Suffolk Executive Levy to NYS: “Show Me, Don’t Owe Me, the Money”

Levy Unveils Monthly Report Highlighting Severe Cash Flow Delays from NYS

Monthly Report to Document How State Strains Local Budgets

Hauppauge, NY – Suffolk Executive Steve Levy today announced the creation of a new
monthly report identifying tens of millions in delinquent state aid payments owed to Suffolk
County. In doing so, Levy noted that Suffolk County is among many municipalities owed
millions by the State Government, called for the restoration of timely cash flow to allow local
municipalities to meet their own budgetary obligations and pointed out some of the programs
affected by the State’s cash flow failure.

“New York State continues to withhold millions in required payments to Suffolk and other
municipalities,” said Levy. “The fact is this practice hurts the taxpayers and those seeking social
and other government services, and so we are announcing a recurring ‘State Cash Flow Watch’
to make the public aware what programs are at risk because of New York State’s failure to fulfill
its fiduciary responsibilities.”

Today, in an op-ed, the Governor pointed out the absurdities of the State budget process
indicating how increases in spending are hidden in “marbleized” formulas throughout the State
budget which force the state to spend more and more. This is correct, but the Governor failed
to point out that through another “marbleized” State accounting treatment Counties are forced
to pay the bill for services – required by the State – even though the State will not recognize
the delivery of said services until they, the State, decides to pay the bill. In affect this forces
Counties to subsidize State required programs and services until such time as the State has
adequate resources to pay the bill.

For example, according to the Suffolk County Executive Budget Office New York State currently
owes Suffolk County tens of millions in cash payments for the delivery of critical education, child
and healthcare services, public safety and emergency management programs. Below are just a
few examples:

Outstanding amount > 90 days Description

Preschool Services - Education services for children with

$19,481,612 learning disabilities (age 3 to 5)

Early Intervention Services - Services for children with

$2,827,836 learning disabilities ( age 0 - 2.11)

Health Services Public Health ( includes Health

Center, Public Health Nursing, Emergency Medical,
$16,310,037 Environmental and Emergency Preparedness Services)
 Medical Examiner Services
$2,145,856

HIV Primary Care Services

$61,607

Police - Dedicated traffic enforcement for DOT -

$704,092 construction of roads

Probation, Sheriff and Legal Aid Society - Alternatives to

$271,893 Incarceration

Other various programs ( FEMA, paramedic, and capital)

$26,282

Total outstanding receivable (State Aid only)

$41,829,215

To draw attention to this habitual cash flow delay by the State, Suffolk County Executive Steve
Levy announced the immediate development of “State Cash Flow Watch,” a monthly report to
be developed by the Department of Information and Technology in conjunction with the County
Executive Budget Review Office to prominently document the State’s failure to remit payments
for services required.

“State Cash Flow Watch” will be hosted on www.SuffolkCountyNY.gov and updated monthly.
The report will be available for review by weeks’ end.

Concluded Levy, “Withholding payment for services rendered does not fly in the real world, and
it shouldn’t be allowed in Albany.”