A judge has refused to block a state-appointed oversight board from taking control of Nassau County’s finances, ruling yesterday that the Nassau County Interim Finance Authority had not acted unconstitutionally and had a sound basis for exercising its authority.

The 30-page decision by Supreme Court Justice Arthur M. Diamond of Nassau County (See Profile) denying the county’s request for a preliminary injunction means the panel is free to implement measures that include its approval of all government contracts and borrowing as well as a possible wage freeze.

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