Comptroller Phillips, reporting 4th-year-in-a-row surplus, tells NIFA to give up control

                                                                                  

Nassau Comptroller Elaine Phillips

Nassau's elected Comptroller Elaine Phillips, a Republican, released the county's Comprehensive Annual Financial Report Friday and it is a stunner, again.

The report comes from outside auditors and is considered the final word on county finances.

Phillips says auditors concluded that Nassau ended 2022 with a $435.2 million surplus in all ten or so of its governmental funds.

She says the county finished last year with a $234.2 surplus in its three major operating funds: the general fund, the police district fund and the sewer and storm water district fund.

Both surpluses are somewhat below 2021's financial results but are still healthy numbers, according to generally accepted accounting principles.

But the county's state appointed seven-member financial control board, the Nassau Interim Finance Authority -- which consists of six Democrats or Democratic party donors and one Republican -- refuses to lift a control period it imposed back in 2011, when the county's deficit exceeded 1 percent in its major operating funds.

A control period allows the NIFA board to dictate spending by the Republican-run county, including approval or rejection of contracts and capital projects.

Phillips points out that Nassau has ended each year for the past four years with a budget surplus -- not a one percent deficit--  in its operating funds, which can trigger a control period. Nassau also has not triggered any of the other conditions that allow NIFA to impose financial controls, she said: it has not defaulted on any bonds or borrowings,  the county treasurer has not refused to certify securities that Nassau sells or buys, nor has Nassau not come up with an approved financial plan 

"Therefore, it is my contention, as Nassau County Comptroller, that Nassau County no longer qualifies for a NIFA imposed Control period and NIFA is overdue in releasing the County from such," Phillips wrote.

The financial report also estimates Nassau's tax refund backlog at $383.4 million, a large amount but still about half the total backlog estimated at the end of 2021.

The drop was primarily due to the settlement of tax refund litigation with LIPA and National Grid over assessments over power plants in Island Park and Glenwood Landing.

A primary reason why NIFA was created in 2000 was to help the county whittle down its tax refund liablity. With financial help from  NIFA and the state, the county was able to pay off its tax refund liability to less than $60 million around 2006 but the backlog crept up again as soon as the monetary assistance ended.

Here is Phillips description of the triggers needed for NIFA to impose financial controls and why the control period should be lifted:





  


 


 

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