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Thread: NY Nassau County - Going Bust

  1. #1
    Senior Member
    Join Date
    Jul 2006

    NY Nassau County - Going Bust

    It is unbelievable that Nassau County (Long Island, NY) is going bankrupt.

    30 seconds into this video comes a great quote about borrowing to meet current operational expenses - it's really a tax increase.

    W.E. Pollock:

    The newly-elected-replacement-criminal from the other party realizes that the county he inherited is broke beyond repair. A broke Federal Government seeing a surf-bound-medieval-future can fund a "homeland security center." Meanwhile the state government (New York State) has eyes on taking over a bankrupt county via a financial oversight board. What does the new crook do? He hires friends and family in the form of his former law firm, and he looks to double-tripple red light cameras as he reduces medical care in prisons. New York Times Mr. Mangano shrank the county attorney's office, it awarded a $250,000 contract to the law firm that employs Joseph N. Mondello, the Nassau Republican leader. And he appointed former Senator Alfonse M. D'Amato's daughter as his commissioner of aging.Mr. Stack has brought in former Chief Judge Judith S. Kaye to advise the authority on whether to seize control of the county's finances, and if so, how. The law creating the authority says it "shall" take over if Nassau's shortfall exceeds 1 percent of its budget — or about $26 millionMoody's, the bond-rating agency, is not waiting. On Nov. 4, it downgraded the county's debt, citing $158 million in risks and weakening liquidity, and warning that even Mr. Mangano's contingency plans required contingency plans.acing a huge budget deficit when he took office in January, Nassau County Executive Edward P. Mangano did not impose a hiring freeze. He did not stop borrowing to subsidize some of the richest school districts in the country. He did not eliminate the Police Department's beloved mounted unit.

    NY Times:

    Mr. Mangano, a Republican who won one of the first upsets of the Tea Party era, did what he had promised: He cut taxes, adding $40 million to the county's deficit, which has since reached nearly $350 million. It was 1999, and Nassau County - America's fourth wealthiest - was perilously close to financial collapse.

    Its bond ratings were just above junk status. It faced a $300 million deficit, and had run up close to $3 billion in debt. After a long spree of overspending and no tax hikes or recurring revenue to pay for it, talk of bankruptcy was in the air.

    "I think Nassau County could have rolled off a cliff" if the state didn't intervene, recalled Richard Kessel, who was a member of the Nassau County Interim Finance Authority, an oversight agency then-Gov. George Pataki created in 2000 to resolve the crisis and guard against recurrence.

    NIFA cited "extraordinary levels of unacceptable borrowing" to pay operating expenses and union concessions that hadn't been secured. A national rating agency has downgraded Nassau's credit for the first time in a decade, and state and federal cuts in aid are likely.

  2. #2
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    The Land of The Edentulites
    More to come, from what I read.... much, much more.

    The question is: Will the bastards try to tax us even more fiercely? Or will they finally cut back on all the payola?

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