Nassau County Lacks a Diversified Revenue Base

Slowing population growth and an aging population present numerous fiscal challenges for Nassau County. This combination will result in lagging sales tax growth which constitutes 46 percent of County generated revenues. Seniors have already made investments in homes, household appliances, automobiles and typically spend less on these goods compared to younger, growing families. Property taxes, which account for 31 percent of County generated revenues, are some of the highest in the nation creating significant ire among Nassau’s residents. Many seniors are presented with a troubling dynamic of being house rich, but cash poor, resulting in many having to leave the region. Fee revenues comprise 15 percent of County generated revenues and stem from items including red light cameras and various golf and other recreational services.

Ultimately Nassau’s revenue base has not historically kept pace with the County’s growth in expenses. Labor contracts have increased at twice the rate of inflation and other significant expenses, such as costs for employee health care, have grown at even higher rates. This has led to a significantly diminished workforce and periodic tax increases that only temporarily serve as a band aid and do not provide long- term fiscal stability.

Nassau County, unlike New York City, suffers from the lack of a more diversified revenue base. Recent prospects in the Hub area present opportunity for the County to expand its revenues with additional development to spur its commercial tax base, and provide additional recreational opportunities for residents. There are other select opportunities for economic development and the County should seek to remove bureaucratic impediments that hinder real estate developers. Historically Nassau has resisted expanding its economic base from fear of political repercussions. This has resulted in financial difficulties that have been part of Nassau’s fabric for several decades and an interim State control board that has existed for nearly two decades. As one of the wealthiest counties in the nation, Nassau needs to expand its revenue base and finally achieve a structurally balanced budget that provides a sustainable path forward for its residents.