Maragos: County Trending 2017 with $57M GAAP Deficit
Administration expected to find revenue and expense opportunities to reduce projected deficit
Mineola, NY- Nassau County Comptroller George Maragos released the 2017 mid-year financial projections,which indicate that the County is trending to end 2017 with a $57.6 million deficit on a Generally Accepted Accounting Principles (GAAP) basis and the presentation mandated by the Nassau County Interim Finance Authority (NIFA). The Administration, however, is expected, to find revenue and expense opportunities to reduce the projected deficit, but may be hard pressed to achieve GAAP balance by year-end 2017. The projected GAAP ending fund balances are expected to decline to $67.8 million, down from $170.5 million at 2016, assuming the gap closing opportunities do not materialize.
“Although the County’s financials appear to have improved both on a GAAP and NIFA basis, and the long term debt of the County decreased by over $100 million compared to 2009, the County’s fiscal challenges remain masked by the use of non-primary funds set aside in prior years to pay approximately $43.8 million in litigation expense,” said Comptroller George Maragos. “These same challenges will continue and increase in 2018 due to anticipated structural cost increases in labor, health care and other mandated costs.”
The noteworthy items affecting the budgetary projection are $10 million of risk in Income and Expense reporting revenue due to litigation, $60 million in lower bond proceeds for property tax refunds offset by a lower expenditures for property tax refund payments due to a 2016 accrual reversal, and a risk of $12.5 million in payroll expense, primarily due to higher termination pay for an increased number of police officers retiring in 2017.
The total long-term debt for the County and its blended component units, NIFA, Nassau County Sewer and Storm Water Finance Authority (SFA) and the Nassau County Tobacco Settlement Corporation (TSC), are projected to decrease by $102.2 million to approximately $3.532 billion after pay-down of $243.8 million in maturing debt (see Section 6.4). We understand that the Administration does not expect to issue any further long-term debt in 2017.Connect with Nassau County Comptroller M