NIFA nixes Nassau's spending plan

The state board in control of Nassau's finances officially rejected the county's proposed multiyear spending plan Friday and directed County Executive Edward Mangano to come up with alternatives to offset $225 million in revenue and savings the board deems too risky to include in next year's budget.

Specifically, the Nassau Interim Finance Authority board ordered county officials to remove $150 million in revenue projected from selling the county's sewer systems and delete $23 million in additional revenue expected from expanding the red-light cameras ticket program. NIFA also told Nassau to increase its projected costs of paying property tax refunds to $70 million from $50 million to reflect historical costs, and detail what steps it will take to realize $33 million budgeted in labor savings.

NIFA member George Marlin said "it is essential for Nassau taxpayers to understand that the county's initiative to privatize the waste water system is not a slam-dunk. There is no guarantee that the transaction can or will be finalized in 2012 or anytime thereafter."

Chairman Ronald Stack added, "The disturbing part of it, even if it were able to be achieved, it's a one-shot. It doesn't really solve the structural balance of the county."

"NIFA's resolution translates to deeper cuts and labor concessions. Government should brace for extraordinarily painful solutions in my 2012 no-property tax increase budget," Mangano said.

He must submit his proposed 2012 budget by Sept. 15.

NIFA, which was created by the state legislature a decade ago to monitor the county's troubled finances, took control in January after determining the county's $2.6-billion budget had a $176-million gap.

The agency's resolution prescribing changes in Mangano's spending plan was expected and unanimously approved by the board, which included new member Dermond Thomas, appointed by the governor recently at the recommendation of the Assembly speaker. Member Robert Wild was absent.

Although NIFA had sharply denounced the county's revised four-year spending plan issued in July, Stack has since issued a joint statement with Mangano saying they planned to work cooperatively to solve the problems.

"I believe the statement was genuine," said Stack, who added that he has been in discussions with Tim Sullivan, Mangano's deputy county executive for finance, and Abe Lackman, a recently hired budget consultant. Neither Sullivan nor Lackman attended the morning NIFA meeting across the street from the county's executive offices, though several staff members were there.

About nine tea party representatives turned up for the meeting with red signs saying, "Thank You NIFA."

Gene Clark, of the Rockville Centre Tea Party Patriots, said, "NIFA is doing what our elected representatives are supposed to be doing and that's taking care of the people."