RSS 2.0 FeedJanuary 27, 2011, Cover Stories, Bellmore Life
What NIFA rule could mean for residents
Drastic cuts or tax increases loom...
The 10-year-old oversight committee formed during Republican Governor George Pataki’s administration to make sure the county never repeats the financial debaucles of the Gulotta administration, which lead to depressed bond credit ratings and near-junk bond status that nearly lead to the county’s collapse, has taken over the county finances.
The Nassau Interim Financial Authority (NIFA) voted unanimously 6-0 to take over the county’s finances on Wednesday after repeated requests for documents from Republican County Executive Ed Mangano, to prove that Mr. Mangano’s 2011 budget was balanced, were not answered,
according to NIFA officials.
In response, county officials are crying foul at the takeover, suggesting instead that their 2011 budget is balanced, and that members of the NIFA board have political connections to the Democratic Party and are looking to ruin Mr. Managano’s political career. A press conference has been called for Monday about the possibility of suing NIFA and the state to stop the takeover.
“When the NIFA board says it wants to see ‘revenue’streams,’ that word is really a code word for taxes,” Brian Nevin of Merrick, an advisor to County Executive Ed Mangano, told Bellmore Life.
Mr. Nevin mentioned several standing NIFA board members who had either worked with former County Executive Tom Suozzi on his budget, were nominated by former Democratic state Senator Craig Johnson, or worked on Democratic Legislator Judy Jacobs’ campaign when she was majority leader, as proof of the board’s political slant.
Mr. Nevin also raised the legal authority of NIFA to take over county finances when it doesn’t have the full seven-seat board that was originally drawn up by the state 10 years ago. One seat remained vacant as NIFA made its ruling.
Buying time
Dave Weiss, leader of the Republican Party in Bellmore, told Bellmore Life that a lawsuit may be the only way to give Mr. Mangano the time he needs to sort out the budget. “This is a problem that has been 15 years in the making,” Mr. Weiss said, “and to expect Mr. Mangano to be able to solve it in one year” is not realistic.
He said the first thing that would be asked for in a lawsuit is an injunction to stop the takeover to maintain the “status quo.” The status quo, he said, would enable programs such as the Community Parent Center, the Community Wellness Council and the Long Island Crisis Center to continue to receive funding.
“We don’t know what the administration would need to cut in order to satisfy NIFA’s requests for a balanced budget,” he said.
Mr. Weiss added that the only other way to pay for these programs is to raise taxes.
“As an attorney, I can tell you that the foreclosure rate on homes would skyrocket because many people cannot afford the homes they have now.” Adding the specter of new taxes would overwhelm those already underwater [owing more than the house is worth] with their homes, for example, he concluded.
NIFA doesn’t raise taxes
Louann Lima, chief of staff for Democratic Legislator Joe Scannell (15th LD) – and a member of the minority party when NIFA was first developed by Republican state Senator Dean Skelos and then-Democratic state Assemblyman Tom DiNapoli, told Bellmore Life that NIFA does not have authority to raise or repeal taxes.
“NIFA works with the administration to find solutions to the deficits they are facing, but doesn’t suggest raising taxes,” she said. That is at the discretion of the county executive to do if it becomes necessary, she added.
She called the plan to sue NIFA a “politicalization” of the process of governing, and is worried about seniors in Legislator Scannell’s district who could be affected by cuts in a balanced budget that must be addressed by the Mangano Administration at NIFA’s behest by February 15.
When asked if the Mangano Administration would comply with NIFA’s request to balance its budget by that date, Mr. Nevin replied: “We will follow the law.” He would not comment when asked if state law was vague regarding what powers NIFA actually has.
He also suggested that Moody’s rating service downgrading of the county’s financial credibility was a blip only, because Moody’s downgraded several municipalties’ finances during the same time.
He added that both Standard & Poor’s and Fitch rating services kept the county’s status as stable.
Conciliatory tones?
Democratic Legislator Dave Denenberg struck a conciliatory tone over the NIFA takeover: “I felt the budget was bad for our taxpayers when I voted against it in October. I hope collective leadership will right Nassau’s ship and protect our taxpayers.”
Mr. Scannell seemed also conciliatory in an e-mail to Bellmore Life, saying “this bold move by NIFA is not welcome news to any county official. We have worked hard since the state created the oversight board in 2000 to save the county from a previous financial distaster.”
Reinaldo Nunez, president of the North Bellmore Civic Association, told Bellmore Life of the takeover, “It was a terrible thing to have happen. County Executive Mangano hasn’t been given much time to turn things around. He now has a responsibility and is now in a diffucult position of having to prove” his budget is in balance, or come up with one that is.
