How to improve the efficiency and accountability of Nassau's 200 special tax districts, with an emphasis on saving taxpayer dollars, was the topic of discussion and debate at the countywide Conference on Nassau County Special Districts. The conference was held June 8 at Hofstra University's Center for Suburban Studies, hosted by Richard Guardino, executive dean of the center.

Nassau County Comptroller Howard Weitzman, the driving force behind the conference, said, "Nassau has too many layers of government, one reason for the highest property taxes in the state." There are county, three towns, two cities, 64 villages, and 200 other districts with taxing authority - not including school districts. "Some special districts are efficiently run and provide good service," he related, "but audits found that others are wasteful and have little or no public accountability, transparency or oversight."

The 200 special tax districts in Nassau County are broken down in the towns as follows: Town of Hempstead: 102, Town of Oyster Bay: 53, Town of North Hempstead: 45. The special districts are broken down by type as follows: Water: 32, Fire: 41, Fire Protection: 31, Sanitary: 21, Park: 27, Parking: 19, Other: 29. The total amount of 2006 town taxes in Nassau County is $631,308,666. Of this amount, the total amount going to special districts is $473,491,596, which is 75 percent.

According to Weitzman's study, many of the 200-plus special taxing districts in Nassau have certain attributes in common:

· a lack of budget accountability; i.e., district budgets are often not reviewed by a higher government body, such as a town board, even if statutory authority may exist for such reviews;

· a lack of transparency; e.g., few or no public meetings and a lack of information about district operations made available to the public;

· inadequate administrative, personnel and financial controls, resulting in unnecessarily high costs to taxpayers; and

· elections held at inconvenient times for which little public notice is given, and for which voter turnout is unacceptably low.

Weitzman stated that Nassau County is the first major suburban county in America that has reached its building potential, is not growing revenue, and the reassessment has focused attention on how high county taxes are in relation to the rest of the country. And, Weitzman said, increased government spending increases those taxes. The county needs to restrain spending, he said, as one method of controlling taxes and the conference has set its sights on mismanagement, waste and overlapping services in the hundreds of special districts. He said they are not out to hit home runs, rather singles and doubles, but multiplied by the 200-plus taxing districts savings can be generated.

Weitzman explained that the special districts provide all the services expected in the suburbs and at a high level, however, were the county to start afresh the system would be structured differently. Basically, when Levittown was built as one of the first suburbs, special districts were created, such as water, fire, police and garbage to provide the necessary services, but Levittown had no interest in subsidizing developments that followed, which, in turn, each created their own special districts.

The growth of these special districts reflects the haphazard development of Nassau County in the last century from a collection of unassociated towns, villages and hamlets. But the persistence of so many separate governmental authorities, with their own employees and tax rates, tends to hide the true cost of local government and contributes to the high local tax burden, said Weitzman. "Ultimately, we need to consider whether town governments can consolidate some of these districts and operate them with greater efficiency," Weitzman said. "There needs to be a better understanding of the districts' expenditures, hiring and procurements practices and the efficiency of their operations," he added.

It was County Assessor Harvey Levinson's report, which found that special taxing jurisdictions spend millions of dollars each year with little public scrutiny or oversight that sparked Weitzman's initial audit of five sanitary districts. Levinson said, "Homeowners who pay widely different tax rates for the same services within a town are entitled to know how their ever-increasing tax dollars are spent."

In 1930 special districts were considered a serious threat to long-term sustainability, and there were 100 then. Weitzman stated that no one even knows for sure how many there are today. In 1990 it was recognized as a growing problem. But nothing was done. "The spectacular turnout for the conference," Weitzman said, "speaks wonders to the fact people are ready to listen."

The conference included two panel discussions, and a Q & A with the panelists. Participants were: NYS Senator Michael Balboni; NYS Assemblyman Thomas DiNapoli; Nassau County Executive Thomas R. Suozzi; Nassau County Comptroller Howard Weitzman; Nassau County Chairman of the Board of Assessors Harvey Levinson; Oyster Bay Supervisor John Venditto; Hempstead Supervisor Kate Murray; North Hempstead Supervisor Jon Kaiman; and Nassau County Legislator Diane Yatauro; Long Island Association (LIA) Vice President Mitchell Pally; economists Pearl Kamer of the LIA and Irwin Kellner of Hofstra; Charles Zettek, Jr. of the Center for Governmental Research; Newsday investigative reporter Elizabeth Moore discussed her investigation of Long Island fire districts; South Hempstead resident, Laura Malley who spoke about her challenge to one of the Hempstead Sanitary Districts, and Joseph F. Beach, Assistant Chief Administrative Officer, Montgomery County, Maryland.

Special Districts Commissioners for sanitation, water, and fire protection were also present to round out the discussion.

In 2003 Hofstra became one of the first universities in the nation to explore suburbia. The Center for Suburban Studies was founded by President Stuart Rabinowitz of Hofstra, and it strives to "become a leader in bringing perspective to this distinctly American invention that has impacted our region. The center was established as a national think tank, designed to examine such issues as consolidation of government, smart growth, homeland security in local communities, preservation of open space, affordable housing, energy policy, and revitalization of downtowns."

Rich Guardino, executive dean of the Center for Suburban Studies at Hofstra University, said, "The Center for Suburban Studies is devoted to researching suburban issues throughout the nation, often using Long Island as a microcosm. We are hosting and sponsoring this Nassau County Conference on Special Districts because finding innovative ways to deal with Nassau County's property tax burden is crucial to the future of Long Island and can be a model for first suburbs in other areas." Guardino mentioned that in Nassau County 73 percent of the homes were built before the 1960s (38 percent of homes is the average) and the infrastructure will require updating. Tax bills will increase and special districts play a major role.

Charles Zettek, Jr., Center for Governmental Research, said to look at how government provides services with the help of a map with layered transparencies, layered one over the other illustrating redundant, overlapping services. "We have to de-layer ourselves and in the process lower costs and lower property taxes," he said.

Dr. Pearl Kamer, chief economist of the LI Association, the Island's largest business organization, said, "It costs too much to live and do business on Long Island resulting in the number of people aged 25 to 44, the heart of the workforce, leaving the Island. Others take out equity in their homes to stay. Costs are so high because of multiple layers of government," she said. Nassau County's model of government was OK in an era of plenty, but it is not working in an era of scarcity. We need to develop a new model, it could be a 10 year process. But to get out of the pattern of economic stagnation we have to do something."

Consolidation is a way of life today, Kamer said, and is no different than in the private sector. "We are losing business by not making decisions. We need to face the crisis before it is necessary to do so," she stressed.

Later, answering a question, Kamer spoke of an issue with economic impact in the region - people are drawing down the equity in their homes. "The reverse mortgage is growing," she commented, "and it is a dangerous trend. It is a dilemma," she cautioned, "because you can't stay in your home unless you draw out of your home."

Frank Scott, a 37-year resident of Freeport, is board chair of Project GRAD Long Island, an organization working with underprivileged children to assure they get a quality education in preparation for college. He touched upon how special districts affect communities without a strong commercial tax base. He stated that once a budget is approved costs can go up and the taxpayer is unaware. He claimed it was often purposeful keeping taxpayers in the dark, and, he continued, trustees or commissioners often have no financial background. He further claimed private contractors often cost less and provide better service. People have to take an interest in what is happening now in Nassau County.

Commissioners of fire, sanitary and water districts provided balance as they extolled the virtues of special districts.

George von Glahn, involved with the Seaford Fire District for 34 years, currently serving as commissioner, said, "We are a volunteer fire department and that keeps costs down. The commissioner works for free." He said there are 72 fire districts in Nassau County and in Seaford it costs taxpayers $300 annually. "Why talk of merging with Wantagh or Massapequa when for roughly $30 more a year you can have your own fire department? We do what is required and publish in the legal pages of the paper--people are not kept in the dark. If you give me a dollar a day for fire service, I give you change."

Joseph Candella served as chairman and member of the board of Sanitary District #1 for 12 years. Candella spoke in favor of Sanitary District #1 saying for 77 years, since 1929, the district has been providing service, currently to 18,000 residents, carting 38,000 tons a year. Over a two-week period garbage is collected five times, 105 workers are employed using 50 trucks. They provide rear yard service, require no special bundling and all separating is done at the plant, resulting in a greater percentage of recyclables. It is a cost effective, efficient operation, he attested.

Karl Schweitzer has been Hicksville Water District Commissioner since 2003, is a third generation firefighter, and has served in leadership roles with the Hicksville Fire Department, including chief. Schweitzer said, "The water supply industry is not causing residents to flee off the island." He said it is difficult to make comparisons because treatment facilities are different, water quality differs, and, he added, local community directors drink the same water. "Why have the local tax diverted to other communities?" he asked. "Employees live and work in the area, residents can attend board meetings and there is a strong identity and sense of place."

Laura Mallay resides in South Hempstead and when she learned her fire district taxes were the highest in Nassau and her garbage taxes the second highest in the county she decided to challenge the system and ran against the incumbent commissioner of the sanitary district. Her effort was a disaster because, she said, while town officials encouraged her to run they sabotaged her effort. She said tax dollars were used to print fliers against her and employees on the district payroll distributed the fliers. Mallay received enthusiastic applause at the conclusion of her story.

Mitchell H. Pally, vice president of Government Affairs for the Long Island Association, said, "We have to objectively determine whether the services being provided to our residents are being provided at the lowest cost possible, in view of the fact that we pay the highest local real property tax rates in the country." Pally said the future of Long Island depends on our ability to change with the times. "Recommendations have been made in the past but none were implemented. People don't want change. And it is not because we don't know what to, but because we don't want to do what we have to do," he said. He suggested people decide themselves on consolidation between town government and special districts already in place.

Elizabeth Moore, a Newsday reporter, said she made over 600 Freedom of Information requests for her award winning eight -day series on fire districts. Moore commented that a sense of place is so precious here, so powerful, but in the last few decades the costs have become prohibitive. She claimed Long Islanders pay three to five times as much as others in the northeast for fire service.

Nassau Legislator Roger Corbin said, "Seniors and young adults can no longer afford to live here. And there is a caveat elected officials do not talk of, the area is racially segregated." And, Corbin said, malls seduce shoppers who don't spend in their own areas and he believes sales tax should benefit everyone, not just the school districts housing the malls.

Hempstead Supervisor Kate Murray said residents should be able to view budgets on a website. Murray does not see the process operating from a top down approach; rather, she sees it initiated by the community. "The conference is an excellent beginning," she agreed, "but the problems will not be solved tomorrow."

North Hempstead Supervisor Jon Kaiman said the town had recently created an Office of Intermunicipal Coordination in an effort to partner with municipal entities for more efficient government.

Oyster Bay Supervisor John Venditto said, "Sometimes it feels like four trucks stop at an intersection, representing the state, county, town and village and no one knows what to do. It happens day in and day out with all types of situations. Even putting up a Stop sign. We need to stop this craziness. Every level of government should play to its strength and there is no need to wait for state incentives. Communication is important." He said no one in the room set up the system, it was decades in the making, and the "blame game" is but a disruptive force.

The representative from Montgomery County, Maryland, a county often cited for its streamlined and unified approach to county government, said that when the county found themselves in a situation similar to Nassau County's they were able to turn it around.

The conference was attended by over 300 and was an encouraging first step.

Following the June 8 Nassau County Conference on Special Districts, a question and answer session was held, permitting local taxpayers to ask questions and make comments, some of which appear below.

A taxpayer suggested, "If we want to eliminate special districts let the town lead the way, let the town change for the better first. There is a high level of comfort with local services and the Town of North Hempstead is not as responsive. Their much touted 311 does not work. The town must work if we give it over to the town. Districts can work, maybe add a 10 percent charge."

A Baldwin resident stated that local districts enjoy powerful voting blocks and there needs to be a groundswell from the community to effect change. "The voter needs to be educated about the relationship of the tax bill to special districts. People are too busy to have to remember to look in the legal section of the paper for information," the resident said.

A Garden City taxpayer said special districts account for 10 percent of our taxes while school districts account for 60--65 percent of taxes. When will that problem be addressed, he asked. Richard Guardino said the resident made a good point but that this conference had made the decision to focus on special districts. Guardino said a conference in Suffolk County on school taxes was being monitored. He added that many issues involving school taxes are not a Nassau County issue but a state--wide issue. Tom Suozzi commented that the issues overlap and he was holding meetings with school superintendents and school boards.

The president of the Nassau County League of Women Voters applauded the conference and said the organization "will go the distance with you."

A Great Neck fireman said that a paid fireman would not go to work in a big disaster if that fireman lived in Westchester. Weitzman answered that volunteers would be used as long as there were volunteers but that Emergency Medical Service (EMS) personnel are a different story. And, he said volunteers are fine but he questioned whether all the firehouses and all the equipment that we now have are needed.

A taxpayer said he found it curious that the Nassau County Planning Commission was absent from the conference when they do the planning. He also said they have a map showing special district boundaries which should be put into the public domain, since it was paid for with public funds. He said that on the website www.mynassauproperty.gov, a taxpayer should be able to look at his own property and see what districts it is in. That information, he said, would be a tremendous asset and that a list is needed of all districts that exist, listing who sits on the boards, addresses, etc., and that, he said, "is part of what you all are supposed to be doing." He also mused about a reporter from Newsday knowing the most about fire districts.

-PG