Town of North Hempstead Supervisor May Newburger gave her annual State of the Town message on Friday and, as usual, it was an upbeat optimistic message. The talk was given, as usual, at a League of Women Voters luncheon meeting at George Washington Manor in Roslyn. But like an elephant in the living room, there is potential bad news that could not be ignored. When she reached page 13 of her 16-page talk, Supervisor Newburger discussed the $28 million judgment against the town in a suit brought by Sumitomo on behalf of its investors. The town is presently awaiting a determination as to whether it can appeal that decision to the Court of Appeals. Supervisor Newburger said that if the town loses its case it will cost taxpayers approximately $25 a year for 15 years, the cost of a $34 million bond issue (see related article on page 3).

In commenting on the issue, Republican Councilmen Angelo Ferrara and James O'Connor issued a statement which reads in part: "Supervisor May Newburger has had a long and distinguished career in public service. In that time she has done much good. However, it is obvious that she has lost touch with reality. In reviewing her State of the Town Address, one can conclude that while the rest of us live in the Town of North Hempstead, May Newburger lives in Fantasyland."

In reviewing the state of the town, Supervisor Newburger pointed with pride to her administration's environmental record -- the passing of a $15 million Environmental Legacy Fund bond that will acquire open land, preserve and enhance existing public spaces and protect our coastal areas. She also said that "we have commenced capping and closure of the L-5 Landfill, the last of our major efforts to correct environmental mistakes of the past. We were able to get state assistance of $2 million through Senator Balboni toward the closure cost and several million dollars through Assemblyman Tom DiNapoli."

After discussing the Sumitomo case, Supervisor Newburger concluded: "Let me ask you to take a look at where we are today and where we were in 1994. In 1994 you had a $7 million cumulative deficit and 460 barren acres of debt-ridden Morewood property. There was no money for the environment. The Town had $75 million of legal exposure related to the incinerator and landfills. A noncompliant transfer station. Unclosed landfills. A reduction in bond rating. A 40 percent cut in Town personnel.

"Let's see where you are now.

"A projected $5 million surplus. Increased bond rating. $15 million for the environment. An award-winning environmentally acclaimed golf course. A senior housing endowment fund. A nature trail. A unique debt management plan that will reduce Town debt from between $70 million to $104 million in 10 years. A state-of-the-art transfer station.

"Not bad. In fact that's great stuff! And at the end of the day -- even if we have to pay the Sumitomo judgment -- all of this will have cost you -- and me -- an average increase annually of just $50 over all these years ... I'm proud about the choices we made -- many of them tough -- and I'm excited about what's to come." The State of the Town address is posted on the town's website at www.northhempstead. com.