Wednesday, December 4, 2013

NYRA approves admissions increase

Admission prices are going up this summer at the Saratoga Race Course.

The New York Racing Association board of directors passed a 2014 budget on Wednesday that includes increases to admission, boxes and parking at Saratoga. The move was part of an effort by NYRA CEO and President Chris Kay to move the racing organization's operations in the black for next year.

This year NYRA is projected to have an operations deficit of about $10 million, but next year they're projecting a slim surplus with the help of cost cutting measures and higher fees.

According to the budget summary, NYRA will generate new revenues from "new funding opportunities for customers with MoneyGram," its improved online wagering platforms, increased prices for admissions, box seats and parking, a more expensive simulcast signal and attract more sponsorship revenues. To reduce spending, the executive summary says NYRA will close Aqueduct’s training center during non-racing months, reduce legal expenses, reduce costs related to NYRA’s phone wagering operation, reduce overall labor expense and find efficiencies, including through a reorganization, strategic hires and long-term planning.

General admission for Saratoga will move from $3 to $5 and clubhouse admission will go from $5 to $8 under the approved budged. Admission costs will also go up at Belmont.

The admissions increase sparked serious debate during Wednesday's meeting. Board members opposed to the increase, including special adviser John Hendrickson, warned that the move might keep fans from attending, especially when there are so many other gambling alternatives, like racinos with free admission, online wagering platforms and OTB parlors.

Hendrickson said NYRA should be considering other ways to raise money, like altering the role of OTBs and reducing takeout rates.

NYRA Chairman David Skorton said management and the board will carefully monitor the implementation of the admissions increase this spring at Belmont. It's not clear what might prompt them not to implement the increase at Saratoga too.

Kay said NYRA expects $1.8 million to $2 million in additional revenue from the increased admissions cost.

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Tuesday, December 3, 2013

NYRA wants to raise admission to help cut operating deficit


The proposed 2014 budget for the New York Racing Association attempts to answer critics who attack the group's racing operations deficit.

NYRA came under fire this summer for its inability to turn a profit solely with its racing operations, even though Video Lottery Terminal revenue from Aqueduct will ensure them a profit of millions this year. This year NYRA is projected to have an operations deficit of about $10 million, but next year they're projecting a slim surplus with the help of cost cutting measures and higher fees.

According to the 2014 draft budget executive summary, NYRA will generate new revenues from "new funding opportunities for customers with MoneyGram," its improved online wagering platforms, increased prices for admissions, box seats and parking, a more expensive simulcast signal and attract more sponsorship revenues. To reduce spending, the executive summary says NYRA will close Aqueduct’s training center during non-racing months, reduce legal expenses, reduce costs related to NYRA’s phone wagering operation, reduce overall labor expense and find efficiencies, including through a reorganization, strategic hires and long-term planning.

Oh yeah, they'll also save money by cutting their charitable contributions by $169,000. (Does that mean Marylou Whitney and John Hendrickson need to increase their contributions by $169,000?)

The budget reflects a clear push within NYRA to turn a profit without VLT revenue from Aqueduct. "We intend to use VLT operating monies to invest in revenue generating initiatives rather than using those funds to pay for operating deficits," reads the 2014 draft budget executive summary.

This is a confusing goal, since the funding was initially intended to be used for "purses, capital expenses and operations," according to the same executive summary.

The new direction of this budget is a direct consequence of criticisms NYRA received this summer and has heard in the past about its reliance on VLT revenue to turn a profit. Unfortunately this reaction is overkill.

There is a consensus that NYRA needs to close its operating deficit, but there is serious disagreement about how to do that and how fast to act. There is also a disagreement about how important an operating budget profit really is, if the overall budget is likely going to be in the black for the next two decades as the result of the VLT contract (which is not some state handout). On NYRA's board there are members who don't think it makes sense to focus so much on one aspect of the budget and want to look at the big picture.

The only people that really care about turning a profit with the operating budget are state regulators. They've harped on this issue repeatedly, while not giving NYRA the freedom to make as much money as possible, such as the failure to allow them to expand into the New York City market left vacant by the New York City OTB's collapse.

It's not clear why the state is taking such a hardline on this position, but one possibility is they want the three NYRA tracks to be as attractive as possible in 2015 so they can be sold to a new operator. There is also the possibility that the state could try to force NYRA to agree to give up some of its VLT money, which would make the racing portion of the budget.

None of this matters to fans and they will be annoyed when a day at the races costs more next year. Alienating fans is extremely shortsighted considering NYRA needs to do everything it can to attract new fans and keep its old fans.

Essentially, a projected $250,000 operations profit is completely meaningless (and far from guaranteed). NYRA CEO Chris Kay can pat himself on the back if it happens, but it doesn't matter much in the long run.

Instead, NYRA should have proposed a budget that cut the racing operations deficit and laid out a long-term plan for racing profitability. This long-term plan could have included expanding into New York City with restaurants, phasing out the antiquated OTB parlors and reducing administrative costs.

Ultimately, though, NYRA will likely remain reliant on VLT revenue for its purses, capital projects and balancing its books. That's not a bad thing considering its an investment in an industry that is worth millions of economic activity to New York.

Hopefully state regulators don't decide in the future that NYRA is too reliant on gambling to turn a profit...

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Tuesday, November 26, 2013

Upstate unemployment picture improves from last year

The upstate New York unemployment rate dropped from 7.8 percent in October 2012 to 6.8 percent this past October, according to preliminary information released today by the state Department of Labor.

Unfortunately, the positive trends seen across most the state were not evident in New York City, where unemployment only dropped one-tenth of a percentage point to 8.9 percent compared to October 2012. Some of the most encouraging news was in the Capital Region, with tri-city area unemployment going from 7.1 percent to 6 percent and Glens Falls unemployment dropping from 7.5 percent to 6.3 percent.

Below is a map that illustrates the unemployment picture by county.

"The state’s private sector job count increased by 112,700 from October 2012 to October 2013," reads the state press release. "The economy added 9,000 private sector jobs in October 2013 and 24,800 in September 2013, bringing the state’s job count to a record high of 7,490,100."

New York's unemployment picture is still worse than the rest of the country

The counties with the state's lowest unemployment in October were:
  • Tompkins County (4.8%)
  • Yates County (5.2%)
  • Hamilton County (5.3%)
  • Putnam County (5.5%)
  • Saratoga County (5.5%)
The counties with the state's highest unemployment in October were:
  • Bronx County (12.2%)
  • Kings County (9.6%)
  • Jefferson County (8.7%)
  • Orleans County (8.5%)
  • St. Lawrence County (8.3%)


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Will Cuomo approve expansion of city courts?

Cities across New York could be getting more judges in the near future.

A proposal to increase the allocation of city court judges passed the state Legislature this year and the bill is waiting to be sent to Gov. Andrew Cuomo for his approval. The increase would mean another judge for Buffalo, Newburgh, Rochester, Schenectady, Syracuse and Yonkers and other cities would get the increase of a part-time equivalent judge.

The complete list of recommendations and when they should take effect can be found below. 

The increase is based on recommendations from an ad hoc city court advisory committee, which proposed modifications that were included in legislation enacted over the last quarter century, with the last enacted changes in 2006. The latest recommendations are based on caseloads, demographics, judicial resources and available facilities.

According to the bill memo, "All changes are submitted with the approval of the Mayors and judges of each city affected."

This bill is one of nearly 80 pieces of legislation that passed the Assembly and state Senate this year and have not yet been sent to Cuomo for his approval or veto. 

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City          Present      Proposed
               Allocation   Allocation       When Change Effective
 Albany        4FT          5FT              4/1/14
               1PT(1/2)
 
 Amsterdam     1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Auburn        1FT          1FT              4/1/14
               1PT(1/4)     1PT(1/2)
 
 Batavia       1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Beacon        1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Binghamton    2FT          3FT              4/1/14
               1PT(1/2)
 
 Buffalo       13FT         14FT             1/1/15
 
 Canandaigua   1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Cohoes        2PT(1/2)     2PT(1/2)         NO CHANGE
 
 Corning       1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Cortland      1FT          1FT              4/1/14
               1PT(1/4)     1PT(1/2)
 
 Dunkirk       1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Elmira        2FT          2FT              NO CHANGE
 
 Fulton        1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Geneva        1PT(1/2)     1PT(1/2)         NO CHANGE
               2PT(1/4)     2PT(1/4)
 
 Glen Cove     2PT(1/2)     2PT(1/2)         NO CHANGE
 
 Glens Falls   1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Gloversville  1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Hornell       1PT(1/2)     1PT(1/2)         NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Hudson        1PT(1/2)     1PT(1/2)         NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Ithaca        1FT          2FT              4/1/14
               1PT(1/2)
 Jamestown     1FT          2FT              4/1/14
               1PT(1/2)
 
 Johnstown     1PT(1/2)     1PT(1/2)         NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Kingston      1FT          2FT              NO CHANGE
               1PT(1/2)
 
 Lackawanna    1FT          1FT              NO CHANGE
               1PT(1/2)     1PT(1/2)
 
 Little Falls  2PT(1/4)     2PT(1/4)         NO CHANGE
 
 Lockport      1FT          2FT              4/1/14
               1PT(1/2)
 
 Long Beach    2FT          2FT              NO CHANGE
 
 Mechanic-
 ville         2PT(1/4)     2PT(1/4)         NO CHANGE
 
 Middletown    1FT          2FT              4/1/14
               1PT(1/2)
 
 Mt. Vernon    3FT          3FT              NO CHANGE
               1PT(1/2)     1PT(1/2)
 
 Newburgh      2FT          3FT              1/1/15
 
 New
 Rochelle      2FT          3FT              4/1/14
               1PT(1/2)
 
 Niagara Falls 4FT          4FT              NO CHANGE
 
 N. Tonawanda  1FT          1FT              NO CHANGE
               1PT(1/2)     1PT(1/2)
 
 Norwich       1PT(1/2)     1FT              4/1/14
               1PT(1/4)     1PT(1/4)
 
 Ogdensburg    1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Olean         1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Oneida        1PT(1/2)     1FT              4/1/14
               1PT(1/4)     1PT(1/4)
 
 Oneonta       1PT(1/2)     1FT              4/1/14
               1PT(1/4)     1PT(1/4)
 
 Oswego        1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Peekskill     1FT          1FT              NO CHANGE
               1PT(1/2)     1PT(1/2)
 
 Plattsburgh   1FT          1FT              NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Port Jervis   1PT(1/2)     1PT (1/2)        4/1/14
               1PT(1/4)     1PT(1/2)
 
 Poughkeepsie  2FT          2FT              NO CHANGE
 
 Rensselaer    1PT(1/2)     1PT(1/2)         NO CHANGE
               1PT(1/4)     1PT(1/4)
 
 Rochester     9FT         10FT              1/1/15
 
 Rome          1FT          2FT              4/1/14
               1PT(1/4)
 
 Rye           1FT          1FT              4/1/14
               1PT(1/4)     1PT(1/2)
 
 Salamanca     2PT(1/4)     1PT(1/2)         4/1/14
                            1PT(1/4)
 
 Saratoga      1FT          2FT              4/1/14
 Springs       1PT(1/2)
 
 Schenectady   3FT          4FT              1/1/15
 
 Sherrill      1PT(1/4)     1PT(1/4)         NO CHANGE
 
 Syracuse      8FT          9FT              1/1/15
 
 Tonawanda     1FT          1FT              NO CHANGE
               1PT(1/2)     1PT(1/2)
 
 Troy          1FT          2FT              1/1/15
               1PT(3/4)     1PT(3/4)
 
 Utica         3FT          3FT              NO CHANGE
 
 Watertown     1FT          2FT              4/1/14
               1PT(1/4)
 
 Watervliet    1PT(1/2)     2PT(1/2)         4/1/13
               1PT(1/4)
 
 White Plains  3FT          4FT              4/1/13
               1PT(1/2)
 
 Yonkers        6FT         7FT              1/1/15
 

State Comptroller weighs in on Rockland County's budget woes

Rockland County officials aren't properly planning for the county's $31.3 million deficit, according to a review of the county's 2014 budget by New York State Comptroller Thomas P. DiNapoli.

A report from the comptroller's office on Monday, which was issued as a requirement for Rockland County being allowed to borrow $96 million, says that county officials might need to pass a local law to override the tax cap before adopting the budget. For the most part, though, DiNapoli found that the projected revenues and expenditures in the proposed 2014 budget were reasonable.

Read the full report below.

According to the review, the county ended its 2012 fiscal year with a deficit of about $127 million. The state approved borrowing to cover $96 million of that deficit, but there is still a hole of $31.3 million. "The County Legislature plans to adopt a local law to pay down this remaining deficit; however, no provisions for a pay-down are included in the 2014 budget," says the report.

"The County Legislature is considering two options, one which reduces the deficit by $10 million per year until it is eliminated, and the other which reduces the deficit by 10 percent or $3 million annually, whichever is greater. Because the proposed budget does not include provisions for either option, the County will not be able to begin reducing the remaining deficit in the 2014 year," reads the report. "The County should consider taking steps to address the $31.3 million deficit that remains and include provisions for such steps in the 2014 budget."

DiNapoli's review also notes that the county should have avoided this mess by not using debt to pay for operating costs. 

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Monday, November 25, 2013

Legislature making it easier to shop local

Where can you buy all those great New York products?

That question could be answered by a bill waiting to be sent to Gov. Andrew Cuomo. Earlier this year the Assembly and state Senate both approved a bill that would create "Shop: Pride of New York" program, which is designed to spread awareness about retailers and wholesalers that sell foods produced in the state.

"The current Pride of New York program has been instrumental in creating awareness about goods and products that are produced in-state," reads the bill memorandum. "While retailers and wholesalers are included in the program, the food itself has always been the focus."

The bill memo notes recent polling that suggests New Yorkers would be more likely to buy local products if they can conveniently locate the shops that sell those products.This program would let retailers and wholesalers brag to the world that they're the place to buy New York products by providing them access to promotional materials and featuring them on a website dedicated to the program.

"This type of branding has been shown to positively affect consumer behavior. Individuals are bound to prefer, and pay a premium for: products labeled as produced locally or in-state," says the bill memo. "Shop: Pride of New York will shine a light on those businesses locally sourcing, and help drive consumers to their doors."

If the program yields results, the bill memo argues that more businesses will want to carry New York products. 

Retailers must sell at least 20 different types of food or food products made in New York to qualify and standards for wholesalers would be determined in the future.

This bill is one of 79 pieces of legislation that have passed both houses of the state Legislature and are waiting to be sent to the governor.

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Biz group makes case against publicly financed elections

It would be a mistake to fill campaign coffers with taxpayer money, according to a report from a statewide business coalition.

Unshackle Upstate has released a report, "Money for Nothing," that outlines negative consequences from publicly financed elections, like the possibility of new corruption and abuse.

"We’ve concluded that using taxpayer dollars to pay for political campaigns is a poor use of taxpayer monies, and that this so-called reform will not solve the problems facing New York’s political system," reads the report. "In fact, such a system is likely to create greater opportunity for corruption."

A complete copy of the report is available below.

The report also finds that this system would primarily benefit the interests of organized labor, while limiting the impact of other interests, like business owners. This is because a publicly financed system would reward candidates with many small donors.

Unshackle Executive Director Brian Sampson concluded that the system would be a bad idea. "This so-called reform – which is being pushed by wealthy special interests and politically-connected unions – will not fix Albany’s culture of corruption,” he said in a statement. “In fact, as we’ve seen in New York City, it opens up new avenues for corruption and abuse.”

According to a Quinnipiac poll from April cited in the report, 53 percent of New Yorkers already oppose setting up a public financing system. 

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Friday, November 22, 2013

State board approves salary bump for Scotia police

Scotia police officers won a big victory on Thursday in their ongoing fight with village officials for a pay raise.

The police union wanted a 3.5 percent increase to the salary schedule for 2009-2010 and 2010-2011, a comparable raise to what other village employees received during this time. Village officials rejected this idea, but  the union's proposal was basically approved by the New York State Public Employees Relations Board, which approved a 3.25 percent wage increase for the three pay periods from 2009 to 2012 and 2 percent increases for the next two years. The average increase is about 2.75 percent a year.

"The award is a compromise," reads the NYS PERB report. "Although it does not fulfill all of the wishes of either party, it is accepted by all three panel members."

Read the full settlement below. 

The police argued their members should be paid like officers in surrounding Schenectady County municipalities, like Glenville, and not like officers in the villages of Herkimer, Hudson Falls and Ilion. Scotia officials suggested the comparison to other villages because they have a similar population and the same type of government. The panel found that the town of Glenville was the most relevant comparison for the Village of Scotia, because the village is located in the town and they share other commonalities.

Regarding the village's ability to meet the demands of the police union, the panel found that the village wasn't as poor as it claimed. "The panel finds that the village has the ability to pay for this award and that the wage and other increases awarded herein constitute a fair and reasonable award," reads the report.

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Thursday, November 21, 2013

Assemblyman tries to knock out the "Knockout Game"

Assemblyman James Tedisco doesn't find anything fun about the "knockout game."

The Glenville Republican has crafted legislation aimed at curbing this brutal new trend, where gangs of teens and tweens target  unsuspecting people and sucker punch them, causing serious injury and death in some cases. Tedisco's bill would amend the state's law to treat youths who play this game the same as adults when it comes times for criminal sentencing.


“Killing or injuring a person with one punch is no game and the state’s criminal penalties to prosecute these dastardly individuals should not be a joke," Tedisco said in a statement. "These twisted and cowardly thugs are preying on innocent bystanders and they don’t care if the victims are young, old, a man or woman. Life isn’t a video game. These are real people whose lives are not only being put in jeopardy but in many cases destroyed." 

“This bill is a deterrent because it will ensure that juveniles who commit these vicious adult crimes are tried as adults. It also ensures that any gang member who is part of a ‘knockout game’ assault – even if they don’t lay a hand on the victim – could face a long prison sentence," he added.

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Monday, November 18, 2013

Christie edges Cuomo as New Yorkers choice for President

Gov. Andrew Cuomo needs to worry about winning his backyard if he squares off against New Jersey Gov. Chris Christie in the 2016 presidential race, according to a Siena Research Institute poll released on Monday.

Christie, a Republican, garnered support from 47 percent of New York voters and Cuomo, a Democrat, grabbed up 42 percent in the hypothetical match up. "Despite ‘home court advantage’ and a two-to-one Democratic enrollment advantage, Christie is besting Cuomo by five points," said Siena College pollster Steven Greenberg in a statement. "Cuomo’s New York City lead is not enough to offset Christie’s comparable upstate and suburban leads, not to mention Christie’s 21-point lead among independent voters.”

"Christie, who is viewed favorably downstate and upstate, has a 57-31 percent favorability rating with Democrats and a 67-19 percent favorability rating with independents,” Greenberg said.

The complete breakdown of the poll is available below.

It's interesting to note how poorly Cuomo does among low-income voters, a traditionally Democratic base of support, which in this poll only vote for him by a 46 percent to 45 percent outcome. 

If Christie squares offs against Hillary Clinton, though, he shouldn't count on winning New York, where Clinton served as a U.S. Senator. Only 40 percent of New York voters support Christie when he's pitted against Clinton, who brings home 56 percent of the state, according to the poll.

"Christie splits the suburban and upstate vote with Clinton, who dominates in New York City," Greenberg noted.

A major difference in the two hypothetical elections is the female voting bloc, which only gives a slight edge to Cuomo, but gives a big lift to Clinton. Female voters, who turn out in much larger numbers than males voters traditionally, appear to swing these two scenarios.

And while this poll wasn't encouraging for Cuomo's presidential prospects, it did show he'll likely cruise to reelection as governor.

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Cuomo still the favorite in 2014, despite low popularity

Gov. Andrew Cuomo's job performance ranking has dropped to its lowest point in about three years, according to today's Siena Research Institute poll.

 More than half of voters polled, 56 percent, gave the governor a negative ranking, while only 44 percent gave him a positive rating. While this continues a decline from last month, the polling shows that he would still crush potential Republican opponents, Rob Astorino, Ed Cox and Carl Paladino.

“While Cuomo maintains his nearly two-to-one favorability rating, voters are less enthralled with the job he is doing as governor,” Siena pollster Steve Greenberg said in a statement. “More than twice as many voters think he’s doing a poor job compared to an excellent job."

A complete breakdown of the poll is available below.

He added that the governor is still in a commanding position to defeat state Republican Committee Chairman Ed Cox, Westchester County Executive Rob Astorino and 2010 Republican gubernatorial candidate Carl Paladino. “Against all three, he gets the support of more than 80 percent of Democrats, a strong majority of independents and a little more than one-third of Republicans. And that’s before he spends a dollar from his $30 million campaign war chest," Greenberg said.

Part of the challenge for the Republican opponents, especially Astorino, is that they're not well known around the state, according to the polling.

Voters are basically divided on Astorino across the state, with 12 percent viewing him favorably and 14 percent having a negative perception, but about 75 percent of the people polled had no opinion about him. In the "suburbs" region, where only 69 percent of voters had no opinion about him and he is known best to voters, his favorable rating was up to 18 percent and his negative rating was down to 13 percent, a slightly encouraging nugget for Astorino's gubernatorial aspirations. 

The poll was conducted from Nov. 11 to Nov. 14 and interviewed 806 registered voters. There is a margin of error of about 3.5 percent.

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Friday, November 15, 2013

Capital Region representatives divided on Obamacare fix

A bill that would allow people to keep health plans that won't be offered in the future passed the U.S. House of Representatives today with support from two local representatives and opposition from one.

The Keep Your Health Plan Act  would allow plans currently offered to be extended into 2014 and beyond. If enacted, it would potentially allow more than 3.5 million people, whose plans will be cancelled, to continue to receive their current coverage. 

U.S. Rep. Paul Tonko, D-Amsterdam, was the lone local no vote on the Republican sponsored idea, which was advanced as the result of the latest backlash against Obamacare. The latest uproar is over the death of some health insurance plans that don't meet the basic coverage requirements in Obamacare.

There ended up being 157 no votes, while the 261 yes votes took the day. One of the more than three dozen Democratic yes votes was U.S. Rep. Bill Owens, D-Plattsburgh.

U.S. Rep. Chris Gibson, R-Kinderhook, joined his side of the aisle in supporting the bill too. “As I’ve said all along, the Affordable Care Act, which had the right goals of lowering health care costs and increasing access to quality care, would never deliver on these promises," he said in a statement.

"One of these tenets was that my constituents, and Americans across the country, would be able to keep their current health insurance if they liked it," Gibson said. "That has turned out to be a false promise, and today’s legislation would fix that – allowing insurance companies to continue to offer current plans."

President Barack Obama recently said that people who like their current plans, even if they were supposed to be cancelled, can stay on them for another year. Gibson argued that despite this promise, the president isn't in a position to make this promise. 

And while Gibson would prefer to scrap Obamacare, he said, "In the absence of that, we should at a minimum ensure the law is not forced on Americans with a broken website, unfair applicability, and direct promises that are not being kept."

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Thursday, November 14, 2013

Cuomo's tax commission offers its ideas

The commission tasked by Gov. Andrew Cuomo with making the state's tax code simpler and fairer has released its final report.

The New York State Tax Reform and Fairness Commission focused its reform efforts on the tax code's inequitable treatment and its negative impact on state revenues, according to a note on the report from co-chairman Peter Solomon and H. Carl McCall. And while the co-chairs don't expect every recommendation to be adopted immediately, they're hoping this report prompts long-term changes.

Read the full report, HERE.

The report's recommendations touch on sales tax, estate and gift taxes, corporate tax and the 18-A surcharge, real property tax and tax code simplifications.

One of the credits the commission recommends scaling back is the film production tax credit, which is one of the state's largest annual incentives at a price tag of $420 million. Film companies are able to be reimbursed through this credit for 30 percent of their "below the line" costs. The report argues that the credit has been successful, but says it should be scaled back because it doesn't pay for itself and noted other states are scaling back what they offer.

 "Given the growing pressure on State resources, the State should consider scaling back the annual allocation of the credit by $50 million. In addition, the Commission suggests that the State monitor developments in other states and adjust its financial commitment as competitive conditions and budget constraints dictate," reads the report.

This is an interesting recommendation, as it comes less than 24 hours after Cuomo vetoed a bill that would have expanded a more lucrative version of the credit to the Capital Region.

In a release accompanying the report, Cuomo thanked the co-chairs and reiterated his commitment to turning around the state's negative tax reputation.  “ Today’s report represents another step in that direction as we seek to simplify New York’s antiquated and unnecessarily onerous tax code, and to ease the tax burden on families and businesses statewide," he said.

These efforts have the support of Unshackle Upstate, a broad coalition of New York businesses, which credited the report with offering a number of sensible options. Unshackle Executive Director Brian Sampson said in a statement, "We’re especially encouraged by the inclusion of important measures such as the accelerated phase out of New York’s energy surcharge.

He also noted that Unshackle introduced its own tax plan recommendations in September.

"It’s become clear that we can and must reduce New York’s crushing tax burden," Sampson said. "We appreciate the Governor’s efforts and strongly believe that real tax relief must happen in 2014.”
 

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Second choice same as the first choice for NYRA

The New York Racing Association hasn't changed its mind about what firm it wants to upgrade its online wagering platform.

Earlier this year NYRA tentatively awarded a contract to upgrade its advance deposit wagering platform to Global Betting Exchange, but was forced to start the bidding process again this fall following criticisms of the initial bidding process from the state Franchise Oversight Board. A new request for proposals was designed with consultation from the state and GBE was chosen again.

"We utilized a new [Request for Proposal] procedure and included several individuals in this decision-making process who were not involved in the last selection," NYRA President and CEO Chris Kay said in a statement. "Using an objective formula, developed in concert with the state, we selected an exciting technology company that withstood the scrutiny of an in-depth, step-by-step technical and financial analysis."

 "I was also pleased to be told by outside counsel that the RFP evaluation was thorough, fair and performed in an extremely professional manner by our team," he added.

It's important to note that the state never had an issue with GBE, but was concerned with the RFP process, which they felt was inadequate. The initial process didn't appropriately outline criteria that was desired or how firms would be selected.

"Our NYRA Rewards members will benefit from having one of the most technologically advanced companies in the industry create a new platform that will make online wagering easier and more efficient and enjoyable," Kay promised.

The selection process was a hotly debated topic in NYRA board meetings earlier this year. During public meetings, some board members expressed resentment with the criticisms from the state and felt the first selection process was successful. They had initially hoped to be benefiting from GBE's work by the fourth quarter of this year, with the possibility of $3 million to $5 million in additional revenue this year as a result.

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Rematch in the 40th Senate District

Democrat Justin Wagner is taking another run at state Sen. Greg Ball, R-Patterson.

After narrowly losing to Ball last year,Wagner announced a second run in a press release this morning.

"If my campaign has a theme, it's reform," he said in a statement.

"To preserve our quality of life and keep our Hudson Valley communities affordable, we need some help from Albany," Wagner said. "Governor Cuomo has made tremendous headway, but we could do so much more with a pragmatic state Senate - not one that's paralyzed by petty politics. That's going to require leadership that's ready to put families, common sense, and our communities ahead of political extremism or opportunism."

Accompanying the announcement was the launch of a campaign website.

As of now, Wagner's bid won't be aided by any major changes in the district's voter enrollment. In fact, since last year, the Democratic enrollment edge over Republican voters has shrunk slightly.

There are currently about 198,500 voters in the district, with about 70,000 Democrats, almost 63,000 Republicans, about 4,000 Conservatives, about 10,000 Independence voters and more than 50,000 unaffiliated voters.

Despite the Democratic advantage last year and the benefit of national elections, Ball was able to win by about two percentage points. 

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Wednesday, November 13, 2013

Cuomo vetoes expansion of film tax credit

Gov. Andrew Cuomo decided on Wednesday that 14 upstate counties won't get to take part in the expansion of the Empire State Film Production Tax Credit.

He vetoed a bill that would have expanded the expansion approve earlier this year, which applied to 40 upstate counties. The newly eligible counties would have included Albany, Saratoga and Schenectady counties.

Assemblyman Angelo Santabarbara, D-Rotterdam, and state Sen. Hugh Farley, R-Niskayuna, were the lead sponsors of the proposals.

Santabarbara had hoped the expansion of the credit would ensure the Capital Region is able to compete to bring film companies to the region. Farley had said a film production in the region would be a huge job producer.

Schenectady County Legislature’s Economic Development and Planning Commission Chairman Marty Finn said in a previous statement that an expansion would be a "major step forward!”

The film tax credit normally reimburses 30 percent of a film company's labor costs, but another 10 percent was added for 40 upstate counties in this year's state budget. Only $5 million, of the $420 million committed to the credit, is available at the 40 percent reimbursement rate.

It's not clear what impact, if any, this veto will have on the film studio reportedly interested in coming to Schenectady. Based on the fact Pacifica Ventures, which wants to develop the abandoned site, hired Brown & Weinraub to lobby on this bill, it appears this was something they wanted.

UPDATE: Santabarbara noted the interest from Pacifica Ventures in a statement on Thursday morning expressing his disappointment with Cuomo's veto. "Film companies are currently considering putting down roots in our region, but they will not do so if other upstate communities have an advantage," he said. 

 Farley was also disappointed, arguing that the credit should be applied fairly all over the state. "We’re talking about economically distressed areas that could really benefit from the jobs and economic activity that would be generated by film production," he said in a statement. "I hope this veto is only a temporary setback.  In his veto message, the Governor said expanding the film tax credit should be discussed as part of the 2014-15 budget and I look forward to pursuing it."

Other interested parties in this bill include the AFL-CIO and NBC Universal.

There could still be hope for the Pacifica Ventures project in Schenectady, as they've been tapped as a priority project by the Capital Region Economic Development Council. If the project gets funding, it would mean $15 million in state grants.

 If the expansion was approved, Columbia, Dutchess, Greene, Orange, Putnam, Rensselaer, Rockland, Sullivan, Ulster, Warren, and Washington counties also would have been eligible.

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