Governor Signs Legislation Authorizing Town's Separation Incentive

Gov. Andrew Cuomo has approved legislation that allows the Town of East Hampton to implement a voluntary employee separation program and spread its cost over the next 10 years.

The legislation permits the town to borrow an undetermined amount of money and pay it back within the decade.

The East Hampton Town Board had requested the help for its long-term financial plan, according to Assemblyman Fred W. Thiele Jr., I-Sag Harbor, who sponsored the bill along with State Sen. Ken LaValle, R-Port Jefferson.

"Over the past four years, the Town of East Hampton has operated under a budget deficit of nearly $27 million as indicated by an audit conducted by the State Comptroller," Thiele said in a statement.

By phone on Thursday, Thiele explained that the town didn't need the legislation to implement the program, but to spread the cost over a decade.

"We're not directing them to do it, we're authorizing them to do it," he said.

"The separation incentive is very important to them in trying to get their government the right size so it's affordable again," Thiele said. 

Supervisor Bill Wilkinson did not immediately return a call for comment, though he has said publically that he wanted to secure the option for such an incentive.

This legislation was proposed last year at the same time a proposal to allow the town to issue $30 million of bonds to finance the deficit over 10 years, Thiele said. The latter, which had been recommended by state comptroller, was passed, but the separation program legislation fell in the senate.

The only difference now, Thiele said, is simply that the Democrats controlled the senate and this year. the Republicans do.

Since then the board has implemented cost saving measures, like reducing the size of the town government, once the largest employer in town, through attrition and .

To avoid mass layoffs, the town board had proposed a voluntary separation incentive program for eligible employees.

"The audit also indicates that the town should incorporate other cost saving measures in subsequent budgets in order to return to a sound financial condition," Thiele said.

"This legislation would allow the town to achieve a reduction in work force and realize an ongoing net savings through a plan that will be
least disruptive to the employees and the provision of services," Thiele said.

The assemblyman said similar legislation has been enacted for Nassau County in the past.

While he sees the separation incentive as important to the town's financial recovery plan, the question has been whether the cost of the incentive should have been paid for in current funds. "I expect there will be a debate over that over the fall," he said.