GOP, Democratic lawmakers offer competing plans to balance budget

This week, Republican and Democratic legislators both offered up their parties’ amendments to outgoing County Executive Ed Mangano’s $3 billion budget — with both sides looking to scrap a controversial $59 million in fee increases meant to balance the budget. 

But the dueling amendment proposals show little overlap or chance of compromise as the legislature approaches its Oct. 30 deadline to submit an amended budget to Mangano, then to NIFA, the state board in charge of the county’s finances, for approval.

NIFA warned legislators in a report last week that the fee increases must either stay in the budget, or other sources of revenue or serious cuts must be found.

Democrats took the amending process as an opportunity to push for an independent inspector general position to vet all county contracts — something the minority party has long touted the need for, as an ethical check for county business.

Meanwhile, Republicans also proposed nixing Mangano’s fee increases, but said, as a means of balancing the budget without the hikes, they would implement some of the controversial cuts that were suggested in a report NIFA commissioned from an outside financial agency over the summer.

Democrats: Savings through anticorruption measures, select cuts

In order to make up the $59 million in revenue that would be lost by scrapping the fee increases, Democrats proposed a 50 percent reduction in postage, eliminating physical payroll checks, a $300,000 reduction in legislative and county executive salaries and a number of cuts recommended in the report commissioned by NIFA.

According to Minority Leader Kevan Abrahams, the creation of a $1.25 million inspector general’s office will “more than pay for itself.” If the position were to be created, Democrats would also eliminate the office of Commissioner Investigations, which their amendment called severely underfunded and lacking the teeth necessary to actually curb corruption.

“We were handed an unstable budget that failed to fund the single most important reform for Nassau County government — the anti-corruption monitor/independent inspector general,” Abrahams said, “and which imposed tens of millions of dollars of fee hikes upon Nassau County residents. Our amendment fixes both those fatal flaws.”

Democrats also proposed re-opening the 6^th and 8^th Police Precincts as a way of saving $5,000,000 in overtime, which they claim would also have no impact on operating funds.

Republicans: County has underestimated revenues and savings

Republicans also proposed getting rid of the fee increases, but argued in their proposed amendments that much of the $59 million could be made up by accounting for savings and revenues that the county previously underestimated.

“The amendments continue the Republican majority’s effort to responsibly and honestly address the county’s fiscal needs with real solutions and not political gamesmanship,” Presiding Officer Norma Gonsalves said in a statement, adding that her party’s amendments include “realistic and achievable projections of revenue from accepted sources and economies.” 

The Republicans envision saving $7.5 million in debt service by restructuring some of the county’s debt, and potentially up to $8 million by strictly controlling backfilling positions, and filling some at lower salaries than before. Also, they agreed with Democrats on at least two of the recommended cuts in the NIFA-commissioned budget report, as well as several others, for a total savings of $6.5 million.

Almost $23.5 million in revenue that could fill the hole left by scrapping the fee increases would be found in sources that the county underestimated, according to Republicans. In their amendments, they contend that the county will see higher sales tax growth, for $5 million more in revenue, and an increase in traffic violations could make for $4.5 million more.

The NIFA Challenge

 One element included in the Democrat’s plan as an essential part of balancing the budget without fees is utilizing $35 million of the county’s bond premiums as revenue. Republicans also noted bond premiums as a revenue opportunity of $30,000,000, but included it in their amendments as only a possibility.

According to Republicans, NIFA will not allow the county to use the bond premiums as revenue, but rather only to pay toward suits and damages. NIFA’s directors see the fee increases — or equivalent revenues — as essential, and, in their report last week, told lawmakers that the fees would have to stay, the budget must be cut or $59 million in revenues must be raised. Otherwise they will reject the budget and possibly step in with their own cuts, which is within their statutory power. 

In a statement on Wednesday, Adam Barsky, NIFA’s chairman, said that the control board would reject the budget with side’s amendments, because they don’t comply with NIFA’s standards.

“By removing vital revenue increases and relying on projections that are too aggressive, the budget is no longer responsibly balanced, and NIFA will have no choice but to reject the document if the amendments are adopted,” Barsky said. “NIFA is reaching out and making itself available for a constructive dialogue to offer a path forward.”

Last year, NIFA rejected the first budget submitted to them by Mangano, and only accepted it after similar fee hikes were included and a number of cuts were made, including local government assistance.

Abrahams, in a statement accompanying the Democrats’ amendments, said that he was concerned that Republicans would remove the fee increases before the election, and hike them afterward, as has been done in the past. Gonsalves, however, has said repeatedly this budget cycle that Republicans have no plans to reinstitute the fees after the election.

The Legislature will hold their final budget hearing on Oct. 30 at 1 p.m.