Nassau County Comptroller: 2026 Mid-Year Report
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Machine-read from the original; check the file for exact wording 2026 Mid-Year Report
on Nassau County’s
Financial Condition
July 30, 2026
ELAINE PHILLIPS
Nassau County Comptroller
Hon. Elaine Phillips
Nassau County Comptroller
OFFICE OF THE NASSAU COUNTY COMPTROLLER
240 Old Country Road
Mineola, New York 11501
Tel: (516) 571-2386 Fax: (516) 571-5900
[email protected]
July 30, 2026
On behalf of the Office of the Nassau County Comptroller, I am proud to present my
administration’s fifth Mid-Year report, as required by the Nassau County Charter. This report
provides our projections for the 2026 fiscal year measured against the 2026 Adopted Budget,
which was adopted and approved by the Nassau County Legislature and the Nassau County Interim
Finance Authority (NIFA) in 2025. This report is based upon year-to-date financial data, and our
analysis is based on current variables, factors, trends and known events affecting the County’s
finances as of mid-fiscal year 2026. Not all actions of the Administration or other events in the
remainder of the year can be predicted and included in this analysis.
Budgeting is a financial management tool, providing a framework for strategic planning,
performance evaluation, and effective resource utilization. By establishing clear financial goals
and guidelines, organizations can navigate their financial landscape more effectively and work
towards sustainable growth. Other opportunities or events can occur during the year, resulting in
potential changes to the budget plan.
A government’s budget informs taxpayers, voters, and the Legislature and provides a process to
ensure that expenditures and revenues are properly authorized by the government.
I look forward to responding to any questions as our Nassau County stakeholders have the chance
to review our findings.
Sincerely,
Elaine Phillips
Nassau County Comptroller
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Table of Contents
EXECUTIVE SUMMARY ....................................................................................................3
Purpose ...........................................................................................................................3
Financial Reporting ........................................................................................................3
Projected 2026 Fiscal Year Budgetary Results ..............................................................4
STATE OF THE ECONOMY ................................................................................................4
RATING AGENCY UPGRADES .........................................................................................6
OTHER LONG-TERM MATTERS......................................................................................7
2026 ADOPTED BUDGET
Potential Opportunities and Risks - Budgetary Basis .................................................12
POTENTIAL OPPORTUNITIES .........................................................................................14
POTENTIAL RISKS ...........................................................................................................20
LONG-TERM BORROWING ............................................................................................28
Total Projected Long-Term Borrowings Table............................................................29
2026 PROJECTED GAAP ..............................................................................................29
APPENDIX A: COUNTY OPERATING FUNDS ..............................................................31
APPENDIX B: GAAP ADJUSTMENTS, THE EFFECT OF ENCUMBRANCES AND
RECOVERIES OF PRIOR YEAR APPROPRIATIONS ......................................................32
APPENDIX C: SALES TAX TERMINOLOGY .................................................................33
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
EXECUTIVE SUMMARY
Purpose
According to the Nassau County Charter §402 (9) “The Comptroller shall on or before the thirty-
first day of July of each year commencing July thirty-first, two thousand three, prepare a report on
the status of the budget for the first six months of the current fiscal year, which shall include an
opinion, for such period, as to whether a surplus or deficit shall exist.”
Financial Reporting
Fund Accounting
The Comptroller’s financial reporting is presented in accordance with Generally Accepted
Accounting Principles (GAAP). These principles, standards, and procedures for financial reporting
enable the County to comparatively track its performance relative to other municipalities.
A basic principle of governmental GAAP is fund accounting. Given the diverse nature of
governmental operations and the numerous legal and fiscal constraints under which those
operations must be conducted, it is impossible to record all governmental financial transactions
and balances in a single accounting entity. Therefore, unlike a private business which is accounted
for as a single entity, a governmental unit is accounted for through separate funds, each of which
is a fiscal and accounting entity with a self-balancing set of accounts.
The Governmental Accounting Standards Board (GASB) issues GAAP standards for governments
to follow to ensure consistent reporting among municipalities and enable comparisons.
The projections in this report are based on the County’s five budgetary funds, which are managed
by the County’s Administration. See Appendix A: County Operating Funds for a detailed
explanation of the difference between the two.
Major Budget Revenues and Expenditures
This report analyzes the County’s actual budgetary financial results for the first six months of the
year and projects budgetary results for the remainder of 2026. The full year projections are
compared against the 2026 Adopted Budget.
This report reviews the County’s revenue sources in the five (5) budgetary funds 1, with particular
focus on major revenue sources, such as Sales Tax, Property Taxes, State and Federal Aid, and
Departmental Revenues. These categories have remained relatively constant as a percentage of
total revenues in recent years.
Similarly, the report reviews the County’s obligations of the five (5) budgetary funds, with
particular focus on the largest categories of expenditures/obligations, including Payroll and Fringe
Benefits, Debt Service, Early Intervention, and Social Service Programs.
1
The General Fund, the Police Headquarters Fund, the Fire Commission Fund, the Debt Service Fund and the Police
District Fund. The first four have the same taxing authority while the Police District Fund is a separate taxing
authority.
3
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Projected 2026 Fiscal Year Budgetary Results
The Comptroller’s 2026 mid-year financial projections estimate the County will meet the Adopted
Budget for the 5 budgetary funds.
STATE OF THE ECONOMY
Employment and Income
Nassau County is considered an affluent suburban area. The unemployment rate and the percentage
of families below the poverty level are low and compare favorably to New York State and the
United States. Nassau County’s median household income is high, which also compares favorably
to New York State and the U.S. The County has fared better than New York State and the United
States in these three economic measures since 2000. Nassau County is ranked 10 th highest for
median household income out of 3,143 counties in the U.S. 2
Economic Indicator Nassau County New York State U.S.
Median Household Income (2024) $146,202 $85,974 $80,734
Families Below Poverty Level (2024) 3.1% 14.0% 12.1%
Unemployment Rate (2025) 3.3% 4.3% 4.3%
Gross Domestic Product3 (GDP)
GDP measures economic growth in the value of goods and services produced by the economy.
Second quarter 2026 GDP reflects steady but moderate growth, with strong business investment
offsetting weaker consumer spending and trade pressures, while inflation and labor market
conditions remain broadly stable4.
2
Federal Reserve Economic Data | FRED | St. Louis Fed (stlouisfed.org). The median household income and the
percentage of families below the poverty level are reported annually, while unemployment is updated monthly
3
The National Bureau of Economic Research uses Gross Domestic Product (GDP), a measure of economic output,
among other factors, to either declare a recession (when GDP declines for two consecutive quarters) or an expansion
(when GDP increases for two consecutive quarters following a recession) which indicates the end of a recession.
4
gdp 2q 2026 - Search
4
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Real GDP: Percent Change from Preceding Quarter
5.00% 4.7%
4.4%
4.00% 3.8%
3.6%
3.4% 3.3%
3.00%
2.1%
1.9%
2.00%
1.5%
1.00% 0.8%
0.5%
0.00%
-0.6%
-1.00%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2024 2025 2026
Source: Gross Domestic Product, Second Quarter 2026 | U.S. Bureau of Economic Analysis (BEA): BEA Interactive Data
Application
Inflation5
The following graph illustrates the Consumer Price Index (CPI) 6 and the Core Consumer Price
Index (All Items Less Food and Energy)5 from January 2021 to June 2026. As expected, CPI is
higher than Core CPI in 2026 which excludes food and energy costs which have been affected by
the war in the Middle East.
5
Inflation is the overall increase in the price of goods or services resulting from demand exceeding supply. Inflation
erodes the purchasing power or the buying power of dollars over time. When inflation occurs, consumer spending
habits may change as people eat out less, buy in bulk and switch brands.
6
The Consumer Price Index (CPI-U) and Core Consumer Price Index are provided by the U.S. Department of
Labor Bureau of Labor Statistic.
5
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
RATING AGENCY UPGRADES IN MAY 2026
The rating agencies review the credit ratings of the general obligation of the County annually,
which normally coincides with bond issuance. Moody’s upgraded its AA stable outlook of the
County to AA positive outlook.
Nassau County General Obligation Bond Ratings
2024-June 2025-June 2026-June
Rating Outlook Rating Outlook Rating Outlook
Moody's Investors Services Aa2 Stable Aa2 Stable Aa2 Positive
S&P Global Ratings AA- Positive AA Stable AA Stable
Fitch Ratings AA Stable AA Stable AA Stable
The June 2026 rating agency reports noted the following improvements:
Conservative budgeting and strong expense management
The stabilization of County reserves and liquidity, which align Nassau with higher rated
peers.
The County also continues to manage and reduce its exposure to various liabilities.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Sales tax revenues –The rating agencies consider sales tax, the County’s largest revenue source,
less reliable than property tax. However, the following table and graph indicate that, with the
exception of the decline in 2020 due to COVID, sales tax revenues have been a reliable source
of revenue for many years. Countywide sales tax collections 7 are projected for fiscal year 2026
in the following graph. Moody’s noted that the County is budgeting sales tax in line with realistic
expectations.
OTHER LONG-TERM MATTERS
Nassau Health Care Corporation (NHCC), a New York State public benefit corporation, is
experiencing very serious continuing financial problems. This is the fourth consecutive year that
NHCC’s auditors have indicated substantial doubt about the hospital’s ability to continue as an
ongoing concern. Per financial statements as of December 31, 2024 8, NHCC had a negative net
position of $1,381.7 million and reported a decrease in net position of $148.1 million for fiscal
year 2024. However, the County-guaranteed debt of NHCC is a limited, manageable outstanding
financial liability of $52.055 million following the scheduled debt repayment on August 1, 2026.
Beginning in 2027 through August 1, 2029, when the final payment is due, scheduled debt service
7
Countywide Sales Tax excluded Preempted Sales Tax in Lieu of Property Taxes (also known as Part County Sales
Tax). See Appendix C – Sales Tax Terminology for further information on Countywide and Part County Sales Tax.
8
NHCC financial statements as of December 31, 2025, have not yet been issued.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
payments are less than $20 million in any year. Effective June 1, 2025, the majority of the
appointed Board of Directors of NHCC are appointed by the State.
Nassau County Tobacco Settlement Corporation (NCTSC), a blended component unit of the
County, defaulted on its Tobacco Settlement Asset-Backs Bonds, Series 2006 in June 2026. The
tobacco settlement revenues of $14.7 million were insufficient to pay the principal of $35.9 million
and the interest of $8.4 million due on June 1, 2026. The bonds are limited obligations of the
corporation, secured solely from the collateral, as defined in the indenture, without recourse to the
County.
Tax Certiorari – Through June 2026, the County has disbursed approximately $11.4 million in
tax certiorari payments, of which approximately 1% were paid from reserves, and 99% paid from
the Disputed Assessment Fund (DAF) for commercial properties. The reserves have afforded the
County the funding to continue to pay down this long-term obligation and the County has made
strides in reducing the backlog of this long-term liability. As of December 31, 2021, the County’s
total tax certiorari liability was $707.3 million and as of December 31, 2025, the liability dropped
to $292.7 million, primarily due to the settlement of long-term utility litigation and an effort in
prior years to reduce the backlog of writs.
Total Tax Certiorari
Liability*
Fiscal Year
in $millions
2021 $ 707,278
2022 383,374
2023 269,624
2024 247,230
2025 292,739
*Source: Fiscal Year ACFRs
In 2026, the County’s Assessment Review Commission (ARC), wrote off approximately $50.0
million of writs. This reduction in the liability will be part of the fiscal year-end 2026 valuation.
Approximately $118.9 million remains in the reserve fund for tax certiorari payments. See the
reserve table on page 10 for the balance available.
GFOA Recommended Unrestricted Fund Balance – The GFOA recommends, at a minimum,
that general-purpose governments maintain unrestricted fund balance in their general fund of no
less than two months of regular General Fund operating revenues or expenditures.
Under GAAP reporting, the “Fund Balance Guidelines for the General Fund” published by the
Government Finance Officers Association (GFOA) defines Unrestricted Fund Balance as the sum
of the Committed Fund Balance, the Assigned Fund Balance and the Unassigned Fund Balance
because the only constraint on spending, if any, is imposed by the government itself.
The unaudited General Fund’s unrestricted fund balance as of December 31, 2025, meets the
GFOA recommendations.
8
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
County Reserve Funds – The County has various reserve funds 9 which accumulate resources to
pay long-term liabilities, such as tax certiorari refunds, judgments and settlements, and termination
pay, as well as reserves for labor and health benefits costs, and capital purchases of non-public
safety vehicles. At the end of 2025, on a budgetary basis, these reserve funds had $658.0 million
available, down from $750.8 million at the end of 2024. In 2025, the County paid $19.4 million of
tax certiorari refunds, $50.7 million of judgments and settlements, and $5.3 million of termination
pay as contributions to the 401(a) benefit plan, from the reserve funds. Through June 2026, there
is $632.8 million in resources to fund various long-term liabilities and other costs.
9
The Bond Indebtedness Reserve Fund, the Retirement Contribution Reserve Fund, the Employee Benefit Accrued
Liability Reserve Fund, and the Litigation Fund, which reserves funds for tax certiorari and litigation costs. The first
three are established in accordance with NYS General Municipal Law Section 6.
9
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Funds/Reserves for Liabilities - Millions of Dollars
2026
Fund 2022 2023 2024 2025 YTD
June
Bond Indebtedness Reserve Fund (a) (c) $125.0 $63.0 $80.6 $64.7 $65.6
Retirement Contribution Reserve Fund (a) (c) $70.3 $72.9 $86.0 $89.2 $90.3
Capital Reserve Fund (c) $0.0 $0.0 $10.0 $10.3 $10.3
Operating Reserve Fund:
Labor Reserve $0.0 $33.9 $33.5 $33.5 $33.5
Insurance Reserve $0.0 $10.0 $10.0 $10.0 $10.0
Health Insurance Reserve $0.0 $50.1 $93.4 $93.4 $95.3
Total Operating Reserve Fund (a) $0.0 $94.0 $136.9 $136.9 $138.8
Employee Benefit Accrued Liability Reserve Fund:
Legislative Reserve $0.8 $1.0 $1.0 $0.8 $0.8
PDD Reserve $13.3 $23.9 $31.1 $21.9 $22.9
General Fund Reserve $0.0 $20.0 $54.0 $66.5 $66.5
Total Employee Benefit Accrued Liability Reserve Fund (b) (c) $14.1 $44.9 $86.1 $89.2 $90.2
Litigation Fund:
Tax Certiorari Reserve $147.2 $77.9 $120.3 $103.1 $118.9
Workers Compensation Reserve $14.0 $14.0 $13.7 $10.1 $10.1
Health Insurance Reserve $25.0 $0.0 $0.0 $0.0 $0.0
Labor Reserve $20.0 $0.0 $0.0 $0.0 $0.0
Insurance Reserve $10.0 $0.0 $0.0 $0.0 $0.0
Litigation Reserve:
GEN $130.4 $86.5 $139.0 $87.4 $53.6
PDD $27.8 $28.8 $21.6 $17.8 $13.8
Total Litigation Reserve $158.2 $115.3 $160.6 $105.2 $67.4
Longevity Reserve:
GEN $37.6 $34.7 $32.7 $27.3 $21.2
PDD $29.4 $27.5 $23.9 $20.4 $18.4
Total Longevity Reserve $67.0 $62.2 $56.6 $47.7 $39.6
JUUL Settlement $0.0 $0.0 $0.0 $1.6 $1.6
Total Litigation Fund (b) $441.4 $269.4 $351.2 $267.7 $237.6
Total All Reserve Funds $650.8 $544.2 $750.8 $658.0 $632.8
Opioid Litigations Settlement Fund (a) (c) $77.3 $85.6 $88.6 $79.9 $72.1
(a) This fund is consolidated into the General Fund for reporting purposes.
(b) Some revenues/expenditures reported in the index codes in this fund are consolidated into the General Fund for
reporting purposes while others are reported in the Police District Fund.
(c) This fund has been established in accordance with NYS General Municipal Law, which dictates how the fund may be used.
Source: Nassau Integrated Financial System (NIFS)
NYSHIP Health Insurance Costs – The majority of County employees are covered by health
insurance provided by NYSHIP. Contribution rates vary from zero, 3% of salary, to 15% of
10
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
premiums. NYSHIP premiums have increased over the last few years, with a projected total for
the fiscal year of $407.6 million.10
NYSHIP Health Insurance Premiums*
Fiscal Year Premium Payments % increase $ Amount Increase
2023 $ 329,855,108
2024 $ 380,481,267 15.3% $ 50,626,159
2025 $ 384,269,759 1.0% $ 3,788,492
2026 Projected $ 407,628,386 6.1% $ 23,358,627
*the amounts above are gross and do not include a reduction for employee contributions
Pension Costs – The County participates in the NYS pension system. Contributions are made to
the Police and Fire Retirement System (PFRS) and the Employee Retirement System (ERS). The
employee’s tier is what dictates the contribution amount required from either the County, the
employee, or both. Prior to 2022, the County deferred pension payments for several years, and
repaid the outstanding balances in 2022 and in 2023 for PDD. The County has received the
projected invoice for 2027, which is expected to be prepaid in December 2026, saving the County
approximately $2.0 million.
Pension Costs (budgetary basis)
Fiscal Year PFRS ERS Total
2023 $ 101,762,625 $ 65,810,999 $ 167,573,624
2024 $ 106,734,336 $ 73,939,450 $ 180,673,786
2025 $ 138,132,546 $ 90,087,086 $ 228,219,632
2026 $ 148,310,325 $ 121,298,356 $ 269,608,681
2027 Projected $ 166,484,630 $ 116,912,055 $ 283,396,685
$ Change in 2026
Projected over 2023 $ 46,547,700 $ 55,487,357 $ 102,035,057
%Change in 2026
Projected over 2023 45.74% 84.31% 60.89%
This report is also available online at https://www.nassaucountyny.gov/4517/Financial-Reports
2026 ADOPTED BUDGET
At this point in time, the County is on track to meet its 2026 Adopted Budget for the 5 budgetary
funds11 of $4.388 billion with some potential opportunities and risks that will require management
to manage their effect on the final 2026 results.
10
This amount represents the gross premiums and does not include a reduction for employee contributions.
11
The General Fund, the Police Headquarters Fund, the Fire Commission Fund, the Debt Service Fund and the
Police District Fund.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Potential Opportunities and Risks – Budgetary Basis
Key Highlights: 2026 Opportunities and Risks to 2026 Adopted Budget
5 Budgetary Funds
Potential Opportunities
Projecting year-to-date actuals plus 2% on the
Sales Tax + $11.3 million
remaining checks
Higher State Aid due to the Statewide Mass
Transportation Operating Assistance (STOA)
program for County bus operations of $9.4
million;
State Aid + $34.6 million
Reimbursements anticipated of $26.3 million for
projected higher Pre-School and Special
Education costs and projected higher Safety Net
Assistance and Day Care costs.
Reimbursements of $ 13.3 million anticipated for
projected higher Temporary Assistance for
Needy Families and Day Care costs;
Federal Aid + $8.0 million
Offset by lower Federal Aid of $5.4 million from
the Federal Transit Administration for County
bus operations.
Projected opportunity due to debt service
Debt Service + $19.5 million
budgeted for 2026 but defeased in 2025.
Judgments and + 26.4 million Projected opportunity due to use of reserves for
Settlements/Property these payments.
Tax Refunds
Property Taxes + $6.9 million Due to LIPA Direct Assessment, restored taxes
and abatements.
Interfund Transfers + $35.0 million Anticipated use of reserve funds
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Key Highlights: 2026 Opportunities and Risks to 2026 Adopted Budget
5 Budgetary Funds
Potential Risks
Termination pay ($82.4 million) and overtime
($35.0 million) risks are offset by $9.6 million
Payroll and Fringe - $85.8 million and $7.9 million projected opportunities in other
salary costs and fringes, respectively.
- $38.6 million Potential risks in Recipient Grants, Purchased
or -$15.5 Services, Emergency Vendor Payments are
Social Services million after offset by opportunities of $13.3 million and $9.8
Programs Federal and million in Federal and State Aid, respectively.
State Higher Safety Net costs due to an increase in the
reimbursements demand for emergency shelter.
- $23.0 million
Higher caseloads than budgeted, the cost of
Early Intervention and or -$6.5 million
which is offset by $16.5 million in the State Aid
Pre-School after State
opportunity.
reimbursements
$5.0 million risk for the Ticket Reconciliation
program not yet implemented;
Fines and Forfeitures - $22.1 million
Risk of $15.2 million in TPVA fines based on
current run-rate.
Risk of $11.0 million in GIS Tax Map revenues;
Risk of $11.75 million in prior year Ambulance
Departmental Fee collections;
- $29.5 million
Revenues $10.0 million risk for Income and Expense Law;
Offset by opportunities of $4.2 million in
Mortgage and Deed Recording Fees.
Investment Income - $18.7 million Potential risk based on current run rate.
Capital Resources for
-$7.5 million Potential risk due to projects closeout reduction.
Debt
Potential risks for Sale of County Property
Rents and Recoveries -$23.4 million ($13.2 million), prior year recoveries ($7.5
million) and other recoveries ($2.2 million).
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
POTENTIAL OPPORTUNITIES
There are several areas where potential opportunities to the 2026 Adopted Budget were
identified: Sales Tax, State and Federal Aid, Debt Service costs, Judgment and Settlements and
Property Tax Refunds, and Property Taxes. These are discussed below.
Sales Tax
Sales tax is the largest source of revenue for the County 12, representing 40.9% of the 2026 Adopted
Budget for the County’s five (5) budgetary funds total budgeted revenues, excluding eliminating
interfund revenues, of $4.024 billion.
The Comptroller’s Office identified a potential opportunity for 2026 sales tax collections
(excluding deferred Part County) to exceed the 2026 Adopted Budget by $11.3 million, or 0.69%
higher than budgeted to $1,655.6 million. The projection is based on the year-to-date sales tax
collections through July 10, 2026, plus 2% over the 2025’s actual results for the remainder of the
fiscal year.
Sales Tax collections are distributed by the NYS Department of Taxation over the course of 26
checks throughout the year. Sales Tax revenues are recorded in the County’s financial system and
reported in its financial statements. Collections are a part of revenue, however, there are
adjustments that are required to be made in accordance with State law as it pertains to Preempted
Sales Tax in Lieu of Property Taxes (aka Part County Sales Tax). Appendix C: Sales Tax
Terminology provides more detail on those adjustments. In the following table, sales taxes are
reported as Countywide Sales Tax and Part County Sales Tax, which comprise total collections.
Part County Sales Tax, or Preempted Sales Tax In Lieu of Property Taxes, and Deferred Part
County Sales Tax are explained in the Appendix C of this report.
Sales Tax Revenue - Millions of Dollars
2025 2026 2026 YTD 2026
Category Variance
Actual Budget June Forecast*
Countywide Sales Tax $1,478.7 $1,514.7 $590.4 $1,529.5 $14.8
Part County Sales Tax Receipts $125.6 $129.6 $37.2 $126.1 ($3.5)
Total Collections $1,604.3 $1,644.3 $627.6 $1,655.6 $11.3
Net Deferred Part County Sales
$10.4 $0.0 $0.0 $0.0 $0.0
Tax
Total Sales Tax $1,614.7 $1,644.3 $627.6 $1,655.6 $11.3
* computed as year-to-date collections through the July 10, 2026 check plus 2% growth on checks
collected August 2025 through the end of fiscal year 2025.
12
Includes Countywide sales tax, part county sales tax, and deferred part county sales tax.
14
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Sales Tax is greatly affected by economic factors. Through the collection of the July 10, 2026
check, the County’s sales tax revenues have been 4.7% higher than the same collections in 2025.
The Comptroller’s Office anticipates an opportunity in sales tax collections of $11.3 million over
budget based on year-to-date collections and the effect of a 2% increase in the remaining sales tax
checks (blue shaded column in 2026 Sales Tax Collections Scenarios table below). If the
collections continue at a similar year-to-date rate of 4.7%, there is a potential for an opportunity
somewhere between $29.4 million and $38.4 million.
in $ millions
2026 Sales Tax 2026 OMB Actual* Actual* Actual* Actual* Actual*
Collections Scenarios June + + + + +
Projection Flat to 2025 +1% +2% +3% +4%
2026 Budget $ 1,644.3 $ 1,644.3 $ 1,644.3 $ 1,644.3 $ 1,644.3 $ 1,644.3
Projected Total Sales Tax** $ 1,652.3 $ 1,637.5 $ 1,646.5 $ 1,655.6 $ 1,664.6 $ 1,673.7
Difference from Budget $ 8.0 $ (6.8) $ 2.2 $ 11.3 $ 20.3 $ 29.4
% Difference from Budget 0.5% -0.4% 0.1% 0.7% 1.2% 1.8%
* Actual = actual sales tax receipts in 2026 year-to-date through the 7/10/2026 check
** Includes Countywide + Part County excluding Net Part County Deferrals
Sales Tax Trends
As illustrated by the following graph, the monthly trends in sales tax revenues have been fairly
consistent over the years. There is a spike in sales tax revenues from May to June, then a decline
from June to July, followed by a general increase to December.
15
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
The following chart illustrates how consistent sales tax revenue 13 has been over the past 10 years.
With the exception of the impact of shutdowns in reaction to COVID in 2020, sales tax collections
generally continued to increase, due in part to the June 2019 “Enhanced Internet Sales Tax”
enacted by New York State, which requires online sellers to charge sales tax to buyers in the buyers
own tax districts. The growth in sales tax revenue due to the Enhanced Internet Sales Tax appears
to have leveled off.
13
Sales Tax revenue includes deferred part county revenue while sales tax collections represent the sales tax checks
provided from New York State.
16
The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
State Aid
State Aid represents 8.5% of the total budgeted revenues (excluding eliminating interfund
revenues) of $4.024 billion reported in the 2026 Adopted Budget for the County’s five budgetary
funds.
There is a potential opportunity in State Aid up to $34.6. million, of which $26.3 million is the
anticipated reimbursement due to the projected increases in Social Services and Preschool
programs.
The primary reasons include:
an opportunity of $9.4 million due to higher than budgeted State Operating Assistance (STOA)
reimbursements for the County’s transit system;
an opportunity of $16.5 million in Pre-School and Early Intervention services due to the
projected increase in expenditures for which the County is reimbursed a portion of what is
expended; and
opportunities for State Aid reimbursements for social service programs, such as Safety Net
Assistance (SNA) of $5.2 million due to an increase in homelessness expenditures, and Social
Services / Childcare & Development Block grants of $4.7 million due to increased costs for
day care. The County is reimbursed, at varying rates, for a portion of these pre-school and
social service programs.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Federal Aid
Federal Aid represents 5.5% of the 2026 Adopted Budget for the County’s five budgetary funds’
total budgeted revenues (excluding eliminating interfund revenues) of $4.024 billion.
The Comptroller’s Office identified an opportunity of $8.0 million Federal Aid, of which $13.3
million is the projected opportunity related to Federal reimbursements related to the projected
increase in Social Services programs costs.
The opportunity in Federal Aid is primarily due to:
an increase in Day Care cost reimbursements in the Department of Social Services of
approximately $12.5 million as the ability to qualify for Day Care has been expanded
significantly by NYS.
an additional reimbursement of $0.8 million is possible in Temporary Assistance to Needy
Families (TANF) as there is an increase in homelessness.
These opportunities are offset with a projected risk of $5.4 million in Federal Transit
Administration-Coronavirus Response and Relief Supplemental Appropriations and American
Rescue Plan Act receipts for the County’s transit system.
Debt Service
Debt Service expenditures represent 7.5% of the 2026 Adopted Budget for the County’s five
budgetary funds’ total budgeted obligations 14 (excluding eliminating interfund charges) of $4.024
billion.
The Comptroller’s Office identified a potential opportunity of $19.5 million in debt service costs
based on the current bond amortization schedules.
The opportunity is comprised of $0.9 million in interest savings and $18.6 million in principal
savings. The savings identified are mainly due to the December 2025 defeasance of debt, which
reduced the required 2026 debt service expenditures.
The County normally issues bonds prior to mid-year. In 2026, the County has not issued bonds
through July. The County Administration anticipates bonding of $375.0 million in 2026 as
follows:
$195.0 million for general capital improvements;
$85.0 million for sewer system improvements; and
$95.0 million for the Bay Park conversion project.
The County is continuing to work on the Bay Park Conveyance project, which is estimated to cost
over $500.0 million. The County is funding the project with monies from the New York State
14
Obligations refer to expenditures and encumbrances.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Environmental Facilities Corporation (EFC) and $67.3 million in grants from the NYS Division
of Homeland Security & Emergency Services Hazard Mitigation programs, which was used to pay
down EFC loans. Through July 2026, the County received $414.8 million in funding; $307.3
million in bonds and $107.5 million in grant funding. The County enters into bond anticipation
notes with EFC that are subsequently converted to long-term bonds payable to EFC. The debt
payable to EFC is secured by County general revenues. Debt service for EFC bonds is paid from
the Sewer and Storm Water Fund.
Judgments and Settlements/Property Tax Refunds
Judgment and Settlements/Property Tax Refund expenditures represent 0.75% of the 2026
Adopted Budget for the County’s five budgetary funds’ total budgeted obligations (excluding
eliminating interfund charges) of $4.024 billion.
The Comptroller’s Office identified potential opportunity in Property Tax Refunds (tax certiorari)
of $12.2 million and a potential opportunity in Judgments and Settlements of $14.2 million.
The 2026 Adopted Budget reduced the appropriations set aside for the payment of tax certiorari
and litigation costs from the five budgetary funds. The opportunities identified are primarily due
to the historical trend of paying these costs from the Litigation (LIT) Fund, which holds a reserve
set aside for these payments.
The reduction in tax certiorari refunds in general is primarily due to the decline in the long-term
liability for these costs. As mentioned earlier in this report, the 2025 total tax certiorari liability
decreased $414.5 million, or 58.6% from 2021.
Property Taxes
Property Taxes represent 18.8% of the 2026 Adopted Budget for the County’s five budgetary
funds’ total budgeted revenues (excluding eliminating interfund revenues) of $4.024 billion.
The Comptroller’s Office identified an opportunity of $6.9 million Property Taxes against the
adopted budget.
The projected opportunity is related to property taxes assessed on two (2) LIPA properties related
to the settlement of outstanding assessment grievances and the net of County restored taxes offset
by restored abatements. It is important to note that year-end adjustments for uncollected and
uncollectible property taxes may unfavorably impact these revenues, however, it is not possible to
estimate the adjustments at this point in the fiscal year.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Net Interfund Transfers In/Out
The Adopted Budget included $35.0 million of Transfers In from the reserve funds to the Police
Funds and the General Fund as follows:
Budgeted Transfers In from Reserves
Reserve Fund To Fund Amount Budgeted
Litigation Police District $ 2,000,000
Employee Accrued Benefit Police District $ 7,000,000
Employee Accrued Benefit Police Headquarters $ 18,000,000
Operating Reserve General $ 8,000,000
Total $ 35,000,000
While it is unclear at this time whether the transfers from the reserve funds will be brought into
the Police Funds and the General Fund, or if expenditures will be transferred from these funds to
the reserve funds, either way, it is likely that at least $35.0 million of reserve funds will be utilized
in 2026.
Eliminating Interfund Transfers, such as those between the General Fund, Police Headquarters and
the Fire Commission Fund, have not been noted since they eliminate upon consolidation of the 5
budgetary funds.
POTENTIAL RISKS
There are several areas of potential risk, such as, costs for Payroll and Fringe Benefits, Social
Services Programs, Early Intervention and Pre-School, Fines and Forfeitures, Departmental
Revenues, and Rent and Recoveries. With proper management, some of these risks may be
mitigated prior to the close of the fiscal year.
Payroll and Fringe Benefits
Payroll and Fringe Benefits represent 46.6% of the 2026 Adopted Budget for the County’s five
budgetary funds’ total budgeted expenditures (excluding eliminating interfund charges) of $4.024
billion.
Two major events have taken place in 2026 that have, and will have, an impact on Payroll and
Fringe Benefits expenditures.
Voluntary Separation Incentive Program
In February 2026, the County announced a Voluntary Separation Incentive Program (VSIP) which
offered $2,000 per year for each year of consecutive full-time completed County service to full-
time Nassau County union employees with a minimum of ten (10) years of consecutive full-time
County employment. As of June 2026, 502 employees have retired from the County as a part of
this program with a total cost of $106.0 million, $79.0 million in termination pay and $27.0 million
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
in incentive payments. An additional 88 employees are expected to retire from the VSIP in the
coming months for a total of 590 employees and estimated total cost in 2026 of $124.6 million to
fund this program. In its most recent projections, the County Administration estimates savings
from this program to be approximately $30.0 million, while the 2026 Adopted Budget estimated
this savings at $27.0 million.
Expiration of Collective Bargaining Agreements
On June 30, 2026, the collective bargaining agreements for the Police Benevolent Association of
the Police Department of the County of Nassau NY Inc. (PBA), Detectives Association Inc. of the
Police Department of the County of Nassau NY Inc. (DAI), Superior Officers Association Inc. of
the Police Department of the County of Nassau NY Inc. (SOA), Nassau County Investigators
Police Benevolent Association Inc. (IPBA) and the Nassau County Sheriff’s Correction Officers
Benevolent Association Inc. (COBA) expired. The terms of the expired CBAs will continue to be
in place until new agreements are negotiated, approved by the County Legislature and NIFA, and
ratified by its members. As with most labor negotiations, the County expects there will be a net
increase in expenses associated with new collective bargaining agreements. The magnitude of the
impact is subject to negotiation and cannot be estimated at this time.
The Comptroller’s Office identified a potential net risk in payroll and fringe benefits expenditures
of $85.8 million when compared to the 2026 Adopted Budget.
The 2026 Adopted Budget for the 5 budgetary funds includes a total of $1,086.8 million for salaries
and $789.2 million for fringe benefits with potential risks/opportunities to the adopted budget as
follows:
Total Salaries* - Millions of Dollars
2025 2026 2026 2026
Fund Variance
Actual Budget YTD June Forecast
General Fund:
General Fund $459.4 $464.4 $249.9 $484.6 ($20.2)
Police Headquarters Fund $295.1 $305.2 $182.5 $358.8 ($53.6)
Fire Commission Fund $14.6 $17.4 $8.1 $17.0 $0.4
Total General Fund $769.1 $787.0 $440.5 $860.4 ($73.4)
Police District Fund $280.1 $299.8 $150.9 $320.1 ($20.3)
Total Salaries $1,049.2 $1,086.8 $591.4 $1,180.5 ($93.7)
* includes overtime and termination pay
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Fringe Benefits - Millions of Dollars
2025 2026 2026 2026
Fund Variance
Actual Budget YTD June Forecast
General Fund:
General Fund $306.0 $346.5 $205.7 $335.7 $10.8
Police Headquarters Fund $204.7 $224.9 $159.4 $230.7 ($5.8)
Fire Commission Fund $7.0 $8.8 $6.2 $9.5 ($0.7)
Total General Fund $517.7 $580.2 $371.3 $575.9 $4.3
Police District Fund $189.5 $209.0 $144.1 $205.4 $3.6
Total Fringe Benefits $707.2 $789.2 $515.4 $781.3 $7.9
The primary driver of the potential risk is the result of termination payments resulting from the
2026 VSIP offered to all County union members. However, the risk is mitigated by potential
opportunities identified as they relate to vacant positions and the deferral of a general wage
increase for CSEA members. The County’s reserves are available to absorb all, or part of a
shortage resulting in the 5 budgetary funds.
Salaries
The Comptroller’s Office anticipates salaries to reach $1,180.5 million by the end of fiscal year
2026, a net risk of $93.7 million.
The 2026 Adopted Budget assumes a total full-time headcount of 7,656 employees for 2026. The
current on-board headcount as of June 2026 was 7,089, a reduction of 228 positions when
compared to the June 2025 headcount of 7,317.
The County currently has 567 vacant positions funded in the 2026 Adopted Budget as of July with
an estimated value of approximately $84.3 million which continues to create a budgetary savings
opportunity with positions that remain unfilled.
In June 2025, the County entered into a Memorandum of Agreement (MOA) with the Civil Service
Employee Association (CSEA), which modified the terms and conditions of the previously
approved labor contract to delay the budgeted general wage increase of 2.5% which had been
scheduled for August 1, 2026 to January 1, 2027 creating additional salary savings estimated at
$6.2 million.
Although savings are being realized from the 567 budgeted full-time positions that remain vacant
in 2026, these savings are reduced by risks forecasted for termination pay of $82.4 million and
overtime costs currently projected up to $35.0 million in both the Police Department and the
Correctional Center.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Fringe Benefits
The Comptroller’s Office identified a potential opportunity of $7.9 million in fringe benefits when
compared to the 2026 Adopted Budget.
Potential savings were identified in FICA expenses related to funded but vacant positions, Health
insurance for both active employees and retirees combined and pension costs due to a lower
payment in 2025 to the State than budgeted.
The County prepaid the 2026 retirement bill in December 2025, which resulted in savings to the
County of $1.9 million dollars. The projections in this report assume that the retirement bill due in
February 2027 will be prepaid in December 2026 and that the County will continue to not elect to
defer pension contributions for 2026. The County has not elected to defer pension contributions
beginning with the 2021 fiscal year.
Termination Pay
The Comptroller’s Office identified a potential risk in total termination pay for the County could
reach up to $82.4 million for the five budgetary funds.
A total of 172 sworn officers have retired to date in fiscal year 2026 with actual expenditures of
$64.2 million. Estimating a total of up to 240 police officers retiring from both Police District and
Police Headquarters in 2026, would result in an estimated cost up to $93.3 million, an above
average year expected due to both the VSIP and the expiration of the police union contracts (PBA,
DAI, SOA, COBA and IPBA) on June 30, 2026.
The 2026 Adopted Budget includes $30.0 million appropriated in the EBF Fund reserve to address
any possible shortages in termination pay. A subsequent supplemental appropriation for non-PDD
appropriations in the EBF Fund was approved, bringing appropriations for the fund up to $60.0
million. The Adopted Budget included Interfund Transfers from the EBF Fund reserve to PDD of
$7.0 million and to PDH of $18.0 million.
As of June 2026, a total of $79.0 million was paid out by the County in termination pay related to
the incentive. There is adequate funding in the EBF Fund reserve to cover the potential risk in
Police Headquarters, however, the EBF Fund reserve does not have adequate funding to cover the
entire Police District potential risk.
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
Termination Pay - Millions of Dollars
2025 2026 2026 2026
Fund Variance
Actual Budget YTD June Forecast
Police District Fund $5.6 $7.5 $21.7 $31.2 ($23.7)
Police Headquarters Fund $14.5 $20.2 $42.5 $62.1 ($41.9)
General Fund $18.9 $11.8 $20.7 $28.3 ($16.5)
Fire Commission Fund $0.2 $0.2 $0.5 $0.5 ($0.3)
Total Termination Pay $39.2 $39.7 $85.4 $122.1 ($82.4)
Overtime
The Comptroller’s Office identified $35.0 million of potential risk in overtime costs for the five
budgetary funds when compared to the 2026 budget of $103.1 million.
The potential risk is primarily comprised of $7.2 million in the Police District Fund, $13.8 million
in the Police Headquarters Fund, and $13.9 million for the Correctional Center.
Overtime - Millions of Dollars
2025 2026 2026 2026
Fund Variance
Actual Budget YTD June Forecast
Police District Fund $29.5 $28.0 $6.7 $35.2 ($7.2)
Police Headquarters Fund $42.4 $32.0 $15.1 $45.8 ($13.8)
Correctional Center $40.2 $20.6 $15.6 $34.5 ($13.9)
Other $10.3 $22.5 $9.8 $22.6 ($0.1)
Total Overtime $122.4 $103.1 $47.2 $138.1 ($35.0)
Social Services Programs
Social Services Programs obligations represent 13.6% of the 2026 Adopted Budget for the
County’s five budgetary funds’ total budgeted obligations (excluding eliminating interfund
charges) of $4.024 billion.
Potential risks of $38.6 million over the 2026 Adopted Budget for Social Services programs were
identified, with a net risk of $15.5 million after projected Federal and State reimbursements.
The primary components of this possible risk are as follows:
$6.3 million in Recipient Grants;
$21.5 million in Purchased Services; and
$10.8 million in Emergency Vendor Payments.
The potential risks in Purchased Services, Recipient Grants and Emergency Vendor Payments are
primarily due to an increase in the demand for Day Care, higher costs related to Temporary
Assistance for Needy Families (TANF) and Safety Net Assistance (SNA) due to an increase in
homelessness. The Social Services programs are mandated programs, with most receiving Federal
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The Comptroller’s Office 2026 Mid-Year Report on Nassau County’s Financial Condition
and/or State Aid reimbursements at varying rates. Federal and State Aid reimbursements related
to the potential $38.6 million risk in Social Services programs are estimated to be $13.3 million
and $9.8 million, respectively.
Early Intervention/Preschool Program
Early Intervention/Preschool Program obligations represent 5.2% of the 2026 Adopted Budget’s
total budgeted obligations (excluding eliminating interfund charges) of $4.024 billion for the
County’s five budgetary funds.
Expenditures for Early Intervention could be as high as $232.8 million, or $23.0 million over the
2026 Adopted Budget or a net risk of $6.5 million, after State reimbursements.
This potential risk is related to an increase in caseloads resulting in higher than budgeted
expenditures for Pre-school (3-5 Years) and Pre-school related services. An estimated $16.5
million of State Aid reimbursements for the additional expenditures incurred by the County are
projected to partially offset this potential risk (see State Aid in Potential Opportunities section).
Fines and Forfeitures
Fines and Forfeitures represents 2.0% of the 2026 Adopted Budget’s total budgeted revenues
(excluding eliminating interfund revenues) of $4.024 billion for the County’s five budgetary funds.
The Comptroller’s Office identified potential net risk of $22.1 million in Fines and Forfeitures.
The potential risks are noted as follows:
Fines for Red Light Cameras are trending short of budget by $2.5 million based on the
current rate of collections and prior year trend.
Other Fines and Forfeitures of $20.6 million, primarily in Traffic and Parking Violat
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