SCHOENBERGER CALLS FOR “LOCK BOX” ON DEFICIT BOND FUNDS

Press Release from Legislator Ilan Schoenberger

New City, NY (June 21, 2013) County Legislator Ilan Schoenberger urged that any money that comes to the County of Rockland as a result of the deficit bond which was approved by the Senate last night and the Assembly earlier this month, should be put in a “lock-box” so that it cannot be spent for any purpose other than the elimination of the county’s deficit.

At 1:30 a.m. on Friday, June 21, the New York State Senate passed legislation that would allow Rockland County to borrow up to $96 million to cover its accumulated deficit. The legislation now goes to Governor Cuomo for his approval. If approved by the Governor, Rockland County will be permitted to issue a deficit bond to be repaid over 10 years to eliminate the County’s deficit. Legislator Schoenberger was one of the prime sponsors of this law.

Legislator Schoenberger stated, “The county must be committed to using this money from the deficit bond solely for the purpose of eliminating the deficit. I want the money that comes from the deficit bond to be placed in a lock-box where it cannot be accessed and used for other purposes such as day to day operation of the County or new programs or additional jobs. The funds that we hope to receive from the deficit bond must be used only to pay off the county’s deficit and to right and stabilize the financial ship of Rockland county government. The county government must continue to reduce its operating costs to make sure that not only is the deficit paid off but that it does not reoccur.

“The New York State Legislature, in passing Rockland County’s Deficit Bond Act, recognizes that the Deficit Bond is the only real solution to solving Rockland County’s financial situation. It is also an acknowledgement that the plan of the Budget and Finance Committee, which I chaired, and its work to stabilize the county’s finances is in the best interests of Rockland County taxpayers.”