Nassau County Legislature - District 1 Press Releases

March 4, 2004

Abrahams & Majority propose reforms & stringent oversight of Economic Development agencies

Mineola, NY -Nassau County Legislator Kevan Abrahams (D-Hempstead) and Democratic members of the Rules Committee today proposed the first wave of controls, procedural reforms and new laws for the County's Economic Development office that address the mismanagement that occurred in almost all of its agencies.

"Through the extensive testimony heard at the Economic Development hearings over the past two months we have concluded that there were serious flaws in the personnel management, purchasing and procurement practices and the administration of professional service contracts," said Legislator Abrahams. "We believe there is a clear need for new and comprehensive rules, regulations and policies for the Economic Development office. Today we are proposing the first round of new laws that would provide the legislature with mandated oversight."

Some of the proposed changes include requiring contracts over $25,000 to be approved by the legislature, removing loopholes that exempt some contracts from approval, changing the reporting requirements for some agencies and disbanding and merging several agencies within the Economic Development office.

"We are addressing some of the obvious shortfalls that have come to our attention over the past several months during the hearings by the Rules Committee," said Abrahams. "Today's proposals are by no means the final word on the Economic Development debacle, but rather just a good start. We will be awaiting the final report by the legislature's Independent Budget Review Office and we will process any additional information that is submitted over the next few weeks."

Legislative reforms include

Changing the reporting requirements for the Industrial Development Agency (IDA) so that the agency will also report to the legislature. The legislature will also seek the authority to audit the IDA. Both these changes require state legislation.

Requiring legislative approval for all Office of Housing and Intergovernmental Affairs personal service contracts over $25,000.

Closing any loopholes in the current contract law which may have been used to allow certain law firm contracts to escape legislative approval.

Creating legislative oversight for special purpose agencies and requiring legislative approval for the formation of any not-for-profit.

"These proposed laws and amendments will clearly provide the much needed oversight for the most vulnerable department in the county, the OHIA," said Legislator Abrahams.

Proposed Policy Changes

In addition, policy changes proposed by the legislative majority include:

The possible consolidation, merging and/or elimination of agencies which are duplicative, merging the Economic Development Corporation with the Local Development Corporation and merging the Sports, Entertainment and Tourism office into the Parks Department. The legislature will also be examining the Office of Investigations between now and budget time to determine whether it is achieving its charter objectives.

"The EDC and LDC have identical mission statements and there is clearly no need for both agencies," said Legislator Abrahams. "The Sports, Entertainment & Tourism office has produced little and taxpayers would be better served by merging this office into the Parks, Recreation and Museum Department."