Schmitt meets with Massapequans; discusses Nassau County woes

by Monica Wiener

Massapequa residents attending a community forum sponsored by Nassau County Leg. Peter Schmitt last month were held hostage by a group of Nassau County Correction Officers who used the forum to bring political pressure and public attention to their contract dispute. As they monopolized the meeting however, residents became impatient and angry.

"Take a hike, will ya!" someone yelled to one of the union speakers. "We had enough of you."

"Let someone else talk!" another shouted.

In turn, Schmitt used the dispute to focus on the County’s fiscal problems, pointing out that the County could not afford the 28.5 percent wage increase demanded by the correction officers’ union.

The employees’ contract expired four years ago and they were offered a 7.9 percent salary increase over seven years, said Schmitt, an offer they refused. "With Nassau County in a financial crisis, there is no way we can offer these employees anything near what they are demanding," said Schmitt.

Schmitt (R-Massapequa), the legislature’s minority leader, also reinforced his wide and growing political rift with Nassau County Executive Thomas Gulotta. The meeting was held just days after the N.C. Comptroller announced that the County would end the fiscal year with a surplus of $48.3 million.

"This is good news for the residents of Nassau County and yet another indication that the County’s financial difficulties are behind us," said Gulotta. " If we strictly monitor the County’s finances and adhere to our four-year plan, we will have successfully assured the County’s future fiscal health," Gulotta continued.

But Schmitt said the County’s problems are far from over. "For reasons that escape me, Gulotta is singing ‘Happy Days are Here Again‚’" said the lawmaker. "The problems are not over, and (that) there are still some very tough decisions to be made."

The surplus does not reflect a return to financial health for the County, but exists, according to Schmitt, because of several one-time windfalls. For example, 882 County employees accepted an early retirement incentive, which Schmitt described as making "quite a positive impact on the County’s budget."

The County is holding two weeks’ pay from its other employees, which it will have to release to them upon retirement, and it garnered almost $24 million as the result of the Shoreham/LIPA settlement. Other one-shot revenues include more than $14 million from the settlement with the Big Five tobacco companies and almost $15 million for housing state prisoners in the county jail, said Schmitt.

Most important, the state, as part of its bailout plan for the County, sent about $25 million in aid to Nassau County and set up the Nassau Interim Finance Authority board (NIFA). At this time, NIFA acts as an oversight board, but it has the potential to become a control board, which Legis. Schmitt believes must be avoided.

"A control board would slash programs to balance the budget," he warned and added that if a control board does eventually take over, "you can’t vote them out of office if you dislike their decisions."

In order to avoid a takeover, the county must balance its budget for four consecutive years. To that end, Schmitt said that he and Presiding Officer Judy Jacobs (D-Woodbury) are "working in a bi-partisan" fashion. They "have been successful to a point," and must continue to make "painful cutbacks." Schmitt and Jacobs, along with Gulotta, are required to work with NIFA each month.

One resident challenged Legis. Schmitt for his criticism of County Executive Gulotta, claiming that Schmitt voted to pass the budget when Republicans were in the majority.

Schmitt replied that the County Executive and the various department heads spent more than the budget permitted.

Gulotta maintains, however, that "Department heads cannot overspend their budgets without approval of the Legislature." In addition, he said that Legis. Schmitt voted for the budgets that are now in question, and for the elimination of a $60 million source of revenue (the land transfer tax) in the fiscal 2000 budget.

Gulotta further explains that after Schmitt "voted to approve the budget with the revenue in it, he did not cut expenses to accommodate that loss of revenue." According to Gulotta, one rating agency viewed that action as "the single most irresponsible action that they had ever witnessed anywhere in America" and it was shortly thereafter that they downgraded the County’s bonds. Gulotta said that he "will not participate in scapegoating.

"I accept my share of the responsibility as County Executive and it’d be nice if he (Schmitt) were man enough to participate in the solution to the problem."

One resident at the meeting also believed that Schmitt was using Gulotta as a scapegoat. "Your responsibility as my Legislator is to ensure that these budgets are balanced," he said. "How do you vote for a budget and then complain?" he asked.

Schmitt later said that 75 percent of what the County spends is mandated. And the County, he reminded the audience, does not receive the lion’s share of its residents’ property tax dollar. Sixty-five cents goes to the school district, nineteen cents goes to the County and fourteen-cents goes to the Town, explained Schmitt.

"We must get the County’s house in order," he said.

Gulotta, however, views the tax formula as one of the accomplishments of his administration. In a recent reply to a Newsday editorial, Gulotta wrote, "Our conservative fiscal policies are reflected in the fact that today the County’s portion of an average resident’s real property tax bill is 19 percent, down dramatically from 25.1 percent only nine years ago. He also pointed to other economic indicators demonstrating the strength of Nassau’s economy, such as a "46 percent increase in the median value of homes in just three years, a commercial vacancy rate under 4 percent, a 10 year low, and an unemployment rate of 2.3 percent, 2.2 points lower than the State rate and second to only one other county of the 62 counties in the state."

In addition, the County Executive took credit for slashing a proposed property tax increase in half by vetoing additional expenditures of $38 million, which the Legislature had added to the budget. Gulotta said that if the Legislature had been successful in its attempt to override his veto, residents would have seen a 15.4 percent property tax increase.

Few questions and comments at the meeting addressed local issues, though the broader county issues discussed do impact locally. Briefly, however, Schmitt did discuss plans to bring half a million dollars to Massapequa Park for redevelopment of its business district.

But discussion quickly turned again to the issue of contract negotiations.

"No more double-digit salary increases while the County is in a fiscal emergency," said Schmitt. "I’m trying to balance many different interests here. A 25-percent salary increase would result in a 5-percent property tax increase."

This week Gulotta said he had made a "highly personal decision" to step aside and not seek reelection in November. The decision came after evaluating his commitment to the residents of Nassau County, he said.

"I always discuss it (running for office) with my family, friends, and supporters, but I don’t permit statements or actions of politicians to influence me," said Gulotta referring to Schmitt’s comments.

As for Schmitt, he stated simply, "It’s time for him to go."