Nassau to File Lawsuit to Stop NIFA Takeover

Nassau County Attorney John Ciampoli had a couple of questions for the Nassau Interim Finance Authority (NIFA) Board of Directors Wednesday afternoon.

He didn’t get any answers.

“I had some questions that were clearly to be directed to this board, to the chairman,” Ciampoli said in the conference center of the Long Island Marriott in Uniondale after the state watchdog had just issued a control period over Nassau’s finances, essentially taking over the county.

“We have a system of laws and I think I found a group of people saying today that they are going to disregard those laws and make their own determination and impose it upon the elected government of Nassau County,” Ciampoli said, adding that he was “astonished” but not surprised that the six-member board voted unanimously to assume control over what it says is a $176 million operating deficit.

“I’m not telling you we’re out here declaring war today, but we are going to take this all under advisement,” Ciampoli said.

County Executive Ed Mangano confirmed at a press conference following the vote that the county will be filing a lawsuit against NIFA to block its takeover. However, during that time it will still comply with the regulation to provide NIFA with a revised budget by Feb. 15.

Ciampoli stated that he would file the suit “as soon as I’m ready,” but definitely before the Feb. 15 deadline.

“It is not plain to me what clause in the NIFA statute that NIFA is taking its actions under,” he said thumbing through a 30-page document NIFA personnel say explains the reasoning behind the takeover.

He also questioned how 20 days into the fiscal year NIFA can determine the budget is out of balance, saying that “we shouldn’t take the government that the people elected and take it away from them.”

Nassau’s outside counsel includes Mangano’s former law firm of Rivkin Radler, approved in a deal by the legislature two weeks ago as part of a series of contracts objected to by the Democratic caucus.

As part of the takeover, NIFA has authority to approve all contracts except for those already in place. If the contract was approved by the legislature today, NIFA could have denied it, and blocked outside attorneys from representing the county in its yet to be filed lawsuit.