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By Adam Haber - June 8, 2020
Yes, Long Island is slowly recovering from the devastating financial impact of the COVID-19 pandemic. But the three-month shutdown of our public and private sectors has left the local economy in disarray. Nassau County’s 2020 projected deficit was recently revised upwards another $100 million to a stunning $384 million. And Suffolk County’s COVID-19 Fiscal Impact Task Force projected a deficit of close to $1.5 billion over the next three years. If you drill down further, Long Island’s towns, villages, and cities are also on fiscally shaky ground.
Here’s what troubles me most about all this red ink: Not one single Long Island municipality has accepted the painful realization that both New York state and the federal government are unwilling to rescue them. While county elected officials wait to make the necessary changes to balance their budgets, hoping for a bailout, it costs Nassau and Suffolk governments well over $1 million a day. Across Long Island’s many local governments, none are doing anything to stop the hemorrhaging of projected revenue. Government’s customarily slow, ineffective response to fixing problems, becomes even more fiscally burdensome with each passing day.
Local governments need to resist the urge to make across the board budget cuts. It’s better for the community if already stressed departments like social services remain whole. Other departments, such as parks, clerical offices, and sanitation, can take the temporary cuts by delaying maintenance, going to a shorter workday or picking up garbage a couple of days less a month. Elected officials need to use a scalpel and not a hammer when scaling back their budgets.
Here are some additional suggestions as a continuation from my last column to help local governments find ways to close their budget gaps:
Insurance – When was the last time your local government did a top-to-bottom assessment of all liability, fire, property, and Workers’ Comp insurances? Many municipalities are paying for insurance they don’t need and have policies that aren’t competitively priced. Liability, property, and hazard insurances should be reviewed and competitively priced yearly. When I was at the Town of Hempstead, an analysis of a Workers Comp overhaul revealed projected savings for the town of $4 million a year.
Health insurance is a necessity that every government employee should have and that has been made even more evident during the COVID-19 pandemic. But what governments pay for health insurance is an uncomfortable discussion that needs to happen — immediately. Municipalities are contractually obligated to provide a certain set of coverages. It’s a collectively bargained right. And who those coverages are purchased from should be open to discussion.
Last year in the Town of Hempstead there was a proposal to purchase retiree health insurance from a highly regarded alternative provider. With coverages that exceed current retiree plans, this would have saved the town over $2 million a year.
Smart Parking meters – The coin-operated parking meters, ubiquitous throughout Long Island, need to go. In certain villages the revenue from parking meters is actually less than the cost paid to monitor them. Several companies are willing to install new smart parking meters for free — for a revenue share. Not only can parking-cost change depending on demand (which will increase revenue), monitoring and ticketing can be conducted remotely, which will save on staff. Additionally, allowing for immediate payment of tickets by text will increase revenue, too.
Naming Rights – Every park, museum, library, hospital, and large public building should be made available to sell naming rights. The city of San Diego aggressively sells naming rights as a way to generate recurring revenue, totaling up to $2 million a year.
Cameras on School Buses – In August, Gov. Cuomo signed legislation (S.4524B/A.4950B) authorizing school districts to install stop-arm cameras on school buses to catch drivers who unlawfully pass a stopped school bus. Not only does this initiative promote the safety of New York’s students, it also provides significant revenue. Every public and private school bus on Long Island should install these stop-arm cameras, and then the local school districts, private schools, and municipalities they reside in should share the ticket revenue.
Audit Everything – Local governments are notorious for overpaying for services. They need to audit utility bills and telephone bills for overcharges, hire companies to audit franchise fees and conduct subrogation audits on insurance money owed. They should also audit every cell tower lease and fees paid for municipal waste disposal. These audits can be conducted with no out of pocket costs by outside firms, which could receive a percentage of any savings.
Limit Take-Home Vehicles – Local governments should have pooled vehicles that can be signed out with every use. Electric car ride-sharing firms install charging stations and vehicles for free and charge an hourly fee per use.
Lower Professional Fee Schedules – Ask outside attorneys, engineers, and accountants, to take a 15 percent fee reduction until the fiscal crisis is over. With so many Long Islanders out of work, everyone needs to pitch in. If there is pushback, there are surely hungry professional firms which would be willing to work for less.
Hire Efficiency Experts – What is the optimal number of employees in each department? How can government become more efficient and productive? As government employees retire, don’t immediately replace vacant positions. Instead invest in technology to move government services online. In the European country of Estonia, 100 percent of government functions are conducted online.
Create one Nassau County Water District – Last year The Citizens Campaign for the Environment put out a comprehensive report on the cost of water on Long Island. In Nassau County, the annual cost to homeowners ranged from $195.89 in Jericho to an astonishing $1,124.52 in Sea Cliff. If elected officials are serious about making our community more affordable, Nassau County’s 46 separate water districts should be combined into a single water authority, which would lead to better oversight at a lower cost. The Suffolk County Water District efficiently and cost-effectively supplies water to 1.2 million residents. Nassau County can do the same.
The best time to make significant change in local government is during a crisis. That time is now.