Politics & Government

Flotteron: Town of Islip Faces $26M Deficit

Budget Task Force blames townwide deficit on "wasteful spending, fiscal mismanagement" by former Nolan administration.

A task force commissioned by the Islip Town Council revealed the town is facing a projected $26 million budget deficit in 2013.

After months of analyzing the town's finances, the task force, led by Councilman Steve Flotteron, said "wasteful spending" and lack of fiscal oversight under former Town Supervisor Phil Nolan, combined with the economic recession contributed to the "staggering" gap.

The entire budget for the town in 2011 was $120 million, meaning the deficit represents roughly 20 percent of the overall budget.

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"The looming financial distress was ignored," said Bill Mannix, director of Islip’s Department of Economic Development and a member of the task force, adding that the prior administration, led by Nolan, failed to heed recommendations by the town's comptroller to curtail spending.

Mannix said the town earned less than $72 million in revenue in 2011, but spent close to $85 million, using reserve funds to make up the difference. That spending gap has grown each year since, and can no longer be sustained, he said.

Find out what's happening in West Islipwith free, real-time updates from Patch.

According to Mannix, the town's fund balance grew steadily from 2002 to 2007, peaking at $75 million. After being drawn from starting in 2007, funds were depleted to $49 million by the end of 2011.

Mannix said the town earned less than $72 million in revenue in 2011, but spent close to $85 million, using reserve funds to make up the difference. That spending gap has grown each year since, and can no longer be sustained, he said.

In numerous cases, the money was used for "wasteful spending," including "hundreds of thousands of dollars" spent on paving equipment that was never used, as well as the professional detailing and waxing of the town's sewer vacuum and street sweeping trucks, Mannix said.

“We’re scratching our heads over why anyone would hand clean and wax these vehicles to look showroom new when they’re just going to go back out on the streets and get dirty,” said Mannix, who also served on the task force.

In once instance, the town spent close to $100,000 for two software systems that were never used, Flotteron said.

Mannix said the town has roughly 12,000 outstanding parking tickets for which fines have not been collected, some containing fees as much as $770. The total revenue for these tickets equals an estimated $1.5 million.

New Supervisor Tom Croci didn't immediately disclose what measures the board will take to close the budget gap, though he indicated everything is on the table and all cost-saving measures will be considered.

"There's more work to do," said Croci. "We're all gonna have to tighten our belts."


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