Chronic budget deficits have placed the Village of Island Park in the highest tier of fiscal concern, State Comptroller Thomas DiNapoli’s office announced on April 17, naming Island Park one of only three New York villages in “significant fiscal stress.” The village scored 81.7 out of 100 under the Comptroller’s Fiscal Stress Monitoring System, well above the 70-point threshold for the most serious designation.
Island Park’s 2023–24 operating deficit—roughly $700,000, or about 12 percent of its $5.84 million budget—drove the red-flag designation. The Comptroller’s report cited drawdowns of fund balance, elevated debt service from essential capital projects, and rising insurance costs as principal factors.
“The number of local governments with a fiscal stress designation remains low following several years of emergency federal pandemic aid that helped stabilize their finances,” DiNapoli said in a release. “With that aid coming to an end and uncertainty coming out of Washington on state and local funding cuts, local officials should closely monitor their financial condition so they can be prepared for any financial challenges that lie ahead. I encourage local governments to use our self-assessment tool to help them budget and avoid potential pitfalls.”
Island Park Mayor Michael McGinty acknowledged the village’s financial difficulties, revealing that when he took office 11 years ago, accounts payable stood at $1.1 million with no immediate means to pay. Since then, he detailed how the village has undertaken several critical infrastructure projects, including rebuilding a firehouse, acquiring a village hall at a reasonable price as opposed to building a village hall and replacing fire trucks. McGinty detailed the hard choices Island Park has made to reverse its fortunes.
“We’re raising taxes by 7 percent for the second year in a row,” he said, noting that the additional levy generates roughly $410,000 in new revenue. “We’ve trimmed expenses such as payroll and overtime and cut sanitation collection from three days a week to two.”
McGinty added that essential public-safety investments—rebuilding a firehouse, replacing three fire trucks, and renovating the Village Public Works Central garage—were unavoidable.
“Our debt service is high, but there wasn’t any choice in the matter,” he said. “Public safety and public health have to will out in the end. There’s no, ‘wait till tomorrow.’”
The mayor not only addressed financial challenges but also firmly defended the village’s independence. Some residents have floated the idea of unincorporating the village of Island Park and joining the Town of Hempstead as hamlet to escape rising taxes. Despite the comptroller’s office score, McGinty remained resolute against suggestions of de-incorporating and joining the Town of Hempstead.
“It would mean we relinquish local zoning control and that’s a terrible thing,” he said. “Every mayor would see it as a loss of local control.” He predicted unified opposition from villages across Long Island.
“It would need approval from the State Senate, the State Assembly, and ultimately, the governor,” McGinty said. “All the other villages, would line up in opposition, Democrat and Republican, because every mayor and every elected official would see it as a loss of local control.”
McGinty expressed confidence that the village will improve its fiscal position, emphasizing a commitment to financial transparency and responsible budgeting. The village is focusing on attracting new businesses, developing strategic properties, and seeking innovative ways to generate revenue while maintaining essential services for residents.
“We have been working as hard as anybody can work,” he said. “We have two grants in the works. We’re going to be entering into an inter-municipal agreement with the town of Hempstead to rebuild the bulkheads to reduce erosion and to protect our homes. Down by Beach Way we had a beach stabilization project that’s protected the beach and all local homes. We just keep pushing.”
As federal pandemic aid winds down and state funding remains uncertain, McGinty is focused on grants and recurring revenues such as
the village’s ParkMobile revenue.
“You got to concentrate on the work…how do I save $1? How do I increase revenue?” he said. “We’ll clean up everything at the end of the fiscal year, and we’ll see what we have.”
