NIFA tells legislators 'no choice' but to cut

The Nassau Interim Finance Authority warned county legislators just prior to their 3 p.m. meeting Friday that the financial control board  “will have no choice but to take measures to begin cutting nonessential, discretionary and non-life/safety expenses immediately” if lawmakers remove a 1.2 percent property tax increase in next year’s budget.

Although NIFA chairman Jon Kaiman did not spell out the cuts planned if lawmakers vote to eliminate the $12 million in additional taxes expected to be raised by the increase, the administration made it very clear what services could be pared by providing the legislature with a list of $17.7 million for discretionary spending.

Top of the list was $6.4 million for the county youth board and $4.5 million for the county’s bus service — both services that Nassau Democrats traditionally have tried to protect. Also on the list of likely cuts is $4.4 million for emergency and fire prevention training administered by the Nassau County Fire Commission. Another $500,000 in social services cuts is listed and  $200,000 to the Cornell Cooperative Extension.

Lawmakers had eliminated the tax hike when they approved next year’s budget last month, substituting increased fees and other revenues — such as penalties collected from commercial property owners who fail to meet county deadlines to turn over income and expense reports to the county assessment department.

Commercial property owners last year lost a state supreme court challenge to the penalties, but attorneys plan an appeal.

County Executive Edward Mangano last week vetoed the legislature's elimination of the tax hike. Lawmakers are to consider overriding that veto Friday.

Kaiman said in his letter, “It is simply inappropriate to rely on revenue that isn’t yet authorized; likely to be enthusiastically opposed by those who will be paying for it; and subject to further reduction or repeal once opposition manifests itself.”

This year the county had expected $30 million in school speed-camera fines, but the legislature killed the program in the face of intense community opposition.

NIFA has warned that $80 million in revenues in the 2016 budget is risky, and still $80 million short of balancing the budget without borrowing. The 1.2 percent tax increase would mean at least $12 million in certain, recurring revenues.

NIFA member Chris Wright said, “If this deficit were a house, the tax increase wouldn’t even be a down payment.”

Laureen Harris, a commercial tax attorney who filed the challenge against the county penalties for late filing of expense statements, said Friday she plans to file an appeal within the next two weeks. She said she would ask for a temporary restraining order on collection of the penalties during the appeal.

She said Supreme Court Justice Anthony Marano ruled on only one of three arguments she made against the new penalties adopted by the county legislature in 2013 — that the county did not have the authority under state law to impose the penalties. Marano found the county did have that authority. Still pending, regardless of the outcome of the appeal, however, are Harris' arguments that the penalites are egregious and that the county is violating due process in the way it intends to impose the fines.