Report: Nassau spending more on social services this year, diverting funds away from other agencies

Nassau County is on track to spend $36.8 million more than it had initially projected on certain mandated social service programs in 2025 with money from other departments having been transferred to help make up the difference, budget officials told Newsday on Friday.

The shortfall — offset by an additional $26.3 million in federal and state reimbursements — is due "to an increase in the demand for Day Care, higher costs related to Temporary Assistance for Needy Families and Safety Net Assistance due to an increase in homelessness," according to the 2025 Mid-Year Report issued by the office of Nassau County Comptroller Elaine Phillips. 

“It is difficult for local governments to budget for social services when we don’t know if eligibility standards and reimbursement rates will be changed by New York State,” Phillips said in a statement to Newsday.

County budget officials also said changing state eligibility requirements contributed to increased costs.  

"New York State has consistently lowered their support for safety net programs handled by the Department of Social Services and put those obligations on the counties rather than the state," Andy Persich, Nassau's budget director, said. "We have already addressed the potential shortfall by making adjustments in our budget to make sure our budgets are balanced stable and fiscally responsible." 

The county spent $521 million in 2024 and anticipated spending $532.9 million in 2025, according to the adopted budget. The new projection, according to the comptroller's report, is $569.7 million. Nassau's operating budget is currently  $4.2 billion, with revenue comprised primarily of sales tax and property tax as well as state and federal funding.

The forecast comes as  County Executive Bruce Blakeman, a Republican, is expected to meet a Sept. 15 deadline to release a 2026 budget proposal. It will be his final budget proposal of his first term in office and is likely to gain the approval of the County Legislature where Republicans hold a 12-7 majority.   

Blakeman is running for a second, four-year term in the Nov. 4 election along with Phillips, who is also running on the Republican line.

The mid-year report, aimed at providing a review of the county's financial condition halfway through the fiscal year, noted uncertainty in federal funding. 

"At this time, it is uncertain if and how Federal Aid reimbursements may be affected by the current Federal Administration's future policies," the comptroller's report said. 

Federal aid represents 4.6% of the county's total revenues of $4.7 billion in the 2025 adopted budget, according to the mid-year report. State aid represents 6.6% of those revenues, according to the report. By comparison, sales tax, which is the county's largest single revenue stream represents about 35% of total revenues. 

The county at the end of July had $733 million in reserves, according to the comptroller's report.

In a separate report released last month by the Nassau County Interim Finance Authority, the state-appointed panel that oversees the county's finances, the Blakeman administration's multiyear financial plan for 2025-28 "remains concerning."

NIFA's report warned against using reserves and indicates "a potential deficit of $204.7 million, or $96.5 million after the County's planned use of $108.2 million of its reserves to pay operating costs." 

By Candice Ferrette

candice.ferrette@newsday.comcandiceferrette

Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.