Hempstead, Freeport get special tax pact

Six weeks ago, a legislative roadblock to routine renewal of Nassau County's sales tax was cleared by a special written agreement between Assembly Deputy Speaker Earlene Hooper (D-Hempstead) and Republican County Executive Edward Mangano.

As it turns out, the two signed a notarized memo of understanding, dated June 20, that cites "historical inequities" in distributing sales-tax revenue. The deal explicitly adds $500,000 each to the share allocated to Hempstead Village and the Village of Freeport.

In exchange, the Assembly, in the closing days of session, renewed the county's fiscally-crucial $317-million-a-year sales tax for two years beginning Nov. 30. The bill received swift State Senate approval. On Friday, Gov. Andrew M. Cuomo signed more than 30 such local sales-tax extensions into law, including Nassau's.

Now the side deal remains to be carried out.

Hooper last week cited a section of the memo that states: "It is the intent of the parties that recommendations for changes to the distribution formula to address inequities will be implemented." She told Newsday's Sid Cassese on Thursday, "This should be done [for Hempstead and Freeport] as soon as possible."

But the agreement goes further, with the county executive committed to "undertake a thorough review of the historically inequitable distribution of County of Nassau revenues to the villages of Freeport and Hempstead."

The exact form this review must take goes unspecified. For his part, Mangano spokesman Brian Nevin said: "Implementation will coincide with the renewal of the sales tax rate . . . We will have a plan in place Nov. 30."

Given its language suggesting reparation for past practices -- in two villages where African-Americans and Latinos constitute a majority -- the memo sounds unusual. But legislative officials say these side agreements -- like those that may apply to labor contracts -- are crafted at the rate of two to eight per Albany session. Often, they deal with funding formulas, one insider said.

Some such memos carry the force of law. For example, a legislative bill may refer to certain provisions "to be agreed upon in a memorandum of understanding."

In others, such as the Nassau sales-tax agreement, they are not referred to in legislation, but establish a kind of moral commitment between the parties to carry out the provisions, as one staffer explained it.