Concerns with bond rating and finances in Nassau County

Seal of Nassau County, New York

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On one level, this bond downgrading and any financial problems in Nassau County will become a blame-game between the new, Republican County Executive and the Democratic leaders there. Though, there is more to it than a major party,”he said-she said”. And, even though I am apathetic to political problems and political landscapes where there is no third party voice, the economics of this will matter a lot for the residents of Nassau County.

(Oh, and now that the Green Party of New York has a ballot line, perhaps someone there can pipe in with a third party solution, or a third party County Executive campaign?)

(excerpt from) Newsday
National rating agency downgrades Nassau’s credit
by Celeste Hadrick / November 5, 2010

For the first time in a decade, Nassau County’s credit has been downgraded by a national rating agency.

Moody’s Investors Service dropped Nassau’s credit rating Friday from Aa3 to A1 and also put the county on a negative outlook, signaling possible future downgrades. At the same time, however, two other major rating agencies held Nassau’s credit and outlook steady.

A drop in the credit rating usually means higher interest costs for the county when it borrows to pay expenses – though county Comptroller George Maragos noted that the Federal Reserve’s recent moves to push down overall interest rates could mitigate Nassau’s costs…

Three local fiscal watchdogs, including Maragos and the Nassau Interim Finance Authority, had warned that County Executive Edward Mangano’s $2.6-billion budget for 2011 contained about $250 million in risky revenue and savings. If the county runs a 1 percent deficit, NIFA, a state monitoring board, could take control of its finances…

Minority Leader Diane Yatauro [Democrat] said, “By relying on unrealistic revenue expectations and wishful thinking, the Mangano administration has created a nightmare budget for Nassau County, so it’s no surprise that Moody’s issued a downgrade.”…

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