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Nassau County
Proposed 2024 Budget and
Multi-Year Financial Plan
Review of Risks & Opportunities
Office of Nassau County
Comptroller Elaine Phillips
October 2023
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Elaine Phillips
Comptroller
Elizabeth Hill
Deputy Comptroller for Accounting
Lisa S. Tsikouras, CPA
County Director of Accounting
Tolulope Agosu, MBA
Deputy County Director of Accounting
Financial Analysis Staff
Kenia Bonilla Pina Ruperto, CPA
Accounting Executive Advisor Accounting Executive Advisor
Khaleda Malique Babatunde Popoola
Accounting System Specialist Accountant IV
Janet Garone Debra Foster
Accountant IV Accountant IV
Lisa McHugh
Accountant III
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table of Contents
EXECUTIVE SUMMARY ...................................................................................... 1
PROPOSED FISCAL YEAR 2024 BUDGET RISKS/OPPORTUNITIES ....... 8
DISCUSSION OF REVENUES: (RISKS) / OPPORTUNITIES ...................... 11
DISCUSSION OF EXPENDITURES: (RISKS) / OPPORTUNITIES............. 18
THE MULTI-YEAR FINANCIAL PLAN .......................................................... 29
LONG-TERM OBLIGATIONS AND BORROWING TRENDS..................... 33
NASSAU COUNTY INTERIM FINANCE AUTHORITY (“NIFA”) ACT .... 36
APPENDIX A: GAAP ADJUSTMENTS AND THE EFFECT OF
ENCUMBRANCES ............................................................................................... 40
APPENDIX B: SALES TAX VARIABLES AND TERMINOLOGY .............. 40
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Proposed Nassau County 2024 Budget &
Multi-Year Financial Plan:
Comments on the Risks and Opportunities
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
EXECUTIVE SUMMARY
PURPOSE
The Nassau County Charter requires that the Nassau County Comptroller render an opinion as to
the reasonableness of the estimates contained in such proposed budget relating to non-real property
tax revenues. This report has been prepared pursuant to §402 (8) of the County Charter.
FINANCIAL REPORTING
Accounting Standards and Fund Accounting
The Government Accounting Standards Board (GASB) is an independent, private sector
organization that establishes accounting and financial reporting standards for U.S. state and local
governments that follow Generally Accepted Accounting Principles (GAAP).
GAAP refers to a common set of accepted accounting principles, standards, and procedures for
financial reporting. GAAP enables the County to comparatively track its performance relative to
other municipalities.
Government entities normally derive their income from taxes, user fees, grants or
intergovernmental transfers. Fund accounting allows a governing body to achieve fiscal
accountability objectives, such as establishing and monitoring how resources are allocated and
spent and setting and managing spending limits.
Three Primary Operating Funds
This report by the Office of the Comptroller analyzes the proposed 2024 Budget and Multi-Year
Financial Plan (MYP) for the “three primary operating funds”. The three primary operating funds
are analyzed to identify potential risks and opportunities to the proposed budget and MYP. The
three primary operating funds include the total General Fund1, the Police District Fund, and the
Sewer and Storm Water District Fund, which have different tax bases with activity that represents
the daily operations of the County.
1
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions was adopted by Nassau
County in fiscal year 2011. GASB Statement No. 54 clarified the definition of General Fund, which caused the County
to reconstitute the General Fund to include funds that are not defined as Special Revenue Funds. Special Revenue
Funds are used to account for and report the “proceeds of specific revenue sources” that are restricted, committed or
assigned to expenditures for specified purposes other than debt service or capital projects.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Major Budget Revenues and Expenditures
This report reviews the County’s revenue sources and expenditures in the three primary operating
funds2, focusing on those categories where risks or opportunities have been identified.
STATE OF THE COUNTY
Nassau County’s financial condition is stronger than in prior decades. The County abides by the
New York State requirement to approve balanced annual budgets, in which projected revenues
equal projected expenditures. Primarily due to the continued strong growth in sales tax revenues,
the County has experienced several years of surpluses which the County has used wisely to reduce
liabilities and increase necessary reserves.
According to the Standard and Poor’s (S&P) credit rating agency report dated April 11, 2023
“Nassau County’s financial position continues to strengthen through reserve growth and the
elimination of a significant portion of its outstanding liabilities… Available reserves for its major
operating funds [are expected to] increase to a historic high. The county has also established
reserves to fund ongoing tax certiorari appeals, retirement and health care contributions, and
employee benefits. In total, reserves will increase, positioning the county over the next couple of
years to navigate economic headwinds stemming from inflation, rising mortgage interest rates, and
geopolitical uncertainty.”3
S&P continued: “The bond rating’s [AA- rating with a] stable outlook reflects the county’s recent
robust operating performance, leading to a substantially improved financial and liquidity position.
This is the result of budgetary policies designed to achieve long-term structural balance, along
with the county’s commitment to improving reserves.”4
Another major accomplishment by the County is the successful negotiation of collective
bargaining agreements with four County unions leaving only two unions without current labor
contracts; all previous contracts expired December 31, 2017. The most recent agreement approved
by the County Legislature and the Nassau County Interim Finance Authority (NIFA) was the
collective bargaining agreement with Civil Service Employees Association (CSEA) Local 830,
which was approved in September 2023. One contract with the Corrections Officers Benevolent
Association (COBA) was recently settled and ratified by the members on October 4, 2023; this
contract requires County Legislature and NIFA approval.
2
In accordance with GAAP, the General Fund is comprised of the following active County funds: General; Police
Headquarters; Fire Commission; Debt Service; Open Space; Technology; Litigation; Employee Accrued Benefit
Liability Reserve; Retirement Contribution Reserve; Bond Indebtedness Reserve; Excess Sales Tax Special Revenue
Fund; and Opioid Litigation Settlement Fund.
3
Standard and Poor’s Credit Research report dated April 11, 2023, page 2.
4
Ibid, page 3
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
The Office of the New York State Comptroller announced that it assigned Nassau County a Fiscal
Stress score of zero – the best possible result – in its Fiscal Stress Monitoring System (FSMS)5,
based on 2022 fiscal year results. FSMS is designed to objectively identify issues with budgetary
solvency – the ability to generate enough revenue to meet expenditures – for each county, city,
town, village and school district in New York. FSMS scores below 45 indicate no fiscal stress or
susceptibility to fiscal stress. FSMS assigned a score to Nassau County of 14.6 for fiscal year 2021.
For years prior to fiscal year 2021, the County’s scores indicated various levels of stress or
susceptibility to stress.
STATE OF THE ECONOMY
Major issues in the national economy that could affect Nassau County finances are the following:
1. Inflation
2. Interest rates
3. Recession
4. Unemployment
Inflation
Inflation has been a major concern since June 2022, when year-over-year inflation measures hit
9.1%. Not only were consumers stressed by increasing prices, but the Federal Reserve Bank (the
Fed) began to increase the Effective Federal Funds Rate in an effort to reduce inflation.
5
https://www.osc.state.ny.us/local-government/fiscal-monitoring
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
The graph above compares the monthly year over year changes in the:
- Core Personal Consumption Expenditures Price Index (PCE),
- Consumer Price Index (CPI),
- Core CPI and
- Effective Federal Funds Rate (EFFR).
Core CPI and Core PCE exclude food and energy costs due to the price volatility of these goods.
Inflation measures dropped with the onset of COVID and then began to significantly exceed pre-
pandemic levels in early 2021. The inflation measures began decreasing again in June 2022, after
the Fed started increasing the EFFR in March 2022.
Year-Over-Year Change in Consumer Spending in the U.S. 2023
Jan Feb March April May June July August
2023 2023 2023 2023 2023 2023 2023 2023
CPI 6.3% 5.9% 4.9% 4.9% 4.1% 3.1% 3.3% 3.7%
Core PCE 4.7% 4.6% 4.6% 4.6% 4.5% 4.1% 4.2% 3.9%
Core CPI 5.5% 5.5% 5.6% 5.5% 5.3% 4.7% 4.7% 4.4%
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Interest Rates
Due to the rate increases by the Fed to curb inflation to 2%6, the EFFR rose from 0.08% in January
2022 to 4.33% in January 2023 and to 5.33% currently. The increase in the EFFR creates higher
borrowing costs and could slow spending by consumers and businesses alike. With reductions in
spending, employers may reduce their staffing. These factors could result in a recession. The
following graph indicates that despite the increases in the EFFR, unemployment has not shown a
significant increase except during the pandemic and is now similar to pre-COVID Pandemic levels.
Increases in the EFFR also result in higher mortgage rates. Higher mortgage rates can slow down
real estate sales and contribute to a softening of prices. Indeed, the number of Nassau County deeds
and mortgages recorded declined in the first eight months of 2023 compared to the same period in
2022, as shown in the following table:
6
Federal Reserve Board - Federal Reserve issues FOMC statement
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
August 2023 vs
Nassau County Deed & Mortgages
August 2022
Total Deed and Mortgage Transactions YTD # change -6,986
Total Deed and Mortgage Transactions YTD % change -30.7%
Recession
Real Gross Domestic Product (GDP)7, a lagging indicator of economic conditions, increased at an
annual rate of 2.2 percent in the first quarter of 2023 and 2.1 percent in the second quarter. Given
these positive changes in the GDP, a recession will not be declared at this time.
Bond yields can provide a leading indicator of economic condition. Normally, long-term bonds
pay higher effective yields than short-term notes in exchange for investors tying up their money
for longer periods. When investor confidence in the economy declines, short-term securities begin
to offer higher yields than long-term securities which creates an inverted yield curve. The inverted
yield curve can be a warning sign for the economy. In November 2022, the spread between three-
month Treasury bills and 10-year notes became inverted and at the time of this report they remain
inverted. In July 2023, expectations of another rate hike by the Fed to tame stubbornly high
inflation helped push the yield curve to its deepest inversion since 1981.8 Recessions have often
7
“Real” GDP is adjusted for inflation, as reported by the Bureau of Economic Advisors
8
Ibid
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
begun six to 36 months after the curve inverted9 but not all inversions of the yield curve have
predicted a recession.
Unemployment
The Nassau County unemployment rate in August 2023 was estimated at 3.2%, the same rate as
in August 2022,10 similar to pre-COVID Pandemic levels. The increase in the EFFR did not
increase unemployment in Nassau County.
Nassau County’s economy is resilient. Nassau County was the 8th richest county in the U.S. in
2022 based on median household income.11 Not only is the Nassau County median household
income high, but unemployment and the percent of families below the poverty level are lower than
in the U.S. and New York State.
New York
Category United States State Nassau County
Median Household Income (2022) $74,755 $79,557 $136,984
Families Below Poverty Level (2022) 12.6% 14.3% 5.3%
Unemployment Rate (Aug 2023) 3.8% 3.9% 3.2%
The local Nassau County economy provides diverse employment within the County, in more than
18 industries. Reported as of 2022, the industries with the greatest share of employment within the
County include Health Care and Social Assistance (23%), Retail trade (12%) and Government
(11%). Government employment consisted of 56,761 local, 5,193 Federal, and 3,397 State
employees. In addition, 41.1% of employed residents in Nassau County work outside the County.12
Expectations for the Future
Several major economic conditions indicate the possibility of a recession. These include
inflation, rising interest rates, and geopolitical uncertainty over the next couple of years. The
strength of Nassau County’s financial condition and local economy, however, should enable the
County to navigate these economic headwinds.
9
US yield curve hits deepest inversion since 1981: What is it telling us? | Reuters
10
Bureau of Labor Statistics Data (bls.gov) – Unemployment rate for U.S. Unemployment Rate in Nassau County,
NY (NYNASS9URN) | FRED | St. Louis Fed (stlouisfed.org)
11
s1903 - Census Bureau Tables - median household income, for Nassau County click “Geos”
12
See What the Average Commute is in Nassau County, NY | Stacker
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
PROPOSED FISCAL YEAR 2024 BUDGET RISKS/OPPORTUNITIES
Based on the review performed, the Comptroller’s Office estimates that the 2024 Proposed Budget
contains approximately $28.8 million of budgetary opportunity and $4.0 million opportunity on a
GAAP basis13. The risks and opportunities are shown in Table 1 and Table 2 below, excluding
eliminating interfunds and net of transfers in and out.
Table 1: (Risks) / Opportunities to the 2024 Proposed Budget
Sewer and Total
Police District
($ millions) General Fund Storm Water Operating
Fund
Fund Funds
REVENUES
Sales Tax $14.5 $0.0 $0.0 $14.5
Use of Fund Balance ($25.0) ($21.5) ($46.5)
Fines and Forfeitures ($14.4) $0.0 $0.0 ($14.4)
Departmental Revenues ($11.0) $0.0 $0.0 ($11.0)
State Aid $3.2 $0.0 $3.2
Rents and Recoveries ($11.2) $0.0 $0.0 ($11.2)
Capital Resources for Debt ($15.0) ($15.0)
All Other (primarily Special Taxes) $0.0 $0.1 $0.0 $0.1
Total Revenues ($58.9) $0.1 ($21.5) ($80.3)
EXPENDITURES
Payroll, Fringes & Workers'
$88.0 $15.8 $2.4 $106.2
Compensation
Early Intervention ($10.8) ($10.8)
Social Services $1.3 $1.3
Contractual Expense $1.2 $0.0 $0.0 $1.2
Local Government Assistance ($0.9) ($0.9)
Property Tax Refunds ($40.0) ($40.0)
General Expenditures $1.5 $0.0 $1.0 $2.5
Contingency and All Other $39.5 $10.1 $49.6
Total Expenditures $79.8 $15.8 $13.5 $109.1
Net Transfers In/Out $0.0 $0.0 $0.0 $0.0
Total (Risks)/Opportunities $20.9 $15.9 ($8.0) $28.8
Total GAAP Adjustments* ($14.3) ($8.3) ($2.2) ($24.8)
Total (Risks)/Opportunities
$6.6 $7.6 ($10.2) $4.0
GAAP Basis
* do not include adjustments for GASB 87 and GASB 96
13
The estimated results are prior the application of any GAAP entries related to GASB 87, Leases, and GASB 96,
Subscription Based Information Technology Arrangements as these entries cannot be estimated at this time.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table 2: Estimated GAAP Adjustments for FY 2024
2024 Estimated GAAP Adjustments * Sewer and Total
Police
General Storm
District Operating
($’s in millions) Fund Water
Fund Funds
Fund
Projected Results on a Budgetary Basis $20.9 $15.9 ($8.0) $28.8
Period of availability adjustments $0.2 $0.0 ($3.6) ($3.4)
Pension expenditure adjustment ($18.4) ($8.5) ($0.1) ($27.0)
Sale of Mitchel Field Leases $1.3 $1.3
NCC adjustment for termination pay ($1.0) ($1.0)
Effect of encumbrances adjustment $3.6 $0.2 $1.5 $5.3
NET CHANGE IN FUND BALANCE (DEFICIT) $6.6 $7.6 ($10.2) $4.0
* GAAP adjustments can significantly fluctuate until finalized in the year-end financial statements primarily due
to the effects of encumbrances; the value of unspent encumbrances as of year-end and the expenditures paid
after year-end but incurred during the fiscal year are difficult to predict. Thus these adjustments are estimates
at this point in time. GAAP adjustments related to GASB 87, Leases, and GASB 96, Subscription-Based
Information Technology Arrangements, have not been included above.
Below are key assumptions:
The 2024 Proposed Budget includes $20.9 million of budgeted costs for the collective
bargaining agreements with the County’s two remaining labor unions, COBA and the
Investigators Police Benevolent Association (IPBA). COBA’s agreement was ratified by
its members on October 4, 2023, however, it has not yet been approved by the County
Legislature and NIFA. The IPBA is the remaining union that has not yet negotiated a new
collective bargaining agreement. The Comptroller’s Office projections in this report do not
include estimates for COBA and IPBA costs, as final agreements may vary to the budgeted
amounts and the timing of when new collective bargaining agreements will take effect is
not known. Collective bargaining agreements require legislative and Nassau County
Interim Finance Authority (NIFA) approval, as well as ratification by union members. It
would not be prudent at this time to assume the result of these decisions.
The 2024 Proposed Budget includes an estimated $28.1 million budgeted for the 318
vacant positions in the County. The projections in this report do not include a cost for these
vacant positions as the methodology used by the Comptroller’s Office is to project using
current on-board headcount adjusted for additional police and correctional classes and
related attrition.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
The 2024 Proposed Budget does not include an adopted budget for some of the reserve and other
funds that are consolidated into the General Fund. As such, and based on discussions with the
Budget Office, the projections in this report do not include expenditures in the following funds:
Bond Indebtedness Fund (BIF), Retirement Contribution Fund (RCF), Technology Fund (TCF),
Open Space Fund (OSF), and the Excess Sales Tax Special Revenue Fund (EST).
The projections do include expenditures in the:
Litigation Fund (LIT), even though there is no adopted budget proposed for 2024; it is
expected that tax certiorari payments, litigation costs and longevity payments to
employees, will be paid from this fund in 2024.
Opioid Litigation Settlement Fund (OLS), which is included in the 2024 Proposed Budget,
accounts for use of fund balance for contractual costs.
The Employee Accrued Benefit Liability Fund (EBF), which is included 2024 Proposed
Budget, proposed the use of $10 million of fund balance to fund Police District Fund
termination payments in 2024.
Further Analysis of the individual risks and opportunities can be found beginning on page
11.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
DISCUSSION OF REVENUES: (RISKS) / OPPORTUNITIES
This section discusses significant revenue risks and opportunities presented in the fiscal year 2024
Proposed Budget.
PRIMARY FUNDS REVENUE COMPOSITION
Sales Tax is the major revenue source for Nassau County, accounting for $1.6 billion or 41% of
revenue, followed by Property Tax at $755.3 million or 19%, State and Federal Aid at $476.2
million or 13% and Departmental Revenues at $196.4 million or 5%.
Chart 1: 2024 Proposed Budget Primary Operating Funds Revenues
FY 2024 Proposed Primary Operating Funds Revenues ($’s Millions)
*Note:
Other includes: Non-offsetting Interfund Revenues ($78.4 million), Use of Fund Balance ($46.5 million), PILOTs
($53.0 million), Rents and Recoveries ($35.3 million), Interest Penalties on Taxes ($32.5 million), Special Taxes
($31.9 million), Permits and Licenses ($19.5 million), OTB Video Lottery Terminals ($20.0 million), Revenue Offsets
of Expense ($23.4 million), Investment Income ($42.0 million), and Capital Resources ($19.9 million).
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Sales Tax | Budget Opportunity $14.5 million
The Comptroller’s Office projects a $14.5 million opportunity for Sales Tax revenue in the 2024
Proposed Budget, or a 1% growth in sales tax collections over the 2023 Comptroller’s Office
mid-year projections.
Sales Tax, at 41% of 2024 budgeted revenues (net of offsetting interfund revenues), is the
County’s largest revenue source and is highly correlated to economic conditions.
Table 3: Sales Tax ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Comptroller’s
Actual Proposed Budget Opportunity
Forecast Forecast
$1,504.3 $1,587.5 $1,605.3 $1,619.8 $14.5
2024 SALES TAX PROJECTIONS
The 2024 Proposed Budget includes sales tax revenue of $1,619.8 million, or $14.5 million
projected over budget. 2024 sales tax collections as proposed in the budget are flat to the
Comptroller’s Office mid-year projections. See Table 4 below.
The average growth rate in sales tax revenue for the fiscal years 2015-2019 and 2022 was
3.43%. The 2024 Proposed Budget assumes a conservative growth rate of 1.1% over the
Comptroller’s mid-year projection for fiscal year 2023.
It is important to note that sales tax collections are what the County receives from the State.
County sales tax revenue is reported as collections net of adjustments for Part County deferred
revenue. For further information on Part County sales tax, please see Appendix B.
Table 4 below illustrates the differences between sales tax collections and sales tax revenue.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table 4: Sales Tax by Collections and Revenue ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s
Actual Opportunity
Forecast Budget Forecast
Sales Tax Collections $1,531.7 $1,576.8 $1,577.9 $1,593.7 $15.8
Prior Year Part County $0.0 $21.3 $27.4 $27.4 $0.0
Less: Current Year Part
($27.4) ($10.6) $0.0 ($1.3) ($1.3)
County
Total Sales Tax Revenue $1,504.3 $1,587.5 $1,605.3 $1,619.8 $14.5
Because sales tax revenue is very economically sensitive, Table 5 below outlines several
scenarios based on varying growth rates over the 2024 sales tax projections. The projection for
2024 sales tax revenue in this report is denoted in the shaded column “2024 Projection”.
Table 5: 2024 Sales Tax Revenue Scenarios – ($ Millions)
in $ millions
2024 2024 2024 2024 2024
2024 Sales Tax Revenue 2024 CO
Projection Projection Projection Projection Projection
Scenarios Projection*
-3% -2% -1% +2% +3%
Projected Total Sales Tax $ 1,573.3 $ 1,589.2 $ 1,605.1 $ 1,619.8 $ 1,649.2 $ 1,663.8
2024 Proposed Budget $ 1,605.3 $ 1,605.3 $ 1,605.3 $ 1,605.3 $ 1,605.3 $ 1,605.3
Difference from Budget $ (32.0) $ (16.1) $ (0.2) $ 14.5 $ 43.9 $ 58.5
% Difference from Budget -2.0% -1.0% 0.0% 0.9% 2.7% 3.6%
* 2024 CO Projection = 2023 CO Mid-Year Report projection + 1% growth on sales tax collections
The Chart below depicts, by fiscal year beginning in 2013, actual sales tax revenue reported and
the adopted budget, with projections for 2023 and 2024 actual revenues, and the 2024 Proposed
Budget.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Chart 2: Sales Tax Collections ($ Millions) – Actuals & Projected
Use of Fund Balance | Budget Risk $(46.5) million – GAAP impact $0.0
The Comptroller’s Office projects Use of Fund Balance with a risk of $46.5 million, $15.0
million in the Opioid Litigation Settlement Fund, $10 million in the Employee Benefit Accrued
Liability Reserve Fund (both components of the General Fund) and $21.5 million in the Sewer
and Storm Water District Fund. Since Use of Fund Balance is not a revenue source, it has been
excluded from the projections in this report.
Note: On a GAAP basis, use of fund balance is not a revenue source and thus, it has no effect
on GAAP results.
Table 6: Use of Fund Balance ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s
Actual Risk
Forecast Budget Forecast
$13.0 $0.0 $46.5 $0.0 ($46.5)
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Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Fines and Forfeitures | Budget Risk ($14.4) million
The projections for Fines and Forfeitures anticipates a risk of $14.4 million. This risk is
primarily attributed to $9.8 million of risk in the Traffic and Parking Violations Bureau (TPVA),
related to TPVA Fines and traffic violation administrative fees, and a $2.6 million risk for Red-
Light Camera fines and Red-Light Camera Administrative Fees. The projections are based on
historical trends.
There are additional risks of $0.5 million for Boot & Tow fines since the reinstatement of the
program has not yet occurred, and $1.5 million risked for the new proposed School Bus Camera
revenues, due to a delay in the program.
Table 7: Fines and Forfeitures – ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Category Actual Mid-Year Proposed Comptroller’s
Risk
Forecast Budget Forecast
Red Light Cameras & Admin Fees $42.7 $43.9 $48.1 $45.5 ($2.6)
Public Safety $25.3 $24.5 $23.5 $23.5 $0.0
Boot & Tow $0.0 $0.0 $0.5 $0.0 ($0.5)
School Bus Camera $0.0 $0.5 $3.0 $1.5 ($1.5)
Other Fines and Forfeitures $13.9 $15.8 $26.6 $16.8 ($9.8)
Total Fines and Forfeitures $81.9 $84.7 $101.7 $87.3 ($14.4)
Departmental Revenue | Budget Risk ($11.0) million
The 2024 Proposed Budget includes $11.0 million of estimated risk in Departmental Revenues
primarily comprised of the following:
Assessment Department revenue from the Income and Expense Law of $5.0 million. The
litigation surrounding these fees remains unadjudicated, therefore, the total estimated in
the Proposed Budget is being risked.
GIS map verification fees in the County Department of Assessment are projected to be
lower than estimated in the 2024 Proposed Budget ($4.0 million), primarily due to the
reduction in the fee to $270 and slowing of the real estate sales.
Ambulance fees in the Police Department Headquarter are projected to be $2.0 million
lower than the 2024 Proposed Budget due to the year over year collection trend.
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OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table 8: Departmental Revenues – ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Proposed Comptroller’s
Category Actual Mid-Year
Budget Forecast Risk
Forecast
GIS Tax Map Verification Fees $38.4 $21.0 $25.0 $21.0 ($4.0)
Mortgage & Deed Recording Fees $43.1 $26.9 $27.0 $27.0 $0.0
Bus Farebox $27.5 $29.5 $30.7 $30.7 $0.0
Revenue from Income and Expense
$0.0 $0.0 $5.0 $0.0 ($5.0)
Law
Ambulance Fees $20.4 $22.0 $24.0 $22.0 ($2.0)
Other Departmental Revenue $80.0 $82.8 $84.7 $84.7 $0.0
Total Departmental Revenue $209.4 $182.2 $196.4 $185.4 ($11.0)
State Aid | Budget Opportunity $3.2 million
The Comptroller’s Office projects a $3.2 million opportunity for State Aid revenue in the 2024
Proposed Budget. The opportunity is related to State Aid reimbursement for Pre-School services
which are projected to increase due to an increase in related program expenditures. Although the
County is pursuing legislation to cap or mitigate the local cost of preschool services, the legislation
has not yet materialized, therefore the County’s cost will continue to increase, leading to an
increased opportunity for State Aid reimbursement. The County’s State Aid reimbursement for
pre-school and related services is 59.5%.
Table 9: State Aid ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s
Actual Opportunity
Forecast Budget Forecast
$261.8 $280.6 $288.2 $291.4 $3.2
Page | 16
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Rents and Recoveries - Sale of County Property | Budget Risk ($11.2) million
The 2024 Proposed Budget includes a risk of $11.2 million in Rents and Recoveries. The 2024
Proposed Budget includes $4.2 million for the sale of County property, however, at the time of
this report, we are not aware of any closing dates for any specific properties for sale in fiscal year
2024. The recovery of prior year disencumbrances is projected to be lower than budgeted ($7.0
million). Recoveries of prior year encumbrances have the effect of generating revenue on a
budgetary basis; however, under GAAP, encumbrances are not actual expenditures, and these
revenues are removed from the GAAP results when converting from budgetary reporting to GAAP
reporting.
Table 10: Rents and Recoveries and Sale of County Property– ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Proposed Comptroller’s
Category Actual Mid-Year
Budget Forecast Risk
Forecast
Sale of County Property $3.9 $0.3 $4.2 $0.0 ($4.2)
Recovery of Prior Year Appropriations:
Disencumbrances $11.4 $2.3 $7.0 $0.0 ($7.0)
Other Recoveries $2.8 $0.0 $3.4 $3.4 $0.0
Sands Revenue $0.0 $54.0 $5.9 $5.9 ($0.0)
Other Rents and Recoveries $19.7 $18.0 $14.7 $14.7 $0.0
Total Rents and Recoveries $37.8 $74.6 $35.2 $24.0 ($11.2)
Capital Resources for Debt | Budget Risk ($15.0) million
The 2024 Budget proposes $15.0 million in revenue from unspent bond proceeds from completed
capital projects. When a capital project is complete and all obligations have been paid, the capital
project can be submitted to be permanently closed. Any unused cash in the closed project can be
used to pay debt service. The Comptroller’s Office is risking the $15.0 million since details
regarding the projects that are considered complete with unused cash have not been provided and
reviewed to date. If projects are identified and reviewed for available unspent cash proceeds, some
or all of the risk may be mitigated.
Table 11: Capital Resources for Debt ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s
Actual Risk
Forecast Budget Forecast
$3.0 $2.1 $19.9 $4.9 ($15.0)
Page | 17
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
DISCUSSION OF EXPENDITURES: (RISKS) / OPPORTUNITIES
This section discusses significant expenditure risks and opportunities presented in the fiscal
year 2024 Proposed Budget.
PRIMARY FUNDS EXPENDITURE COMPOSITION
Major Expenditure Categories
Payroll and fringe benefits, at 44% or $1.7 billion is the County’s greatest expenditure, followed
by Contractual Services at 12% or $447.7 million, total Debt Service at 9% or $355.8 million,
Early Intervention and Social Service Programs at $379.3 million or 10% and Medicaid at
$245.2 million or 6%.
Chart 3: Proposed Primary Operating Funds Expenditures
FY 2024 Proposed Primary Operating Fund Expenditures ($’s Millions)
*Note: Other includes: Non-offsetting interfund charges ($64.5 million), Mass Transportation ($51.8
million), Utilities ($49.4 million), Claims and Judgments ($45.4 million), Property Tax Refunds ($40.0
million), General Expenditures ($56.6 million), Rental Expenditures ($16.7 million), Contingency reserve
($39.5 million), FIT and Non-Resident Tuition ($16.8 million), Legal Aid Society ($9.3 million), Bar
Association ($17.4 million), Variable Direct Expenses ($5.3 million), Equipment purchases ($8.6 million),
NIFA expenditures ($2.8 million), and various other ($11.7 million).
Page | 18
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Payroll, Fringe Benefits and Workers’ Compensation | Budget Opportunity $106.2
million
Payroll, fringe benefits, and workers’ compensation expenditures are projected to have a
combined surplus of $106.2 million when compared to the 2024 Proposed Budget.
The 2024 Proposed Budget includes a total of $1,728.5 million related to payroll, fringe benefits
and workers’ compensation expenses combined. Variances to the Comptroller’s Office 2024
projections are detailed below:
Table 12: Payroll, Fringe Benefits and Workers’ Compensation ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget (Risk)
Proposed Comptroller’s Opportunity
Mid-Year
Budget Forecast
Actual Forecast Opportunity
Payroll excluding OT & $784.6 $779.1 $908.4 $810.6 $97.8
Termination Pay
Overtime $109.5 $112.1 $81.1 $101.6 ($20.5)
Termination Pay $37.6 $40.6 $49.2 $43.8 $5.4
Total Payroll $931.7 $931.8 $1,038.7 $956.0 $82.7
Fringe Benefits $747.1 $659.5 $651.8 $628.3 $23.5
Workers' Compensation $36.7 $37.2 $38.0 $38.0 $0.0
Total Payroll, Fringe
Benefits and Workers' $1,715.5 $1,628.5 $1,728.5 $1,622.3 $106.2
Compensation
The 2024 Proposed Budget assumes a full-time headcount of 7,542, an increase of 4.4% or 318
personnel from the current on-board headcount of 7,224 as of September 7, 2023. The estimated
value of the 318 budgeted full-time positions is $28.1 million.
The increase in budgeted headcount year-over-year includes funding for additional staffing
primarily in areas of Public Safety to continue to address the impact of criminal justice reforms,
which include the Sheriff’s Department, the District Attorney, the Police, Correctional and
Probation Departments. Classes of new police and correctional officers are included to offset
attrition, assist in mitigating future overtime costs, and manage the impact of Criminal Justice
Reform passed by New York State, on the County. Other areas requiring increases in headcount
include Social Services, Health Department and Human Services due to an increase in use of
these services by County residents.
Page | 19
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Major Assumptions:
Collective Bargaining Agreements (CBAs): The County entered into new labor agreements
with the Police Detectives Association (DAI) in December 2019, the Superior Officers
Association (SOA) in November of 2020 and the Police Benevolent Association (PBA) in
February of 2023, which cover the years 2018-2026. A new labor agreement with the Civil
Service Employees Association (CSEA) was approved in September 2023 and spans years
2018-2030. Similar to the 2024 Proposed Budget all related contractual wage increases,
retroactive payments, non-recurring lump sum payments and cost of living adjustments have
been included in our 2024 salary forecast.
The County’s collective bargaining agreements with the remaining labor unions, Correction
Officers Benevolent Association (COBA) and the Investigators Police Benevolent Association
(IPBA) have expired as of December 31, 2017, and new agreements are still in negotiations.
The 2024 Adopted Budget includes funding for the estimated impact of the open collective
bargaining agreements (COBA and IPBA). The budget states that the estimated impact is
consistent with the pattern established under the four ratified agreements (PBA, DAI, SOA and
CSEA) and includes adjustments retroactive to the expiration of the previous contracts. The
Comptrollers’ office forecast does not include any costs related to the pending labor agreements
as the timing and terms of any agreements reached with the unions can vary significantly.
Step Increases and Cost of Living Adjustments: The Comptrollers’ Office forecast includes all
scheduled step increases and cost of living adjustments (COLAs) consistent with recently
ratified labor contracts (DAI, SOA, PBA and CSEA) and the 2024 budget as proposed. For
COBA and IPBA the Comptroller’s Office forecast only includes scheduled employee step
increases as union contracts are still in negotiations and any signed contracts would require both
County Legislative and NIFA approvals to become effective.
Workers’ Compensation: In 2019, New York State eliminated its workers’ compensation
(second injury) long-term liability to the County, which estimated the cost of reimbursing the
County for certain categories of injured workers. Instead, the State offered, and the County
accepted, a discounted upfront payment of its estimated liability when the County agreed to
assume that long-term liability, which was established to pay the injured employees over a span
of approximately 20 years. The County received a lump sum of $15 million as the discounted
value of the long-term liability, which the State estimated at $19 million. The Administration
began using the $15 million in 2020 to settle current workers’ compensation claims. The
County may also use a portion of these proceeds to settle an additional number of long-term
claims at a reduced cost. The $15 million is being reported in the Litigation Fund, a component
fund of the General Fund, however, the projections do not include any expenditures paid using
these funds.
Page | 20
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
PAYROLL EXPENSE (EXCLUDING OVERTIME AND TERMINATION)
The Comptroller’s Office projects a surplus in payroll of $97.8 million excluding termination
pay and overtime costs. Potential savings identified in this category include:
Labor contract assumptions which have been included in the 2024 Proposed Budget for
$20.9 million (include retroactive pay and COLA payments), for COBA and IPBA have
not been included in the Comptroller’s forecast as these contracts are still in negotiations
and not final.
o The table below illustrates the cost of the COBA agreement in the 2024 Proposed
Budget (in millions of dollars).
The 2024 Proposed Budget continues to fund approximately 318 vacant positions
estimated at $28.1 million for all the County’s primary operating funds. Savings can
also be achieved if budgeted positions remain vacant or there are delays in hiring into
the year.
Potential savings of $10.2 million have been identified in Part time / Seasonal personnel
in the General Fund which includes budgetary increases not supported by current trends
and anticipated increases in headcount.
In 2022, the Administration reserved $100 million in the County’s Litigation Fund (a
component of the General Fund) to absorb the current year retroactive longevity payments
related to the 2022 Settlement. The remaining funds reserved in the Litigation Fund are
expected to be used by the Administration in 2023 and in the multi-year plan through 2027 to
alleviate longevity expenses until the full amount reserved has been depleted or four years from
the date of the settlement, whichever is first.
Page | 21
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table 13: Payroll Expenditures excluding Termination Pay and Overtime ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s
Fund Actual (Risk)
Forecast Budget Forecast
Opportunity
General Fund:
General Fund* $365.1 $331.9 $424.3 $356.8 $67.5
Police Headquarters Fund $200.6 $211.9 $231.1 $213.1 $18.0
Fire Commission Fund $7.6 $8.5 $11.6 $9.5 $2.1
TOTAL GENERAL FUND $573.3 $552.3 $667.0 $579.4 $87.6
Police District Fund $204.6 $220.6 $233.9 $225.3 $8.6
Sewer & Storm Water Fund $6.7 $6.2 $7.5 $5.9 $1.6
Total $784.6 $779.1 $908.4 $810.6 $97.8
* includes Litigation fund and Employee Benefit Accrued Liability Reserve fund
FRINGE BENEFITS
The Comptroller’s Office projects a positive variance of $23.5 million in fringe benefits when
compared to the 2024 Proposed Budget total of $651.8 million for this expenditure category.
The Comptrollers’ Office is projecting a total of $628.3 million for this category resulting in a
surplus of $23.5 million when compared to the 2024 Proposed Budget. The primary fringe
benefit savings have been identified in the following categories:
$16.3 million related to FICA expense due to vacant positions;
$3.7 million in Medicare reimbursement costs with trends remaining steady over the last
3 years; and
$2.5 million pertaining to budgeted pension expense.
Also included in the 2024 Proposed Budget are $7.8 million in potential savings related to the
union contracts that is calculated as a 2.5% employee contribution to health insurance for the
following unions: PBA, DAI and SOA based on the newly ratified collective bargaining
agreements. These savings have been included in the 2024 Comptroller forecast as well. In
relation to the CSEA union contract, savings resulting from the health insurance coverage being
converted to a lower premium Excelsior program have also been included in both the Proposed
Budget and the Comptrollers’ Office forecast.
Page | 22
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table 14: Fringe Expenditures ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s (Risk)
Fund Actual
Forecast Budget Forecast Opportunity
General Fund:
General Fund* $364.8 $279.9 $273.2 $268.3 $4.9
Police Headquarters Fund $213.1 $172.8 $187.0 $181.9 $5.1
Fire Commission Fund $8.8 $6.5 $7.5 $7.0 $0.5
TOTAL GENERAL FUND $586.7 $459.2 $467.7 $457.2 $10.5
Police District Fund $150.4 $193.5 $177.9 $165.7 $12.2
Sewer & Storm Water Fund $10.0 $6.8 $6.2 $5.4 $0.8
Total $747.1 $659.5 $651.8 $628.3 $23.5
* includes Litigation fund and Employee Benefit Accrued Liability Reserve fund
WORKERS’ COMPENSATION
The Comptroller’s Office projections agree that there is adequate funding provided in the 2024
Proposed Budget for workers’ compensation expenditures in 2024 totaling $38.0 million, for
all the primary operating funds combined. Maximum weekly indemnity payments calculated
by the New York State Department of Labor have increased over 2% when compared to the
previous year. The increase to the 2024 Proposed Budget reflects the impact of the growth rate.
Of the $15 million received from New York state (Second Injury Fund Settlement) which
eliminated the cost of reimbursing the County for certain categories of injured workers, $14.0
million is still available for use by the Administration to manage workers’ compensation
expense in 2024 and in future years.
TERMINATION PAY
The 2024 budget as proposed sufficiently funds the County’s anticipated termination expense
at a total of $49.2 million for the three primary operating funds combined. The 2024 Proposed
Budget will fund termination pay for up to approximately 120 sworn officers totaling $35.4
million for the police funds, comprised of $5.8 million in Police District, $10.0 million
appropriated in the EBF Fund specific to the Police District Fund only, and $19.6 million in
Police Headquarters. The Comptroller’s Office is forecasting up to 100 sworn officers retiring in
2024 totaling $30.0 million.
Page | 23
OFFICE OF THE NASSAU COUNTY COMPTROLLER
Proposed 2024 Budget and Multi-Year Financial Plan Risks and Opportunities
Table 15: Termination Pay ($ Millions)
FY 2022 FY 2023 FY 2024
Comptroller’s Budget
Mid-Year Proposed Comptroller’s
Fund Actual (Risk)
Forecast Budget Forecast
Opportunity
Police District Fund $8.0 $7.9 $5.8 $5.8 $0.0
Police Headquarters Fund 18.9 18.5 19.6 20.6 ($1.0)
Employee Benefit Fund 0.0 0.0 10.0 3.6 $6.4
Other 10.7 14.2 13.8 13.8 $0.0
Total $37.6 $40.6 $49.2 $43.8 $5.4
OVERTIME EXPENDITURES
Based on current expenditure trends, overtime for the operating funds is expected to be
underfunded by potentially $20.5 million when compared to the 2024 Proposed Budget.
Keeping in line with the Administration’s targeted headcount of approximately 2,500 sworn
officers within Police District and Police Headquarters, the 2024 Proposed Budget includes
funding for two additional classes to begin the Police Academy in 2024 of up to 75 recruits
each. Our projections include these police classes as
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