Sales tax revenue increase for Nassau, Suffolk
Both Nassau and Suffolk counties are benefiting from the consumer spending -- tax revenue is up slightly. (May 6, 2010) Credit: Newsday / J. Conrad Williams Jr.
Continued consumer confidence seems to be keeping a healthy flow of sales-tax revenue coming into the coffers of both Nassau and Suffolk counties, officials said Friday.
The latest periodic checks the counties got from the state this week were up - 4.7 percent in Suffolk and 6.8 percent in Nassau compared to the same check each county got at this time last year - but, more importantly, they show a continuing strength over the course of the year to date, not just an occasional blip or two of good news, officials of both counties said.
"I think the numbers are great," Nassau County Comptroller George Maragos said after releasing figures showing that the county has collected $582.1 million in sales-tax revenue so far this year, up 7.5 percent from the same period last year.
"There is robust spending across the board," Maragos said. "Car sales flattened out, but people are going out and spending, still going on vacation. The stock market [slump] has not tempered consumer enthusiasm."
In Suffolk, year-to-date revenue is $664.3 million, up 5.7 percent from the same period last year, County Executive Steve Levy said. Levy also said the new number supports his judgment at this time last year, that sales-tax revenue would increase 5 percent this year, only to have the legislature reduce the estimate to 4 percent.
While the increase is good news, Levy said, counties are also facing increasing costs that dwarf any benefit. "We're up a few million, but we're being walloped with state mandates, like $20 million in new pension costs," Levy said.
Nassau County Executive Edward Mangano, who is wrestling with fiscal problems and must release his 2011 budget plan on Sept. 15, had a more cautious tone in his statement.
"Although sales-tax revenue might be up slightly, Nassau County faces a $286-million deficit caused by years of fiscal mismanagement," Mangano said in a statement. "In the coming weeks, I will release a proposal to rein in spending and reduce the public payroll."
SALES TAX
County sales tax collections, year to date
$582.1 million
Up 7.5%*
$664.3 million
Up 5.7%*
*Compared with 2009
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