Nassau files papers as NIFA deadline passes

As a deadline passed Thursday, Nassau officials said they had fully complied with a state watchdog's request for information proving the county's $2.6 billion budget is balanced.

"They have every single document that has been requested," said Tim Sullivan, deputy county executive for budget and finance.

The Nassau Interim Finance Authority, a state oversight board created in 2000 to monitor the county's finances, had given County Executive Edward Mangano until Thursday to respond to its questions about his 2011 budget.

If the budget has a deficit of 1 percent or more, or if one is likely, NIFA is required by state law to take control of Nassau finances. Under a control period, NIFA could freeze union salaries and reject contracts and require Mangano to develop a fiscal recovery plan.

As expected, NIFA made no decision Thursday as its accountants review the county's responses. A meeting of the NIFA board has yet to be scheduled.

NIFA had issued a letter to Mangano on Dec. 31, demanding details about $61 million in proposed labor savings, $172 million in budget cuts and contingencies and $65 million in fund balances.

Mangano maintains the budget is balanced and contains contingencies to cover any risks.

"The County Comptroller, County Legislature and I all agree that the budget is balanced," Mangano said in a statement Thursday. "Two major credit rating agencies have also given Nassau a stable outlook." NIFA chairman Ronald Stack could not be reached.

Also yesterday, Gov. Andrew M. Cuomo, through a spokesman, said NIFA board members Thomas Stokes and Robert Wild, will remain until Cuomo decides whether to reappoint them.

With James T. Madore