(MINEOLA, N.Y.) – On Tuesday, Oct. 22, the Nassau Interim Financial Agency (NIFA) adopted its report on Nassau County Executive Bruce A. Blakeman’s proposed Fiscal Year 2025 budget, which highlighted major structural shortcomings in the current year’s proposal and the County’s multi-year plan through 2028.
Following the release of the report, Nassau County Legislature Minority Leader Delia DeRiggi-Whitton (D – Glen Cove) issued the following statement:
“NIFA’s report validates the Democratic Minority’s serious concerns about County Executive Blakeman’s FY 25 budget proposal,” Minority Leader Delia DeRiggi-Whitton (D – Glen Cove) said. “Their findings corroborate our conclusions about how the County Executive is continuing to spread a false narrative and create illusions about Nassau’s fiscal health, when, in fact, his plan is riddled with obvious budgetary holes that could cause ballooning deficits in the future.”
“Nassau County taxpayers will be the ones left to deal with the consequences of the County Executive’s reckless approach – one that has failed to deliver promised tax cuts and imperils future funding for critical services. He and the Republican Majority have the votes to address these issues before the Oct. 30 budget meeting, and we call on them to heed these warnings and take responsible action,” Minority Leader DeRiggi-Whitton concluded.
Key Concerns Highlighted in the NIFA Report on Nassau County’s FY 25 Budget Proposal
- Reliance on ARPA Funds: The County’s projected 2024 budget surplus is almost entirely the result of a one-time infusion of $222.3 million in federal American Rescue Plan Act (ARPA) funds. Without these funds, the county would face a deficit.
- Projected Deficits: The report forecasts structural deficits between $189.8 million and $207.4 million in 2025, worsening to over $345 million by 2028. The county’s plan does not adequately address these long-term fiscal gaps.
- Overestimated Revenues and Underestimated Costs: The budget relies on overly optimistic revenue projects for fines, investment income, property sales and departmental revenue, while likely underestimating costs for health insurance, early intervention programs, and social services.
- Budget at Risk of Rejection: The County’s proposed use of fund balance as a revenue source violates Generally Accepted Accounting Principles (GAAP) that must be met to be approved by the Nassau Interim Finance Agency (NIFA), the fiscal oversight and control board that is in place due to Nassau’s history of fiscal mismanagement. Unless those issues are resolved, NIFA is likely to reject the budget and demand revisions.
- Stripped of Contingencies: The lack of budgeted contingency reserves is concerning, especially considering uncertainties in economic conditions, healthcare costs, and labor agreements.