2009-12-18 / View From Here

The View From Here . . .

By Bob Morgan, Jr.

While there are many reasons to like living in New York, our great Empire State, few would argue that state government is one of them.

There are many good reasons why few have a high opinion of our leaders in Albany. One major issue is the complete inability to control spending (this tends to be a bipartisan affliction), which leads to periodic major budget crises (and tax increases) whenever there is a recession or near-recession and revenues dip even slightly. Nor did the attempted coup in the state Senate last summer, in which the chamber ground to a halt, add to public esteem.

The conviction this month of former state Senate majority leader Joe Bruno on two felony corruption charges also damaged the image of state government. Even if the charges are eventually thrown out (they may be, since the legal theory used by the government is under attack in the Supreme Court), the testimony at trial revealed at least a tremendous insensitivity on the part of the former leader to the need to separate his personal business from his public responsibilities.

But let us turn to a rather dramatic specific example of what is wrong in Albany, the longrunning saga of slot machines at Aqueduct Race Track in Queens.

In 2001, following the World Trade Center attacks, the fiscally pinched legislature approved the installation of slot machines at numerous harness tracks around the state (plus some Indian casinos) but only one major thoroughbred track - Aqueduct. The bill was signed into law by former governor George Pataki and required approval of the contract at each racetrack by the governor, the Assembly speaker, the state Senate majority leader. Approval was fairly easily obtained for each other proposed facility in the state, except Aqueduct. For example, slots were approved at Yonkers Raceway in 2006.

However, the Aqueduct slots project, which would result in upfront revenue to the state of at least $200 million and estimated daily revenues of $1 million once operational (this would be the only legal slots in a city of 8 million), has been subject to an interminable series of delays for eight years during the tenure of three governors. This is despite the obvious need for cash for the state during a major budget crisis. Also, the delay in approval means no new construction and casino jobs in a recession, and no help for New York State’s beleaguered thoroughbred racing industry.

None of the eight year delay in approval can be attributed to principled opposition to the expansion of gambling (at least a legitimate concern), since all of the other casinos around the state are now in business. While some slowness was caused by issues unique to the New York Racing Association (NYRA), Aqueduct’s operator (for example, NYRA was in bankruptcy for a while), most of the delays have involved interminable legal reviews of contracts and a painstaking bidder review process which has led two reputable gaming companies, Wynn and MGM Grand, to drop out of the process. Suspicious minds thought the earlier delays were an attempt to destabilize NYRA so it would lose its franchise (it finally was renewed in 2007), while cynics think that the more recent delays may involve jockeying by politically connected bidders. Whatever the true reasons for the slow process, it has represented state government at its worst.

At some point, the concern of New Yorkers about state government will reach a tipping point, either at the ballot box or by an exodus from the state. Our leaders should be careful indeed.

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