County accepts finance authority’s budget amendments

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Nassau County submitted an amended budget to the Nassau County Interim Finance Authority by the Dec. 10 deadline to address noncompliance issues.

For the first time in six years, NIFA declined to approve the county’s 2025-2028 fiscal plan. NIFA Chairman Richard Kessel said the rejection was due to the budget’s failure to comply with legal requirements, such as generally accepted accounting principles, and concerns over funding for Nassau University Medical Center.

Bruce Blakeman’s $4.2 billion 2025 budget passed the GOP-led legislature on Oct. 30, with Republicans voting in favor and Democrats opposing.

Kessel said NIFA is reviewing the county’s budget amendments and revenue estimates, but expressed satisfaction with the changes made. He noted that NIFA was particularly concerned about the budget’s inclusion of $30 million in reserves as revenue. Kessel said the amended budget now meets those standards.

However, Kessel did not provide details on what revenues have replaced the $30 million in reserves. Schneps Media Long Island has not received a copy of the amended budget from the county.

The funding of NUMC also remains a concern for NIFA. Kessel said the issue is unresolved, as NIFA has not received additional information from NUMC’s parent organization, Nassau Health Care Corporation, regarding its responsibility for certain funding obligations.

“We are concerned that NUMC could create a significant liability for the county,” Kessel said.

NUMC is Nassau County’s only publicly funded hospital, primarily financed through taxpayer dollars. The federal government currently covers 50 percent of the hospital’s Medicaid costs, with the remaining balance to be covered by Nassau County and/or NHCC.

In a Nov. 21 letter to NIFA, NHCC’s council rejected any obligation to fund the local share of the Medicaid Disproportionate Share Hospital and Medicaid Upper Payment Limit programs. This funding gap could total tens of millions of dollars annually.

The future of NUMC is uncertain due to long-standing financial problems and disagreements among the hospital’s management, the state, and Nassau County over how to address its funding needs.

On Nov. 19, NUMC filed a notice of claim against the State of New York, alleging the hospital was defrauded of millions of dollars.

Kessel said NIFA is awaiting the results of the Nassau County Legislature’s budget vote, scheduled for Monday. NIFA will hold a meeting Thursday to decide whether to accept or reject the county’s budget amendments.