August 2010

Dear Nassau Residents and Taxpayers:

The New York State Legislature created the Nassau County Interim Finance Authority (“NIFA”) in June 2000. NIFA is governed by a seven member Board appointed by the Governor, with one member recommended by the Senate Majority Leader, one by the Assembly Speaker and one by the State Comptroller.

In 2000, Governor Pataki set forth a five-point recovery for Nassau County that included:

• Oversight by NIFA of the County's four-year financial plan and borrowing proposals to ensure that the County implemented recurring actions necessary to close the gaps projected for future years;
• Special State transitional aid totaling $100 million over five years, which has been disburse;
• Additional special financial assistance of $5 million, which has also been transferred, and technical assistance to help the County in its efforts to reduce its backlog of property tax claims;
• Debt issuance by NIFA, on behalf of the County, at NIFA's high credit ratings, thus dramatically reducing borrowing costs; and
• Imposition of oversight control mechanisms to restore County fiscal stability if the County did not adopt balanced four-year financial plans, or maintain balanced budgets.

NIFA works with the County Executive, County Legislature, and County Comptroller to develop plans and identify actions that will move the County closer to achieving long-term structural reforms.

Restoring Nassau County's fiscal health is a multi-year task, which was recognized in crafting the NIFA legislation. The County continues to face numerous fiscal challenges in the years ahead, with large budget gaps projected in the out-years of its financial plan.

The Authority remains committed to working with State, County, and other local leaders to ensure decisive and meaningful action to achieve the long-term financial stability County residents need and deserve. We welcome any thoughts or suggestions that you might have. Please feel free to e-mail NIFA at comments@nifa.state.ny.us, or to share your ideas with the County Executive and other elected officials. Nassau can work, but it will happen only if all parties work together to make the hard choices that are necessary.

Ronald A. Stack
Chairman