Mangano plan calls for hundreds of layoffs

Hundreds of public employees in Nassau could be without jobs by July 1 under a plan by County Executive Edward Mangano to cut costs to satisfy a state watchdog agency.

At a news conference Wednesday, Mangano said he would meet a Tuesday deadline to submit a revised financial plan to the Nassau Interim Finance Authority, which took control of Nassau's finances in January. That plan includes $50.5 million in labor savings from layoffs, attrition and the elimination of vacant positions as part of $121 million in spending cuts that Mangano expects to put in place by July.

While most county union members have no-layoff clauses in their contracts, Mangano said his outside labor counsel believes the provision does not apply during a control period, a position that drew differing opinions from union leaders.

Beyond saying that "hundreds" of employees would lose their jobs, Mangano did not specify the number of layoffs or the agencies they would affect.

NIFA did not respond to questions about layoff powers.

Mangano has maintained that his $2.6 billion budget is balanced, but the six-member NIFA board found the county has a $176 million deficit and directed Mangano to submit a new plan to address the gap.

State Supreme Court Justice Arthur Diamond this week rejected the county's attempt to stop the takeover even though he acknowledged that NIFA had changed its accounting practices to prevent Mangano from counting borrowed money as revenue -- a budgeting maneuver allowed in the past.

"I made it clear I did not agree with it," Mangano said of NIFA's change in policy. "It is causing more severe pain on our residents than is necessary."

He described NIFA's projected deficit as "fabricated fiscal emergency" and said he will not raise taxes, but added, "This administration has no alternative but to comply with the law."

NIFA member Leonard Steinman responded: "NIFA did not conjure up the county's deficit and the blame game should end. . . . As every family in Nassau knows, borrowing to plug a shortfall does not balance a budget. The county has a real deficit that requires real cuts. NIFA wants to get past the continued rhetoric and work with the county in solving its fiscal problems."

Jerry Laricchiuta, president of Nassau's Civil Service Employees Association, said Mangano is correct about the no-layoff provision not applying during a control period. While union lawyers are researching the question, Laricchiuta said a three-year concession agreement negotiated by former County Executive Thomas Suozzi reads: "There shall be no lay off of bargaining unit members through Dec. 31, 2011 unless the Nassau Interim Finance Authority (or any successive organization) institutes a control act period."

The concession agreement negotiated by the Police Benevolent Association requires the county to pay millions of dollars in deferred wages before it can lay off cops -- effectively a no-layoff provision, according to union president James Carver.

"All contract provisions remain in effect," Carver said.

Mangano would not comment on whether police would be laid off, but he did announce a restructuring of the department that he said would save $15 million. He did not give details except to indicate he would move officers onto the streets from special assignments.

But Minority Leader Diane Yatauro (D-Glen Cove) said, "Had his budget included responsible spending reductions and not relied so heavily on borrowing, none of this would be happening."

With Kery Murakami