Ending weeks of anticipation, Nassau County Executive Thomas Gulotta released his comprehensive plan for returning the county to fiscal wellness in a press conference late last week. If not accepted by the county legislature, he stated he would seek a mid-year tax increase to address an estimated deficit ranging between $117 and $200 million.

"The more cooperation there is between the Executive, the County-Legislature, the County employees, the State, and other interested parties, the easier this problem will be to solve," said Gulotta. "If the political will or bipartisan cooperation are lacking, however, I will have no choice but to seek a tax increase if that is the only recourse in closing this year's budget gap and putting Nassau County on a strong and sustainable financial footing."

The highlight of Gulotta's plan is the borrowing of an undetermined amount of funds from the $54 million trust fund set up to pay for healthcare for the indigent. The fund was created by a portion of last year's tobacco settlement money. Other actions proposed by Gulotta include, opting into managed care with Maximus, the State Managed Care Broker, at a savings of $11 million annually; increased county fees; and securing a waiver to forgive the county of its obligation to provide a $250,000 subsidy to the Nassau County Museum of Art.

Gulotta's decision to take monies from the tobacco trust fund drew broad criticism from Democrats and Republicans alike. Presiding Officer Judy Jacobs stated in an interview following the press conference that "raiding the tobacco money is something we would never be a party of and it is not a considerable option."

She continued to state that she had received word from the Nassau Healthcare Corporation, the operators of the Nassau County Medical Center, that they would not support any change in the trust fund.

Minority Leader Peter Schmitt likewise stated the tobacco money is not a viable option. "That money is in a lock-boxed trust and it is not ours to give," said Schmitt. "We would not support using it for filling a hole in 2000, if it would only create holes for four years in a row in other budgets."

According to Gulotta's press release detailing his plan, several state initiatives would generate $38.2 million. These actions include: the retroactive reimbursement of $14 million to the county from the state for state ready prisoners, the deferral of the county's MTA station maintenance payment of $19 million until January, 2001, and a 5 cents tobacco tax per pack of cigarettes that would tender $4.3 million.

Gulotta also indicated in his press conference and news release that $70 million has already been realized in recurring and non-recurring new revenue and spending cuts. Included in these savings was the $9.8 cut from discretionary funds (social services), $7 million from reducing the MTA/LI Bus annual subsidy, $700,000 from the county furlough in February, $20 million of one-time revenue from an agreement between LIPA and Nassau County, $4 million from the recently passed "E-911" surcharge, $4 million from the elimination of cash overtime payments, $100,000 from the elimination of meal money for non-union employees, and $3.5 million in increased parks and recreation fees.

Included in this estimate are funds anticipated if the Patrolmen's Benevolent Association (PBA) and Civil Service Employees Association (CSEA) accept lag payrolls in lieu of layoffs, and moneys awarded to Nassau County LIPA consumers in a court decision.

The county executive is also prepared to privatize certain county operations including sewer districts, golf courses, and Off-Track Betting. The savings to be accrued from these steps cannot determined at this point.

Presiding Officer Jacobs stated that although certain aspects of the plan are positive, such as the fee increases, she is equally disturbed that the plan did not exhibit certain cuts in expenditures, which she feels is necessary for any sustained recovery to take place.

"Violation fine increases, and moving violation fine increases, they are elements within it that are doable, but there are other elements that show me he is still lost somewhere," said Jacobs.

Minority Leader Peter Schmitt said in a statement released from his office that "This is the first step in meeting the requirements of the resolution set by the legislature for the county executive to submit a comprehensive fiscal action plan. We await the appropriate legislation to be submitted by the county executive to the legislature for our review and approval. We will exercise our responsibility as legislators to give the county executive's proposals our full consideration."