The budget proposal Nassau County Executive Laura Curran released this week aims to tackle debt incurred by the prior administration.
Curran’s $3.5 billion 2019 budget proposal, released Monday, would fund more than $175 million in payments for over $1.1 billion of bonds issued under former county executive Ed Mangano. The spending plan also includes funding for $300 million of bonds to cover part of the county’s nearly $1 billion of past due certiorari payments.
The borrowing plan outlined in Curran’s budget follows a failed attempt by the Democratic county executive to pass legislation that would have allowed the Nassau Interim Finance Authority to instead issue bonds for commercial tax refunds.
NIFA, a New York State fiscal control board that has controlled the county’s finances since early 2011, has triple-A bond ratings from S&P Global Ratings and Fitch Ratings and is rated Aa1 by Moody’s Investors Service. Nassau County will have higher borrowing costs for the bonds due to lower debt ratings of A from Fitch, A2 from Moody’s and A-plus from S&P.
“Nassau County is operating on a bare bones budget,” said Curran, who took office in January. “I am holding each department to a tight fiscal discipline.”
Nassau County has $2.3 billion of outstanding general obligation debt outstanding, according to a Sept. 5 Fitch report. Fitch analyst Amy Laskey noted that the county’s reserves dropped $60 million in 2017 because of its tax refund liabilities, which resulted in the need for revenue anticipation notes slated to be repaid in December. The county is planning to issue $300 million in tax anticipation notes and $80 million of RANs in 2019, according to Laskey.
Curran’s fiscal plan also has infrastructure investments including a new police academy and family court building. The county legislature unanimously
Nassau, directly east of New York City, has faced challenges during the current fiscal year combating budget deficits with NIFA identifying $81 million of revenue risks in July. The large suburban county
Curran’s budget must be passed by the Republican-controlled Nassau County legislature and then receive approval from NIFA, which was founded in 2000. NIFA