Offering some hope that the county is seriously undertaking an effort to address its fiscal woes, County Executive Thomas Gulotta introduced the financial management firm he has hired to formulate a strategy for fiscal recovery early last week.

Gulotta stated that his office has been working with the municipal finance and investment advisory firm, Public Finance Management (PFM), for the past several weeks. In that time PFM has been familiarizing itself with the county's fiscal history and reviewing its expenditures and sources of revenue.

John White, chief executive officer and managing director of PFM, stated that his firm is presently developing a three-phased plan that will address the county's current budget deficit and provide a regimented course towards fiscal stability. According to White, the process will take three to four months.

Neither Gulotta nor White would elaborate on any remedial measures being considered for the plan, citing that it would be premature and irresponsible to speculate before the proper analysis has been completed. White did state, however, that "everything was on the table."

"We will make a series of proposals to the county executive and the legislature for them to look at," said White. "They are not going to be easy, [but] I don't know what they are going to be yet."

The hiring of PFM was prompted when the county became hard pressed to find its way out of an estimated budget deficit of $100 million to $125 million for the year 2000 and credit agencies were threatening to reduce the county's bond rating to just above junk-bond status. In 1999 the county was able to transform a budget deficit of almost $300 million into a surplus of $21 million primarily through the sale of the county hospital and money obtained in the national tobacco settlement. No such one-time revenue producers are present in 2000.

With the sting of the latest downgrading of the county's credit rating still fresh, county Republicans "demanded" earlier this week that the county executive reveal his financial recovery plan by the end of the week. Far from being the comprehensive plan many were looking for, Minority Leader Peter Schmitt was not impressed with the county executive's "show of action." Judy Jacobs, presiding officer, Nassau County Legislature, was encouraged by the announcement, but still somewhat skeptical.

"I certainly think it is a step in the right direction. I would like to believe that he has finally recognized that we are in a serious financial crisis in Nassau County," said Jacobs. "However, it remains to be seen whether he has the political will to put into place the suggestions that will be made."

Jacobs, fearing future downgrades of the county's bond rating, stated she is also concerned that the time frame for remedial measures addressing the 2000 budget described by Gulotta's analysts is not immediate enough.

"Four months is much too long a time to come up with some immediate solutions to the 2000 problem," said Jacobs. "I can see you need four months for a five-year plan but I would think in addition to the four months you need for a five-year plan you need some initiatives almost immediately to start matching the loss of funding that you have in the year 2000 budget."

White stated that PFM has been in contact with the three major credit agencies about the county's time table and is not going to recommend any proposals until the firm has completed its analysis.

"After being at work for just several weeks, if we came here and presented a plan to you it would not have any credibility on Wall Street and we have no intention of doing that," said White.

According to White, PFM has been behind the fiscal recoveries of such municipalities as the District of Columbia, Philadelphia, and New Haven. In each case the municipality was in similar or worse financial condition than Nassau County is presently. He further stated that all of PFM's past successes were predicated on the governing bodies' demonstration of strong political will.

"I think that it is important that all the political players in the county find a solution together," said White. "If there is not the will to do that then I do not think it is possible to be successful in this situation."