On Sept. 17 I was pleased to submit my first budget as county executive and my second Multi-Year Financial Plan. These documents represent a responsible fiscal plan that addresses not only the years of waste, neglect and abuse in county government, but also the effects of the precipitous decline in the national, state and regional economies.

The 2003 budget is balanced.

The 2003-2006 Multi-Year Plan provides for four consecutive balanced budgets that restore fiscal stability to Nassau County.

On April 1, 2002 our team, Team Nassau, presented our 2002-2005 Multi-Year Plan to eliminate a $428 million deficit by reducing the work force by 1200, reforming government processes with cost saving initiatives, seeking labor concessions and borrowing less to cut over $300 million, and raising $119 million in taxes.

At that time, our plan garnered the support of the entire NIFA Board, the majority of the county legislators, the public and the investment community. Based upon the strength of the Plan, Standard & Poors removed Nassau County from "credit watch" for the first time in two years.

In the five months since the adoption of the 2002-2005 plan, the economy's decline has had a dramatic negative effect on the county's fiscal health. Three factors, beyond the control of our management team, have specifically contributed to Nassau County's increased expenses above our conservative April estimates. Increased Medicaid, pension, and health insurance costs will contribute almost $100 million in previously unaccounted-for expenses. These same problems are affecting the budgets of counties throughout the State of New York.

These costs, again, completely outside our control, when combined with police accruals related to potential arbitration awards, also beyond our control, represent the entire increase in county spending from 2002 to 2003 of $132 million. Were it not for these costs, my budget would in fact decrease spending as a result of our work force reductions and other numerous cost-cutting measures.

Our credible financial plan to eliminate the budget gap will, we believe, again merit the support of the investment community, NIFA, the legislature and the public:

A dramatic 15 percent work force reduction from 1200 to 1400 employees saving $130 million by cutting the workforce to its lowest level in a decade, streamlining operations and eliminating waste and patronage;

Over $70 million in savings in smart government initiatives by re-engineering government, eliminating wasteful contracts with outside politically connected firms, and cutting non-mandated duplicative programs and bureaucracy;

Labor concessions with savings valued at $74 million by improving productivity, work rules and stabilizing wages and other benefits consistent with economic realities;

Debt reform, with an over 50 percent reduction in borrowing and restructuring saving $34 million, and the creation of the Sewer and Storm Water Authority in the amount of $26 million annually; and $119 million in recurring revenues from an increase in the county portion of the property tax. If the economy does not improve we will have to look to other non-property tax revenues similar to those already collected in Suffolk and sought statewide.

I will stand by my pledge made on April 1, 2002, that the proposed property tax increase will be the only increase during my four-year term. In addition, to avoid the politically motivated mistakes of the past, starting in 2006 I propose that Nassau County move to annual adjustments on property taxes consistent with the Consumer Price Index.

Nassau County's financial plan also describes investments this County must make to improve its operations and to find further savings and increase non-tax revenues despite the dramatic 1400 person workforce reduction. To highlight a few, I am proposing: staffing an office of the Commissioner of Investigations to further root out waste, fraud and corruption and eliminate theft; the use of a $1 million bonus pool to encourage increased productivity and to recognize outstanding employee performance that reduces costs and increases revenues; greater investment in staffing levels at the Assessment Review Commission and Assessor's Office to reform the flawed property assessment system that has cost the county hundreds of millions of dollars; a reduction in work assigned to outside counsel by the County Attorney's 0ffice; development of a regional planning model to prepare Nassau County for the next fifty years of responsible economic growth that improves the quality of life of the nation's first mature suburb; staffing an Office of Emergency Management to improve Nassau County's ability to respond to 21st century public safety needs; and investment in modernized information technology infrastructure and systems that enhance performance and productivity while saving county costs.

We accept the challenge of restoring fiscal stability and integrity to Nassau County with vigor.

We will continue to work harder, and longer and better until Nassau County is "The Best County in the Country."