Cuomo Signs Bill Allowing Rockland To Borrow $96 Million

Governor Andrew Cuomo signed legislation Wednesday authorizing Rockland County to borrow $96 million to help stabilize its finances. The county currently has a budget deficit estimated at more than $125 million.

Local state and county elected officials reacted positively to the news that the governor signed the Rockland County Deficit Financing Act, which had arrived on his desk on November 1. 

Assemblyman Kenneth Zebrowski (D-New City) said the legislation replaces the county’s short term borrowing with a long-term bond that will decrease its borrowing costs. He said built in protections were essential parts of the bill.

“My colleagues and I worked hard to add protections to this bill that could assure Rockland's beleaguered taxpayers that past budgeting mistakes were not repeated,” said Zebrowski.  “This bill gives the state comptroller unprecedented authority to review Rockland's budget and order corrections.  Long term structural changes remain necessary to fix Rockland's fiscal problems, however, I believe this new state oversight will assure taxpayers that Rockland's budgeting practices will improve.”

Senator David Carlucci (D-Rockland Westchester) said the bill becoming law is an important milestone for the county’s future. 

“Working with my colleagues in government we have delivered comprehensive oversight for the taxpayers of Rockland County,” said Carlucci. “This is an important first step in getting Rockland County's finances back on track.” 

County Executive-Elect Ed Day said approval of the home rule request allows county officials to focus on finalizing a 2014 budget.

"We should view this action by the Governor as a net positive for Rockland County,” said Day.  “First, it allows the legislature and County Executive Vanderhoef to approve the 2014 budget without sudden and drastic changes to fill the $96 million hole.  Second, it allows us to move forward as a county, and focus on the problems of the present and future, not those of the past.” 

County Legislature Chairwoman Harriet Cornell, Vice Chairman Alden H. Wolfe and Legislator and Chairman of the Budget & Finance Committee Michael Grant said the governor’s action allowing the county to borrow the funds, which will be repaid incrementally over the next 10 years.

“We took action to stabilize finances and presented a strong plan for continued improvement,” said Cornell.  “We are pleased that the plan passed the analytical review by the governor and his staff.”

The legislators said the measures taken by the county to reduce expenses were cutting staffing to the lowest level in 30 years, negotiating three union contracts with salary freezes, deferred pay and increased contribution for health insurance; and creating a Local Development Corporation to sell the Summit Park Nursing Care Center. Steps taken to increase revenues were raising the county property tax and implementing a residential energy tax and hotel/motel tax.

County Executive C. Scott Vanderhoef said, “The ratings agencies have indicated to the County that the issuance of these bonds is key to maintaining our investment grade rating and the rating's eventual improvement.”

Rockland’s current credit rating is one level above junk bond status.