NIFA suspends Nassau wage hikes

A state oversight agency declared a financial crisis in Nassau County on Thursday and imposed a wage freeze on all county workers.

The Nassau Interim Finance Authority voted 4-0 to declare the fiscal crisis and ordered that all scheduled salary increases be suspended, contending that a wage freeze "is not only necessary but also a reasonable response to the county's fiscal distress."

The one-year freeze is expected to save $10.5 million by putting a hold on police pay raises that were to take effect April 1 and by stopping yearly step increases and scheduled hikes in longevity pay -- annual employee bonuses that grow with years on the job.

County Executive Edward Mangano requested the move as he struggles to cut costs and raise revenue -- without increasing property taxes -- to fill a $176-million deficit that NIFA sees in this year's $2.6-billion county budget.

Union leaders who attended the NIFA public meeting in Uniondale immediately declared they would sue to stop the freeze. "We don't feel that a wage freeze is appropriate at this time," said Police Benevolent Association president James Carver.

Jerry Laricchiuta, president of Nassau's Civil Service Employees Association, said, "There has to be alternatives to taking it out on the workers of this county. I think it is time for the workers of this county, and the state, to fight back."

Union leaders argue that they still are under a $50-million concession plan negotiated with the former county administration.

Mangano maintains his budget is balanced. But NIFA in January calculated the deficit was nearly seven times greater than the 1 percent gap that triggers a control period, and it voted to impose financial controls on the county.

After losing a court fight to block the takeover last week, Mangano requested the wage freeze as part of a revised financial plan NIFA demanded. That plan, submitted Tuesday, proposes 213 layoffs, a 13-day unpaid furlough for all employees, redeployment of 142 police officers and the closing of a precinct house.

NIFA chairman Ronald Stack opened yesterday's meeting by saying Mangano's new budget still is not balanced. "Virtually all of the major items have yet to be implemented, may require approvals by the county legislature or the state and are thus unacceptably fraught with risk," he said.

He added afterward, "We are not saying they will not happen. We are saying we don't know they will happen." Stack said NIFA is working with Mangano to revise the plan.

Board member Robert Wild was absent for a family emergency, while Chris Wright monitored the meeting on a speaker phone and voiced his support of the board's actions.

"True cooperation began today with NIFA answering my call to freeze wages," Mangano said after the meeting. "I will continue to move forward with a no property tax increase plan to fix Nassau's finances."

The NIFA board also adopted guidelines that call for it to approve all county contracts of $50,000 or more.