Post by onthejob on Dec 7, 2011 23:07:15 GMT -5
NIFA to consider OK of Mangano budget
December 7, 2011 by CELESTE HADRICK / celeste.hadrick@newsday.com
The state board in control of Nassau's finances meets Thursday to consider whether to approve County Executive Edward Mangano's 2012 budget and multiyear financial plan.
The Nassau Interim Finance Authority, which took control of the county's finance in January, also is expected to vote on Mangano's plan to sell 30 years' worth of rent from 18 Mitchel Field leases for a one-time payment this year of $37.5 million.
In addition, the control board must approve Mangano's plans for short-term cash-flow borrowing so that the cash-starved county can sell bonds this month to make payroll.
Members of the NIFA board Wednesday declined to comment about the meeting.
Chairman Ronald Stack had struck a deal with Mangano last month to allow the county to borrow $450 million to pay tax refunds, employee severance and court judgments over the next four years if Mangano can achieve $150 million in recurring labor savings. Stack and Mangano met separately with an aide to Gov. Andrew Cuomo before reaching their deal. Until then, NIFA had refused to allow Mangano to borrow to pay for operating expenses.
Nassau's $2.6-billion budget for 2012 is projected to have a deficit of more than $300 million unless labor concessions and other cuts are made. Mangano and legislative Presiding Officer Peter Schmitt, a fellow Republican, have pledged not to increase property taxes to cover the shortfall. Without new revenues or other savings, the county is expected to end this year in the red. Schmitt and Mangano spokesman Brian Nevin declined to comment Wednesday.
The county legislature's new Democratic leader, Kevan Abrahams (D-Freeport) said, "I think it's good that NIFA is taking a further look at the budget. There is much in there that we are concerned about. We do not believe this is a budget that will protect residents from paying more in taxes due to enormous levels of borrowing. It will be interesting to see what NIFA does."
December 7, 2011 by CELESTE HADRICK / celeste.hadrick@newsday.com
The state board in control of Nassau's finances meets Thursday to consider whether to approve County Executive Edward Mangano's 2012 budget and multiyear financial plan.
The Nassau Interim Finance Authority, which took control of the county's finance in January, also is expected to vote on Mangano's plan to sell 30 years' worth of rent from 18 Mitchel Field leases for a one-time payment this year of $37.5 million.
In addition, the control board must approve Mangano's plans for short-term cash-flow borrowing so that the cash-starved county can sell bonds this month to make payroll.
Members of the NIFA board Wednesday declined to comment about the meeting.
Chairman Ronald Stack had struck a deal with Mangano last month to allow the county to borrow $450 million to pay tax refunds, employee severance and court judgments over the next four years if Mangano can achieve $150 million in recurring labor savings. Stack and Mangano met separately with an aide to Gov. Andrew Cuomo before reaching their deal. Until then, NIFA had refused to allow Mangano to borrow to pay for operating expenses.
Nassau's $2.6-billion budget for 2012 is projected to have a deficit of more than $300 million unless labor concessions and other cuts are made. Mangano and legislative Presiding Officer Peter Schmitt, a fellow Republican, have pledged not to increase property taxes to cover the shortfall. Without new revenues or other savings, the county is expected to end this year in the red. Schmitt and Mangano spokesman Brian Nevin declined to comment Wednesday.
The county legislature's new Democratic leader, Kevan Abrahams (D-Freeport) said, "I think it's good that NIFA is taking a further look at the budget. There is much in there that we are concerned about. We do not believe this is a budget that will protect residents from paying more in taxes due to enormous levels of borrowing. It will be interesting to see what NIFA does."
