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>> COMING UP ON THE LONG ISLAND BUSINESS REPORT, THE MAN WHO
TRACKS THE CASH FOR ONE OF THE COUNTRY'S RICHEST COUNTIES.
>> OUR BUDGET IS A LITTLE OVER $2.7 BILLION.
SALES TAX ACCOUNTS FOR $1.28 BILLION OF THAT, SO SUFFOLK
COUNTY PROBABLY LIKE NASSAU COUNTY IS VERY SALES TAX
DEPENDENT.
COMPTROLLER OUTLOOK
FOR HIS COUNTY AND WHY LONG ISLAND SHOULD STOP BEING
TREATED AS ALBANY'S ATM AND BECOME AMERICA'S 51st STATE.
>> WE KNOW UPSTATE IS SUFFERING ECONOMICALLY, BUT, YOU KNOW
WHAT, PEOPLE ON LONG ISLAND ARE SUFFERING ECONOMICALLY NOW.
WHY ARE WE PAYING FOR THE REST OF THE STATE WHEN WE HAVE
TROUBLE PAYING OUR OWN BILLS ON LONG ISLAND?
>> IT'S ALL STRAIGHT AHEAD ON THIS EDITION OF THE LONG ISLAND
BUSINESS REPORT.
>> FUNDING FOR THIS PROGRAM HAS BEEN MADE POSSIBLE BY CHARLOTTE
AND DAVID ECKERT AND THE ROUSH FOUNDATION, AND NOW FROM MALLOY
COLLEGE AT THE MADISON THEATER, HERE'S JIM WITH THE LONG ISLAND
BUSINESS REPORT.
>> HELLO, AND THANK YOU FOR BEING WITH US.
I'M JIM PAMAR WITH THE LONG ISLAND BUSINESS REPORT.
SUFFOLK COUNTY IS ONE OF THE RICHEST COUNTIES IN AMERICA.
YET, IT FACES A LARGE BUDGET DEFICIT OVER THE LAST FEW YEARS.
JOINING ME TODAY TO DISCUSS THE COUNTY'S FINANCIAL OUTLOOK AND
HOW TO SECURE ITS ECONOMIC FUTURE IS JOSEPH, THE
COMPTROLLER.
THANK YOU SO MUCH FOR BEING WITH US TODAY. I APPRECIATE IT.
>> PLEASURE, JIM.
GOOD TO BE HERE.
>> YOU HAVE BEEN COMPTROLLER FOR ABOUT 11 YEARS.
THE LAST FEW YEARS COULD NOT HAVE BEEN TOO PLEASANT RUNNING
BUDGET DEFICITS PROJECTED AROUND A HALF BILLION DOLLAR
RANGE.
HOW DID SUFFOLK COUNTY GET INTO THIS POSITION?
>> THE -- IT ALL STARTED ALMOST A YEAR AGO WHEN THE NEW COUNTY
EXECUTIVE RELATIVELY NEW NOW, HE HAS BEEN IN OFFICE FOR YEARS,
STEVE MALONE.
WHEN HE FIRST TOOK OFFICE IN JANUARY 2012 HE COMMISSIONED A
FINANCIAL TASK FORCE BECAUSE AT THAT POINT THE END OF 2011 AND
THE LAST HALF OF 2011 WE STARTED RECOGNIZING THAT THINGS REALLY
WEREN'T COMING TO FRUITION IN THE COUNTY'S BUDGET.
REVENUES WEREN'T COMING IN.
OVER TIME IT WAS GETTING OUT OF CONTROL SOMEWHAT, AND SO WHEN
STEVE CAME IN, HE SAID LET'S GET A REAL HANDLE AT THE BEGINNING
OF MY ADMINISTRATION ON WHAT THE COUNTY'S FINANCES LOOK LIKE.
SO HE COMMISSIONED A REPORT MADE UP OF FINANCIAL EXPERTS THAT DID
WORK OVER THE YEARS.
IN MARCH THEY RELEASED A REPORT SAYING IN A THREE-YEAR PERIOD
2011, 2012, 2013 SUFFOLK WOULD BE IN THE HOLE ABOUT $530
MILLION IF THINGS WEREN'T CHANGED.
THAT WAS A REAL WAKE-UP CALL BECAUSE PRIOR TO THAT SUFFOLK
WAS LED TO BELIEVE THAT EVERYTHING -- FROM THE PRIOR
ADMINISTRATION, WAS LED TO BELIEVE THAT THINGS WERE ROSY
AND GETTING BETTER, BUT THAT OBVIOUSLY WASN'T THE CASE.
THAT $530 MILLION ESTIMATE GOT WORSE AS WE GOT INTO 2012
BECAUSE OUR OFFICE DID THE FINANCIAL STATEMENTS, THE ACTUAL
FINANCIAL STATEMENTS FOR THE END OF 2011, AND THAT SHOWED IT
WASN'T A $30 MILLION, WHICH WAS ORIGINALLY ESTIMATED BY THE
BUDGET EXPERTS.
THAT GREW TO $67 MILLION HOLE, SO SINCE 2011 AND NOW SINCE 2012
WE'RE ESTIMATING A $70 MILLION SHORTFALL.
AGAIN, A BUDGET ESTIMATE.
IF THINGS AREN'T CHANGED GOING THROUGH 2013, WE'RE LOOKING AT
CLOSE TO OR MAYBE EVEN A LITTLE OVER $100 MILLION SHORTFALL.
>> HOW ARE YOU COPING WITH THIS?
HOW ARE YOU DEALING WITH THIS?
IS THERE A WAY TO RECTIFY THE SITUATION?
>> THE POLICY MAKERS OF THE COUNTY, THE COUNTY EXECUTIVES
AND THE LEGISLATURE, THEY HAVE A LOT OF WORK CUT OUT FOR THEM.
AGAIN, THEY'RE THE POLICY MAKERS.
THEY SET THE TONE OF THE BUDGET.
THEY SET WHAT THE BUDGET REVENUES ARE GOING TO BE, AND
THEN THEY SET WHAT THE BUDGET EXPECTATIONS ARE GOING TO BE.
THE COMPTROLLER'S OFFICE, IT'S OUR JOB TO MAKE SURE THE
REVENUES COME IN AND MAKE SURE THE EXPENSES GO OUT, THAT
THEY'RE ACCURATE, AND WE ORDER THOSE.
IN TERMS OF THE WORK THEY HAVE TO CUT OUT FOR THEM, IT'S WHAT
WE CALL CORRECTING, AND THIS HAS BEEN THE SUBJECT OF SOME RATING
MEETINGS WE'VE HAD WITH STANDARD & POOR'S AND MOODY'S AND FITCH,
WHEN THEY COME IN AND RATE US EITHER SHORT-TERM OR LONG-TERM.
THEY COME AND LOOK AT SUFFOLK'S STRUCTURAL BUDGET, AND WE HAVE
BEEN OUT OF BALANCE NOW FOR FOUR OR FIVE YEARS.
THE BUDGET HAS BEEN PLUGGED.
WHEN I SAY STRUCTURAL, I KIND OF MEAN LIKE RUNNING A HOUSEHOLD.
YOUR INCOME COVERS YOUR EXPENSES.
IF IT DOESN'T, YOU EITHER GOT TO INCREASE YOUR INCOME OR YOU
LOWER YOUR EXPENSES, AND IT'S LIKE RUNNING A GOVERNMENT.
YOU KNOW, IT'S AS SIMPLE AS IT IS.
STRUCTURALLY WHEN YOU ARE PLUGGING THE REVENUE IN A
MUNICIPAL BUDGET, YOU COULD USE ONE SHOT REVENUES, AND THAT'S
ONE SHOT
THEY'RE NONREOCCURRING AND GOOD FOR ONE YEAR, LIKE THE SALE OF
THE NURSING HOME, FOR INSTANCE.
ONCE THAT'S SOLD, THAT'S NEVER GOING TO BE A REVENUE AGAIN OF
FUTURE BUDGETS.
>> THE TWO WAYS THAT YOU GET REVENUE PRIMARILY ARE THROUGH
THE SALES TAX AND THROUGH PROPERTY TAXES, CORRECT?
>> CORRECT.
>> AREN'T THEY BOTH ON THE RISE, THOUGH, RIGHT NOW?
AREN'T YOU GETTING BACK INTO EQUILIBRIUM?
>> THE SALES TAX -- OUR BUDGET IS A LITTLE OVER $2.7 BILLION.
SALES TAX ACCOUNTS FOR $1.28 BILLION OF THAT.
ROUGHLY 45%.
SUFFOLK COUNTY PROBABLY LIKE NASSAU COUNTY IS VERY SALES TAX
DEPENDENT.
EVEN THOUGH SALES TAX HAS BEEN RISING 2% AND 3% A YEAR, AND IT
WAS ONLY A COUPLE OF YEARS IT WAS BASICALLY STATIC, LEVEL,
IT'S STILL NOT ENOUGH TO KEEP UP WITH BUDGET ESTIMATES WHICH WERE
3.5%, 3%, SO WE'RE STILL BEHIND, AND THEN WHAT HAPPENED WAS
REALLY HITTING THE COUNTY'S BUDGET FOR 2013 AND WE SUSPECTED
THE END OF 2012 WAS SUPERSTORM SANDY.
I MEAN, THAT -- WE JUST DON'T -- WE JUST CAN'T QUANTIFY HOW
PEOPLE STOP SPENDING MONEY.
SOME BUDGET PEOPLE WERE SAYING, WELL, PEOPLE WOULD BE SPENDING
MORE MONEY TO REBUILD THEIR HOMES, AND THAT WILL GENERATE
MORE SALES TAX, BUT IT DOESN'T SEEM TO BE WORKING OUT THAT WAY.
>> ARE FUNDS COMING IN FROM THE FEDS FROM ALBANY TO HELP OUT
SANDY VICTIMS?
MIGHT THAT HELP TO --
>> THEY ARE -- WE'RE ESTIMATING RIGHT NOW -- I HAD A MEETING
YESTERDAY WITH THE BUDGET PEOPLE IN THE COUNTY EXECS OFFICE, AND
WE'RE ESTIMATING THAT SUFFOLK'S COSTS IS GOING TO BE ABOUT $70
MILLION.
SANDY-RELATED COSTS FROM OVERTIME FOR OUR POLICE
DEPARTMENT, FOR ALL THE PUBLIC WORKERS ON THE COUNTY PAYROLL,
FOR DEBRIS REMOVAL.
THAT'S REIMBURSABLE BY FEMA IF AND WHEN WASHINGTON COMES TO
75%
IT'S STILL THE NET COST TO THE COUNTY WHICH WE DIDN'T EXPECT.
IT'S GOING TO BE OVER $17 MILLION.
>> HAVE YOU BEEN ABLE TO PUT A CAP ON COSTS?
YOU KNOW, EMPLOYMENT IS A HUGE FACTOR, AND THE PENSIONS
HAVE YOU TO PAY OUT.
I KNOW WE ARE SUFFERING THAT IN NASSAU COUNTY AS WELL AS SUFFOLK
COUNTY.
>> THE PENSION IS JUST GOING THROUGH THE ROOF.
IT'S OVER $230 MILLION A YEAR, AND THAT ALL GOES BACK TO THE
2008, 2009 STOCK MARKET DIVE, AND IT'S THE STATE COMPTROLLER'S
POLICY AND HE IS GUIDED BY STATE LAW AND STATE CONSTITUTION THAT
THAT PENSION FUND IN ALBANY FOR ALLSTATE WORKERS AND MUNICIPAL
UNTIL WE HIT THAT LEVEL ALL MUNICIPALITIES, WHETHER IT'S
TOWNS OR COUNTIES OR SCHOOL DISTRICTS, THEIR PENSION COSTS
ARE STRANGLING EVERYBODY.
>> THE PENSIONS ARE INVESTED INTO THE MARKETS, CORRECT?
>> AND THE MARKETS HAVE COME BACK.
I MEAN, WE'RE BACK UP AROUND THE 14,000 LEVEL.
THAT'S WHERE WE WERE BACK IN 2007, 2008.
>> RIGHT.
WHETHER THE STATE COMPTROLLER, WHETHER HE IS DETERMINED THAT
THAT'S -- IN HIS BUDGET -- IN HIS INVESTMENT EXPERTS IN THE
PENSION FUND HAS DETERMINED BILLIONS OF DOLLARS.
HAS THAT COME UP BACK ENOUGH TO MAKE UP FOR THE LOSSES IN 2008?
I DON'T KNOW THE ANSWER TO THAT.
>> WHAT CAN YOU DO?
WHAT ADJUSTMENTS CAN BE MADE?
IS THERE A WAY OF -- WELL, GETTING BACK TO WHAT YOU
MENTIONED EARLIER, ANOTHER COST THAT YOU HAVE IS THE DOWNGRADING
OF YOUR DEBT BY MOODY'S, FITCH, AND S&P.
HOW DO YOU DEAL WITH THAT?
YOU'RE PAYING MORE FOR INTEREST ON YOUR BONDS?
>> YOU'RE RIGHT, JIM, BUT WE'RE STILL IN THE A CATEGORY, IN THE
UPPER A CATEGORY, WHICH WHEN YOU LOOK AT RATINGS BY WALL STREET
AND BY STANDARD & POOR'S AND BY FITCH AND MOODY'S, THEY STILL
OPERATE ON THE UPPER LEVELS, IF YOU WILL.
WE WERE IN THE DOUBLE-A CATEGORY UNTIL THE FINANCIAL TASK FORCE
RELEASED THEIR REPORT THAT WE WERE GOING TO BE IN THE HOLE
$500 MILLION PLUS.
THEY LOWERED US ABOUT A YEAR AGO TO BASICALLY A SINGLE A, A-PLUS,
A-3 CATEGORY.
EACH OF THE RATING AGENCIES HAVE DIFFERENT RATINGS.
THE BOTTOM LINE IS THAT WE'RE STILL BORROWING RELATIVELY
INEXPENSIVE. WE BORROWED THIS
PAST DECEMBER TAX ANTICIPATION
AT .67%.
IT'S ALMOST LIKE FREE MONEY WHEN YOU'RE BORROWING.
SO THE RATINGS -- SO THE BANKERS, THE INVESTMENT
COMMUNITY IN THE COUNTRY THAT SEES SUFFOLK AND ESPECIALLY
COMPARED TO OTHER MUNICIPALITIES ACROSS THE COUNTY, WE'RE STILL
HOLDING OUR OWN AND DOING OKAY, BUT KEET IS WE HAVE TO NIP IN
THE BUTT OUR FINANCIAL DILEMMA, OUR PROBLEMS IMMEDIATELY.
>> WE CAN'T WAIT UNTIL IT'S TOO LATE.
>> OF COURSE.
IT'S HARD FOR A LOT OF PEOPLE TO BELIEVE THAT THE HOME OF THE
HAMPTONS, PLACES LIKE THE HILLS, THE NORTH FORK, THE WHINERIES
THAT YOU HAVE A FINANCIAL DILEMMA ON YOUR HANDS.
>> IT'S ALL ABOUT THE BUDGET IN THE COUNTY JUST BEING OUT OF
WHACK.
WE ESTIMATE -- WE ESTIMATE THAT STRUCTURALLY, AGAIN, NORMAL
REGULAR INCOME, REGULAR EXPENSES, ARE OUT OF WHACK ABOUT
1 $100 MILLION TO $125 MILLION.
THAT'S WHAT THE LEGISLATURE AND THE COUNTY EXECUTIVES HAVE TO
RESOLVE THIS UPCOMING BUDGET YEAR IN SEPTEMBER AND OCTOBER,
NOVEMBER WHEN THEY COME UP WITH 2014'S BUDGET.
THERE'S A STRUCTURAL IMBALANCE.
THERE AREN'T ANY ONE SHOTS LEFT IN SUFFOLK COUNTY.
THE PRIOR ADMINISTRATIONS HAVE EXHAUSTEDED THEM.
NOW YOU HAVE TO COME UP WITH A BUDGET THAT WORKS YEAR AFTER
YEAR DEPENDING ON THE SAME AMOUNT OF INCOME AND THE SAME
AMOUNT OF EXPENSES.
NO MORE ONE SHOTS.
MORE LIKE EXTRAORDINARY TYPE OF INCOME ITEMS.
>> CAN YOU SELL OFF PROPERTY?
CAN YOU SELL OFF REAL ESTATE?
I MEAN, IS THERE ANY WAY TO INCREASE REVENUES COMING IN TO
SUFFOLK COUNTY WITHOUT RAISING TAXES?
>> THAT'S -- YOU KNOW, EXCELLENT QUESTION.
THAT'S EXACTLY WHAT HAS BEEN DONE OVER THE YEARS AND
CONSIDERED A ONE SHOT.
ONE THAT COMES TO MIND FIRST AND FOREMOST IS THE COUNTY'S NURSING
HOME.
IT'S BEEN TRYING -- THE PRIOR ADMINISTRATION THE PRIOR COUNTY
EXECUTIVE TRIED TO SELL IT WITH ALL KINDS OF LEGAL
ENTANGLEMENTS.
STILL NOT SOLD YET.
COUNTY EXECUTIVE IS TRYING TO SELL IT.
IF WE SALE THE HOME
THE LAST COST THE LAST BUYER'S PROPOSAL WAS ABOUT $23 MILLION.
THAT'S WHAT IS IN THE 2013 BUDGET AS, AGAIN, BUT IT'S A ONE
SHOT BECAUSE THAT'S NOT -- THAT $23 MILLION IS NOT GOING TO BE
AVAILABLE TO THE COUNTY FOR OPERATING EXPENSES FOR 2014,
2015 AND SO ON.
YOU HAVE TO TAKE LAND SALE.
THERE'S EXCESS OF SURPLUS COUNTY PROPERTY THAT THE COUNTY VOTED
TO SELL LAST YEAR.
THAT HASN'T CLOSED YET, BUT IT'S ANOTHER $20 MILLION THAT'S IN
THIS YEAR'S BUDGET.
THE FAMOUS COUNTY BUILDING, DENNISON BUILDING, WE'RE
ENTERTAINING IN THE BUDGET FOR 2013 THE LEGISLATION OF COUNTY
EXECUTIVES WANT TO SELL AND LEASE THAT BACK FROM A BUYER TO
GET A ONE SHOT OF ROUGHLY $70 MILLION.
THE DOWN SIDE TO THAT, JIM, IS YOU DON'T OWN THE BUILDING
ANYMORE.
>> YOU DON'T OWN THE BUILDING ANYMORE.
>> NOW YOU HAVE TO PAY RENT OR LEASE EXPENSE EVERY YEAR.
NOW YOU OWN IT.
THESE ARE THE KIND OF ONE SHOTS THAT YOU TRY TO DO ANYTHING TO
AVOID RAISING TAXES.
>> WELL, BOTTOM LINE, THOUGH, ON THIS IS YOU GOT TO DRIVE NEW
BUSINESS INTO SUFFOLK COUNTY.
YOU GOT TO GENERATE REVENUE THROUGH CORPORATE TAXES AND
THROUGH BUILDING NEW HOMES TO SUPPORT NEW WORKERS AND GETTING
WORKERS OUT THERE WHO ARE BUYING THINGS AND PAYING SALES TAX, ET
CETERA.
IS THAT HAPPENING?
>> SEE, YOU KNOW, THAT'S PROBABLY ONE OF THE BIGGEST
ISSUES THAT EVERYBODY, EVERY MUNICIPALITY FROM THE STATE
LEVEL TO THE COUNTY LEVEL TO THE TOWN LEVEL THAT ANY ELECTED
OFFICIAL IS GRAPPLING WITH THESE DAYS.
PERSONALLY I HAVE SEEN OR ANYBODY WHO HAS LIVED IN SUFFOLK
COUNTY, I CAN'T SPEAK FOR NASSAU, BUT I PRESUME THEY'RE IN
THE SAME SITUATION, BECAUSE NO ONE WANTS TO RAISE TAXES OVER
THE PAST FIVE OR SIX YEARS.
THAT'S KIND OF WHY OR HOW SUFFOLK GOT IN THIS DILEMMA.
THE PRIOR ADMINISTRATION NEVER WANTED TO RAISE TAXES.
>> OF COURSE NOT.
>> LEGISLATORS DIDN'T WANT.
NOBODY WANTS TO RAISE TAXES.
>> OF COURSE.
>> YOU STILL HAVE YOUR ROADS TO MAINTAIN.
YOU HAVE YOUR BRIDGES TO MAINTAIN.
YOU HAVE YOUR GOVERNMENT BUILDINGS TO MAINTAIN.
YOUR WORK FORCE IS GOING TO GET A COST OF LIVING RAISE.
THERE'S BINDING ARBITRATION FOR THE POLICE FORCE.
THEY'RE GOING TO GET A NORMAL COST OF LIVING.
THE COUNTY'S ELECTRIC EXPENSES GO UP.
FUEL OIL AND HEATING EXPENSES GO UP.
YOU CAN'T KEEP TAXES LEVEL, AS MUCH AS WE WOULD LOVE TO.
WE LIKE TO KEEP OUR EXPENSES LEVEL IN OUR OWN HOMES, BUT WE
CAN'T BECAUSE EVERYTHING, YOU KNOW, RISES.
YOU HAVE TO KEEP PACE AT LEAST WITH INFLATION.
THAT HASN'T BEEN DONE NOW.
>> YEAH.
>> WHAT'S THE ANSWER?
THE ANSWER IS WITH ALL THE ROADS THAT SOME ARE -- SOME OF THE
TOWNS ARE IN ABSOLUTELY DECREPID CONDITION.
WANT TO INVEST AND BORROW OVER THIRTY OR FORTY YEARS HUNDREDS OF MILLIONS OF DOLLARS
REPAIR THEIR ROADS AND
THAT WOULD PUT A LOT OF PEOPLE TO WORK.
IT WOULD SPUR THE ECONOMY.
>> ABSOLUTELY.
THERE'S NO DOUBT ABOUT THAT.
THEN AGAIN, PRIVATE ENTERPRISE COMING IN WITH 5,000 HIGH-PAYING
JOBS WOULD SPUR THE ECONOMY EVEN MORE, AND HOW DO WE REDEVELOP
WHAT WE LOST WITH GRUMMAN LEAVING AND, YOU KNOW, YOU HAVE
CALVERTON OUT THERE, HUGE PARCELS OF LAND, AND BUSINESSES.
>> THEY'RE STILL WRESTLING.
IT'S CLOSER TO MY NECK OF THE WOODS.
I LIVE ON THE EAST END.
STILL NOT A FINAL
EVERYTHING GETS STUCK IN THE MUD AND KEEPS SPINNING.
>> WHY?
I MEAN, THAT'S WHAT REALLY AGGRAVATES PEOPLE.
WHY CAN'T GOVERNMENT -- GOVERNMENTS HERE ON THE ISLAND,
THE STATE, THE FEDS, WHY CAN'T WE DRIVE THINGS A LITTLE BIT
FASTER SO THAT WE DON'T HAVE THESE SITUATIONS WHERE --
>> I REMEMBER WATCHING ONE OF THE PRESIDENTIAL DEBATES, AND
MITT ROMNEY, I THINK HE TOOK HIS FIST AND SLAMMED IT ON THE TABLE
AND SAID I'M GOING TO CUT FEDERAL REGULATIONS AND DO WHAT
WE HAVE TO DO --
>> IT'S NOT THAT EASY.
>> WELL, FIRST OF ALL, HE DIDN'T GET ELECTED, BUT, YOU KNOW,
THAT'S WHAT YOU NEED.
TO START FROM THE TOP AND GO TO THE BOTTOM.
THE REGULATIONS IN ANY MUNICIPALITY WILL STRANGLE
PEOPLE, BUT, YOU KNOW, I KNOW THERE'S BEEN EFFORTS BY THE
COUNTY EXECUTIVES OVER THE YEARS TO KEEP BUSINESSES ON LONG
ISLAND, BUT, YOU KNOW, FROM A BUSINESS'S POINT OF VIEW, YOU
HAVE TO WONDER HOW CAN THEY ATTRACT NEW EMPLOYEES IF IT'S SO
HARD TO LIVE ON LONG ISLAND OR TO LIVE WHERE IT'S EXPENSIVE?
WHERE DOES IT STOP?
WHERE DOES THE SNOWBALL AFFECT START?
I KNOW CANON HAS A GREAT FACILITY AND MOVING DOWN TO
SUFFOLK COUNTY.
THIS SPRING THEY'LL FINALLY COMPLETE.
THOSE ARE HUNDREDS AND HUNDREDS OF EMPLOYEES.
>> WE NEED MORE OF THOSE.
>> YOU'RE KIND OF LIKE A COP, THOUGH, IN A WAY, AREN'T YOU?
YOU'RE DOING A LOT OF CLAW-BACK EFFORTS.
YOU ARE GOING OUT AND FINDING PEOPLE WHO HAVE DEFRAUDED
SUFFOLK COUNTY.
YOU'RE GOING AFTER PEOPLE LIKE PEOPLE WHO ARE DOUBLE DIPPING,
SOME OF THE RESERVISTS WHO HAVE COME BACK.
TELL ME ABOUT SOME OF YOUR EFFORTS.
>> THAT'S INTERESTING THAT YOU BROUGHT THAT UP ABOUT THE
MILITARY RESERVISTS.
YOU KNOW, NONE OF US, JIM, LIKE -- HAVE ANYTHING CRITICAL
TO SAY ABOUT OUR MEN AND WOMEN IN THE RESERVE, AND WE ALL LOVE,
WE ALL APPRECIATE, AND THERE'S NOTHING MORE ACCOLADES WE CAN
GIVE TO THESE PEOPLE, MORE THANKS AND APPRECIATION.
ON THE OTHER SIDE OF THE
YEARS
SERVED IN THE MILITARY RESERVES AND THEY ARE CALLED TO ACTIVE
DUTY, THEY -- AND THEY WERE SENT TO ACTIVE DUTY, THE COUNTY
LEGISLATURE PASSED A LAW BACK IN EARLY -- RIGHT AFTER THE FIRST
PERSIAN GULF WAR OF 1994, I BELIEVE, OR 1993, AND THEN AGAIN
IN 2001, 2002, THAT SAID IF YOU GET CALLED ON MILITARY AND
ACTIVE DUTY, WE WILL -- AND IF YOUR COUNTY SALARY WAS HIGHER
AND YOU HAD TO ABANDON YOUR COUNTY JOB AND GO SERVE IN THE
MILITARY, WE WILL MAKE YOU WHOLE, AND WE WILL PAY YOU YOUR
COUNTY SALARY.
HOWEVER, YOU HAVE TO RETURN THE MILITARY SALARY IF THAT'S LESS.
IN MOST CASES THE MILITARY SALARY WAS LESS.
THE COUNTY STOPPED RIGHT THERE.
THE COUNTY GOVERNMENT STOPPED RIGHT THERE.
THE ADMINISTRATIONS WERE IN EFFECT BACK IN THE EARLY 2000S.
THEY NEVER HAD ANY POLICY IN PLACE TO SAY, HEY, GUYS, AND
LADIES, WHEN YOU COME BACK, YOU HAVE TO PAY US BACK THE OTHER
THIS HAS BEEN NOT AN
IMAGINATION BECAUSE YOU ARE GOING AFTER PEOPLE THAT MIGHT
HAVE SERVED, YOU KNOW, FIVE, SIX, SEVEN EIGHT YEARS AGO, AND
THEY DID THE MILITARY DUTY, BUT AT THE SAME TIME THEY HAVE TO
PAY THE MONEY BACK.
IT'S NOT ONLY LAW.
IT'S THE RIGHT THING TO DO BECAUSE YOU CAN'T KEEP TWO
NOBODY IS ALLOWED TO
RIGHT NOW, JIM, THE ORDER IS ALMOST COMPLETE.
WE ESTIMATE THAT WE'VE GOTTEN BACK ALMOST $1.9 MILLION.
HASN'T BEEN EASY.
A LOT OF IT'S BEEN PULLING TEETH.
AGAIN, IT'S THE RIGHT THING TO DO, AND TAXPAYERS' MONEY.
NO MATTER HOW YOU CUT IT, IT'S TAXPAYERS' MONEY.
>> LET ME ASK YOU A QUESTION THAT I FIND VERY INTRIGUING.
YOU HAVE BEEN A PROPONENT OF MAKING LONG ISLAND ITS OWN
STATE, THE 51ST
ONE OF THE REASONS THAT YOU PROPOSE THIS IS THAT YOU FEEL
THAT WE SPEND -- WE SEND TOO MUCH MONEY UP TO ALBANY, AND WE
DON'T GET IT BACK HERE ON LONG ISLAND.
TELL ME ABOUT THE DISPARITY.
>> JIM, I'M GLAD YOU RAISED THIS QUESTION BECAUSE THIS IS AN
ISSUE THAT JUST DRIVES ME CRAZY.
IT'S TAX DOLLARS.
IT'S NOT A POLITICAL ISSUE.
COMPTROLLER.
THE NET EFFECT OF NASSAU AND SUFFOLK COUNTY, WHAT WE SEND TO
ALBANY VERSUS WHAT WE GET BACK IN EACH YEAR, WE GET BACK IN
SERVICES, IN SCHOOL AID, AND STATE AID FOR HIGHWAYS AND
LIBRARIES, WHATEVER, THREE -- A LITTLE OVER $3 BILLION A YEAR,
BILLIONS WITH A B.
THAT'S INCREDIBLE.
THERE WAS A STUDY DONE BY
DOWLING
THEY GAVE ME THE -- THEY PROVIDED THE NUMBERS.
THEY BASICALLY CONFIRMED WHAT DR. LEE COPPELLMAN,
THE FAMOUS DR. LEE COPPELLMAN DID TWENTY YEARS AGO.
>> RIGHT.
>> SAYING THERE'S A DISCREPANCY.
LONG ISLAND IS CONSIDERED THE WEALTHIEST PART OF THE STATE,
THE
CASH COW.
>> WHY CAN'T WE STOP THAT?
>> THAT'S SOMETHING -- YOU KNOW, WE HAVE PREVENTED THANKS TO OUR
ELECTED REPRESENTATIVES IN NASSAU AND SUFFOLK IN BOTH THE
SENATE AND AT ASSEMBLY, WE STOPPED A LOT OF THE
HEMORRHAGING.
GOVERNORS OVER THE YEARS, I MEAN, GOVERNOR SPITZ ATROCIOUSLY
WANTED TO -- IN ONE OF HIS PROPOSED BUDGETS WANTED TO
LITERALLY KILL LONG ISLAND.
TAKE FROM US AND GIVE TO UPSTATE.
WE KNOW UPSTATE IS SUFFERING ECONOMICALLY, BUT YOU KNOW WHAT,
PEOPLE ON LONG ISLAND ARE SUFFERING ECONOMICALLY
RIGHT NOW. THE TAXES ARE STRANGLING PEOPLE.
YOUNG PEOPLE CAN'T AFFORD TO LIVE HERE ANYMORE.
OLDER PEOPLE, SENIORS, CAN'T AFFORD TO KEEP UP.
IF WE TOOK THAT $3.5 BILLION A YEAR, JIM, AND IF WE KEPT THAT
RIGHT HERE IN NASSAU AND SUFFOLK COUNTY, TREMENDOUS.
WHY ARE WE PAYING FOR THE REST OF THE STATE WHEN WE HAVE
TROUBLE PAYING OUR OWN BILLS ON LONG ISLAND?
>> ARE YOU GETTING ANY TRACTION?
IS ANYONE BEHIND THIS?
>> WE WERE GOING PRETTY WELL.
YOU KNOW, IT NEEDS A GROUNDSWELL MOVEMENT.
WE NEED PEOPLE OUT THERE TO GET EXCITED AND TO START PETITIONING
OUR ALBANY GOVERNMENT.
SENATOR KEN INTRODUCED THE BILL TWO YEARS AGO, AND I'M PRETTY
SURE IT'S INTRODUCED AGAIN.
NOT GOING TO GO
A LOT OF SUPPORT FROM THE STATE LEGISLATURE.
THE SUFFOLK COUNTY LEGISLATURE, LED BY BILL LINDSEY, ITS
PRESIDING OFFICER, PASSED A HOME RULE MESSAGE SUPPORTING THAT
BILL UP IN ALBANY. BUT AGAIN, IT'S LIKE, UNTIL WE START
RAISING CAIN, UTIIL WE START RATTLING THE CAGES,
WE'VE GOT TO LET ALBANY KNOW
TAKE IT ANYMORE.
>> COULD WE REALLY BE A VIABLE 51st STATE?
I MEAN, IS IT POSSIBLE THAT WE COULD DO IT?
>>NO QUESTION, WE COULD AFFORD IT BASED ON OUR POPLULATION,
BASED ON
POPULATION ON LONG ISLAND.
BY POPULATION, JIM, WE WOULD BE LARGER THAN NINETEEN STATES.
WE WOULD BE LARGER WITH 2.8 MILLION PEOPLE IN NASSAU AND SUFFOLK COUNTIES.
WE WOULD BE LARGER THAN ALASKA, WYOMING, NORTH DAKOTA, AND NEW HAMPSHIRE.
THE FOUR STATES COMBINED.
ALASKA, WYOMING, NORTH DAKOTA, NEW HAMPSHIRE.
LARGER THAN THE FOUR STATES COMBINED.
OUR MEDIAN INCOME, WE ARE RANKED IN THE -- OF INDIVIDUAL COUNTIES
BETWEEN NASSAU AND SUFFOLK, WE ARE RANKED IN THE TOP 10%
FINANCIALLY BASED COUNTIES IN THE NATION.
I MEAN, THERE'S NO QUESTION OF THE MONEY THERE.
THINK ABOUT THE POLITICS OF IT AND THE GOVERNMENT OF IT.
WE COULD RESTRUCTURE ALL THE -- WE'RE SO OVER-GOVERNED IN NASSAU
LOOK AT
WE ALL HAVE OUR TOWNS AND WE WANT TO KEEP OUR TOWNS IN SYNC
JUST THROUGH LOCAL CONTROL.
IF YOU LOOK AT THE WATER DISTRICTS AND THE SPECIAL
DISTRICTS IN NASSAU COUNTY, YOU LOOK AT ALL THE VILLAGES IN
SUFFOLK COUNTY, YOU LOOK AT ALL, FOR INSTANCE, THE POLICE
DEPARTMENTS.
YOU HAVE STATE POLICE.
COUNTY POLICE.
TOWN POLICE.
COURT SYSTEMS.
THE SAME THING.
IT'S INCREDIBLY WE'RE OVER BURDENED.
THE NEW STATE WOULD GIVE US AN OPPORTUNITY TO STREAMLINE.
WE WOULDN'T NEED COUNTY GOVERNMENTS.
JUST KEEP THE TEN TOWNS IN PLACE.
WE HAVE A WONDERFUL OPPORTUNITY TO REALLY RESTRUCTURE, AND
THAT'S NOT -- THOSE COSTS THAT WE WOULD SAVE AREN'T EVEN
FACTORED INTO THE $3 BILLION A YEAR WE WOULD SAVE.
OF
EVERYONE REALIZES THAT
NOTHING IS DONE ABOUT IT.
>> THEY'RE ALL VERY EXPENSIVE.
>> I MEAN, DO YOU FEEL THAT YOU COULD EVER GET SOME OF THE OTHER
BIG-TIME POLITICIANS BEHIND THIS?
>> AGAIN, THE MORE POLITICIANS -- I'VE BEEN DOING
THIS FOR ALMOST 30 YEARS.
POLITICIANS LISTEN TO THE PEOPLE, AND WHEN PEOPLE START
BANGING THEIR FISTS ON THE TABLE SAYING WE WANT SOME ACTION, WE
WANT A STATE. IF NOTHING ELSE, JIM, LET'S START WITH THE BILL
THAT'S IN ALBANY NOW.
LET'S PUT IT ON THE BALLOT.
LET'S PUT -- LET EVERYBODY IN NASSAU AND SUFFOLK COUNTY DECIDE
THE FIRST STEP.
LET'S VOTE DO WE WANT TO CECEDE AND PURSUE CESSATION ACTION
THE STATE OF NEW YORK.
BUT BY PUTTING THAT ON THE BALLOT IN ANY NOVEMBER
FOCUSED ON ALL THE FACTS.
CHECK OUR FACTS.
FROM
CHECK MY FACTS.
GET IT OUT THERE AND LET THE PEOPLE DECIDE.
DO THEY STILL WANT TO SUFFER UNDER THE STATE OF NEW YORK AND
SPEND $3.5 BILLION A YEAR TO ALBANY, OR DO WE WANT TO GO OUR
OWN WAY?
>> IF YOU HAD A CRYSTAL BALL AND HAD TO YOU LOOK FORWARD
INTO SUFFOLK COUNTY'S FUTURE, WHERE DO YOU SEE THE COUNTY FROM
A FINANCIAL POINT OF VIEW GOING FORWARD ONCE YOU GET THROUGH
THIS HALF BILLION DOLLAR CRISIS THAT YOU CONFRONTED?
>> I THINK THAT -- I THINK THAT SALES TAX WILL EVENTUALLY RISE
AGAIN TO THE NUMBERS THAT WHEN THE ECONOMY REALLY TURNS AROUND.
THE RECENT NEWS ON THE HOUSING MARKET, THE HOUSING BUILDING NEW
CONSTRUCTION ACROSS THE COUNTRY SEEMS TO BE GETTING MUCH BETTER
ACCORDING TO RECENT REPORTS.
LONG ISLAND THEY LAG GOING INTO THE RECESSION AND I THINK
WE'LL LAG IN THE RECOVERY.
WHEN SALES TAX TURNS AROUND AND WHEN THE ECONOMY IN GENERAL
TURNS AROUND, THAT WILL MAKE YOUR -- YOU KNOW, A COUPLE OF
THINGS HAPPEN.
YOU GET INTO -- WHEN THE COUNTY HAS TO CUT BACK, YOU HAD -- AND
PEOPLE LOSE THEIR JOBS, IT RAISES THE OTHER SIDE OF COUNTY
SPENDING.
BECAUSE NOW YOU
HAVE MORE PEOPLE DRAINING SOCIAL SERVICES BECAUSE THEY NEED
ASSISTANCE FOR THEIR FAMILIY.
ONCE THE ECONOMY TURNS AROUND, THAT SIDE GOES UP IN THE SOCIAL
SERVICES END.
AS AN EXAMPLE, IT GOES DOWN.
I THINK THREE OR FOUR YEARS, AND ALSO THE COUNTY LEGISLATURE AND
COUNTY EXECUTIVE, THEY NO CHOICE.
THEY HAVE TO COME UP WITH A STRUCTURAL BALANCED BUDGET
IN 2014, AND WE USE THAT GOING FORWARD.
DON'T DEVIATE.
DON'T SPEND MORE THAN WE'RE USED TO SPENDING, AND WE HAVE TO CUT
BACK ON OUR BORROWING.
>> LET ME ASK YOU ONE FINAL QUESTION.
IS THERE A WAY FOR SUFFOLK AND NASSAU COUNTIES TO WORK TOGETHER
MORE CLOSELY TO DEVELOP A GREATER ECONOMIC POSSIBILITY FOR
THE ISLAND?
>> I THINK DEFINITELY.
I KNOW THAT THE TWO COUNTY EXECUTIVES, BELLONE AND MANGANO,
HAVE MET SEVERAL TIMES.
I'M NOT SURE EXACTLY WHAT THEY'VE AGREED ON, BUT I KNOW
THE PRIOR COUNTY EXECUTIVES HAVE MET AND AGREED ON SHARED
CERTAIN ITEMS.
BUT WHERE I THINK NASSAU COUNTY CAN REALLY HELP, JIM,
IS TO EMBRACE SUFFOLK'S HOME RULE MESSAGE ON LONG ISLAND.
IF YOU HAVE A COUNTY EXECUTIVE
LIKE MANGANO AND BELLONE OUT
THERE,
WE DON'T LIKE
THE WAY WE'RE BEING TREATED
EITHER YOU STRAIGHTEN OUT AND LET US KEEP MORE OF THE REVENUE
AND THE TAX THAT IS ARE GENERATED DOWN HERE.
OTHERWISE, WE'RE GOING TO GO AHEAD AND SWITCH TO CESSATION
THAT'S HOW WE'RE GOING TO WORK TOGETHER AS A REGION.
HOPE, FOR SUFFOLK COUNTY
I THANK YOU, JOSEPH, FOR BEING WITH US TODAY, AND THAT WRAPS UP
OUR CONVERSATION ON SUFFOLK COUNTY FINANCES.
LOG ON TO OUR WEBSITE.
YOU CAN ALSO FIND US ON FACEBOOK AND JOIN THE CONVERSATION ON
TWITTER.
I'M JIM PAYMAR. THANK YOU FOR JOINING US FOR THIS EDITION OF
THE LONG ISLAND BUSINESS REPORT, AND WE'LL SEE YOU NEXT TIME.
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