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9853_43 | the county legislature eliminated a home energy tax. That act reduced tax to the revenues county |
9853_44 | budget, and about a year after Mangano was sworn in, NIFA re-instituted a control period. A |
9853_45 | lawsuit by Nassau County contesting the legitimacy of the control board was unsuccessful, and NIFA |
9853_46 | articulated the limits of its duties and the budgetary reasons for a control board, in a statement. |
9853_47 | Prior to that court decision, the Republican leader in the county legislature, Peter Schmitt, |
9853_48 | appeared to liken the bipartisan members of NIFA to a Mafia family. |
9853_49 | The Mangano-NIFA relationship, with a control board in place, was marked by almost annual disputes |
9853_50 | over the budgets that Mangano submitted and the county legislature approved. A 2013 agreement |
9853_51 | between the police officers’ union and the county was criticized by NIFA. A multi-year plan |
9853_52 | submitted by the Mangano administration in 2015 was rejected by NIFA. NIFA implemented a wage |
9853_53 | freeze in 2011, though it was lifted over several years. NIFA rejected the county's 2016 budget, |
9853_54 | and implemented a quarterly review. In December 2017, NIFA ordered specific spending cuts after |
9853_55 | finding additional flaws in Mangano's budget. |
9853_56 | Jon Kaiman, who at the time was supervisor of the town of North Hempstead, was appointed by |
9853_57 | Governor Andrew Cuomo to be chairman of NIFA in 2013. Kaiman resigned in 2016 to run an |
9853_58 | unsuccessful effort to become the Democratic nominee for an open House seat. He was succeeded by |
9853_59 | banker Adam Barsky. |
9853_60 | NIFA and the Curran administration |
9853_61 | As 2018 began, Mangano was out of office, having chosen not to seek-re-election to a third term in |
9853_62 | 2017 following his indictment on 2016 on federal corruption charges. (He was ultimately convicted.) |
9853_63 | The two contenders for his position, Republican Jack Martins, a former State Senator and |
9853_64 | unsuccessful U.S. House of Representatives candidate a year earlier against Suozzi, and Democrat |
9853_65 | Laura Curran, a former newspaper reporter for the New York Daily News and a county legislator, both |
9853_66 | said during the campaign that steps must be taken to bring Nassau out from NIFA oversight. Curran |
9853_67 | won the election, and NIFA issued a deadline to offer any significant changes to the Mangano 2018 |
9853_68 | budget, the one with the NIFA-ordered cuts. Her selection of Mark Page as her chief budget officer |
9853_69 | was praised by NIFA chairman Adam Barsky, and Page had worked as a consultant to NIFA so was |
9853_70 | expected to understand its workings. |
9853_71 | In April 2018, Curran presented her first budget to NIFA and made a rare public appearance before |
9853_72 | the members. At that meeting, the "conundrum" that Curran faced, with a Republican legislative |
9853_73 | majority rejecting her plan to hike fees to help close the budget gap, was discussed. |
9853_74 | In one of the first significant actions under the Curran administration, NIFA in July 2018 |
9853_75 | overwhelmingly rejected a Curran administration request to borrow funds to pay for an earlier court |
9853_76 | judgement that went against the county for the wrongful conviction of two men. At the meeting where |
9853_77 | the vote was held, a report was discussed that talked about the country's "growing risks" in its |
9853_78 | budget. |
9853_79 | In October 2018, NIFA warned that Nassau County's deficit for 2019 could be $59 million, though |
9853_80 | that was the lowest estimate since 2014. In a pointed critique, NIFA also noted the continuing |
9853_81 | situation where almost 20 years after NIFA was created, Nassau had still not taken the steps to end |
9853_82 | its oversight. "“Other municipalities with fewer resources, such as Buffalo, Washington, D.C., and |
9853_83 | Detroit, have moved beyond the tight control of their oversight monitors and it seems incongruous |
9853_84 | that Nassau County, one of the wealthiest counties in the Country, is unable to do the same,” NIFA |
9853_85 | wrote in its report on the deficit estimate. |
9853_86 | In November 2018, NIFA approved the first budget of the Curran administration. The approval was |
9853_87 | unanimous. The budget did include $100 million in borrowing solely to pay back tax grievances. |
9853_88 | However, NIFA chairman Adam Barsky said "We always have concerns, but I think the concern over this |
9853_89 | budget is less severe, less concerning than prior budgets." |
9853_90 | The sometimes-uncomfortable position that NIFA could find itself in relative to the county was |
9853_91 | evident in December 2018 when NIFA hired an outside attorney to sit in on county negotiations with |
9853_92 | its labor unions. NIFA hired the same individual that the county legislature had rejected just a |
9853_93 | few months earlier, raising questions about whether its "seat at the table" was proper or an |
9853_94 | unauthorized expansion of its role in day-to-day operations. Critics called the move an "end-run" |
9853_95 | around the legislature's rejection, which had been proposed by Curran. |
9853_96 | NIFA's chairman Barsky got additional powers in March 2019 when he was granted "pre-approval" |
9853_97 | authority to sign off on labor agreements the county reaches, though the full NIFA board must |
9853_98 | ultimately accept the contract. |
9853_99 | In early April, local newspaper Newsday wrote a story questioning whether NIFA was treating Curran |
9853_100 | with a softer approach than Mangano. Republicans charged NIFA had been tougher on Mangano, and |
9853_101 | cited Curran's tardiness in filing various reports with NIFA—which Mangano filed on time—and the |
9853_102 | muted response from NIFA. Barsky denied the allegations. Soon after that, NIFA rejected half of the |
9853_103 | county's borrowing requests that needed to go through NIFA because adequate notice had not been |
9853_104 | given to the full NIFA board. |
9853_105 | In February 2020, NIFA took control of the finances of the Nassau University Medical Center, saying |
9853_106 | its perilous finances posed a "material threat" to Nassau County, given the county's backing of the |
9853_107 | financially troubled hospital. |
9853_108 | In June 2020, NIFA approved the use of Goldman Sachs as the financial advisor on any new borrowing |
9853_109 | the county might need to undertake as a result of the pandemic. |
9853_110 | By a 4-1 vote, NIFA approved the county budget for 2021 in mid-December 2020. However, noting the |
9853_111 | difficult economic times, NIFA said in its approval message that the county would need to develop a |
9853_112 | plan by March 31, 2021, to be updated regularly, on dealing with projections of future deficits. |
9853_113 | The budget approved by the county and NIFA did include NIFA borrowing long-term to help the county |
9853_114 | recover from the revenue shortfall created by the pandemic. (See below for more discussion on NIFA |
9853_115 | and the pandemic.) |
9853_116 | A NIFA report in April 2021 on the county's financial performance in the prior year reported at |
9853_117 | $43.3 million surplus fueled both by federal pandemic aid and the refinancing of longer-term debt, |
9853_118 | a deal that Newsday columnist Joye Browne called "the mother of all one-shots.". But in releasing |
9853_119 | the report, NIFA chairman Barsky said the county had not eliminated its structural deficit and that |
9853_120 | it still faced long-term financial issues. |
9853_121 | The rejection by the Nassau Patrolman's Benevolent Association of a contract offer led to NIFA |
9853_122 | chairman Barsky declaring in February 2021 that the union was "barking up the wrong tree" if it |
9853_123 | believed the rejection was going to lead to a better deal. NIFA would need to approve any deal. |
9853_124 | Strengthening county finances due to several different factors did lead to renewed discussion in |
9853_125 | fall 2021 whether NIFA needed to continue either the control period, or even its existence. As |
9853_126 | Newsday noted at the time, there also were questions about who was going to continue serving on |
9853_127 | NIFA itself. |
9853_128 | In October 2021, NIFA weighed in on what amounted to a battle of dueling tax cuts proposed by both |
9853_129 | Republicans and Democrats prior to the 2021 election. It said that a package of Republican cuts in |
9853_130 | fees and a boost in its sales tax revenue would throw the 2022 budget "out of balance." But it also |
9853_131 | said a Curran plan to cut $70 million in property taxes would "jeopardize" the budget as well. |
9853_132 | Those Republican amendments passed the legislature but were vetoed by Curran. The budget was passed |
9853_133 | with the Curran tax cuts in place, but needs NIFA approval. |
9853_134 | On Election Day 2021, Curran suffered a shocking loss in her attempt to be re-elected, falling to |
9853_135 | Republican candidate Bruce Blakeman. |
9853_136 | In December, NIFA approved the final Curran budget by a vote of 5-0. At the vote, NIFA executive |
9853_137 | director Evan Cohen said the Curran budget, approved by the legislature, had a potential shortfall |
9853_138 | of $39 million but had the lowest risks of any budget in several years. |
9853_139 | NIFA and the pandemic |
9853_140 | The prospect of NIFA staying with oversight over Nassau until 2051 was raised by Newsday in July |
9853_141 | 2020, given the huge deficit created by the pandemic and NIFA's ability to borrow money on a |
9853_142 | longer-term basis and at a lower interest rate. |
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