Bellone to unveil deficit-cutting plan

Suffolk County Executive Steve Bellone Monday is set to announce a $150 million plan to begin closing an expected $530 million budget shortfall.

Bellone has scheduled a noon news conference, with lawmakers, to disclose details of about two dozen proposals, according to county legislators who have been briefed. Bellone described the initiatives as the "low-hanging fruit" of options for saving the county money.

The largest element of the plan is an expected $66 million in savings from spreading out next year's increase in pension costs over five years using a low-interest loan from the state comptroller's office.

Other elements are expected to include $25 million in savings from performance management initiatives and $16 million next year from creation of a traffic violations bureau, though it will cost $3.5 million this year to set up.

Another $10 million in savings this year and $15 million in 2013 would come from freezing 10 percent of nonmandated spending.

Bellone has briefed legislative leaders and Moody's Investors Service Inc. analysts. He has meetings with Fitch Ratings and Standard & Poor's this week. Aides say Bellone also is expected to unveil a report this week from a committee that will recommend ways to streamline county operations.

Jon Schneider, deputy county executive, declined to give details of the plan to be released Monday, saying numbers are still being refined.

"It's a work in progress," said Deputy Presiding Officer Wayne R. Horsley (D-Babylon), who attended the legislative leaders' meeting Thursday. Lawmakers raised questions and requested revisions the administration is still addressing.

Majority Leader DuWayne Gregory (D-Amityville), who also attended the briefing, called the plan "a great initial step that deals with one-third of the overall budget deficit. I expect it will get wide support."

Legis. Edward P. Romaine (R-Center Moriches) said some lawmakers may have difficulties with some individual portions but said, "I'm supportive of all efforts to lessen the fiscal crisis." He added that the county has "to make tough decisions to right this problem."

The plan follows a report by a special audit this month that said Suffolk has a shortfall of $33 million from 2011 and projected deficits of $149 million this year and $350 million in 2013.

It also comes after a secret memo from Bellone top aide Regina Calcaterra became public last week. It said former County Executive Steve Levy hid the extent of the fiscal problem from bond rating agencies. Levy called the memo a "political hatchet job." Bellone backtracked, saying the conclusions may have been "overstated."