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.

Follow @Poozer87 on Twitter.  

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...

Follow @poozer87 on Twitter.

NYRA Dec 2013 Meeting Agenda

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%)

Follow @poozer87 on Twitter.

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. 

Follow @poozer87 on Twitter. 

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. 

Follow @poozer87 on Twitter. 

Rockland County Budget Review

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.

Follow @poozer87 on Twitter.

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. 

Follow @poozer87 on Twitter.

Unshackle Opposes Publicly Financed Campaigns