Mangano seeks $75M more in borrowing for tax refunds

Nassau County Executive Edward Mangano Friday requested $75 million more in borrowing to pay property tax refunds through next year.

His request to the county legislature comes after he made a deal with Democratic lawmakers last month to approve $50 million in borrowing to cover this year's costs of successful assessment challenges. At the time, it was understood that Mangano would come back to the legislature next year when he needed more money.

But Mangano said Friday that a state fiscal watchdog "may take the position that the authorization to borrow for those expected refund costs should be in place by the end of this year."

The Nassau Interim Finance Authority, a state-appointed board that can take control of the county's books if a deficit appears likely, has warned Mangano's $2.6 billion budget for next year was risky and unbalanced.

In past years, Mangano said, his predecessors had sufficient authorization by Dec. 31 to borrow enough money to pay the refunds for the coming year.

Although Mangano, a Republican, had been unable to discuss the borrowing with Minority Leader Diane Yatauro, who was ill this week, he said he had to submit the borrowing request Friday to meet the legislature's time constraints for passing legislation. He said he expected to talk with her Monday.

Because borrowing requires 13 votes of the 19-member legislature, Mangano needs at least two Democrats to vote with the 11-member GOP majority.

Mangano said if NIFA should require prior authorization for the 2011 borrowing, and he can't get 13 votes, "we would have to institute corresponding cuts."

Yatauro (D-Glen Cove) could not be reached Friday. But Legis. Wayne Wink (D-Roslyn) said, "Let NIFA come to us and talk to us about that. Nobody is taking anybody's word for what NIFA is thinking until NIFA actually articulates that."

NIFA chairman Ronald Stack said Friday that he had not seen Mangano's request and could not comment.

However, Stack last week was critical of the county's already approved plans for borrowing $150 million to pay tax refunds, court judgments and building projects. "The use of long-term debt to fund operating expenses and working capital is imprudent and fiscally unwise under any circumstances, however this is especially true in light of the county's recent budget and escalating fiscal problems," he wrote in a letter to Mangano.