Suozzi Takes Action to Offset
Slowing Growth in Sales Tax Revenues

--Steps Include Hiring Freeze and Overtime Limits
          --Stresses Need For Growth Strategy to Address Long Term Issue

Mineola, NY – Nassau County Executive Thomas R. Suozzi today announced a series of steps he is taking to address a potential shortfall of $20 million in sales tax revenues in 2006, including an across-the-board hiring freeze.

The County previously had planned on collecting $1 billion in sales taxes in 2006. Sales tax accounts for about 40% of the County’s final $2.4 billion budget. But, based on slower than anticipated growth in sales tax revenue for 2005, Suozzi outlined a series of immediate actions to address the problem. 

In addition to the hiring freeze, Suozzi announced limiting county purchasing, reducing overtime and tapping budgeted continginies in the 2006 budget.

The potential $20 million shortfall in the 2006 budget will be addressed by:

• implementing a hiring freeze on all non-emergency positions; 
• limiting purchasing to only emergency and essential materials;
• implementing, in collaboration with the Police Department, a new public safety overtime reduction initiative;
• using contingency funds already included in the County’s 2006 budget.

“We are taking action right now to address this issue,” Suozzi said. “Sales tax is a major source of revenue for the county, and much of our budget is based on sales tax projections. While we do not control how much comes into the county through sales tax, we are responsible for proactively addressing any shortfalls as they arise. Taking these steps now is the prudent and fiscally conservative approach.”

Suozzi said the slowing sales tax revenue growth can potentially be attributed to the county’s mature suburban status, high property taxes, especially school taxes, increases in Internet purchases and possibly reduced car sales.

In addition, Suozzi is asking the New York State Comptroller to review the sales tax figures to insure their accuracy and help determine more definitely the root causes for decline in the growth rate.

“We must find new and create ways to spark growth in the county,” Suozzi said. “We are a mature suburb faced with high property taxes and sluggish growth. Our future depends upon our ability to create new avenues of sustainable growth.”

As part of Suozzi’s long-term strategy to spark economic growth in the county, Suozzi re-emphasized the need to:

• Reduce property taxes, especially school property taxes
• Implement his ‘New Suburbia’ strategy countywide
• Move ahead on development of the 77-acre Nassau Coliseum site
• Work with town and villages to create Next Generation housing.

“The fact that other counties are not experiencing a similar slowing of growth in sales tax revenue is an additional wake up call for us,” Suozzi said. “We need to address this issue head on. That means being aggressive in finding ways to reduce school property taxes and creating new growth.”