NIFA gives Nassau County 2 weeks to amend 'illegal' multiyear budget
The Nassau County Legislature, seen here in August, and County Executive Bruce Blakeman were given two weeks to fix an "illegal" accounting approach in the county's budget. Credit: Rick Kopstein
Nassau’s financial watchdog group declined to approve the county’s budget Tuesday, a first in six years, unless lawmakers fix an "illegal" accounting approach within two weeks.
The seven-member Nassau Interim Finance Authority (NIFA) instead passed a resolution requiring the county legislature to amend the county's multiyear financial plan for 2025-2028, which it says improperly uses prior year surpluses to fund future expenses. The state oversight board's decision starts a countdown for the legislature and Nassau County Executive Bruce Blakeman — who risk NIFA unilaterally revising the budget if they don't meet the deadline.
"I’m hopeful that the county will comply with our directives to correct this budget," said NIFA Chairman Richard Kessel. "Either change it or face the consequences."
If the county does not revise the budget by Dec. 10 to NIFA's satisfaction, the oversight board could reject it at its next meeting on Dec. 19 and craft its own budget.
"We’d rather not do it," Kessel said. "This is their job, not ours."
Nassau's budget is expected to take effect Jan. 1.
The Blakeman administration alleges the claims by NIFA are unfounded.
Chris Boyle, a spokesperson for Blakeman, stood by the budget, calling Nassau County "the most fiscally sound large county in the United States," without providing evidence. But he later added that the county has received six bond upgrades since 2022.
Legis. Howard Kopel (R-Lawrence), the legislature's presiding officer, said NIFA has historically "struggled" to provide accurate budget projections.
"Nassau County has built record reserves over the last several years, and there exist other opportunities within the budget that address NIFA's concerns without raising taxes," Kopel wrote in a statement.
On Wednesday, the Democratic minority called for a special session to address NIFA's concerns. A spokeswoman for Kopel did not return a request for comment.
Blakeman’s budget as it stands does not comply with so-called generally accepted accounting principles (GAAP), the county charter or the NIFA Act, according to Kessel.
The county’s 2025 operating budget — which passed in the legislature last month — improperly includes $30 million of surplus dollars in its multiyear budget plan as revenue, totaling $120 million, Kessel said, calling the practice "illegal."
It wouldn’t be the first time the state oversight board has rejected the county’s budget. NIFA voted unanimously to reject Nassau's budget in 2016 and 2018.
"I don’t know which fiscal flag is redder: the County’s use of a patently prohibited accounting gimmick to make its budget add up, or the County’s refusal to ditch the patently prohibited accounting gimmick despite being called out by NIFA, the comptroller, the Office of the Legislative Budget Review, and the legislature," Rory Lancman, NIFA’s vice chairman, wrote in a statement.
According to the county charter, the use of prior year surpluses, known as fund balances, are only "available to make one-time payments and offset unforeseen or unusual expenditure increases or reductions in revenue."
The vote came days after NIFA announced plans to audit spending on outside law firms contracted by the county, which has more than doubled since 2022.
Nassau’s financial watchdog group declined to approve the county’s budget Tuesday, a first in six years, unless lawmakers fix an "illegal" accounting approach within two weeks.
The seven-member Nassau Interim Finance Authority (NIFA) instead passed a resolution requiring the county legislature to amend the county's multiyear financial plan for 2025-2028, which it says improperly uses prior year surpluses to fund future expenses. The state oversight board's decision starts a countdown for the legislature and Nassau County Executive Bruce Blakeman — who risk NIFA unilaterally revising the budget if they don't meet the deadline.
"I’m hopeful that the county will comply with our directives to correct this budget," said NIFA Chairman Richard Kessel. "Either change it or face the consequences."
If the county does not revise the budget by Dec. 10 to NIFA's satisfaction, the oversight board could reject it at its next meeting on Dec. 19 and craft its own budget.
"We’d rather not do it," Kessel said. "This is their job, not ours."
Nassau's budget is expected to take effect Jan. 1.
The Blakeman administration alleges the claims by NIFA are unfounded.
Chris Boyle, a spokesperson for Blakeman, stood by the budget, calling Nassau County "the most fiscally sound large county in the United States," without providing evidence. But he later added that the county has received six bond upgrades since 2022.
Legis. Howard Kopel (R-Lawrence), the legislature's presiding officer, said NIFA has historically "struggled" to provide accurate budget projections.
"Nassau County has built record reserves over the last several years, and there exist other opportunities within the budget that address NIFA's concerns without raising taxes," Kopel wrote in a statement.
On Wednesday, the Democratic minority called for a special session to address NIFA's concerns. A spokeswoman for Kopel did not return a request for comment.
Blakeman’s budget as it stands does not comply with so-called generally accepted accounting principles (GAAP), the county charter or the NIFA Act, according to Kessel.
The county’s 2025 operating budget — which passed in the legislature last month — improperly includes $30 million of surplus dollars in its multiyear budget plan as revenue, totaling $120 million, Kessel said, calling the practice "illegal."
It wouldn’t be the first time the state oversight board has rejected the county’s budget. NIFA voted unanimously to reject Nassau's budget in 2016 and 2018.
"I don’t know which fiscal flag is redder: the County’s use of a patently prohibited accounting gimmick to make its budget add up, or the County’s refusal to ditch the patently prohibited accounting gimmick despite being called out by NIFA, the comptroller, the Office of the Legislative Budget Review, and the legislature," Rory Lancman, NIFA’s vice chairman, wrote in a statement.
According to the county charter, the use of prior year surpluses, known as fund balances, are only "available to make one-time payments and offset unforeseen or unusual expenditure increases or reductions in revenue."
The vote came days after NIFA announced plans to audit spending on outside law firms contracted by the county, which has more than doubled since 2022.
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