A critical point in Nassau's fiscal recovery came when the Nassau Interim Finance Authority (NIFA), the state oversight board, reviewed County Executive Tom Suozzi's four-year financial plan and gave it a vote of confidence. However, NIFA did warn of items in the plan that may not come to fruition because they are out of the county's control.

The plan, which was approved by the Nassau County Legislature on Monday as it was presented during Suozzi's State of the County Address is now in the hands of NIFA.

"I don't think there's any question that the county executive has made a major effort in bringing the county forward and trying to restore fiscal health. It's a very tough and daunting job, but this is just the beginning, not the end. He's got a lot of work to do, but he's certainly off to a positive start," said NIFA member and LIPA Chairman Richard Kessel.

Although Kessel gave Suozzi a vote of confidence, he did say that there are risks involved in the county executive's plan that have to be resolved.

According to a report issued by NIFA concerning the four-year plan, although the plan was described as "professional, comprehensive and well-thought-out," some of the out-year budgetary strategy projections are "questionable" because, in part, they depend upon the success of the 2002 and 2003 budgets and third party actions.

Suozzi and the presiding officer and Democratic majority leader of the Nassau County Legislature, Judy Jacobs, however, seemed pleased at NIFA's report. "It's the best news we've received in two years since becoming the majority," Jacobs said.

Although Suozzi and Jacobs believe the county executive's four-year plan is the blueprint to solving Nassau's fiscal crisis, NIFA will remain part of the process. "The need for NIFA oversight remains strong and over the next several years the possibility of control board intervention remains high," the report said.

"I'm happy to see that NIFA is going to be out there helping us accomplish the objectives that we've set out," Suozzi said.

Suozzi's four-year plan includes a 19.4 percent property tax increase in fiscal year 2003, a reduction in the county workforce by 1,200 by Sept. 2003 and anticipated labor concessions.

The goals of the county executive's four-year plan seem achievable in its first two years (2002 and 2003), according to NIFA. However, for fiscal years 2004 and 2005, NIFA's report states that the county's proposed solutions are aggressive and rely upon the successful implementation of major initiatives, some of which are not within the direct control of the county. According to the oversight board, the county must be assertive, but realistic in its demands from third parties. NIFA also warned that it will be especially sensitive to the county backing away from unpopular cuts, or "budget busting" new initiatives.

NIFA also identified challenges the Suozzi administration could face in implementing its plan. Difficulties the county executive may face in implementing the plan include achieving labor concessions, reducing the county workforce without unacceptable declines in services, getting legislative approval for the creation of the Sewer and Storm Water Authority and the increase of NIFA's borrowing caps. The plan also does not recognize the possibility that the county may have to provide additional financial support to the Nassau Health Care Corporation, according to NIFA. The oversight board's report also states that the plan to reduce capital borrowing for the next several years will make it more difficult to upgrade the county's deteriorated infrastructure and while some elements of the debt program, such as the reduction in total issuance, help bring the county toward structural balance, other elements do not.

"The bottom line is that there are challenges to implementing this plan. We're prepared to meet those challenges and implement this plan as is," Suozzi said. "We need the things that are in this plan. It's a credible plan. If we implement this plan as we laid it out we will solve the fiscal crisis that existed in Nassau County for the past several years."

As expected, Suozzi's plan was passed by the Nassau County Legislature on Monday with the 10 Democratic members voting for the plan and the nine Republican legislators voting against it. The plan will now go to join Nassau Democratts to help him gain Albany's support for key elements of his plan.