In a vote that went strictly along party lines, the Nassau County Legislature has approved a 2003 budget. Shortly after legislative passage, the Nassau Interim Finance Authority (NIFA) also okayed the budget, making the process official.

While approving the budget, NIFA officials expressed their displeasure with some of its numbers. Their main objections had to do with the legislature using projected increases in sales taxes and contingency funds to cover an additional $10 million in expenses. NIFA officials would have preferred more budget cuts. Moreover, several of them hinted that if more progress isn't made by the spring of 2003, then NIFA might take over the county's finances entirely.

The budget totals $2.28 billion. Among its highlights are a 15 percent or 1,400 workforce reduction, contract cuts, and $17.4 million in savings from "smart government" initiatives. All 10 Democrats in the legislature voted for the budget, while the nine Republicans opposed it.

In reaching a budget agreement, lawmakers had to contend with the rising costs of unfunded state mandates. That included, among other programs, Medicaid costs, New York State pension contributions, health insurance and special education programs.

The 2003 budget represents a $142 million spending increase over last year's budget. According to lawmakers who supported the document, "every cent" in increased spending is a result of having to meet such state mandates. The pension contribution, for instance, had an increase in $42 million from the previous year, while health insurance rose $16.6 million, and Medicaid costs saw a $25 million increase.

Also on the spending side, the final budget included the restoration of $641,00 in cuts made to the county's Youth Board agencies. The county executive's proposed budget had included a 10 percent across the board cuts in such programs.

The restoration of youth agency funding was offset by $671,435 in cuts in other programs, which included the elimination of $300,000 in outside legal contracts from the county attorney's office; the elimination of $143,050 for two funded vacancies in the corrections center; the elimination of $132,750 for two funded vacancies in the Department of Investigations; and the reduction of $95,635 from a chauffeur's salary in the district attorney's office.

According to Minority Leader Peter Schmitt (R. -Massapequa), the Republican Party offered their savings plans. They included assisting towns and villages in their efforts to cut spending, eliminating certain departments, and an overall cap on spending.

On the revenue side, a tax increase is also part of the final package. Property taxes in Nassau County will see a 19.4 percent increase in the coming year, an amount that is estimated to cost the average homeowner an extra $234 in payments. Lawmakers said the tax increase was necessary to deal with past budget deficits.

In response to the county's recent fiscal problems, NIFA was created by the administration of Governor George Pataki. It serves as a review board that makes sure Nassau County's budget and its finances in general remain within certain bounds. It is made up of seven members, all appointed by the governor.