Suozzi Submits 2009 Proposed Budget

Toughest Budget Since 2002,

 Includes 4-Point Cost Reduction & Revenue Enhancement Plan

and 3.9% Tax Increase

Mineola, N.Y. – Nassau County Executive Suozzi today submitted to the Nassau County legislature a proposed budget for 2009. The 2009 budget includes a 4-Point Cost Reduction and Revenue Enhancement Plan (which will yield approximately $70 million), as well as a 3.9% county property tax increase (which will yield approximately $30 million). The increase in the average homeowner's annual property tax bill will be approximately $58.

Severely impacted by the national economic downturn, Nassau County officials consider this to be the most difficult budget Nassau County has faced since the days when it was rated the "worst run county in America" and Nassau was on the brink of bankruptcy.

"This year, sales taxes have fallen well below historic rates, the state has made cuts in aid to local governments, fuel and utility costs have soared, public assistance rolls have swelled, investment income and other revenues tied to the economy have dropped, and there is little good news on the national economic situation," said Suozzi.

"In spite of all the bad news, we have made the tough decisions necessary to hold the overall growth of this year's budget to less than half the current consumer price index of 5.6%. This $2.6 billion 2009 Proposed Budget continues this administration's seven-year commitment to maintain growth in expenses below 2.7%," Suozzi added.

For the past five consecutive years, Suozzi has rejected any increase in the county portion of the property tax bill, bringing in no tax increase county budgets year after year and averting three planned tax increases which saved Nassau taxpayers over $200 million. And because school districts and local governments have raised taxes substantially during that same period, the county portion of the overall property tax bill has been reduced from 22% to 17%. This budget is a balanced, fiscally conservative, responsible plan, despite a modest 3.9% tax increase.

Suozzi has been at the forefront of a statewide effort to cap the growth of any future school tax increases at 4% or 120% of the Consumer Price Index, whichever is less.

"Despite the worst national economic times in over a decade we kept the tax increase below 4%. We did this while maintaining our commitment to fiscal integrity by keeping our headcount low, by negotiating tough, but fair contracts with our public employee unions, by reducing our debt service and implementing smart government initiatives as we have each year of my administration," explained Suozzi.

Nassau County has received a total of 13 bond upgrades since Suozzi's first year in office, 2002. The last two upgrades have been issued after the adoption of the County's fiscally conservative, structurally sound 2008 Budget: Moody's A2 rating in November 2007, and Standard and Poor's A+ rating more recently in June 2008.

"This budget is lean and will require disciplined management over the year ahead. If any interested party wishes to make suggestions to make the budget leaner, I will consider them. But be on notice, I will demand specifics and not political patter," said Suozzi.

"These are tough times. We have made tough choices. Our response to economic realities far beyond our control will require continued bold, creative ideas. We will not rest and will continue to work harder and longer and better to ensure that Nassau County remains a safe, prosperous and fiscally sound County," concluded Suozzi.

Nassau County's 4-Point Cost Reduction and Revenue Enhancement Plan

1) Cost cutting and efficiency savings: $28 million

No department was left untouched in an effort to reduce costs in the budget and find efficiencies. Among other things, we reduced contracts, vacant positions, overtime, and fuel and utility costs. The County will be completely closing the Franklin Square Garage and 101 County Seat Drive now that we have consolidated those offices on other county campuses. We have implemented a temperature control program that reduces our building temperatures in the winter and increases them in the summer. We are reducing gasoline usage through spending restrictions, idling reductions, pooling vehicles, reducing vehicle purchases, and fuel and fleet management improvements. We will no longer fund certain park festivals and special events with taxpayer dollars, and will only continue the events if we can generate corporate sponsorships. We have frozen elected official budgets at the 2008 level with increases based on contractual and legal obligations. We are closing the Traffic and Parking Violations Agency two nights a week due to limited use. We have improved inventory management and will be dramatically cutting back on discretionary purchasing. We have reduced our Information Technology and equipment purchases. We have reduced outside contracts. We are freezing employee headcount, removing over 100 budgeted vacancies, and giving no raises for non-union employees for 2008 or 2009.

2) Police Department initiatives: $17.5 million in savings

By negotiating a contract extension with the Police Benevolent Association, with an average net compounded annual cost of less than 2.4%, the County will continue the historic trend of wage growth of approximately 1% below historic inflation and below the over 4% being negotiated by other municipalities. In addition, the County has negotiated an elimination of a benefit fund, saving taxpayers over $7 million dollars and the continuation of frozen pay steps ($34,000 for Step 1 and $45,000 for Step 2), resulting in additional savings of $24 million by the end of the contract. The agreement also helps to continue our efforts to make the Police Department more efficient and maintain Nassau's record as the safest municipality of its size in the country. We will achieve this by civilianizing 50 current police positions and redeploying officers to maximize efficiency and reduce overtime (such as merging the Mounted Unit into Highway Patrol). All of this, along with previous civilianization, will allow us to reduce headcount by approximately 100 officers while maintaining the same or more officers on the street.

3) Consolidation of county departments: $4.5 million in savings

These difficult financial times demand a reevaluation of the County's departmental structure. We will continue to become more efficient, eliminate duplicative services, and provide the same or better services at less cost by streamlining logical adjacent departments and offices. We will place all of our "advocacy" functions – the offices of Veterans Affairs, Physically Challenged, Minority Affairs, and Coordinating Agency for Spanish Americans – under one umbrella that reports to the County Executive and give them a stronger voice in the community. This new Office of the County Advocate will share business and administrative functions, but still maintain distinct units of advocacy. All Information Technology staff in the County will be consolidated into the Department of Information Technology. Fleet maintenance, building maintenance, and parks maintenance functions will be consolidated into the Department of Public Works. The result will be improved coordination, reduction in required equipment, streamlined staffing requirements, and defined professional staff development.

4) State legislative items: $20 million in new revenues

We have been informed by the Governor's office that he will be introducing legislation that will impose a mandatory $50 surcharge on certain traffic offense and infraction convictions adjudicated in Nassau County Police Districts as well as an authorization for Nassau County to adopt a local Red Light Camera Program. These initiatives will result in $20 million in new revenues to the County to help defray the cost of the County Police Department's patrol of the Long Island Expressway and help make our roads safer by providing an additional deterrent to those who would speed and commit other traffic infractions.

2009 Proposed Budget Summary Details