Mangano: NIFA to blame for looming layoffs

County Executive Edward Mangano apologized Thursday in a letter to Nassau County employees for layoffs he's planning to institute but blamed a state watchdog agency for forcing him to make the labor cuts.

Mangano complained that the Nassau Interim Finance Authority changed the rules by not allowing him to count borrowed money as revenue, even though it allowed his Democratic predecessor Thomas Suozzi to do so. Mangano has made similar arguments since a State Supreme Court justice ruled this week that NIFA's takeover of county finances was constitutional.

"NIFA's change in accounting rules . . . ends Nassau's long-standing practice of including tax refund borrowings as revenue," Mangano wrote in a "Dear Colleague" letter. That "means operating dollars must now be used to pay for tax refunds."

Mangano on Wednesday announced $121 million in spending cuts that he said could put "hundreds" of county employees out of work by July 1. As part of his plan to satisfy NIFA's demand that he balance the 2011 budget, Mangano proposed $50.5 million in labor savings from layoffs, attrition and elimination of vacant positions. He has said he will not raise taxes.

Justice Arthur Diamond this week rejected Mangano's lawsuit seeking to stop the takeover. Diamond acknowledged that NIFA had changed its accounting practices to prevent Mangano from counting borrowed money as revenue.

However, NIFA had criticized the practice even if it did not prohibit it under Suozzi. In his decision, Diamond said NIFA "repeatedly cautioned the county that this was in contravention of" NIFA's goals.

Reacting to Mangano's letter to employees, a NIFA board member who declined to be identified said Thursday, "We would appreciate it if the county executive would reflect on all of the words in Justice Diamond's decision and also focus on managing his way out of this real deficit."

Mangano in his letter also took after the Democratic minority in the county legislature for refusing to vote to authorize borrowing that GOP lawmakers sought to pay property tax refunds.

"Unfortunately, Mr. Mangano continues to blame others . . . [and] throughout this fiscal crisis, Mr. Mangano seems to prefer to burden future generations with his borrowed debt," said minority leader Diane Yatauro (D-Glen Cove). "Let me remind Mr. Mangano that the buck stops on his desk."

Mangano said that on Saturday he would host a "summit" with NIFA and union officials to discuss achieving labor savings.