Suffolk County, N.Y., Pays Up as Finances Flag
New York’s Suffolk County, home of the Hamptons beach towns, is paying twice as big a penalty to borrow than it did a year ago, even after budget analysts cut its projected deficit in half.
The 86-mile stretch of eastern Long Island, where billionaires George Soros and John Paulson own estates, may face a $179 million gap through next year, according to the county Budget Review Office. The August forecast, which includes a planned nursing-home sale and expected savings on employee health care, is down from a $400 million shortfall in March.
Investors may be dubious about the deficit reduction because it relies on oneshot revenue and optimistic sales-tax projections, said Howard Cure, director of municipal research at New York-based Evercore Wealth Management LLC, which oversees about $3.5 billion, including Suffolk bonds.