Nassau should take NIFA's advice, revise budget to meet standards

Nassau County Executive Bruce Blakeman and his administration have long emphasized how the county’s financial prowess means they no longer need the oversight provided by the Nassau Interim Finance Authority — the fiscal watchdog Albany put in charge more than two decades ago.

But so far, they haven’t shown they can manage their fiscal house on their own.

For the first time in six years, NIFA has refused to approve the county budget. The state authority plays a powerful role over budgets, large contracts, labor agreements and more when the county is in a control period. NIFA correctly noted that Nassau’s 2025 operating budget and multiyear plan count $30 million a year of surplus funds as “revenue” amounting to $120 million in inappropriate accounting over the four-year financial plan. That’s not allowed under generally accepted accounting principles — and violates the act that established NIFA, as well as the county charter, which says surpluses can be used only for one-time payments or to address unforeseen expenditures and revenue losses.

That’s not what’s happening here. Instead, county officials are using surpluses to balance the budget. And while the surplus funds are a small portion of a $4.2 billion budget, such gimmicks, at a time when significant ongoing budget deficits and other fiscal risks remain, are signs of larger problems. There are other fiscal concerns as well — such as Nassau University Medical Center’s financial troubles and a recent appellate court ruling that red-light camera fees violate state law and may have to be refunded. Each opens up significant budgetary questions.

Together, that leaves the county with a weak fiscal foundation, upon which it’s building a budget full of holes. It’s only a matter of time before it all collapses.

NIFA gave the county two weeks to present a new budget and multiyear plan. If Nassau doesn’t, NIFA has threatened to impose its own county budget.

This isn’t the first time NIFA rejected a Nassau budget; it last happened as former County Executive Ed Mangano was on his way out, leaving incoming County Executive Laura Curran to work with NIFA to craft a better budget.

Now, Nassau County Executive Bruce Blakeman has a similar opportunity. Blakeman spokesman Chris Boyle claims the county is “the most fiscally sound large county in the United States.” If that’s true, county officials should be able to build a budget that doesn’t rely on tricks, but instead shows a healthy, balanced fiscal picture, one where revenues match expenses, without improperly dipping into the fund balance.

So far, Blakeman and county lawmakers haven’t done that, raising concerns that the county isn’t so fiscally sound after all.

Meanwhile, NIFA is auditing the county’s use of outside law firms — an area in which spending has exploded since 2022 even as Nassau has added high-priced lawyers to the county payroll. This is not the best practice if you are trying to convince your fiscal watchdog that all is well.