Legis. Peter J. Schmitt of Massapequa, the Republican presiding officer...

Legis. Peter J. Schmitt of Massapequa, the Republican presiding officer of the legislature, is "somewhat unhappy," according to an aide, about county officials' refusal to testify at a Budget Review Committee hearing on Nassau County's budget. (Dec. 15, 2010) Credit: Howard Schnapp

A legislative oversight hearing on Nassau County's budget was postponed Friday after administration officials refused to testify while there was ongoing litigation over the takeover of the county's spending by the Nassau Interim Finance Authority.

County Attorney John Ciampoli told members of the Budget Review Committee that he "will not subject a witness to cross-examination in more than one forum." The deputy county executive for finance, Timothy Sullivan, had already submitted an affidavit of 170-plus pages, but Justice Arthur Diamond said at a court hearing last week that he had not decided whether it would be necessary to take testimony.

Legis. Peter J. Schmitt of Massapequa, the Republican presiding officer of the legislature, was "somewhat unhappy" at the refusal to testify, an aide said later, but insisted it marked no breach with Nassau County Executive Edward Mangano, a GOP ally. Mangano aides declined to comment.

Schmitt postponed the hearing to March 2 and issued a subpoena for Sullivan to appear on that date. Democrats on the committee objected to the delay in the hearing, and questioned when officials might be ready to testify. Ciampoli said oral arguments on the lawsuit were scheduled for Feb. 18, and he expected a decision a few days after that.

The NIFA board, a state financial watchdog group, voted on Jan. 26 to take control of Nassau's finances, contending the county's 2011 budget contains a $176-million deficit - nearly seven times the 1-percent gap that triggered a takeover under state law.

The board gave the county until Feb. 15 to come up with a better financial plan, but the board and the county later agreed to push the deadline to Feb. 22 to give the judge time to decide.

Meanwhile, Standard & Poor's affirmed Nassau's A-plus credit rating and stable outlook Friday. Despite NIFA's takeover and Mangano's court challenge, "the county's financial position has not materially changed since the time of our last review" in November, the agency said.

With Celeste Hadrick

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