Richard Kessel appointed to replace NIFA chairman Adam Barsky

Gov. Kathy Hochul on Friday appointed Richard Kessel, a longtime fixture in Nassau County politics, as chairman of the Nassau Interim Finance Authority following the resignation of Adam Barsky, who led the fiscal control board for seven years.

Kessel, 73, of Merrick, was one of the original members of NIFA's board when the State Legislature created the agency in 2000 following debt and deficit woes that put the county on the brink of bankruptcy. A former chairman of the Long Island Power Authority and chief executive of the New York Power Authority, Kessel most recently served as chairman of the Nassau Industrial Development Agency, resigning in April.

NIFA is a seven-person state board that can reject county budgets and contracts and impose wage freezes. It can carry county debt at lower interest rates because it has a higher bond rating than Nassau County.

Kessel said his top priority is to "stop the bleeding" at NuHealth, the financially troubled public benefit corporation that runs Nassau University Medical Center.

NIFA took operational control of NuHealth in 2020, and it has sustained budget deficits exceeding $100 million for the past three years.

"We've got to come to some resolution about it [NuHealth] so it's not a burden on the taxpayers, that it survives and continues to serve an important part of the population," Kessel said.

In 2021, NIFA refinanced more than $1.1 billion in county and NIFA debt, saving Nassau more than $385 million in the short-term.

Kessel said while Nassau County is in good fiscal shape now, he's concerned about what the finances will look like in future years as money from the federal American Rescue Plan Act dries up. 

He said he had no immediate plans to end a control period that has been in place since 2011.

"I think the control period has benefited the county tremendously, and I'd be hesitant to end it right away," he said.

A Democrat who ran unsuccessfully for Nassau County executive in 1993, Kessel has long-standing friendships with top Republicans. The best man at his wedding in 2003 was the late Joseph Mondello, chairman of the Nassau County Republican Committee.

Barsky, who serves as the New York Power Authority's executive vice president and chief financial officer, began leading NIFA in 2016 during the administration of Republican County Executive Edward Mangano. Barsky has been serving under an expired appointment since — an arrangement that allows a governor to replace the person in the position at any time.

The county was struggling with deficits and contracting and corruption scandals when he began his role. Barsky rejected budgets he viewed as structurally unsound and urged the Mangano administration to stop borrowing for one-time expenses.

"When I look back, I'm proud of all that has been done," Barsky said. His list of achievements included turning "deficits into surpluses," improving credit ratings, completing labor deals and restructuring debt — saving county taxpayers nearly $400 million during the pandemic.

"We put a spotlight on the acute issues at NUMC, making recommendations for improvements and strategic alternatives," he said.

In recent years, Barsky has overseen approval of new contracts with the county's five major unions, including the largest — the Civil Service Employees Association, Local 830, and the Police Benevolent Association.

Last week, members of the fifth major union working under an expired contract, the Sheriff's Correction Officers Benevolent Association, approved a new deal. It needs approval from the County Legislature and NIFA.

By Scott Eidler

scott.eidler@newsday.com@ScottEidler

Scott Eidler is a deputy editor for the towns department at Newsday. Scott has worked at Newsday since 2012 and previously covered municipal government and education.