Rockland's Deficit Aims At Zero by End of Fiscal Year

NEW CITY, NY — The day before Rockland voters go to the polls to pick between County Executive Ed Day and his challengers, the administration announced a major milestone in the county's multi-year fiscal crisis. The deficit fund balance, which once totaled $138 million, is projected to be paid off by the end of fiscal 2017, according to an audit.

The deficit was part of a financial crisis that left Rockland on the ropes, forced to borrow $96.5 million and considered one of the most fiscally stressed counties in New York State.

The Legislature's outside auditors, Marks Paneth, presented the County's 2016 audit to the Legislature at its budget review meeting Thursday night. Rockland Finance Commissioner Stephen DeGroat and Budget Director Steve Grogan reviewed the audit Friday and Day made the results public Monday.

Day is running for re-election against Maureen A. Porette (D,WF,WEP) and Thomas F. Sullivan on the Conservative line.

"We have gone from $138 million deficit to zero in four years without raising taxes," Day said at the press conference. "It's a near-miraculous turnaround of a county that was on the brink of fiscal collapse."

The county's enormous debt and deficit crisis came to a head in 2014, when Rockland officials decided to borrow $96.4 million to make essential payments on the prior administration's deficit of $138.5 million.

According to the new audit, in 2015 the deficit fund balance was $16 million. By 2016 it was reduced to $4 million.

"We have turned around our finances without raising your taxes beyond the state property tax cap," Day said. "We stopped the endless tax-and-spend cycle that brought us double-digit tax increases and a massive deficit."

The county is continuing to pay off the $96 million deficit bond - the 'Sins of the Past' - at a rate of $13.2 million per year, Day said.

Day urged the Legislature to authorize the sale of the county-owned Sain building for $4.51 million so that the proceeds could be put toward settling union contracts with county workers.

"I implore the Legislature to take this action, to be a partner in the turnaround of Rockland County," he said.

Wiping out the deficit that Day inherited has helped Rockland County's overall financial picture.

"Our bonds are now rated A minus, our fifth consecutive bond upgrade since I took office," Day said. "We have gone from near junk bond status to the A category in just three years."

The improved bond rating helps taxpayers because it allows the county to borrow money to fund capital projects at a lower cost, county officials said; Rockland has saved between $3 to $5 million in debt service since 2014.

"That is equivalent to a 3 to 5 percent property tax increase that did not happen due to our fiscal responsibility," Day said. "Think about it - that is 3 to 5 percent a year that your property taxes did not go up."

County officials said Rockland's financial turnaround has earned the trust of the financial markets.

SEE ALSO:

• Budget Woes Threaten Rockland's Mounted Police Unit
  
• Rockland County's Fiscal Crisis Takes Center Stage
• Task Force Identifies Four Key Financial Issues
• Rockland Better But Still Among Most Fiscally Stressed
• How Close is Rockland to a 20% Tax Rate Hike for 2016?
  
• Rockland Lawmakers Amend 2017 Budget Plan
  
• Rockland 2018 Budget Proposal: No Layoffs, Nonprofits Funded
  

PHOTO: Budget Director Steve Grogan, Finance Commissioner Stephen DeGroat and Rockland County Executive Ed Day/ contributed