"Nassau County - Long Island, New York"

Nassau County Executive Edward P. Mangano was joined today by Presiding Officer Peter Schmitt and Comptroller George Maragos to announce the Legislature will hold hearings on the Taxpayer Relief Act which empowers County Executive Mangano to order labor savings for 2012 should the County’s labor unions fail to finalize givebacks over the coming weeks. While the Republican Legislative Majority passed a balanced budget for 2011, budgets for 2012 and beyond will not be balanced unless County Executive Mangano and the Legislature rein in the costly, entitlement-laden labor contracts negotiated by former County Executive Tom Suozzi.

“While county public employees are competent, hard-working people who provide important services, our residents can no longer afford the high costs associated with our labor force,” said County Executive Edward P. Mangano. “Nassau families and seniors already pay the second highest property taxes in the nation and they are at a breaking point. Because our taxpayers need protection, I urge the Legislature to pass the Taxpayer Relief Act as quickly as possible. For 2012, there will be voluntary concessions, ordered concessions or employees will be laid off.”

No one, including the Nassau County Interim Finance Authority (NIFA), has the authority to reopen labor contracts with the unions. Under the law, current labor contracts can only be opened through mutual agreements with the unions or through the authority that will be granted to the County Executive by a Taxpayer Relief Act.

“Recent quotes attributed to union leaders have unfortunately put this county in greater fiscal jeopardy. If union negotiations have indeed ended, as some unions have publicly stated, and they are not willing to participate in a savings negotiation, then there may be no choice but to empower the County Executive to pursue this avenue of fiscal givebacks,” stated Presiding Officer Schmitt.

Introduced by Mangano in September 2010, the Act empowers the County Executive to open labor contracts and order millions in savings for taxpayers. Under NIFA’s watch, former County Executive Suozzi entered into overly generous labor contracts, through 2016, that failed to consider residents ability to pay. Current labor contracts include annual salary increases, longevity pay, educational allowances that do not require any education, time off for donating blood and even a no-lay-off provision. Over the life of the contracts, total benefits derived are projected to exceed the Consumer Price Index (CPI) by over $500 million unless concessions are made.

Comptroller Maragos stated, “I urge the public employee unions to work with the administration and agree to labor concessions that are no different from those required in the private sector. Shared sacrifice is required from all to ensure that the taxpayers are not being asked to carry an unfair and unaffordable burden.”

The only reasonable and responsible solution is to restructure the county labor contracts that are currently threatening Nassau’s future fiscal stability. Recognizing the inability of residents to pay for these contracts, County Executive Mangano has sought labor savings since September 2010 through negotiations with the County’s labor unions.

“At a time when private-sector unemployment is high and foreclosures in Nassau top 7,100 homes, it is not fair for Nassau’s public-sector employees to be immune while private sector families bear all the sacrifice,” said Mangano. “Rather than face ordered labor savings from the Taxpayer Relief Act, Nassau’s public employee unions should do the right thing and agree to renegotiate their contracts. If they do not, I am fully prepared to enforce the concessions the county needs.”

Since taking office, County Executive Mangano and the Republican Legislative Majority have made significant strides toward fixing Nassau’s finances and protecting taxpayers. Inheriting a 2010 budget deficit of $133 million from former County Executive Suozzi, Mangano cut wasteful spending and closed the year with a surplus through the use of strong financial management practices. In October 2010, the Republican Legislative Majority adopted Mangano’s 2011 No Property Tax Increase County Budget that cuts $148 million in spending while achieving $40 million in labor savings through the elimination of 125 non-patrol police positions and more than 300 other county workforce positions. As a result of these actions, the number of budgeted employees has dropped by 400 positions, from 8,810 in 2010 to 8,410 in 2011, bringing the total number of employees to the lowest level since the 1950s. In December 2010, Mangano announced an additional $15 million in labor savings, for a total of $55 million, for 2011 through the implementation of a hiring freeze for 210 non-essential personnel. The County is operating with 610 fewer employees in 2011.

“Nassau taxpayers demanded we reduce costs to get taxes under control,” said Mangano. “Because I take that demand seriously, I cut $148 million in spending and reduced the payroll by 400 positions. Today we operate with 610 fewer employees while holding the line on property taxes for homeowners and employers alike.

Mangano & Schmitt Announce Hearings On Taxpayer Relief Act