Nassau’s fiscal watchdog is demanding County Executive Bruce Blakeman replenish nearly $14 million quietly pulled out of opioid settlement funds — and threatening to tank his next budget.
Nassau Interim Finance Authority chairman Richard Kessel blasted Blakeman and his Republican administration in a charged letter for transferring millions in interest earnings from the county’s Opioid Litigation Settlement Fund into its general fund — where it can now be spent on anything.
The intended purpose of the settlement is meant to fund opioid treatment, prevention and education.
“While sitting on the settlement funds in the face of this public health crisis is bad enough, it is unconscionable for your administration to transfer the interest in a backroom maneuver to prop up the County’s budget,” the Friday letter, obtained by The Post, read.
The transfer substantially drains the resources available for opioid treatment and recovery — especially as inflation has eroded the value of the fund, Kessel warned.
Internal finance data provided by county Dems and reviewed by NIFA showed roughly $13.7 million in interest has been transferred from the opioid fund by Blakeman, who is running for governor, to Nassau’s general account since 2024.
“You have been entrusted by the residents of the County to utilize these monies for the sole purpose of assisting efforts to provide interventions, recovery services, education, support and assistance to those who suffer from an opioid addiction and to their families,” Kessel continued.”
Sources confirmed to The Post that NIFA is now weighing whether to block Blakeman’s next county budget — due in September — if the funds aren’t restored.
Blakeman’s spokesman, Chris Boyle, dismissed the watchdog’s demands and instead accused NIFA of playing politics on behalf of Gov. Kathy Hochul.
“NIFA is supposed to look out for the taxpayer, instead they toe the Hochul party line,” he said.
“Shame on them.”
Boyle pointed to a 16% drop in Nassau opioid-related deaths since last year — there’s been a 50% drop across Long Island over the last four years — arguing that the money is being put to good use no matter what account it sits in.
But during an August 2024 budget hearing, Blakeman’s administration told lawmakers point-blank that the interest was required to stay in the opioid settlement account.
“It’s a requirement that it stays in there,” Nassau budget director Andrew Persich testified at the time.
There is no state law, however, requiring opioid interest to remain in the settlement fund — a loophole that county Leg. Olena Nicks looked to close Monday, introducing legislation that would permanently lock those funds in place.