Nassau County - Long Island, New York

Moody's Affirms Nassau's A1 Rating

County Faces More Challenges Left Behind by Prior Administration

Nassau County Executive Edward P. Mangano received notice today that Moody’s has removed Nassau County from its credit watch and has maintained Nassau County’s A1 long-term general obligation rating. Moody’s noted the steps taken over the past six months has resulted in the County’s financial position remaining stable.

“My administration has taken significant steps toward addressing the challenges we inherited from the prior administration that spent too much, reformed too little and negotiated away contractual labor obligations that taxpayers can simply not afford,” said County Executive Ed Mangano.

An excerpt from the rating agency states, “The confirmation of the long-term rating recognizes that despite ongoing financial challenges, the county’s financial position has remained relatively stable over the last six months.”

During the past six months, County Executive Mangano and the Republican Legislators laid out a plan for 2011 to right size government and meet challenges brought forth by labor contracts negotiated by the former County Executive. Challenges included meeting an increase of $44 million in employee pension costs; an increase of $21 million in employee health care costs; and an increase of $65 million in additional expenses associated with our labor contracts and contractual obligations that were kicked down the road to 2011 and 2012.

Also over this six month period, Comptroller Maragos reported that the County ended 2010 with a $17.2 million surplus. This surplus confirms the Mangano Administration’s ability to meet and overcome fiscal challenges without taking more property taxes from residents.

The Real Mangano Record

 

  • Cut over $171 million in wasteful spending through employee reductions, departmental consolidations and the streamlining of other services.

  • Reduced the workforce to operate County government in 2011 with 800 fewer positions than in the 2010 Budget - reducing the workforce to the lowest level since the 1950s and saving taxpayers $70 million in 2011.

  • Reduced staff in the County Executive’s Office by $1 million as compared to the former County Executive.

  • Closed a projected $133 million budget deficit in 2010 and ended the year with a $17.2 million surplus.

  • Will close the projected budget deficit in 2011 despite repealing the Home Energy Tax and a property tax hike planned by the prior administration.