Laura Incalcaterra

lincalca@lohud.com

Rockland's state-certified deficit is %24125.6 million

Rockland is borrowing %24107 million to pay-down large portion of its deficit

The new cash-flow should allow the county to pay its bills in a timely manner

Legislators consider law for payments to vendors within 30 days%3B some have waited 120 to get paid

NEW CITY – Throughout Rockland County's fiscal crisis, there often hasn't been enough cash on hand to allow timely payments to service providers, contractors, contract agencies, vendors and others.

Some county legislators say that should change now that the county is finally getting a true grip on its finances, with a loan of $107 million about to fill county coffers as part of the effort to pay down the $125.6 million state-certified deficit.

"If the county has the money, we should be paying the bills," Legislator Ilan Schoenberger, D-Wesley Hills, said. "Are we out of the financial crisis? We are not. But we should be paying our vendors."

Schoenberger is proposing the new "We Pay Our Bills Timely" law, along with Legislators Aney Paul, D-Nanuet; John Murphy, R-Orangeburg; and Frank Sparaco, R-Valley Cottage.

The bill will be discussed when the board's Budget and Finance Committee meets at 7:15 p.m. Tuesday at the Allison-Parris County Office Building, 11 New Hempstead Road in New City.

As things stand, vouchers, requisitions and purchase orders get submitted to the county, which can take up to 30 days to approve the paperwork. The county must issue checks within 90 days.

Schoenberger said that due to the fiscal crisis, the county has frequently issued, but not mailed the checks until well past 90 days — sometimes by several weeks.

The proposed law would require the county to pay within 30 days after the paperwork is approved, he said.

If the county fails to meet the obligations of the law, once payment is made, it will have to fork over an interest payment at the rate set forth under the state's Civil Practice Law and Rules.

"We've got to change the atmosphere in the county," Schoenberger said. "If the answer is, 'The county doesn't have the money,' that's an acceptable answer to me. If the answer is, 'The process is designed to prevent timely payments just because it's done that way,' (that's)not an acceptable answer."

Schoenberger said fewer people and companies will submit bids if payments continue to be delayed, something that could affect the county in terms of the quality of vendors and the increased costs they could charge.

Murphy said delays in state reimbursements to the county have contributed to the problem and that there is no financial way the county can make up the state's shortfall.

"We can't make good on the state's delinquency, but we should pay our bills," Murphy said. "This is one of those bad choices we have to make because the county is cash-strapped."

On Wednesday, the county went out to borrow $96 million. Its notes generated strong interest among investors who were willing to pay premiums and the county netted $107 million, or $11 million above what it sought.

Rockland Finance Director Stephen DeGroat said the county had success in securing a low interest rate of 2.7 percent.

Murphy said the loan would help make paying the bills easier and that it had taken a long time for efforts regarding the county budget to finally gain traction.

"It looks like the sun is coming up," Murphy said.

Twitter: @LauraLoHud