Demonstrators voice their support and disapproval of Nassau Executive Edward...

Demonstrators voice their support and disapproval of Nassau Executive Edward Mangano's $2.6-billion budget, Monday, in Mineola. (Oct. 18, 2010) Credit: Ed Betz

An overflow crowd jammed the chambers of the Nassau County Legislature in Mineola Monday morning to protest County Executive Edward Mangano's $2.6-billion budget even as a third financial watchdog warned that more than $200 million in the 2011 spending plan is risky and could tip the county into the red, if not realized.

"The county is going broke," presiding officer Peter Schmitt (R-Massapequa) said at the start of daylong budget hearings.

More than 200 people crowded into the main chamber, another 100 or so watched from the chamber's foyer and about 25 more people were kept waiting at a security desk.

Most were affiliated with school districts opposed to a shift in tax refund policy that would cost them millions annually, and transit and community groups opposed to a move that could privatize or cut back operations of Long Island Bus.

Outside, about 50 sign-waving members of Local 252 of the Transport Workers Union circled near a statue of Theodore Roosevelt.

"People of Nassau County want a safe and reliable transit system," union secretary-treasurer Robert Itchkow said through a bullhorn.

Nearby, a cluster of school activists held signs protesting Mangano's plan to end Nassau's longtime guarantee to pay property tax refunds for school districts, local governments and other special taxing districts.

About 20 people marched in support of Mangano carrying signs that stated, "Pass the budget. The guarantee is inequitable."

The county has been responsible for all refunds since about 1938 when it took over the assessment system from towns. The county refunds an average of $100 million annually - more than $80 million on behalf of the school districts and other governments.

To cover a projected $343-million budget deficit next year while holding the line on property taxes, Mangano proposed privatizing the bus system, cutting union members' salaries, increasing fees and ending the guarantee.

Late Friday, the legislature's budget review office issued a 240-page report on Mangano's 2011 plan and concluded that $235.7 million in new revenue or spending cuts may not be realized, which could throw the budget out of balance. Previously, county Comptroller George Maragos found $258 million to be at risk, while the Nassau Interim Finance Authority, a state fiscal monitoring board, labeled $244 million as risky.

The county legislature is expected to make amendments to Mangano's budget before approving it Oct. 29.
Mangano contends assessment reforms will fix the problem of incorrect assessments and the need to pay tax refunds by the time the guarantee takes effect in two years.

But school administrators and supporters said Monday that Mangano needs to correct assessments before shifting the costs.

"Fix it, don't shift it," said Louise Hochberg, president of the Great Neck United Parent Teacher Council.

Igor Webb, president of the North Shore school board, said ending the guarantee will force his district to increase class size and decrease services. "Maybe you will fix the system, maybe you won't," he said.

On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island. Credit: Newsday

Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.

On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island. Credit: Newsday

Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.

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