Nassau plans to use nearly $44M from reserves to balance 2027 budget

Nassau County plans to use nearly $44 million from its reserve funds to balance its proposed 2027 budget, continuing a trend of relying on savings to cover operational expenses, according to the Office of Legislative Budget Review.

At a budget hearing on Wednesday, Democratic legislators questioned Nassau budget director Andy Persich and Comptroller Elaine Phillips over topics ranging from the county’s sales tax revenue, spending on private lawyers and police department overtime. Republicans, who hold a majority in the legislature, were largely quiet.

The Nassau Interim Finance Authority, the agency that monitors the county's finances, predicted the county's fiscal risk for 2026 would be somewhere between $45.1 million to $75.2 million, according to a recent report. The group is expected to release its report on how the county fared financially this year this month.

NIFA reported the county’s budget deficit for its five major funds in 2025 was $56 million, a figure that still requires the county's books to be inspected by the agency. NIFA has for years warned the county against relying on reserve funds.

Under its control period, NIFA has the power to approve or reject the county budget.

As long as Nassau runs a deficit larger than a 1% deficit threshold, which last year was $35.9 million, the county remains under NIFA’s watch. Nassau County Executive Bruce Blakeman, who is running for governor, has cited the county’s "terrific" financial outlook and declared NIFA’s control period over. The county must demonstrate it is fiscally responsible to operate on its own to exit NIFA oversight, according to state law.

Nearly four hours into Wednesday's meeting, Phillips said the county did not report a surplus in 2025, triggering concern from Democrats about why the county was spending more than it was bringing in.

"That sounds bad," said Legis. Debra Mulé (D-Freeport).

The county has about $757 million in reserves, according to the OLBR.

Phillips said part of the reason for the 2025 deficit was that Nassau prepaid some of its pension obligations and also paid down a slate of debts. 

Blakeman’s proposed $4.6 billion budget includes the hiring of three dozen new police officers. It does not raise property taxes, but relies on a steady increase of the county’s sales tax to help fund the budget.

Nassau is planning to rake in $1.7 billion in sales tax revenue next year, a $69 million increase from this year. The county was also working to fill 590 vacancies, Persich said. All of Nassau's unions are going into contract negotiations this year except CSEA.

This was the second hearing reviewing Nassau’s budget, which is part of the approval process. 

At last month’s public safety hearing, Police Commissioner Patrick Ryder said the police department was expected to go at least $10 million over budget on overtime this year, Newsday reported. While Ryder said the police department would spend $70 million on overtime pay, Legis. Scott Davis (D-Rockville Centre) said the county’s Office of Legislative Budget Review put the number closer to $84 million.

The County Legislature will host a final hearing later this month and then move to vote on Blakeman’s $4.6 billion proposed budget. NIFA will then pass or reject the proposal.

The deadline for Nassau County to adopt its budget is Oct. 30. That budget is expected to take effect on Jan. 1, 2027.

Correction: Nassau County, which must demonstrate to the Nassau Interim Finance Authority it is on fiscal solid ground to operate without oversight, did not report a budget surplus in 2025, according to Comptroller Elaine Phillips. An earlier version of this story misinterpreted Phillips' remarks on the budget and the length it takes for Nassau to exit a control period.