By Eileen Brennan
In a press release issued on Monday, Aug. 13, Assemblyman Tom DiNapoli, Democratic candidate for Nassau County Executive, outlined his plans for Nassau's financial "road to recovery." "Nassau County is at a crossroads," Mr. DiNapoli said. "Our county's finances ave been in disarray, our credit rating hovers at near junk bond status, taxes have risen, services have declined and years of no long-run fiscal planning has brought us to near collapse."
According to DiNapoli, the problems are all too clear--too much spending bolstered by too much borrowing and an overall absence of true leadership and accountability to the taxpayers. He goes on to acknowledge that there are other problems in the county--including traffic congestion, delivery of human services, environmental protection and economic development--but states that they are difficult to address "unless and until the county's finances are straightened out."
DiNapoli believes that the establishment of the Nassau Interim Finance Authority (NIFA), which he worked with Governor George Pataki and State Senator Dean Skelos, was the first step toward putting Nassau on the road to recovery. NIFA provided Nassau with $105 million in state aid, established clear financial goals and mandated long-term financial planning for the county. That being said, DiNapoli says that the most difficult decisions still lie ahead and the "most arduous tasks of truly rebuilding Nassau County still remain largely unaddressed."
DiNapoli's agenda for Nassau finance recovery include reform of the assessment process, developing a long-term debt management plan, reducing duplicative services between the county, towns, villages and cities, and expanding the NIFA mandated reporting requirements.
It is universally acknowledged that the most prominent financial drain on the county budget is the annual borrowing an average of $132 million to provide refunds to property owners who successfully challenge their tax assessments. The county has begun the gigantic task of reassessment, which would end this drain and save the county millions of dollars each year. Assemblyman DiNapoli states that currently Nassau County administratively reviews less than 5 percent of the challenges it receives. By contrast, New York City processes all yearly assessment reduction applications.
Although $5 million of NIFA funds was earmarked to increase the Assessment Review Commission's (ARC) staff and help reduce the backlog of more than 50,000 assessment challenges, the county has not begun to access this money. Assessment claims in Nassau are currently handled in an average of six years. According to the candidate, by reducing delays in the settlement of tax assessment challenges by just one year, the county can save approximately $22 million each year. Wiping them out altogether, as New York City and Suffolk County do, would save Nassau County more than $132 million.
Assemblyman DiNapoli compares the county's spending patterns to those of "a kid on a shopping spree with his first credit card." The Gulotta administration has borrowed an average of $300 million a year, creating a $2.6 billion Nassau County debt. The county has borrowed to finance everything from tax certiorari refunds and capital projects to severance payouts and litigation settlements.
DiNapoli says that Nassau should adopt a long term Debt Reduction Plan to establish strict thresholds for debt issuance. "I recommend tough medicine," he says. "I recommend slicing annual borrowing between 25 percent and 50 percent over the next 15 years. This could slash the massive $2.6 billion debt by more than $750 million. One striking example of dysfunction is the fact that the county currently holds almost all court settlements for months until bonds are issued to pay for the settlements. This nonsensical approach forces the county to pay the 9 percent court-imposed interest rate on all outstanding judgments. By simply paying these settlements and judgments in a timely manner, the county could save millions in unnecessary interest costs."
DiNapoli also says that "contracting-in," doing the work with existing county staff, can reduce the cost of certain capital projects by as much as 50 percent because labor expenses are already budgeted.
As far as reducing duplicative services, DiNapoli says that "for better or worse, Nassau County is a complex patchwork of governments. The county and town, villages and cities often use different employees to provide similar services. We have all seen the snowplows plowing some streets and not others." He believes that such duplication of services can and should be eliminated. One such example is already in the works at Hempstead Harbor Park, controlled by Nassau County, and Bar Beach,l controlled by the Town of North Hempstead. Working together, Senator Mike Balboni, Supervisor May Newburger, Legislator Craig Johnson and DiNapoli initiated an agreement to remove the fence that separated these properties and give North Hempstead the responsibility for the maintenance of the park and beach. Eliminating the duplication will save county taxpayer dollars on operation and maintenance while county ownership of the property is retained.
Finally, Assemblyman DiNapoli wants to expand the NIFA mandated reporting requirements. NIFA currently requires quarterly reports of the county's financial condition. DiNapoli says that the information provided has proven insufficient and should be expanded to provide a more comprehensive analysis to the county's fiscal condition. Additional requirements should include detailed information about the county's cash management, debt issuance requirements, contingent liabilities and legal exposure. He says that the administration should compile the data necessary to produce these indicators for the county over the past five years. Where trends are adverse to the county, NIFA should require the administration to develop, implement and assess the impact of remedial policies.
DiNapoli concludes: "The next county executive has to become a fully engaged partner in the task of making government responsible and responsive. The bi-partisan state action taken last year began the process. the responsible leadership of a new Democratic Legislative majority provided helpful first steps, but a focused and credible executive partner in county government is what is needed to finish the tough task ahead of us."
At a press conference last week, DiNapoli presented his 10-step plan to reform the county's assessment review process. He proposes to hire an executive director for the Assessment Review Commission and increase professional staffing levels with funds already earmarked by NIFA for this purpose. He would require of the ARC the reporting and accountability expected from a well-run business.
His plan also includes installing the computer software needed to speed up the review process as well as simplify the application process for residents. Random audits would be conducted to safeguard against fraud and favoritism. DiNapoli also said state law needs to be change to extend both the administrative review period and the moratorium on changes in and challenges to assessed property value.
By Eileen Brennan
In July, Glen Cove Mayor Thomas Suozzi, a Democratic candidate for Nassau County Executive, outlined Phase One of his $100 million plan to save taxpayer dollars. Phase One was concerned with the changes he would make in the police department, which he believes will save $40 million. "We can save $40 million while enhancing public and police safety. The department hasn't had a major overhaul in 30 years," said Suozzi in a press conference in front of the county police headquarters in Mineola on July 16. (That press conference was covered in our July 26 issue.)
Suozzi proposed the civilianization of at least 103 positions already identified by the Police Benevolent Association and other police unions. Suozzi made it clear that he was not calling for police layoffs and did not propose a wage freeze.
Suozzi also proposed that the county end patrols on state roads such as the Long Island Expressway. He said the state should patrol state roads or reimburse the county for doing so.
Early in August he explained Phase Two and this past week he revealed Phase Three, each of which he says can save at least $10 million annually. Phase Two plans include the establishment of a special advisory board of some of Nassau's top real estate and business professionals who will help Suozzi consolidate the real estate holdings of the county. The board will also help him address the deterioration of the county's more than two million square feet of physical plants and facilities. It will consist of Fred Wilpon, chairman of Sterling Equities and co-owner of the New York Mets, Saul Katz, president of Sterling Equities and former chairman of North Shore-Long Island Jewish Health Systems, Milton Cooper, founder and chairman of Kimco Realty, owners of neighborhood shopping centers and Abraham Krasnoff, founder of the Pall Corporation.
"Most of the county office buildings were built between 1899 and 1960," Mr. Suozzi said at a news conference. He added that consolidation, rehabilitation of existing space or the construction of a new government center will save from $10 to $20 million a year.
"There are a number of existing proposals regarding ways to improve county properties and reduce costs," Suozzi stated. "The advisory board will invite and examine additional proposals to improve the efficiency of building use, reduce operating costs and ultimately provide an up-to-date, more usable site for county facilities. Revenues from the sale of county assets will be used to retire debt." Suozzi said that the members of the advisory board will have no financial interest in county real estate projects or businesses and will agree to serve as unpaid volunteers.
Phase Three of Suozzi's plan to save $100 million consists of a proposal to eliminate positions currently in the county budget that have not been filled. He says that the savings will amount to $10 million. This is based on eliminating 200 unfilled positions at $50,000 a piece, which the mayor says includes salaries, benefits and administrative costs. He stressed the fact that he is not calling for layoffs and has no quarrel with the county's unions. In fact, he pointed with pride that he had received a labor-management award from New York State for his work in Glen Cove, and also received an award from the CSEA (Civil Service Employees Association). Saying that he had reduced the Glen Cove work force by 10 percent and still improved services, he said he believes in evaluating employees and giving merit raises.
In an indirect criticism of his opponent in the Democratic primary, Assemblyman Tom DiNapoli, and the Republican candidate for Nassau County Executive, Bruce Bent, Suozzi concluded by stating that he will run the county like a business. "I'm trying to give specific details," he said. "We've had enough of generalities."
Mayor Suozzi was joined at his Aug. 16 press conference by the former Oyster Bay supervisor, Lewis Yevoli. Mr. Yevoli said that he has always been a supporter of Mayor Suozzi, with whom he served on the Nassau County Board of Supervisors.
Nassau County Legislator Michael Zapson, (D, 4 LD), who previously supported State Assemblyman Thomas DiNapoli in the race for county executive, said he will now lend his support to Glen Cove Mayor Thomas Suozzi. He announced his switch during a news conference on Aug. 14 in Mineola.
Zapson represents the Democratic stronghold of the Long Beach/South Baldwin/Oceanside/Atlantic Beach area. During the press event he said he has watched the campaign in the past few months and now firmly believes that Suozzi is the candidate who can "trounce the Republican machine" and get the job done. "For the past few months, as Tom Suozzi has campaigned throughout Nassau County it is more and more evident that his message is resonating with voters. People in Nassau County have seen what he has done as mayor of Glen Cove. Suozzi will win the general election in November and go on, as Nassau County Executive, to solve the problems of the county government," said Zapson.
Commenting on Zapson's switch, Darren Bloch, DiNapoli's campaign manager said, "The people Democrats turn to and respect in Long Beach are leaders like Harvey Weisenberg, Bruce Nyman and Council Board President Joel Crystal. Tom DiNapoli is proud to have their full and enthusiastic support."
Democrat county legislators are now equally divided in their support for the two candidates. Supporting Suozzi are: Michael Zapson (4 LD), Brian Muellers, (18 LD); Jeff Toback, (7 LD); Dave Dennenberg, (19 LD) and Roger Corbin, (2 LD). Supporting DiNapoli are: Patrick Williams (1 LD), Joseph Scannell (5 LD), Lisanne Altmann (10 LD), Craig Johnson (11 LD) and Judith Jacobs (16 LD).
The first televised debate between the Democratic candidates for Nassau County Executive will be aired on WLIW21 Thursday, Aug. 23, at 7:30 p.m. with a repeat airing on Sunday, Aug. 26, at 12:30 p.m.
WLIW21 Face Off co-hosts Bob McMillan, an attorney, and Lawrence Levy, a Newsday columnist, will be asking questions of the candidates in a somewhat unstructured format. DiNapoli and Suozzi will be given the opportunity to ask each other one question and they will each have a short closing statement.
The last of three League of Women Voters sponsored debates between Suozzi and DiNapoli will be held on Sept. 5, 7:30 p.m., at the Lutheran Church, 1901 Northern Blvd. in Manhasset. The public is invited to attend this debate.