NASSAU COUNTY CIVIC ASSOCIATION, INC. "The government is us, we are the government, you and I." Teddy Roosevelt

Borrowing and Severance

Nassau taxpayers get stuck with the bill

Earlier this week, three Nassau County Police Chiefs retired each with a $600,000 severance payout and a yearly retirement of $100,000. While they are legally entitled to the payout due to union contracts, the payouts are ample evidence of the number one problem facing New York, run away public employee pension and compensation benefits. While no one would begrudge  public employees a fair and reasonable salary, the cost is no longer bearable when half of the highest taxed counties in America are in New York with Nassau County having the second highest property taxes in the nation. Holding the line on taxes is just a first step. Cutting taxes by controlling spending at all levels of government is the second. This is the message of the Tea party and current focus of the 2010 elections. Just ask gubernatorial candidates, Andrew Cuomo and Carl Paladino.    

County Executive Edward Mangano inherited a fiscal mess. Former County Executive Tom Suozzi negotiated union contracts that guarantee no lay offs until 2015. As labor costs now become fixed costs, the current administration has less wiggle room to address current and projected budget deficits. As tax increases are not an option, the only remaining option is to cut spending. Some believe that the fiscal mess can only be resolved through bancrupcy, however this approach would lead to increased borrowing costs and uncertaincy. It would also trigger a take over of the County's finances by NIFA (Nassau County Interim Finance Authority).

So while walking a fiscal tight rope, Executive Mangano has taken several positive steps such as eliminating the home heating fuel tax and cutting other non essential jobs. His effort at assessment reform by freezing property values has at least stabilized the yearly fluctuations in property taxes that drive economic uncertainty and which add to the cost of tax refunds borne by the county, however in the long term, there must be accuracy in property valuation or the higher costs will accrue  at the end of the four year cycle. While there are limited options to close the county's significant short term budget deficit, borrowing the funds to pay six figure severance packages to balance the budget today is like playing fiscal "Wack a mole". The only one paying the bill will be taxpayers. Albany needs to take notice. Now is the time to address the excess of public employee unions. Nassau taxpayers deserve better.