The New York State Legislature approved a deficit-bond bailout plan for Nassau County yesterday, while a similar plan to help Suffolk County close a budget gap remains in limbo, legislative sources said.

The Legislature, which approved Nassau's plan during a special session, agreed to allow the financially strapped county to issue as much as $65 million of deficit bonds with maturities of up to six years. It also agreed to raise its mortgage-recording tax to 2% from 1% to cover a $135 million gap in its fiscal 1992 budget, which ends Dec. 31.

Suffolk County's situation is drastically different. On Tuesday, County Executive Robert Gaffney was forced to accept the demands of his county legislature and ask for state legislation to permit issuance of deficit notes. The county originally planned to issue $36 million of deficit bonds and raise the county's sales tax to 8.5 cents from 8 cents.

But the Mr. Gaffney's request did not go over well with several state Assembly members.

Despite a state legislative accord reached July 19, Assembly Speaker Saul Weprin, D-Queens, informed Mr. Gaffney yesterday afternoon that the Suffolk plan was in jeopardy because several Assembly Republicans decided to vote against the measure. Late yesterday afternoon, Mr. Gaffney was flying to Albany to press his case.

Legislative sources say Suffolk's problems will not affect other measures agreed to after the end of the 1992 legislative session several weeks ago.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.