UPDATE: State meets obligation to NYRA; Legislature OK's advance

[Cannon Shell]

Originally Posted by parsixfarms

NYRA is no different from any business with cash-flow problems. In this regard, it really isn't relevant who's not paying them. It's really a simple question: either NYRA and its board can be completely dependent upon the State to solve their short-term cash problem, or they can try to address their cash issues through other means. Having fought as hard as they did for the franchise, I can't believe that the only answer to their current situation is to shut it down if the State doesn't come through with the cash.

NYRA is dependant on the state because the state has not honored its commitment AND the state owned OTB has not lived up to their commitment. It is different than any other business because the same people who owe them the money are the ones that regulate them! Name me another business that could fall into that quandry?

[parsixfarms]

Originally Posted by Cannon Shell

NYRA is dependant on the state because the state has not honored its commitment AND the state owned OTB has not lived up to their commitment. It is different than any other business because the same people who owe them the money are the ones that regulate them! Name me another business that could fall into that quandry?

School districts in NY, for example, are putting out budgets without knowing state aid figures. And health care facilities may see reimbursement rates cut by the state, after budgets have been prepared.

[Cannon Shell]

Originally Posted by parsixfarms

School districts in NY, for example, are putting out budgets without knowing state aid figures. And health care facilities may see reimbursement rates cut by the state, after budgets have been prepared.

Are school districts and health care facilities really comparable to the situation that we are talking about?

[parsixfarms]

Originally Posted by Cannon Shell

Are school districts and health care facilities really comparable to the situation that we are talking about?

You asked for entities that get money from the state while the state simultaneously regulates them. Hospitals certainly fall into that category (get Medicaid $$ while regulated by DOH); schools, subject to audit by the Comptroller, are probably a less perfect analogy.

[Cannon Shell]

Originally Posted by parsixfarms

You asked for entities that get money from the state while the state simultaneously regulates them. Hospitals certainly fall into that category (get Medicaid $$ while regulated by DOH); schools, subject to audit by the Comptroller, are probably a less perfect analogy.

Is what NYRA asking for considered "state aid"?

NYRA officials argue that the state--because it now owns NYCOTB--is on the hook for the money owed NYRA by the OTB giant. NYCOTB, in its Chapter 9 bankruptcy filing, acknowledges a $15 million debt to NYRA; officials at NYRA have said that amount has since grown to $17 million.

"NYRA has a good case for the money," Pretlow said. "OTB is the state and OTB owes NYRA, ergo, the state owes NYRA."

[parsixfarms]

Originally Posted by Cannon Shell

Is what NYRA asking for considered "state aid"?

It doesn't matter what it is called. Yes, NYS is contractually obliged to pay NYRA the racino "continuation" payments (and it's probably also on the hook for NYCOTB), but just because you have a contractual right to something doesn't mean you are going to get it. NYS also has contracts with the government employee unions. The governor just tried to unilaterally impose furloughs in a manner that a federal court judge concluded was in violation of those contracts. So it's not like NYRA is the only party in whom the state may be in default on its obligations.

The simple fact is, that given the tarring that it has endured in recent years, NYRA is not viewed in a particularly sympathetic light by a general public that doesn't think the state should be in the gambling business, especially when they perceive it to be losing money. At a time when hospitals are closing and teachers are being laid off, many people (I'm not one of them) believe that giving money to NYRA is a misplaced priority. Just read the many blogs on the newspaper websites, including the Times-Union and Saratogian, to get a sense of this sentiment. This is why what should be a simple thing to do contractually is proving problematic from a legislative perspective.

[Cannon Shell]

Originally Posted by parsixfarms

It doesn't matter what it is called. Yes, NYS is contractually obliged to pay NYRA the racino "continuation" payments (and it's probably also on the hook for NYCOTB), but just because you have a contractual right to something doesn't mean you are going to get it. NYS also has contracts with the government employee unions. The governor just tried to unilaterally impose furloughs in a manner that a federal court judge concluded was in violation of those contracts. So it's not like NYRA is the only party in whom the state may be in default on its obligations.

The simple fact is, that given the tarring that it has endured in recent years, NYRA is not viewed in a particularly sympathetic light by a general public that doesn't think the state should be in the gambling business, especially when they perceive it to be losing money. At a time when hospitals are closing and teachers are being laid off, many people (I'm not one of them) believe that giving money to NYRA is a misplaced priority. Just read the many blogs on the newspaper websites, including the Times-Union and Saratogian, to get a sense of this sentiment. This is why what should be a simple thing to do contractually is proving problematic from a legislative perspective.

Well let me ask you a question. If all this is true (and I do believe it to be that) then what chance does NYRA or any other racing entity for that matter, have if the state which owns the OTB, controls a great deal of what NYRA/franchise holder does and is broke, can simply opt out of its financial obligations because of poor public perception of racing, the vast majority of which was falsely created by the state? Seriously, if the state can simply turn up the bad news meter everytime they don't want to pay NYRA monies owed to them ask yourself the question that you originally posed. Why would any of the board of directors (or anyone for that matter) loan money to NYRA under those circumstances?