Lawmakers OK adding $20 million to pension reserve

Despite criticism from County Executive Steve Levy, his aides and tea party people, the Suffolk Legislature on Friday approved a move of an extra $20 million to a pension reserve fund to deal with budget woes.

The Legislature voted 11-5 with Legis. Thomas Muratore abstaining after his bid for tabling was defeated.

While critics have lambasted the maneuver as a backdoor ploy to keep the John J. Foley Skilled Nursing Facility open, which will lower the county bond rating, Presiding Officer William Lindsay (D-Holbrook) said: "This action alone will not trigger any action by bond raters." He said it may result in a one-step downgrading depending how the money is used.

The transfer, Lindsay said, gives the Legislature options for amending Levy's proposed $2.27-billion spending package. Lindsay labeled Levy's budget "out of balance" because it includes revenues from a sale of the nursing home building and license and industrial property in Yaphank, proposals the Legislature has not approved. The Legislature is scheduled to vote on budget changes Nov. 3.

However, Legis. Dan Losquadro (R-Shoreham), the minority leader, said: "This is madness. It's one of the worst budgeting ideas in my six years here, and I'm not for it."

But Legis. Jay Schneiderman (I-Montauk) said the decision is "a question of magnitude," noting Levy already budgeted moving $30 million to the pension fund that gives the Legislature greater flexibility in maintaining services.

Legis. Louis D'Amaro (D-North Babylon) said the move is "putting our hands into the pockets of the taxpayers" to prop up the nursing home, which keeps losing money, and will put the county in a deeper hole in 2012 when pension costs will increase again.

Legis. Vivian Vilora Fisher (D-Setauket) said the nursing home is needed to handle hard-to-place cases. "This is not an albatross," she said. "This is a place that does what government does best - take care of people with no place to go."

After the vote, tea party activist Steve Flanagan of Conservative Society for Action said he was upset with the Legislature's reluctance to privatize the nursing home and raised the specter of a political backlash. "Certain people disappointed us today," he said.