Post by backdoorit on Jan 28, 2012 8:07:01 GMT -5
Nassau's year-end layoffs, retirements and demotions will save $21.4 million this year, a little more than half the amount projected this week by the administration and far lower than an initial $75 million goal, according to the county legislature's independent Office of Budget Review.
The office also pegged severance costs at $18.4 million for the terminated workers and retirees, the first time the number has been calculated. County Executive Edward Mangano plans to borrow the money needed to pay those costs.
After the legislature's Republican majority approved the layoffs in December, 221 workers were terminated and 111 others took a voluntary retirement incentive program, the budget review office found.
Another 45 county workers whose salaries were paid by grant funds also were terminated or retired. But their salaries were not paid from the county's operating fund and their departure, the office reported, will result in a loss of more than $4 million in federal and state aid.
Mangano's deputy, Tim Sullivan, this week told the Nassau Interim Finance Authority, the county's financial control board, that last month's cuts would save $42.4 million.
On Friday, Budget Review Director Maurice Chalmers said he didn't know how Sullivan arrived at the $42.4 million figure. Chalmers speculated that Sullivan's total included $18 million in vacant budgeted positions. "We were only asked to look at the savings related to the layoffs and incentives," said Chalmers, who reviewed the cuts at the request of Minority Leader Kevan Abrahams (D-Freeport).
"While we have not reviewed the report, it's clear that they [budget review office] are missing vital information," Sullivan responded in a statement.
Mangano had promised to cut $150 million in recurring labor costs in return for NIFA allowing the county to borrow $450 million over the next four years. He set a deadline of Dec. 15 for achieving the first $75 million and Feb. 1 for the next $75 million.
Sullivan told NIFA that the county plans other spending cuts that will bring the projected savings to to $88 million. The NIFA board meets Wednesday.
Legis. Judy Jacobs (D-Woodbury), who voted with her fellow Democrats against the layoffs, said the budget review report shows the administration rushed the cuts without fully understanding "the gains and losses" to the county. "Essentially, we are talking about people's lives," she said.
The office also pegged severance costs at $18.4 million for the terminated workers and retirees, the first time the number has been calculated. County Executive Edward Mangano plans to borrow the money needed to pay those costs.
After the legislature's Republican majority approved the layoffs in December, 221 workers were terminated and 111 others took a voluntary retirement incentive program, the budget review office found.
Another 45 county workers whose salaries were paid by grant funds also were terminated or retired. But their salaries were not paid from the county's operating fund and their departure, the office reported, will result in a loss of more than $4 million in federal and state aid.
Mangano's deputy, Tim Sullivan, this week told the Nassau Interim Finance Authority, the county's financial control board, that last month's cuts would save $42.4 million.
On Friday, Budget Review Director Maurice Chalmers said he didn't know how Sullivan arrived at the $42.4 million figure. Chalmers speculated that Sullivan's total included $18 million in vacant budgeted positions. "We were only asked to look at the savings related to the layoffs and incentives," said Chalmers, who reviewed the cuts at the request of Minority Leader Kevan Abrahams (D-Freeport).
"While we have not reviewed the report, it's clear that they [budget review office] are missing vital information," Sullivan responded in a statement.
Mangano had promised to cut $150 million in recurring labor costs in return for NIFA allowing the county to borrow $450 million over the next four years. He set a deadline of Dec. 15 for achieving the first $75 million and Feb. 1 for the next $75 million.
Sullivan told NIFA that the county plans other spending cuts that will bring the projected savings to to $88 million. The NIFA board meets Wednesday.
Legis. Judy Jacobs (D-Woodbury), who voted with her fellow Democrats against the layoffs, said the budget review report shows the administration rushed the cuts without fully understanding "the gains and losses" to the county. "Essentially, we are talking about people's lives," she said.