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        September 18, 2003

Jacobs: 'Since 2000, Spending in Nassau County Has Decreased By $60 Million'

A recent report issued by the Legislative Majority's Financial Office shows that spending in the last three budgets voted on by the Democratic Majority has been reduced by $60 million or 3.29% since 2000.

The four-page analysis of the last three county budgets goes on to show that if mandated costs such as Medicaid, health insurance, and pension costs are factored out, this year's proposed 2004 budget actually shows a reduction in spending of $60 million.

"While minority members and others choose to misrepresent the truth by stating that spending has grown, this is simply not the truth," said Presiding Officer Judy Jacobs D-Woodbury). "We have cut spending by millions."

Due to escalating mandated costs such as Medicaid, health insurance and pensions in the years 2001, 2002, and 2003, spending expenses grew by $72.4 million or 3.26%. This situation has led other counties into deficits.

"We have no control over these costs," said Legislator Jacobs. "But what we do have control over has been cut. The County Executive's recently proposed 2004 budget, which includes no tax increase, is conservatively balanced and holds the line on spending in these difficult times."

Legislative Majority Democrats adopted three budgets since being elected in 2000. In January 2000, the new majority diligently worked on the FY 2001 budget and with the help of NIFA adopted their first budget on November 5, 2000. The 2000 budget of $2.2 billion was cut to $2.08 billion in 2001.

Subsequently, the majority adopted the FY 2002 budget on November 26, 2001 and the first budget proposed by County Executive Tom Suozzi, the FY 2003 budget, on October 28, 2002.

During the adoption of those three budgets, the majority has had to make many difficult decisions in the face of growing mandated costs. The greatest of those mandated costs are Medicaid, health insurance, and pension costs.

Medicaid:
2001 budget $273.2 M
2003 budget $321.5 M
This represents an increase of $48.3 million or 17.7%.

Health Insurance:
2001 budget $107.3 M
2003 budget $143.7 M
This represents an increase of $36.4 million or 33.9%.

Pension Costs:
2001 budget $13.6 M
2003 budget $61.4 M
This represents an increase of $47.8 million or 352%.

Combined, the 2001 adopted budget included a $394.1 million appropriation for Medicaid, health insurance, and pension costs. By 2003, these costs rose to $526.6 M-an increase of $132.5 million or 33.6%! Yet, the 2004 budget, proposed to be $2.28 billion is only $72 million more than the 2000 budget inherited from four years ago. Thus, the majority has cut spending when taking the $132.5 million increase in mandates into account. This cut in spending over four years comes even as fixed costs - costs for energy, contracts, wages - continue to increase.

"This report just clarifies what we have known all along. That we are indeed moving this county forward," said Jacobs. "Cutting spending and bringing the budget under control was one of the reasons why Nassau County received its first bond rating upgrade in over 15 years."

Recently, a special report put out in September 2003 by Moody's Investment Service states that Nassau County is "bucking the trend" by being one of only five other counties in New York State to receive a rating upgrade in these difficult financial times.


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