Cuomo to seek Mangano's guidance on Nassau finances

As top Nassau officials met Tuesday with a state fiscal monitoring board, Gov.-elect Andrew Cuomo said he would look to County Executive Edward Mangano for guidance on tackling the county's troubled finances.

"I understand that they have financial problems now and we will see what the county executive comes up with - how he wants to handle the issue and then we will take it from there," Cuomo told reporters after meeting privately with Assembly Democrats at a hotel near the Capitol. "But I would look to the county executive first."

Despite increasing speculation in the news media and within political circles that the Nassau Interim Finance Authority will soon take control of the county's books, Cuomo added, "I don't think the state should be dictating to a county, especially from the get-go what they should be doing."

NIFA, created by the state in 2000, has the power to take over Nassau's finances in the event or likelihood of a one-percent budget deficit. Chairman Ronald Stack warned earlier this fall that Mangano's $2.6 billion budget for next year is not balanced, with $244 million at risk. Sources say he again questioned Mangano at Tuesday's closed-door meeting about budget risks, including $60 million in projected union concessions, $23 million in revenues that require state legislation, the selling of future rent from Mitchel Field leases and the proposed borrowing of an additional $75 million to pay tax refunds. Mangano is expected to report back to Stack in two weeks, a source said.

In Albany Tuesday, outgoing Gov. David A. Paterson deplored state lawmakers' failure to take up three bills that would have brought new revenue into the county. He wouldn't give specifics but sources said one bill would boost the number of red-light cameras and another would increase fees on traffic tickets.

"I'd really like to know why the legislature couldn't help the county executive. What's the problem now?" Paterson told Newsday.

Asked about a potential takeover of Nassau finances, Paterson said, "in light of the inability of the legislature to assist the county, we will examine it. I don't know if we make the determination that it has to happen now."

Before the NIFA meeting, Nassau Comptroller George Maragos, a Republican who ran on the same ticket with Republican Mangano, issued a letter saying Nassau should end this year with a balanced budget, or even have a small surplus. This is the first time the comptroller issued a report on county finances before the close of the year, prompting speculation that he was attempting to pre-empt NIFA criticism.

"We issued a review of the county's finances. We stand by it," Maragos said. "I think there is a lot of rumors on the street there is no basis for. I think we're in good shape."