SUFFOLK CLOSEUP - NYS Comptroller's LI Economic Snapshot

SUFFOLK CLOSEUP

By Karl Grossman

New York State Comptroller Thomas DiNapoli is just out with a report that describes itself as an “economic snapshot” of this area. Some of the information we know of but a lot we don’t.

Who, for example, is familiar with the fact that the village with the smallest population in New York State is “the tiny village of Dering Harbor [on Shelter Island] with 11 residents.” Or who knew that Hempstead “with nearly 56,000” is the state’s “most populated village?” 

I knew property taxes in neighboring Nassau County were high but the report terms the “median property tax bill in Nassau…particularly high: $14,872” in contrast with the “state median tax bill of $8,081.” Meanwhile, the median property tax bill in Suffolk is $8,556.

Why is the Nassau tax bill sky-high? Some 70% of property taxes go for schools, but the number of schoolchildren all over Long Island has declined. Does it have to do with corruption in Nassau government as exemplified by the recent convictions of ex-Nassau County Executive Edward Mangano, his wife, his former top aide, and other Nassau officials?

Exacerbating the tax bite now is the big cut in deductibility of local and state taxes on federal tax returns. “Long Islanders face some of the highest tax burdens in the state. The recent federal tax law caps the deductibility of state and local taxes, making the burden even higher for many taxpayers,” the report notes. 

Then there’s the “fiscal stress” for governments. “Long Island has higher levels of fiscal stress compared with other regions in the state. Both Nassau and Suffolk Counties are in significant fiscal stress,” it says. The term “significant fiscal stress” is the most extreme level given by the comptroller for governments and school districts in financial difficulty.

A main issue in the contest for county executive this year in Suffolk between incumbent Steve Bellone and County Comptroller John M. Kennedy, Jr. is the charge leveled by Mr. Kennedy that Mr. Bellone is guilty of fiscal mismanagement which Bellone spokespeople deny.

As for Suffolk’s population, the African-American percentage is reported as 8% and the Latino population is now very substantial, 19%, which is “equal to the state percentage.” 

“Long Island is generally prosperous,” says the report, with the “median household income in 2017” $105,744 in Nassau and $92,838 in Suffolk, “both significantly higher than the state median of $62,765.” But “disparity of income is fairly wide” with “the villages of Hempstead and Greenport having median incomes below $60,000.”

The “median value” of a home in Suffolk is $379,400 compared to $293,000 for the state. In the Town of East Hampton, it’s a whopping $807,500, “highest for any of Long Island’s towns.” Despite the high cost of housing, the “homeownership rate” for Nassau and Suffolk is 72%, “much higher than the 48% statewide rate.” It’s further noted that the “high home prices can prove a source of financial strain.” Oh, yes. 

Despite development in the population boom of the last several decades that has given “much of the region…urban and suburban characteristics, agriculture remains an important part of Long Island’s economy and its culture. In fact, Suffolk County has the highest value for agricultural crops of any county in New York State…with production centered on nursery, greenhouse and sod products; vegetables; fruits; poultry and eggs and aquaculture, e.g., fish, clams. Since its start in 1973, Long Island’s wine industry has grown dramatically.”

“Health care is the largest private sector employer on Long Island,” says the report, “accounting for nearly 17% of private-sector jobs, 193,000.” Treating illness has become Long Island’s biggest industry. What does this signify?

There are issues regarding the “network of aquifers beneath the island”—its sole source of potable water. “Concerns have been raised about their recharge rates and contamination from pollution sources” says the report about the aquifers. Instead of treating and then recharging wastewater back into them to replenish the underground water table, most wastewater is sent (all of it in Nassau) through outfall pipes out to bays, the Long Island Sound and Atlantic Ocean.

The drive for development is continuing. The report cites “the Ronkonkoma Hub” project in which “1,450 apartments and 545,000 square feet of retail space” is to be built. There are also plans for a project “nearby…in the Town of Islip” to feature “a 7,500-seat arena and 6,000-seat soccer stadium as part of a $1.1 billion development” which will also include “offices, a convention center and medical facilities.” Although these projects “and many others may add to Long Island’s economic opportunities, they could also contribute to heavy traffic congestion and may put more pressure on already high housing costs.”

The report concludes: “Despite these challenges, Long Island continues to be a desirable place to live, work and raise a family…”

Comptroller DiNapoli, a Long Islander from the village of Great Neck Plaza, comments that the report is “meant to provide useful information.” This it does.

Karl Grossman is a veteran investigative reporter and columnist, the winner of numerous awards for his work and a member of the L.I. Journalism Hall of Fame. He is a professor of journalism at SUNY/College at Old Westbury and the author of six books.