at risk primarily due to lower mortgage recording fees, which could contribute to $4.7 million in losses, while GIS tax map revenues could contribute to $6.1 million in losses and lower projected farebox revenues are expected to account for $3.9 million in losses.

Farebox revenues are accrued from passengers using the county’s bus system.

The report identified a potential loss of revenue in the county from fines and forfeitures with a potential $7.3 million at stake due to lower boot and tow fees and less Police Department Public Safety Fees could contribute to an additional loss of $3.9 million in county revenue. The comptroller identified a total potential loss of $10.4 million from fines and forfeitures, which includes an offset from increased red light camera fees. 

Other risk factors include a possible $8.5 million loss in sales tax revenue due to the slowing of sales tax collections and $8.4 million in federal and state aid due to lower reimbursements in Social Services programs, such as Temporary Assistance to Needy Families and Foster Care and Daycare. The loss in state aid is primarily due to a $5.2 million in non-reimbursed Raise the Age expenditure, according to Schnirman’s report. 

“Sales tax revenue is the county’s single largest revenue source, and although it continues to grow year-over-year, it is not currently keeping up with what was originally budgeted,” Schnirman said in a news release. 

While remaining optimistic that the collection of new internet sales taxes will help bolster revenues, he said he was pleased that the county executive’s office has revised its forecasted figures to “better match the trends we are seeing.” 

The report defines Raise the Age as a state mandate that increases the age of criminal responsibility to 18 and places 16- and 17-year-olds who commit non-violent crimes in the proper setting for services and treatment. 

The report also identified another possible loss of $5.5 million primarily attributed to the Corrections Center contract with Nassau Health Care Corporation. 

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