Nassau County Executive Thomas R. Suozzi tonight unveiled his four-year recovery plan for a stronger Nassau County. The plan, outlined in his State of the County Address, solves the County's fiscal problem in its entirety and includes five major elements that eliminate Nassau's projected $428 million budget deficit; as well as an exemption for senior citizens earning less than $60,000. The five parts include: workforce reduction, managerial incentives, labor concessions, debt restructuring, and a 4% increase in the property tax.

Suozzi's four-year plan, the result of three months of painstaking work, was handed to the National Interim Finance Authority (NIFA) earlier in the day. The plan must now be approved by the Legislature and by NIFA. The need for the four-year fiscal outlook comes as the result of a decade of mismanagement, fiscal irresponsibility, and a complete lack of strategic planning. Suozzi also faces the challenge of a one billion dollar debt arising from a failed, outdated, unfair property tax assessment system.

"This plan is a blueprint, a road map which will bring to Nassau County government fiscal stability, managerial renovation, and fundamental, cultural change," said Nassau County Executive Suozzi.

"First, we will reduce the workforce by 1,200 people for a savings of $101 million dollars per year - $327 million to go," stated Suozzi. The goal is to reduce the workforce by 1,200 people by September 2003, a reduction of 12.5%. This will hopefully be attained by attrition, employee evaluation, and an early New York State Retirement Incentive Program. Layoffs will only be used if they are absolutely necessary to achieve the reduction goal.

"Second, we will operate the county more efficiently with smart government initiatives for a savings of $73 million dollars per year -$254 million to go," added Suozzi. These savings will come from better management, program improvements, building consolidations and a host of new, more efficient systems.

"Third, we will work with labor to secure concessions for a savings of $65 million per year - $189 million to go," continued the County Executive. These savings will come through negotiated labor concessions. "I will not allow Labor to become a target of my administration," he said. "Labor is a partner." Suozzi stressed that he would never compromise safety for savings.

"Fourth, we will reduce, retire, restructure and refinance the county's outrageous debt for a savings of $74 million per year - $115 million to go," stated Suozzi. More than 16% of the County's budget is devoted to paying off past debt, most of which was borrowed merely to fund the day-to-day operations of the County government. "This enormous debt has cursed our credit ratings and threatened our bond issues," Suozzi said. There will be a reduction in borrowing, and a restructuring of current debts.

The final element of the four-year plan is a property tax increase. This increase of $182 dollars for the median household, or an average of $226 dollars per household, represents a 4% increase of a property owner's overall taxes because the county portion of their total property taxes is under 20% of the average tax bill. This will bring in $115 million in revenue, and will be used to pay back the one-billion dollar debt.

As part of the plan, the County Executive is asking for state approval to exempt senior earning less than $60,000 a year from the property tax increase. "We will do everything we can to help seniors remain in the Nassau County homes," stated Suozzi.

The four-year plan creates $428 million in savings and revenue to counter the $428 million deficit the County is facing. The plan requires each and every resident of Nassau County to do more with less. The County Executive added, "I have tried the very best I could to craft a plan that will finally solve the county's chronic fiscal crisis. I am proud of my team. This plan will fix the problem, once and for all."

State of the County Address

The Multi-Year Financial Plan An Executive Summary