Rockland County carries a mighty debt load, to the tune of nearly $80 million, most of it directly related to Summit Park Hospital/Summit Park Nursing Care Center.

Bear in mind, the county’s primary source of revenue is property taxes. With a population base of approximately 312,000 people, not all homeowners, well, do the math. That’s a lot of debt.

At $1,342, Rockland County has the second highest debt per capita of the 62 New York counties, trailing only Nassau County. Rockland ranks 11th among counties in expenditures per capita at $2,285. The long and short is the books don’t balance. At the end of 2011, the NY State Comproller issued an audit concerning the county’s financial practices.

DiNapoli’s auditors found the county’s budgeting practice of overestimating revenue necessitated tens of millions of cash advances between operating funds that were not repaid. Sales and mortgage tax revenues were overestimated by more than $70 million and the county’s nursing home had an accumulated deficit that now totals more than $86 million. The county also has had to write-off more than $20 million in unpaid real property taxes and penalties owed by a major taxpayer.

Now the Moody’s downgrade. Cue ominous music, played by violins that raise residents’ taxes.

The downgrade means the county could face higher interest rates when it tries to borrow for capital projects or to obtain loans to maintain cash flow while awaiting state and federal reimbursement. It could potentially affect the reception the county receives if it moves forward to borrow millions of dollars to pay off an $80 million deficit.

Moody’s also gave the county’s credit rating a negative outlook, essentially a warning that another downgrade looms.

County Executive C. Scott Vanderhoef said that steps were being taken to address the county’s fiscal situation but that more needed to be accomplished to satisfy Moody’s.

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