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.

New York Congressman Resigns After Internet Postings

Representative Chris Lee of New York, caught in the midst of
a scandal involving a shirtless photo he reportedly sent to a
woman on the Internet, has stepped down, according to a
senior Congressional official.

Mr. Lee, a Republican, notified the Republican Speaker of the
House of his decision in a letter he sent this afternoon
after the scandal erupted.