NIFA: Nassau budget plan millions in red

A state financial control board Thursday found that Nassau's proposed 2012 budget is $283 million in the red and, if not corrected, could lead to a county cash crisis by the end of this year.

Without a balanced budget, the county may not be able to borrow the estimated $230 million it expects to need to pay its bills before revenue from next year's property taxes is collected, the Nassau Interim Finance Authority warned.

The state board, which took control of Nassau's finances in January, called on County Executive Edward Mangano and the county Legislature to fix next year's proposed $2.6 billion spending plan.

"What we're pleading with the county to do is balance the budget," said NIFA chairman Ronald Stack at a board meeting in Uniondale. "We do not want a crisis. We want this done now."

Stack said the control board could not reject the budget before it is adopted; it can only say it is not acceptable and direct changes. The Legislature must approve the budget by Oct. 30.

Beyond next year's projected $283 million gap, NIFA staff also predicted the county will end this year with a $153 million operating deficit and a "significant related shortfall in cash reserves."

In January, NIFA had projected a $176 million deficit for 2011. Mangano says his 2012 budget will close a deficit he has estimated at $310 million.

Nassau, like many counties, usually sells short-term "tax anticipation notes" in early December to raise cash to pay its bills until property tax revenue is collected. The notes are repaid from the next year's property tax revenue; most of the first-half county tax is collected in March.

"The ability to sell tax anticipation notes without a balanced budget and without NIFA approval is extraordinarily problematic," Stack said. NIFA staff called it "unlikely that anyone would purchase" the notes if the county runs a deficit.

Deputy County Executive Tim Sullivan, who did not attend the meeting, said "NIFA must offer suggestions, rather than only criticism, and join with the county in solving Nassau's fiscal crisis." NIFA directed the county to reduce various projected revenue in next year's budget and to identify $131.6 million in alternatives to salary savings projected by Mangano.

In other action, NIFA rejected an $8.1 million contract to install artificial turf on ballfields at Cantiague Park in Hicksville and in Bay Park. Board member Chris Wright said the plan relied on unrealistic estimates that the new fields would quadruple revenue at Bay Park while increasing revenue tenfold at Cantiague.

"We certainly support recreational facilities," said board member Robert Wild, "but we are facing a budget crisis. There may be some things we simply cannot afford."