Suozzi Announces 5th Consecutive No-Tax-Increase Budget for 2008
Increases Spending at Just Half the Rate of Inflation
Smart-Government Initiatives – Such as Consolidation, Overtime Control and
Better Accountability – Face Down Growing Unfunded Mandates
Mineola, NY – With his proposed $2.5 billion 2008 budget, Nassau County Executive Thomas R. Suozzi continues to create an ever-leaner, more accountable and performance-driven government, while achieving historically low spending increases well below the rate of inflation. And his administration accomplished this – in the face of mounting unfunded mandated expenses – without raising the County’s share of property taxes for the fifth year in a row.
The proposed budget increases spending over 2007 levels by just 1.9%, at a time when the Consumer Price Index (CPI) – which measures the rate of inflation – is growing twice that, at 3.8%. The Suozzi administration was able to hold down spending while not raising taxes through smart government initiatives that save money and improve services. These initiatives include department mergers, sponsorship programs, controlling overtime costs, winning labor savings, better tracking of inventory and implementing efficiency measures in each department
“High taxes are the number-one concern for Nassau County residents,” Suozzi said. “But we are faced each year with growing expenses that are beyond our control. So my administration works diligently and creatively, every day, to make government leaner and more efficient. This fifth consecutive no-tax-increase budget proves our unwavering commitment to the sort of sound financial management that has led to the 11 bond upgrades and the triple-A-level credit we’ve earned since we took over – back when the County was on the brink of bankruptcy.”
The County receives most of its revenue from property taxes and sales tax. While not raising property taxes, the 2008 budget conservatively projects sales tax to grow by 2.5%.
Meanwhile, expenses over which the County has no control continue to grow. The State mandates that in 2008, the County increase spending on preschool special education by 12%, or $12.9 million. Medicaid, another unfunded State mandate, is growing 3.5%, or $7.7 million. Health insurance, mandated by labor contracts, is jumping 7.2%, or $17 million. And the County’s utility bill next year is growing 7.2%, or $3.9 million.
On the other side of the ledger, mandated pension costs are actually decreasing 7.6%, or $8.4 million, and overtime in the Police and Corrections Department is going down $7 million. (To help Nassau County remain the safest municipality of its size in the nation, the administration is hiring 100 new police officers in November, 2007, and an additional 130 officers in 2008.)
The County is making up for any potential shortfall through smart-government initiatives. For instance, it projects to take in $4.5 million from its Sponsorship and Marketing Programs, which include selling the naming rights to prominent public facilities and granting a beverage company the exclusive rights to sell its products at County facilities. The administration projects to save $2.4 million though more efficient inventory management. And the County is overhauling its workers’ compensation system and putting it under the control of the Office of Management and Budget, where each case will be closely tracked. Meanwhile, the County is exploring less expensive employee health plans with comparable coverage.
The proposed budget also provides for departmental mergers to create more efficiency. Both the Department of Traffic Safety and the Police Department’s Building Maintenance Unit (BMU) will be folded into the Department of Public Works (DPW). Efforts are also underway to merge the Police Department’s fleet maintenance unit into DPW, which already handles the County’s fleet of vehicles.
And the Suozzi administration continues to seek labor savings. The County achieved 93% of its savings target for 2008 in its July, 2007 binding arbitration award with Police Benevolent Association (PBA). The contract includes a spending increase of 2.75% – 1% below the rate of inflation. The County intends to use this award to establish a pattern of below-inflation wage growth with other County unions, while ensuring employees continue to receive fair wages.
“As we continue to streamline County government, we are actually serving the county’s taxpayers better,” Suozzi said. “While holding the line on taxes and keeping spending well below the rate of inflation, this budget allows us to improve services and deliver them more efficiently.”
Proposed Budget Documents:
2008 Proposed Budget Summary
Proposed Multi-Year Plan 2008-2011
Additional information is available on the Office of Management and Budget web site
