Wednesday, February 23, 2011

New York State Takes Control of Nassau's Finances

A state oversight board has seized control of Nassau County's
finances, saying the wealthy and heavily taxed county had
nonetheless failed to balance its $2.6 billion budget despite
months of increasingly ominous warnings. It was only the
second time a county had been taken over by New York State.

The 6-0 vote on Wednesday afternoon by the Nassau County
Interim Finance Authority gives it veto power over the
county's budget, labor contracts, borrowings and other major
financial commitments.

The board cited a deficit that reached nearly $350 million at
one point last year but that was not fully closed, it said,
despite assurances to the contrary by the county executive,
Edward P. Mangano, a Republican.

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