Lawmakers balk at NYRA raises

Lawmakers balk at NYRA raises

	Published : Thu, 31 May 2007 21:33 By : Agencies Print this Story

ALBANY, N.Y. (AP) - State officials on Thursday questioned the New York Racing Association for planning to give raises and reinstate retirement contributions to its administrators and for negotiating a contract at Aqueduct that could hinder redevelopment of the Queens race track.

NYRA's actions come as the racing overseer owes the state more than $76 million, is getting through the year with a $23 million state bailout, is spending $10 million a year on legal expenses, will lose $21 million this year, and could lose the state racing franchise Dec. 31.

'We are asking them to reconsider the 3 percent pay raise and the pension contribution and we are expressing our concern about the high level of spending on legal services,' said Carole Stone, chairwoman of the state's Non-Profit Racing Association Oversight Board. The committee was created in 2005 to oversee NYRA's fiscal actions as it posted deficits and sought bankruptcy court protection from creditors. The board has no power to stop the spending, Stone said.

The raises for non-union administrators would average 3 percent and total $300,000. There was no breakdown of the salaries. Resuming pension contributions frozen two years ago as NYRA's finances declined will total $350,000.

NYRA's Irene M. Posio defended the spending, saying it is needed to keep its new management team and attract others to run the association. NYRA, with a $183.2 million budget, runs Aqueduct, Belmont and Saratoga race tracks under the state franchise it has held since 1955.

The committee also delayed approval of a contract NYRA negotiated with Sprint Spectrum LP to install a cellular phone antenna on Aqueduct's grandstand. The company said the antenna would help meet a federal requirement to end dropped calls and would serve a large area.

The contract would provide NYRA with $45,000 immediately, then Sprint would pay $1,300 a month for 30 years, with a 3 percent annual increase. The contract would automatically renew every five years, but NYRA couldn't cancel it even if a Sprint competitor offered a better deal. The contract ends if NYRA loses the franchise.

'Thirty years is a long time and it's a one-way contract,' said board member Joseph Torani. 'We are stuck with a contract we can't get out of ... we may get $13,000 a month.'

Board members also questioned whether the contract would hinder any changes to Aqueduct, which could include demolition of the grandstand if racing is ended at the sparsely attended winter track to make way for development.

Gov. Eliot Spitzer told The Associated Press he is considering several options for the next thoroughbred racing franchise holder and won't rule out ending racing at Aqueduct.

'There are many ideas floating and we will crystalize those ideas shortly and see if the various business interests ... continue to be interested in the structure,' Spitzer said.

Asked if it was likely Aqueduct would be closed, he said: 'We are considering all the options and what is best for the industry, what is best for taxpayers, and what is best for the franchisee who will have to be in a position to make this a viable business opportunity.'

The option of closing Aqueduct to racing was first reported in the trade magazine Blood Horse.

NYRA and Sprint officials defended the Sprint contract, saying NYRA sought the upfront payment because of its financial difficulties. The lease terms, they said, are standard in the industry, something two oversight board members confirmed. Sprint and NYRA officials said the negotiations over two years included approvals from the state Racing and Wagering Board and by officials from Pataki and Spitzer administrations.

The board will reconsider the contract June 13.