May 18, 2011
Nassau County Comptroller George Maragos issued the first quarter report on the County’s finances today. The purpose of the report is to identify budgetary trends and risks based on the actual first three months financial results and the limited effects of the administration’s new actions to maintain the budget in balance.
As a result of this early analysis, without accounting for further actions that will not take effect until later this year, the County is projected to show a year-end budgetary shortfall of $52.7 million. The Administration has indicated that its early actions will correct the shortfall and finish 2011 in budgetary balance.
“The Mangano Administration is to be commended for its fiscal management in absorbing double digit increases in pension costs and health insurance premiums, and cuts in federal stimulus assistance while protecting taxpayers by holding the line on property taxes to a ZERO percent increase,” said Comptroller Maragos. “The new initiatives will need to be successfully implemented in order to overcome the shortfall in revenues and the negative budgetary effects from NIFA”
The $52.7 million projected year-end deficit is caused by an anticipated shortfall in revenues of $123.4 million and $70 million in higher than budgeted expenses due to NIFA requiring the County to pay property tax refunds directly from operations. The negative budget variances are offset by $73.8 million in new opportunities that have been initiated already by the Mangano Administration. The Administration has identified but not quantified additional actions to close the projected gap without a property tax increase. The projected year-end budgetary shortfall, before all gap closing opportunities, is in line with each of the prior two years.
“The Mangano Administration should be able to close the projected deficit by successfully implementing the additional proposed actions and end the fiscal year in balance,” Comptroller Maragos concluded.
The full report is available by clicking on the link below