NIFA to begin Nassau budget review

It's up to NIFA now.

Today was the deadline for County Executive Edward Mangano to submit proof to the Nassau Interim Finance Authority that his $2.6 billion budget for this year is balanced.

If NIFA accounting firm Grant Thornton calculates that the budget contains a deficit of $26 million or more - or if such a hole is likely - state law calls for the oversight board to take control of the county's finances. The possibility of a takeover has spurred stories and speculation by most of New York's major media.

But don't expect a decision today.

After the accountants complete their review, NIFA lawyers will determine whether a control period is triggered or not. Then the six-member NIFA board will review the findings. NIFA to date hasn't scheduled a meeting, which could be called next week or next month so long as the agency provides 72-hour notice.

Mangano maintains his budget is balanced and provided six letters of backup to NIFA.

"NIFA's drumbeat in the media has done little to help assist Nassau County other than to create doubt where none should exist," Mangano said. "Although the (county) Comptroller, (county) Legislature and I all agree the budget is balanced, we have complied with NIFA's unprecedented demand for information and documentation."

For the most part, NIFA board members say they have not reviewed Mangano's letters. "I've been leaving it up to the professionals and staff," said NIFA chairman Ronald Stack.

"The only people in the know are the accountants," said NIFA member George Marlin.

But some sources involved with NIFA contend Mangano's information was "thin" and question the feasibility of some proposals.

For example, Mangano budgeted $23 million in new revenue that need state authorization. They include increasing Nassau intersections with red-light cameras from 50 to 100, while hiking the penalty from $50 to $75. That means state lawmakers would be approving a $90 penalty, which includes an existing $15 administrative fee, for running a red light or rolling through a right turn on red.

Mangano also wants a $50 surcharge on tickets issued on the Long Island Expressway, something Nassau and Suffolk officials have sought unsuccessfully for years to repay the cost of county police patrolling the state road.

To date, no legislation has been filed in Albany for either of these measures. However, Mangano aide Brian Nevin said the county has a commitment in both the Assembly and the Senate to submit the bills, which are being drafted.

Mangano contends he has offset the $23 million risk by instituting a hiring freeze, for a savings of $15 million, and by cutting $8 million in expenses.

However, Mangano provided few specifics about the expense cuts, submitting one paragraph saying the county budget director ordered all departments on Dec. 28 to reduce budgets for supplies, general expenses and contractual expenses. Nevin said the budget director has cut those budget lines.

Meanwhile, some suggest the hiring freeze savings may be inflated because it uses an average annual salary of $90,000 rather than the usual $82,000 average. Nevin countered that the estimate is based on a line-by-line salary calculation.

Also questionable is a proposal to cut $10 million in police overtime while the force is down by 125 officers. A $10 million cut would be a reduction of more than 25 percent in the current $39 million in police overtime.

Mangano also proposes cutting $10.2 million in positions, including more than a quarter of the current salary costs in the assessment department and Assessment Review Commission.

With Randi Marshall