By Michael Larkin
The latest round of budget cuts, revenue building initiatives, and fiscal recovery plans were released earlier this week in the separate press conferences of County Executive Thomas Gulotta and the Democratic majority.
Looking to assure Wall Street rating agencies that the county is on the road to fiscal recovery, the county executive revealed his latest budget cuts and revenue building initiatives. The updated plan, which includes the input of the Republican minority, County Comptroller Fred Parola and PFM, the county's financial management firm, calls for police department layoffs, a 2.5 percent across the board budget cut, and additional cuts to discretionary contracts and the Long Island Bus subsidy.
"This is a workable realistic plan that is being implemented in addition to what has already been implemented and obviously our ultimate goal is to establish sufficient recurring revenues and sufficient recurring spending cuts that will give structural integrity to Nassau County's budget," said Gulotta.
Led by Presiding Officer Judy Jacobs, the Democratic delegation revealed its own comprehensive plan for fiscal recovery in a press conference following Gulotta's. The plan is highlighted by $55.6 million in departmental cuts in areas they state are wasteful and inefficient, three privatization initiatives, the assessment of long-term impacts at an annual savings of $143-$150 million annually, and reforms that would streamline county operations. The plan also restores $4.2 million for essential services that was cut earlier this year, and establishes a "rainy day" fund to guard against future economic declines.
Jacobs noted that although her delegation's plan offers devices to cure the county's fiscal dilemma that contrast from Gulotta's, they are dedicated to not competing in a political grudge match.
"This is our contribution to solving the fiscal problems in Nassau County," said Jacobs. "We are not into one-upmanship in any way. We realize that all these contributions have to be put on the table and eventually be fused into a cohesive plan that brings us to the right solution for Nassau County as a whole."
The Democratic plan does not incorporate a tax increase or employee layoffs, rather it has identified areas it feels are inefficient and wasteful. The Democratic delegation feels these actions will be enough to close the budget gap and to restore the structural integrity to the budget .
"We have laid out what we believe to be a common sense, well thoughtout approach to get from point 'A' to point 'B' that does not go in the route of an extremely high tax increase, it does not go the route of layoffs across the board, and it does not do it on the backs of the needy people in the county," said Brian Muellers.
Gulotta has proposed to lay off between 207 and 277 police officers within the next 30-60 days. The move, which requires legislative approval, is expected to save the county between $5 million and $7 million in fiscal year 2000 and $12.5 million annually.
The decision to lay off the police officers makes good on Gulotta's threat to do so if any of the county's unions did not accept a lag payroll that would defer 10 days pay until after the employee left county employment. According to Gulotta, the layoffs would not compromise public safety as highly paid police officers who currently hold clerical positions will be transferred to street duty, and the clerical positions will be filled by civilians.
The Gulotta plan, which contains over $105 million in budget cuts, will implement $8 million in cuts to discretionary funds (social services) and the Long Island Bus subsidy. The Democrats conversely are looking to restore some funding to essential services.
"These are additional tough cuts. I am not telling you they are not and I am not telling you that the agencies affected are not good," said Gulotta. "They are good, they serve worthwhile purposes, but you cannot give money that you do not have."
Gulotta's plan also incorporates a debt service program that was introduced by County Comptroller Fred Parola two weeks ago. This plan has anticipated savings of $18.5 million.
According to Gulotta, if his plan is fully implemented, the funds to close the fiscal year 2000 budget deficit are available. However, he further stated that a tax increase or some other form of revenue enhancement will be needed to restore structural integrity to the budget to guard against future deficits.
Many of the initiatives being proposed by Gulotta can be implemented administratively and do not need the approval of the Legislature. He stated that he is still open to other ideas and plans of action from all the parties involved, including the Democratic delegation.