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GAAP is irrelevant here. The question is: Why is NIFA suddenly changing accounting methods now that Dems have lost power, and a republican is in there that refuses to raise property taxes.
Also, NYC is set to run a 3.5% - 7.5% deficit, WAY worse than Nassau this coming fiscal year... why is the State not taking over New York City??
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Public Corporations pay lots of income taxes-
Apple Inc., paid $5.1 Billion TTM in income taxes.
Exxon $22.1 Billion last year
Walmart $7 Billion
JP Morgan $7.49 Billion
You can play with the books to postpone 'realizing' income to a later date, but eventually the market would rather see higher income reported (barring fraud of course); Private corporations are a whole 'nother story ...
They are doing it because they can in this system. If there was no GAAP (as in there was a system much more stringent) it would be harder to get away with and justify what they are doing, but GAAP drives the accounting/auditing culture in the USA. So they are feeling free to be "flexible" to the detriment of the current administration.
Good question about New York City! Is there a NYC equivalent for NIFA?
Also, NYC is set to run a 3.5% - 7.5% deficit, WAY worse than Nassau this coming fiscal year... why is the State not taking over New York City??
I dunno if there's a NIFA-like counterpart for New York City... but keep in mind NYC is a much different animal than Nassau County. The schools in the city are within that budget as well, they're not a separate entity like out here... as are services provided by town, village, etc. on LI. Imagine what Nassau's deficit would be if every one of our school districts were included in the county's budget?
I'm not saying it's right that NYC is "allowed" (more-or-less) to run that short of money while Nassau isn't, or vice-versa - nor do I know if that's actually the reason why their budget deficit is what it is... but that's what I imagine it to be.
Also, NIFA was formed because Nassau County got in hot water with budget issues specifically related to borrowing money over a decade ago. I don't think there's anything uniform in state law that says all counties (or whatever) must meet a certain threshold. It's just been us (Nassau) and Erie County so far that have gotten slapped on the wrist for poor budgeting. I would think there is little-to-no oversight at the state level for the other 60 counties.
GAAP is irrelevant here. The question is: Why is NIFA suddenly changing accounting methods now that Dems have lost power, and a republican is in there that refuses to raise property taxes.
Also, NYC is set to run a 3.5% - 7.5% deficit, WAY worse than Nassau this coming fiscal year... why is the State not taking over New York City??
--------
Public Corporations pay lots of income taxes-
Apple Inc., paid $5.1 Billion TTM in income taxes.
Exxon $22.1 Billion last year
Walmart $7 Billion
JP Morgan $7.49 Billion
You can play with the books to postpone 'realizing' income to a later date, but eventually the market would rather see higher income reported (barring fraud of course); Private corporations are a whole 'nother story ...
They are doing it because they can in this system. If there was no GAAP (as in there was a system much more stringent) it would be harder to get away with and justify what they are doing, but GAAP drives the accounting/auditing culture in the USA. So they are feeling free to be "flexible" to the detriment of the current administration.
Good question about New York City! Is there a NYC equivalent for NIFA?
Both the Bush & Obama admins have made it much easier on corporations the last 5 years- allowing losses from the past to offset current gains, favorable treatment of R&D spending, accelerated depreciation + bonus depreciation, letting the big banks mark their illiquid assets to reflect future cash-flows, etc.. both admins have pushed FASB in this direction.
That 1st article is opaque, will check the 2nd one out shortly.. the 1st article doesn't mention that the majority of companies on their list of non-tax-paying co's are probably out of business. I don't think it's unreasonable at all to have ~50% of companies not paying income taxes in a given year. GM, Ford and Chrysler alone probably made up half of the revenue, or gross receipts in their research. The 'Big Three' started losing money hand over fist around the latter part of the years in the study and together accounted for something like half a $Trillion in revenue ANNUALLY combined.
Quote:
Originally Posted by sean sean sean sean
I dunno if there's a NIFA-like counterpart for New York City... but keep in mind NYC is a much different animal than Nassau County. The schools in the city are within that budget as well, they're not a separate entity like out here... as are services provided by town, village, etc. on LI. Imagine what Nassau's deficit would be if every one of our school districts were included in the county's budget?
I'm not saying it's right that NYC is "allowed" (more-or-less) to run that short of money while Nassau isn't, or vice-versa - nor do I know if that's actually the reason why their budget deficit is what it is... but that's what I imagine it to be.
Also, NIFA was formed because Nassau County got in hot water with budget issues specifically related to borrowing money over a decade ago. I don't think there's anything uniform in state law that says all counties (or whatever) must meet a certain threshold. It's just been us (Nassau) and Erie County so far that have gotten slapped on the wrist for poor budgeting. I would think there is little-to-no oversight at the state level for the other 60 counties.
That's true with the schools and other municipalities being combined into NYC's budget. But most Schools on LI actually run annual surpluses. I think only 2 schools (Wyandanch & Amityville) are running deficits out of all the districts on LI. Villages and Towns do not borrow long term that I'm aware of. So I think if you included all of the other entities into the county budget, it would look like a much healthier county budget.
I have no idea if NYC has a watchdog group, and also am not sure how Nassau & Erie are the only 2 counties with an oversight board.?! That is definitely strange. I think NYC's problems are stemming from their huge and growing liabilities into the NYS pension fund..combined with decrease in city revenues (which even with tax increases coming, they are still facing a massive deficit in NYC).
Quote:
Originally Posted by Smash255
Ask your Republican buddy George Pataki. He set the NIFA rules for Nassau, not NYC. Also the deficit NIFA is reporting is MUCH worse than 1%.
NIFA's estimate may be worse than 1%.. Nassau County/Maragos have us coming in flat with a small surplus this year. The real issue is, NIFA changed the rules on-the-fly to come up with their estimate. You can't just change the rules like that without it looking shady. If you use the same principles that have been "Generally Accepted" by all counties in the country, then Nassau is coming in with a slight surplus most likely. I'm betting it will be a larger than expected surplus because of higher gas prices + higher spending and a better performing economy than last year.
Pataki may have started it, but Nassau obviously didn't feel the need to apply NIFA's powers up until 2011. Where were they the last decade+ ?? Please don't give me the 1% threshold as your reasoning, because we see now that it is only 1% because of the questionable and dubious accounting change by NIFA. Not to mention, didn't NIFA kindly give Suozzi $100 Million at the start of his administration?!
Where's Mangano's $100 Mill? We deserve at least that much -- Nassau gets short-changed every year by Albany.
I continue to be baffled why further cuts in spending are not being talked about. OK, so the budget's not balanced. CUT $179M MORE OF SPENDING TO GET IT BALANCED!
Why are property tax increases the the only thing that Mangano keeps talking about as a result of this. Out of a $2B+ budget, there isn't an additional $179M of wasteful spending? Ludicrous. I bet if I went through the budget department by department I could probably get this done in about 2 hours. Didn't anyone see the movie "Dave"?
I understand we're locked into union contracts and that's not the area we can get the $$. Cut something else now and when those union contracts are up, GUT THEM.
In NYC the budget hasn't been proposed and approved yet. Once it is, that deficit must be closed.
In Nassau County, the budget as approved by the legislature was found not to be in balance.
One budget has been approved the other hasn't
see the difference?
Quote:
Originally Posted by Pequaman
GAAP is irrelevant here. The question is: Why is NIFA suddenly changing accounting methods now that Dems have lost power, and a republican is in there that refuses to raise property taxes.
Also, NYC is set to run a 3.5% - 7.5% deficit, WAY worse than Nassau this coming fiscal year... why is the State not taking over New York City??
--------
Public Corporations pay lots of income taxes-
Apple Inc., paid $5.1 Billion TTM in income taxes.
Exxon $22.1 Billion last year
Walmart $7 Billion
JP Morgan $7.49 Billion
You can play with the books to postpone 'realizing' income to a later date, but eventually the market would rather see higher income reported (barring fraud of course); Private corporations are a whole 'nother story ...
Both the Bush & Obama admins have made it much easier on corporations the last 5 years- allowing losses from the past to offset current gains, favorable treatment of R&D spending, accelerated depreciation + bonus depreciation, letting the big banks mark their illiquid assets to reflect future cash-flows, etc.. both admins have pushed FASB in this direction.
That 1st article is opaque, will check the 2nd one out shortly.. the 1st article doesn't mention that the majority of companies on their list of non-tax-paying co's are probably out of business. I don't think it's unreasonable at all to have ~50% of companies not paying income taxes in a given year. GM, Ford and Chrysler alone probably made up half of the revenue, or gross receipts in their research. The 'Big Three' started losing money hand over fist around the latter part of the years in the study and together accounted for something like half a $Trillion in revenue ANNUALLY combined.
That's true with the schools and other municipalities being combined into NYC's budget. But most Schools on LI actually run annual surpluses. I think only 2 schools (Wyandanch & Amityville) are running deficits out of all the districts on LI. Villages and Towns do not borrow long term that I'm aware of. So I think if you included all of the other entities into the county budget, it would look like a much healthier county budget.
I have no idea if NYC has a watchdog group, and also am not sure how Nassau & Erie are the only 2 counties with an oversight board.?! That is definitely strange. I think NYC's problems are stemming from their huge and growing liabilities into the NYS pension fund..combined with decrease in city revenues (which even with tax increases coming, they are still facing a massive deficit in NYC).
NIFA's estimate may be worse than 1%.. Nassau County/Maragos have us coming in flat with a small surplus this year. The real issue is, NIFA changed the rules on-the-fly to come up with their estimate. You can't just change the rules like that without it looking shady. If you use the same principles that have been "Generally Accepted" by all counties in the country, then Nassau is coming in with a slight surplus most likely. I'm betting it will be a larger than expected surplus because of higher gas prices + higher spending and a better performing economy than last year.
Pataki may have started it, but Nassau obviously didn't feel the need to apply NIFA's powers up until 2011. Where were they the last decade+ ?? Please don't give me the 1% threshold as your reasoning, because we see now that it is only 1% because of the questionable and dubious accounting change by NIFA. Not to mention, didn't NIFA kindly give Suozzi $100 Million at the start of his administration?!
Where's Mangano's $100 Mill? We deserve at least that much -- Nassau gets short-changed every year by Albany.
NIFA didn't exactly "change the rules", part of the issue is the fact that Mangano is calling for more of these one shot deals, and questionable sources than Suozzi had. As far as the $100 infusion Suozzi got, keep in mind that comes from Tom Gullotta taking the county, drop kicking the county's finances off a cliff, and slamming the finances into the side of the mountain over and over again as it went down the cliff. We were hundreds of millions of $$$ into debt, we had a bond status at around junk.
In NYC the budget hasn't been proposed and approved yet. Once it is, that deficit must be closed.
In Nassau County, the budget as approved by the legislature was found not to be in balance.
One budget has been approved the other hasn't
see the difference?
The difference is that NIFA was brought in years ago when the County was in bad shape to issue debt guaranteed by NIFA on behalf of Nassau county. NIFA is responsable for this debt which is paid by nassau county, like a co-signer on a loan.
Provisions in these debt agreements allow NIFA to retake control of the finances b/c their gauranteed debt is in jeapordy.
NYC I dunno, but I don't think they put themselves in this situation.
I don't see why people think NIFA oversight is a bad thing. Which part is bad, that someone independant is actually looking over the shoulder of what the Exec is doing? it doesn't seem like the comptroller is doing it, someone should.
The difference is that NIFA was brought in years ago when the County was in bad shape to issue debt guaranteed by NIFA on behalf of Nassau county. NIFA is responsable for this debt which is paid by nassau county, like a co-signer on a loan.
Provisions in these debt agreements allow NIFA to retake control of the finances b/c their gauranteed debt is in jeapordy.
NYC I dunno, but I don't think they put themselves in this situation.
I don't see why people think NIFA oversight is a bad thing. Which part is bad, that someone independant is actually looking over the shoulder of what the Exec is doing? it doesn't seem like the comptroller is doing it, someone should.
Yes, exactly. That's why they feel they have to do it now ... before things get much worse and we are back at junk bond status and they are screwed as guarantor.
I wish NIFA would have started this BEFORE Mangano borrowed a bunch of money to hand it out to retiring cops (for an estimated savings decades in the future) when we need to keep a tight budget NOW.
NIFA's estimate may be worse than 1%.. Nassau County/Maragos have us coming in flat with a small surplus this year. The real issue is, NIFA changed the rules on-the-fly to come up with their estimate. You can't just change the rules like that without it looking shady. If you use the same principles that have been "Generally Accepted" by all counties in the country, then Nassau is coming in with a slight surplus most likely. I'm betting it will be a larger than expected surplus because of higher gas prices + higher spending and a better performing economy than last year.
Pataki may have started it, but Nassau obviously didn't feel the need to apply NIFA's powers up until 2011. Where were they the last decade+ ?? Please don't give me the 1% threshold as your reasoning, because we see now that it is only 1% because of the questionable and dubious accounting change by NIFA. Not to mention, didn't NIFA kindly give Suozzi $100 Million at the start of his administration?!
Where's Mangano's $100 Mill? We deserve at least that much -- Nassau gets short-changed every year by Albany.
NIFA funded Suozzi back in 2001 and yes it was a very bad situation, they can also fund Mangano but I don't see that becuse of NY States bad situation. Yes Suozzi also borrowed to cover the assessment but that is only one aspect of the budget.
Obviously you have more confidence in Nassau Counties than either Maragos or Mangano.
Suozzi did not sell off property to balance the budget, Mangano is having a lawn sale on county property including the 30 year leases at Mitchel FIeld (sound familiar).
Suozzi pushed some union increases down the road but he also got up front concessions in limiting retirement pay outs. Mangano removed the caps AND borrowed more funds for added retirement incentives , retirements resulted in more overtime not to mention his sneaky attempt at a deal with CSEA.
The bottom line is Suozzi was willing to raise taxes and was up front, Managano pandered to the people with his no tax increase budget but is making a bad situation worse with his politically motivated decisions like wasting money suing the NIFA he loved in 2000. Anyone CE that would even consider balancing the budget with a casino in Garden City not only needs oversight but rather a full time baby sitter.
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