Suffolk’s Budget Problems & Federal Aid - Don’t be misled.

Suffolk County Executive Steve Bellone has held a number of press conferences in the past couple of weeks to essentially blame the federal government for Suffolk’s budget problems.  First, it was about his proposed $20 million cut to the Suffolk County Police Department.  Then it was about public transportation.  Then cultural arts programs.  Then it was about cuts in funding for veterans services. 

There are three “truths” that residents in Suffolk need to know.

Here’s the first truth.  Long before the onset of the COVID-19 pandemic, Suffolk’s financial condition was dire.  Don’t take my word for it.  The bond rating agencies have downgraded Suffolk’s bond rating numerous times during the past eight years Bellone has been at the helm of Suffolk County, signaling a lack of confidence in the County’s ability to manage its finances.  Today, we are nearly at junk bond status, and we were there before COVID.  Additionally, the New York State Comptroller, Tom DiNapoli…a democrat, for three years in a row now, issued a statewide report ranking Suffolk dead last of 62 counties in terms of fiscal stability.  On a ranking scale of 1 to 100 with 100 being the worst possible score, Suffolk ranks 76.  That is the equivalent of a test grade of 24.  That’s an F for you parents of school-age children.

Despite a period of great economic expansion, Suffolk has been surviving on a diet of borrowing and increased fees.  Increased short-term borrowing to make payroll, borrowing to pay pension obligations, delaying certain payroll obligations, borrowing to buy open space, borrowing to pay for liability judgments and settlements, and on and on.  Additional fees including but not limited to mortgage fees, red light camera fees, vehicle registration fees, burglar alarm fees, have added more than $100 million in revenue to the County’s budget.  The only way the County Executive can claim, and he has, that the County’s budget has been balanced, is due to the borrowing and additional fees.

The second truth…the COVID-19 pandemic has, in fact, led to revenue losses for the County, including some fees, and most significantly, sales tax revenue.  To date this year, the County is down roughly $100 million in sales tax revenue. 

With three months left in the year, that deficit is sure to grow.  Exactly how far off budget we will end up at the end of the year is an unknown, but sales tax losses have so far been far less than first predicted and recent sales tax receipts are showing a promising trend.  They are still not where they should be, but year to date we are less than 10% off last year’s numbers, and with each sales tax check we receive from New York State, things are looking better and better.

So, with three months left in the year, we are down $100 million in sales tax.  We’ve lost some additional revenue and had some additional expenses, so for the sake of argument, let’s be overly pessimistic and guess that 2020’s budget will end up with a $240 million “COVID-related” shortfall.  It could be significantly less; it’s not likely to be more.

Here’s the third and final truth, a truth that Suffolk County Executive Steve Bellone hasn’t told you, a truth that doesn’t find its way into much of the media.  Suffolk County has already received $283 million in COVID-specific aid from the federal government, $20 million of which was specifically earmarked for public transportation.  A third-grader knows that $283 million is greater than even a pessimistic prediction of what Suffolk’s COVID-related losses will ultimately be for this year.

Now, I am not saying that Suffolk hasn’t suffered unprecedented financial hardship as a result of the shutdown of our economy.  I am not saying that the County Executive shouldn’t ask for more federal dollars.  To the contrary, if the County Executive wants to acknowledge the extraordinary assistance provided to Suffolk County from the federal government, thanks in large part to Congressmen Lee Zeldin and Peter King, while at the same time asking for additional assistance, I would be glad to join him in that endeavor.  What I am saying, however, is that to blame cuts in Suffolk’s budget…police cuts, transportation cuts, cuts to veterans services, or any other cuts for that matter… on “Washington’s failure,” as he put it, is simply dishonest. 

THAT is the truth.