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        April 5, 2001



When the Democratic Majority assumed control of the Legislature in January 2000, the County faced fiscal collapse. Expenses exceeded revenues. There was no plan to close deficits approaching a half-billion dollars by 2004. Wall Street was on the verge of lowering the County's credit rating to junk status. Clearly, a leadership vacuum had left the County spiraling out of control.

The Democratic Majority immediately focused its attention on restoring fiscal order, and within weeks began to take the necessary legislative and budgetary steps to achieve that goal. In 2000, the Democratic Majority took the lead and cut wasteful spending, particularly in the area of employee perks, initiated the elimination of high-salaried patronage positions and saved thousands of taxpayer dollars by carefully reviewing and ultimately rejecting or amending numerous contracts proposed by the County Executive that granted "sweetheart provisions" to outside firms. In addition, we helped develop the County's first ever Four-Year Financial Plan, refused to adopt a Fiscal 2001 budget that contained fiscal gimmicks and inflated and unrealistic assumptions, and approved a smart re-assessment plan that will reduce the County's tax certiorari borrowing costs by millions of dollars annually.

Though most of the year was spent focusing on fiscal matters, the Democratic Majority also reformed other aspects of County government. We passed a landmark human rights law, which outlaws discrimination against a host of individuals in the community. We opened-up County government to the people by holding a greater number of public hearings and inviting public comment at committee meetings. In addition, we improved cooperation between levels of government, by granting financial assistance to villages, as had been previously done with towns and cities.

Clearly, the Democratic Majority accomplished many goals during its first year in office. However, 2000 was only the beginning. We must continue to build on the foundation established in 2000. And, as opposed to 1999 when the public had to base its confidence in us on faith, this year the public can view our proven record of accomplishment as insurance that positive change will continue to occur.

The Democratic Majority's vision for the future is based on the following principles:
  • The professional management of the budget
  • Integrity in budgeting
  • Fair labor agreements for both employees and management
  • The streamlining of inefficient bureaucracy
  • Environmental protection
  • The elimination of duplication of government services
  • Quality health care
  • Humane social service delivery
The County remains in the midst of a fiscal crisis, and the Legislative Majority remains committed to its utmost priority - maintaining a balanced budget and financial plan. Now that recovery has begun, the Democratic Caucus is committed to expanding its scope and adding to its agenda the following specific new initiatives that are crucial to the continued process of rebuilding Nassau County responsibly.

Budget Reform

A critical ingredient of the County's continued return to fiscal stability is the establishment of a formal process that prevents elected officials from resorting to the fiscal gimmickry, budget deception and irresponsibility of the past. These practices, far too common during the last 12 years, were instrumental in transforming a strong County into one that has teetered on the brink of bankruptcy for the last two years.

The Democratic Majority's budget reform package is founded on three principles: professional fiscal management, the integrity of the adopted budget and the supreme importance of public awareness of the County's fiscal goals and objectives. Each of the following initiatives, which represent significant reforms in the budget process, will require the adoption of local legislation and the public passage of charter referenda.

Establish a Formal Capital Budget and Financial Plan
At a time when it is projected to borrow more than $160 million annually, it is astonishing that the County has no formal Capital Budget or Capital Budget approval process. The County Executive and mid-level managers are free to make borrowing decisions with little regard to overall spending ceilings. The Legislature is asked to review projects on a piecemeal basis without any authority to prioritize them or to judge them in relation to a comprehensive package. Clearly, this situation fosters poor decision-making and contributes to increasing tax burdens in future years. This practice must stop.

The first step toward reforming this process is underway. The Majority was instrumental, along with other elected officials and County managers, in producing a Five-Year Capital Plan for the first time in two years, which was released earlier this week. However, even the Five-Year Capital Plan is a non-binding document. It merely serves as a compendium of project proposals that may or may not be funded or initiated by the County Executive.

Proposal: The Democratic Majority will draft and propose legislation within six weeks to establish a formal Capital Budget and Four-Year Financial Plan, subject to the annual approval of the Legislature. It would establish an annual process whereby the County Executive would be required to submit an annual budget and plan to the Legislature on April 15 of each year. Department heads would be required to appear before the Legislature prior to May 15th of each year to justify their capital requests and to provide status reports on existing projects. The annual Capital Budget and Five-Year Plan would be adopted by June 30th of each year. Furthermore, any subsequent changes to the Capital Budget and Plan would be subject to the approval of the Legislature.

The benefits of this proposal are clear. It would:
  • foster long-term planning, project prioritization, and fiscal stability by setting annual borrowing and spending limits
  • encourage the review of capital spending in totality as opposed to on a piecemeal basis
  • open up capital budget decision-making to legislative and public review
  • remove capital budget decisions from the sole discretion of the County Executive
  • streamline the cumbersome project approval process
Prohibit Executive Impoundment of Funds
The Adopted Budget is a legal document backed by the full force of the law. Its approval is usually the end result of many weeks of deliberation, review and negotiation. Therefore, the County Executive, and department heads, should be bound by the conditions of the budget. Far too frequently, however, the County Executive has disregarded the terms of the budget by both spending funds where they were not appropriated and withholding funds where they were appropriated. This increases the likelihood that funding deficits will occur in some areas and that services promised in other areas of the budget will not be delivered.

Proposal: The Democratic Majority will draft and propose legislation within six weeks that would make it illegal for the County Executive to unilaterally impound funds appropriated in the Adopted Budget without the approval of the Legislature. This would enhance the integrity of the budget, prevent the Executive from pursuing his own personal initiatives without limitation and ensure that services promised in the budget are delivered.

Permit Budget Transfers between Departments
One key to effectively managing a municipal budget is the ability to respond to unforeseen events as they occur. The flexibility to address emergencies expeditiously is critical to maintain a continuum of service and to prevent serious over-spending. Unfortunately, the charter, as currently constructed, prevents the County from transferring funds from one department to another until the eleventh month of the year. This makes it difficult for department heads to identify and gain access to funds to pay for such unforeseen eventualities as snowstorms, caseload increases and crime spikes.

Proposal: The Democratic Majority will draft and propose legislation within six weeks that would permit the County Executive, with the required approval of the Legislature, to transfer funds between departments throughout the year. This would enable departments to address their needs and at the same time permit the County's fiscal managers to take appropriate steps to maintain control over expenditures.

Consolidation of Multi-Level Government Services

As we look for ways to make government more efficient and less costly we recognize that millions of dollars can be saved each year through the consolidation of duplicative government services. The County, as well as cities, towns, and villages within the County, each allocate resources - such as employees, equipment, supplies, etc. - to provide a variety of services, including completing DPW projects, maintaining parks, managing senior citizens and youth services, purchasing supplies, performing drain and sump maintenance, sweeping and plowing streets, and landscaping common areas.

Advisory Panel
The Democratic caucus convened an advisory panel of government officials representing Nassau County and its cities, towns and villages last Fall to review areas of duplicative services and examine ways in which those services and resources - including bulk purchasing for municipal supplies - can be consolidated, thereby providing a savings for each municipal government as well as for every taxpayer within Nassau County.

For instance, the Department of Purchasing spends approximately $100 million a year on County purchases such as equipment, and supplies. Due to the magnitude of business in which the County engages, favorable discounts are available from hundreds of vendors who have bids with the County.

Upon the request of any town, city, village, school district or special district in the County, the Department of Purchasing may act as purchasing agent, whereby all government entities in Nassau could benefit from the discounts attributed to bulk purchasing. The consolidation might even produce additional savings because of the increased purchasing power.

According to the Department of Purchasing, this multi-level coordination rarely takes place because of the staffing shortages and the absence of a linked computer network. Without this coordination, the County and other municipalities spend more than they would otherwise need.

Purchasing Proposal:
The Democratic Majority proposes that the County and other municipalities take advantage of bulk purchasing opportunities. In order to accomplish this, the County needs to develop a comprehensive hardware and software package that would allow all municipalities within the County to gain immediate access to vendor bids electronically and further encourage participation. Although short-term costs are involved, the long-term savings will be more beneficial for the County.

Governmental Services Proposal:
Ongoing meetings between the County, towns, villages and cites, open the door for continued dialogue to explores areas of duplication. Committees within the Advisory Panel should be appointed to review and study areas for consolidation and identify where and how much in savings can be accomplished. Follow up reports indicating progress should be provided to all participants along with recommendations for areas that would be best served through consolidation.

Traffic and Parking Violations Agency Reform

Following a Public Safety Committee hearing on TPVA and the identification of costly administrative problems within the traffic agency, the Democratic Majority recognized a need for a complete overhaul of TPVA. There are a number of ways in which we can both improve services to Nassau County residents while increasing revenues from the collection of outstanding tickets. Unmonitored collection practices, outdated technology, courtroom backlogs, and short staffing have contributed to the poor performance of the agency and resulted in millions in uncollected fines. By increasing staff from 33 full-time and 11 part-time positions to 38 full time and seven part time positions, the County could realize an estimated $1.9 million in revenue at a cost of $200,000.

Legislatively, we can implement solutions that will enhance technology, update and expedite operations at TPVA and improve service to Nassau County residents while increasing revenues. However, the need for greater oversight is apparent. The agency has operated, from its inception, with no direct oversight from the county. Both the Prosecutor Selection Panel and the District Court Board of Judges have denied that they have any role outside of selecting the agency's Executive Director.

Proposal: Direct responsibility for the Traffic and Parking Violations Agency should shift from the Board of Judges to the County Executive and County Legislature. This can only be accomplished through state legislation. Therefore, we have lobbied the state Assembly and Senate to draft legislation that would assign direct responsibility for the agency to the County.

In addition, new leadership is imperative if the agency is to ever operate efficiently and effectively. Thomas Carroll has held the position of Executive Director for the agency since its inception. During his tenure, the ticket backlog has tripled and customer service has declined. The Democratic Majority is renewing its call for Mr. Carroll's removal as Executive Director and a replacement to be named.

Open Space Legislation

Responsible government includes responsible development and sensible planning as well as the protection of property for the specific purpose of preservation. This is particularly important in 2001, as we now have the unique opportunity to make decisions that will have a permanent effect on the nature of the County's landscape.

The Open Space and Parks Advisory Committee legislation which will come before us shortly, provides us with an opportunity to create a cogent plan and mechanism to facilitate purchases of undeveloped land or additions to existing lands and parks, including easements or other real property interests, quickly and efficiently as the need arises and opportunities are identified. The legislation would facilitate the purchase of undeveloped property in Nassau County for the purpose of preservation, as well as lend itself to the development of an overall planning strategy of open space. In addition, the legislation would facilitate the enhancement of cultural sites and historic properties, therefore improving recreational opportunities in the County.

Proposal: Approve proposed legislation that will create a committee to act in conjunction with the Nassau County Open Space Project to identify worthwhile projects to enhance and protect undeveloped parcels. Through ongoing communication with the County Executive and the County Legislature, in addition to an Annual Report to the Legislature, the committee would make recommendations to the County Legislature about potential land purchases and prioritize these opportunities. The committee would be made up of nine non-compensatory members, chosen by the Majority Leader, Minority Leader, and County Executive (three each). The committee will also solicit recommendations for projects to consider and seek public input as part of the project review and prioritization process.

Reform of Nassau's Real Property Assessment Grievance Process & Tax Certiorari Reform

The Legislative Majority embraces reform of a complex and unglamorous issue - inefficient real property assessment grievance/tax certiorari procedures - as a cornerstone of our fiscal recovery plan.

Between 1992 and early 1999 Nassau County paid out over $640 million in tax certiorari settlements without making a dent in the enormous case backlog.

We are optimistic that reassessment will staunch the flow of grievance claims being filed, but reassessment alone will not reform the system. Improving how cases are filed, increasing the thoroughness of administrative review, reforming the scope of judicial review and increasing the overall efficiency of the system (administratively) - would save the county millions of dollars annually.

Proposal: The property tax grievance and tax certiorari system is controlled by state law. In an effort to reduce delays and produce fiscal savings, the Legislative Majority proposes the following reforms that can be initiated without state "home rule" authorization. These include:

At the Assessment Review Commission (ARC)
  • provide the staff and resources sufficient to address each claim filed
  • research possible ethical violations of attorneys intentionally failing to provide supporting documentation necessary to review claims
  • conduct an efficiency study of staff and commissioner productivity
  • change the compensation format from salary to hourly

At the level involving the judiciary and County Attorney's office
  • increase staff to include additional attorneys, appraisers and support staff
  • modify case handling to include earlier filing of Notice of Issue, filing 'omnibus' motion and conditional orders upon failure to respond to such discovery requests and vigorously pursuing appeals
  • enhanced computerization
  • increase office space capacity
  • harmonize electronic filings and data with the Treasurer's Office, ARC, and Department of Assessment Legislation now being considered in Albany
  • change the grievance form to include the mandatory production of all necessary forms and require a filing fee
  • limit judicial review of cases dismissed by the ARC to the record submitted to the ARC
We also would urge working with the judiciary to
  • develop and use 'short form orders' to streamline case preparation and trial readiness
  • work with Administrative Judges to further develop and use 'blockbuster' parts dedicated to tax cert cases (importing judges and staff from other counties)
  • use judicial discretion under the case tracking/assignment system to pressure case preparation and trial readiness
Humanize Eviction Procedures

Nassau County still does not have a common sense way of protecting the dignity as well as the belongings of someone who has been evicted from their home or apartment. That is why we need to set in place a procedure, like those that already exist in other localities, to assure that the belongings of the person who has been evicted are not thrown out on the street, where they can be stolen or damaged.

Proposal: What is needed is a balanced approach that protects the legitimate property rights of landlords and of the former tenants and homeowners. The property of those who have been evicted should be stored in a commercial facility for a reasonable period of time. During that time, the evicted tenant and homeowner would have an opportunity to reclaim his or her property. This change in procedures, which is similar to those pursued by neighboring jurisdictions, will be implemented either through a change in local law or through a modification of administrative policy.

Contract Reform

Currently, the execution and processing of contracts is lengthy and inefficient. There are approximately 20 steps involved, which take anywhere from two weeks to 10 months to complete. In addition, once a contract is executed, payments to contract agencies and vendors for services rendered takes up to nine months. This results in significant inefficiencies with respect to the allocation of human/labor resources, as a disproportionate amount of time is spent routing a contract through this labyrinth process, which provides for 21 signatures from four departments.

In addition, agencies and vendors who contract with the County are routinely placed in the position of having to borrow to bridge the County's payment delay. One need only take note of the decreasing number of vendors who actually bid on County contracts to realize that the County's inefficient process is a deterrent to vigorous competition, and discourages interest on the part of vendors whose businesses cannot withstand the uncertainty of the County's payment process.

Overhaul the Contract Execution Process to make it efficient
While the sting of the Nassau County health care fiasco rightfully resulted in justifiably heightened concern for controls on our contract process, which in turn led to an increase in the number of steps in the execution/implementation process, we must revisit the process and the changes which were made and carefully assess whether the additional steps have proven effective or whether they simply have bogged down the process to an unreasonable and unacceptable level.

Proposal: The Democratic Majority is encouraging ongoing dialogue with the County Executive's Office, the Republican Minority, the Comptroller's Office, as well as contract agencies as part of a reform effort. Recommendations thus far include a variety of ideas, such as computerization; classification of contract agencies and vendors, (e.g. those that provide mandated vs. non-mandated services; vendors that provide personal services vs. non-personal services, etc.); increasing the duration of those contracts which provide mandated services, as well as those which provide services which have historically been provided by the County, (e.g. Youth Board; among others.) Continued meetings will allow us to properly assess whether these ideas will lead to greater efficiency and continuity.

Additional meetings are scheduled, and will continue until a well reasoned and workable consensus is reached regarding the need for positive change, as well as the means by which such change will be implemented.

Benefits:
  • promote well-organized contract classification structure
  • promote more efficient utilization of labor resources
  • reduce paperwork
  • improve morale of county workers
  • re-establish good will between the county and contract agencies/vendors
Reform the Contract Payment Process
In addition to contract execution reform, we must focus on the process of paying vendors for services. It is worth noting that timely payment has been historically problematic in this County, even before the implementation of the increased steps in the contract execution process. Because payments to vendors and contract agencies take up to nine months, they must routinely borrow while awaiting payment from the County. This results in accumulation of interest costs, which are eventually paid from the agency/vendor's budgetary allotment, often resulting in a shortfall by year's end or diminished services.

Proposal: The Democratic Majority's dialogue with the administration and contract agencies/vendors squarely address this issue. It is a constant source of distress for all involved, and significantly impacts the agencies/vendor's budgetary allotments. What is needed is a reformed execution process, from which a new contract classification and organizational structure will be formed. In that way we will be better able to complete the task of significantly reducing the delays in paying out on contracts.

In addition, the County requires that payments on contracts can only be made after services have been rendered, and is accomplished by a vouchering process. Inherent in the process, therefore, is delay. Reforming the process to either reduce the required steps involved, from submitting a voucher to cutting a check, or reducing the time between steps is a necessity if the process is ever to be expedited.

Benefits:
  • improve relationship between County and vendors/contract agencies
  • improve confidence in County's ability and willingness to pay
  • more of the agencies/vendors' allotment goes toward provision of services, and less to interest payments
  • savings to the County from reduction in supplementation appropriations
  • foster competition among vendors
  • increase the number of vendors bidding County contracts and improve quality of County vendors vying for County contracts, thereby increasing taxpayer savings through greater competition
Employee Contribution for Health Coverage

The provision of health benefits is one of the most critical components of any collective bargaining agreement. Employees deserve, and have come to expect, that their employers will cover a large part of their health care costs. The Democratic Caucus remains steadfast in its commitment to the County's workforce and to the provision of health coverage.

More than 45% of Nassau County's annual expenditures relate to the salaries and fringe benefits of its employees, and the Fiscal 2001 Budget appropriates approximately $230 million for fringe benefits. Of this amount, $72 million is specifically earmarked for health coverage. Clearly, the County's position on health coverage has a major impact on its finances.

Existing contracts with the County's five major labor unions guarantee full health care coverage for employees. In some cases, these benefits extend beyond the term of the contract. This is atypical for many public employees (and most private employees) in the region. For example, New York State requires some contribution from employees which is based on marital status. While this benefit cannot be considered outside the context of labor agreements as a whole, the current fiscal crisis necessitates that the County review its labor policy and determine if, in fact, there are areas where past practices that were affordable in prior years are no longer affordable.

In recognition of these concerns, the Democratic Majority first proposed a phase-in of an employee contribution for health coverage in April 2000.

Proposal: Beginning in 2002, the County should begin to phase-in a 10 percent employee contribution for health insurance as current labor contracts expire. Each collective bargaining unit would be asked to phase-in the contribution over a three-year period: five percent in year one, rising to 7.5 percent in year two and 10 percent in year three.

The incorporation of this policy into the next round of labor agreements would bring Nassau in line with most other employers and help ease fiscal pressures. It is estimated that County health cost savings would reach approximately $2 million in 2002, $5.1 million in 2003, $7.9 million in 2004 and $9.9 million in 2005.

Medical Center/Health Clinics Improvements

Historically, the mission of the Nassau University Medical Center (NUMC) has been to provide quality medical care to all County residents, especially the indigent and medically underserved. That mission has not changed with the sale of the hospital to the PBC, and the County is still committed to providing approximately $18 million in subsidies annually to the hospital in support of that mission.

In addition to the hospital, four satellite clinics were established in Hempstead, New Cassel, Freeport, and Inwood to ensure that the residents in those historically underserved areas have ready access to health care services in their community. In addition to serving their respective communities, the clinics were also intended to serve as a conduit for referrals to the Medical Center of both insured and uninsured patients, who were expected to choose the hospital for the provision of more acute care.

The PBC, however, has cut back on nursing and clerical staff at the various clinics, leaving the ones that remain open unable to adequately service their communities. Currently, the Hempstead clinic is closed, due to poor maintenance and a leaky roof, leaving the Freeport clinic to handle the overflow. The Freeport clinic is operational, but is in desperate need of additional space. The Inwood clinic is operational on a part-time basis, and the New Cassel clinic is open but is mired in issues concerning the effects of a nearby fish market. It is no wonder that the number of clinic visits is down from an annual high of 100,000 to a projected 50,000 this year.

Charges of mismanagement, neglect, overstaffing of the hospital, understaffing of the clinics, lack of training, insufficient support for research and education, continue to abound, reinforcing the public's perception of the medical center as a hospital of last resort.

Currently, the Nassau University Medical Center (NUMC) is operating on a sizeable deficit, and the financial viability of the hospital is questionable. According to many accounts, however, a Board appears to be in place (at least in part) which is attempting to serve the best interests of the hospital. Moreover, the new CEO, Richard Turan, is reportedly making a good-faith effort to wade through the hospital's tangled finances, in an effort to fiscally resuscitate it.

The Democratic Majority recently held hearings on the hospital focusing on both the hospitals and the clinics. The hearing addressed service delivery, as well as the fiscal viability of the hospital. Prior to the hearing, the Majority met with Board members, Richard Turan (CEO), as well as community health activists, in order to initiate a dialogue with an eye toward identifying and addressing the issues that have and continue to drain hospital resources. We garnered important information from the hearing, and continue to reach out to and dialogue with hospital officials. Keeping in mind that the County no longer owns the hospital, we must tread delicately in our zeal to ensure the hospital's survival and growth.

Proposal: We have requested and received the hospital's budget. Additionally, we have requested and are awaiting a report from Turan on the operational costs of the hospital, as well as reports in connection with the payment/fee/salary structure for doctors and other medical staff. These reports should provide insight into management/administrative weaknesses in connection with the allocation of fiscal resources. Moreover, we urge the Board and CEO to allocate additional resources to the hospital's education/training/research component to improve the quality of care, and to increase the number of patients served. Finally, the Democratic Majority is already on record regarding its support for the health clinics, and has urged that the hospital allocate resources to ensure that the four satellite clinics are full operational, well-staffed, well-promoted, safe, and able to provide quality medical care. The Majority also proposes that the hospital seriously focus on public relations, and do whatever is reasonably necessary to overcome the negative perception of the hospital.

Benefits:
  • change the public's negative perception of the hospital as one of last resort
  • restore public confidence in the hospital's ability to deliver quality health care
  • clinics provide quality health care in a safe, clean environment
  • hospital attracts a larger and more diverse patient population
  • increase the number of insured patients while maintaining quality service to the indigent
  • re-open the Hempstead clinic to provide needed services, and reduce the overload of the Freeport clinic