In an effort to shore up Nassau County's faltering economy, the Nassau County Legislature passed the controversial transfer tax at its Aug. 9 meeting. The transfer tax was proposed by County Executive Thomas Gulotta some months ago. Under its provisions, anyone selling real estate in Nassau County will have to pay a one percent tax to Nassau County, or $4000 on the sale of a $400,000 home. The measure was vigorously opposed by real estate interest and mortgage brokers. After Mr. Gulotta proposed the tax, the County Legislature had to request the state to take action authorizing the tax. Although Assemblyman Thomas DiNapoli, the Nassau County Democratic leader, tried to force through an amendment requiring that the county's finances be under the oversight of New York State Comptroller Carl McCall, the legislature authorized the tax without that requirement. After state authorization, the Nassau County Legislature was free to vote on the tax, which it did, on strictly party lines.

"The transfer tax has transferred the blame for poor fiscal management onto the shoulders of the taxpayers of Nassau County," said Legislator Barbara Johnson. Democrats have long been opposed to the new tax without some form of fiscal oversight of the county's budgetary practices. On Aug. 9, Minority Leader Judy Jacobs attempted to introduce a law calling for a fiscal oversight board but the request to have the resolution put on the agenda was denied by Presiding Officer Bruce Blakeman. Republicans instead introduced a law calling for a Blue Ribbon Budget Advisory Panel.

"I am pleased to join with the majority legislators to introduce this resolution to establish a fiscal panel to oversee the county budget process," Blakeman said. "With the best interest of our residents in mind, this panel is intended to offer valuable economic insights and forecasts. This knowledge will greatly assist officials in assessing all elements of the budget, as well as streamlining the entire process."

The resolution establishes a Fiscal Advisory Blue Ribbon Panel consisting of seven voting members and three non-voting members. Of the seven, five voting members will be appointed by the presiding officer and two voting members will be appointed by the minority leader. The three no-voting members will consist of the Nassau County Treasurer, the Nassau County Comptroller and the Director of the Office of Legislative Budget Review.

Democrats voted against the Blue Ribbon Panel resolution, stating that they believe it would not be effective unless coupled with strong fiscal oversight.