Legislative leaders and County Executive Thomas Gulotta came to terms this week on an agreement to make $52.5 million in cuts to the county's 2000 budget.

The agreement, which constitutes the first round of cuts that would be mandated by a $100 million state plan to help bail out the county from its burgeoning budget deficit, was met with a favorable reaction from the plan's architect, Frank Zarb. The agreement is infused with $56 million in recurring revenues, a major criteria set by the "Zarb Plan."

The move should also help appease Wall Street credit agencies that have been threatening to reduce the county's credit rating to junk-bond status if it did not take dramatic steps to closing its 2000 budget by June 30.

"The bipartisan spending cuts comply with the requirements of the "Zarb Plan" and will ensure a strong bond rating for the county while maintaining the quality of life for our residents without a property tax increase," said Gulotta in a press release announcing the agreement.

Although the first hurdle appears to be cleared, the county still has to make an additional $70 million in cuts for its 2001 budget. Many observers have stated that is where the true test will lie, and a tax increase is not entirely out of the question.

"Let's not kid ourselves," said Judy Jacobs, presiding officer of the legislature. "This is only the first step of a very long process .... it is not going to be easy and no one should fool themselves into a false sense of security. I do not want to put a downer on it. I am very pleased we took this first step, but we [legislators] are all very aware that we have a long way to go and a lot of painful steps to make."

"We must recognize that ahead lies much more hard work and shared sacrifice," said Gulotta. "After witnessing the cooperation and compromise that went into creating this plan, I am confident that this can and will be done."

The county legislature approved a Home Rule message on Tuesday to formally ask the state to pass legislation that outlines the bailout plan and forms the Nassau Interim Finance Authority (NIFA).

Throughout negotiations, it was reported that several points of contention had arisen between Gulotta and the Democrats involving county-held non-union (patronage) positions and funding to human services agencies and programs.

In a press conference held late last week, the Democratic majority called for the elimination of 56 non-union positions, a move that they say would save the county $14.4 million over the next four years. Democrats have been fighting to have funding for social and human services in the county restored since they were cut at the beginning of the year.

According to the agreement, $1 million was restored to human services and an additional $2.5 million will be restored in 2001. Funding was also fully restored to Long Island Bus, and the day care salary enhancement program was preserved.

The agreement is highlighted by about 60 spending cuts that include a hiring freeze, steamlining and a reduction of staffing, overtime reductions, and incentives to encourage the retirement of high paid county employees with longevity.

Also included in the agreement is $14 million from the state for the reimbursement of housing state prisioners at the county jail. Measures taken involving the police department, which includes a lag payroll or a layoff of 277 officers, accounts for over $10 million.