New York Democrats renewed criticism of Nassau County Executive Bruce Blakeman's budget management Monday, pointing to reserve spending, financial deficits and outside legal contracts as the county considers its 2027 spending plan.
The party highlighted an Oct. 23 column by Deputy Minority Leader Arnold Drucker, the ranking member of the county Legislature's Budget Review Committee. His criticism comes alongside a new state financial-watchdog report warning that reserves are helping cover recurring expenses without resolving longer-term imbalances.
Blakeman, a Republican, is running for governor. The party's announcement casts his county finances as an issue in that contest; the county's budget and financial reports provide a more specific picture of the money involved.
Reserves balance the budget but leave recurring gaps
The Nassau County Interim Finance Authority's Oct. 22 review identifies $43.5 million in reserves budgeted to help balance the major operating funds in 2027. It also identifies $330.5 million appropriated within separate reserve funds, while questioning how much the county actually expects to spend.
Those figures describe different uses of reserves. The authority called for clearer disclosure of when the separate appropriations would be used and urged the county to preserve reserves for extraordinary costs instead of routine operations.
The county's plan says it is structurally balanced and needs no gap-closing plan, according to NIFA's review. The authority disagrees, citing recurring expenses supported by reserves and projected shortfalls in fees and other revenues.
NIFA estimated 2027 risks of $60.5 million to $145.5 million in the major funds, including accounting adjustments. Those are scenarios for a proposed budget, not a reported 2027 year-end deficit. Its concerns include uncertain fee collections, overtime, health benefits, early-intervention and preschool special-education costs, and social-service expenses.
The authority also warned that the county's dependence on sales taxes leaves it exposed if consumer spending weakens. It recommended overtime controls, accurate staffing projections, published cash reports and cooperation with its oversight work.
Two deficit figures cover different funds
Drucker cited a $56 million deficit reported by NIFA and a $144.7 million deficit in Comptroller Elaine Phillips' annual financial report.
NIFA's Oct. 6 review of 2025 results places the $56 million figure under the law's control-period calculation for five major funds. That exceeds the $35.9 million threshold used to determine whether a control period is warranted.
The comptroller's 2025 annual report describes the $144.7 million figure as a decline in fund balance across all governmental funds, both operating and nonoperating. It is a broader accounting measure than NIFA's five-fund control-period result.
The annual report attributes the change to several factors, including lower federal aid after pandemic-recovery revenue recognized in 2024, higher personnel and service costs, and debt payments.
Settlement money, contracts and staffing draw criticism
Drucker said the administration sought to transfer $13.7 million in interest from opioid-settlement money to the general fund. He said the Democratic minority blocked that proposal and a later effort to direct settlement interest into the general fund.
NIFA's current report separately lists $78.7 million in the opioid-settlement fund as of Sept. 30 and $15 million appropriated for 2027. It says the Legislature earmarked those funds for addiction treatment, prevention and family support.
Drucker also criticized what he described as $23 million in 2025 outside-counsel spending, alleging that work went to political donors and allies while the county attorney's staff shrank.
The column also raises staffing concerns after 594 employees accepted voluntary buyouts. Drucker said he supported the program but argued that vacancies in child protection, emergency communications, detectives and corrections needed to be filled responsibly.
NIFA's review says the proposed budget would fund 590 positions beyond the September on-board headcount after a centrally budgeted attrition adjustment. It cautions that hiring delays could increase overtime.
The authority listed $615.9 million in reserve balances as of Sept. 30, while warning that restrictions and potential liabilities limit their flexibility. It also noted the county's $57.3 million guarantee on Nassau Health Care Corp. debt and projected financial gaps at Nassau Community College, whose plan could exhaust its fund balance in 2028. NIFA called for a detailed college gap-closing plan and expects a hospital modernization study by Dec. 1.
The Legislature's public notice schedules a special meeting on the 2027 budget and 2027-30 financial plan for Friday, Oct. 30, at 10 a.m., at 1550 Franklin Ave. in Mineola. The notice allows written comments through the clerk at LegPublicComment@nassaucountyny.gov.
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