Governor Paterson is bemoaning the legislature’s failure to act on a bill that would have kept New York City’s cash-strapped Off-Track Betting Corporation up and running, leaving 1,300 employees vulnerable to layoffs.  The Governor’s full statement appears after the jump.

The OTB board voted on Friday to suspend layoff notices, giving the Governor and the legislature an additional week to agree on a plan to salvage the state agency.  But lawmakers are already on their way home after a three day session week and aren’t scheduled to return to the Capitol until Monday – one day after the deadline for the NYCOTB shut down.  The only apparent saving grace is if state officials manage to reach a deal before Monday.  If that’s the case, lawmakers could be called back to the Capitol early.

The bailout plan presented by Governor Paterson today would have kept OTB from having to make regular dark day payments to tracks, created new revenue sources and established an early retirement provision for employees.  There are concerns that without revenues from the NYCOTB, the New York Racing Association could become financially crippled putting the summer racing season at risk.

Statement from Governor David A. Paterson:

“Today, after weeks of intensive negotiations with Senate and Assembly leadership, I submitted agreed upon legislation that provided for an interim solution to keep New York City Off-Track Betting Corporation (NYCOTB) operating. This plan included no additional commitment of taxpayer dollars. However, the Legislature adjourned before acting on the bill.

“The Board of Directors of NYCOTB resolved to cease operations no later than close of business April 18, absent action by the Legislature to solve the Corporation’s immediate cash flow problem by making adjustments to payments to the industry. Given that stakeholder disagreement prevented this legislative action, I expect the board will carry out its planned shutdown as reflected in its resolution.

“Consequently, the closure of NYCOTB will have a profound impact on the 1,300 employees and their families. I am deeply saddened that we could not find a workable solution during this fiscal crisis to save any of these jobs.

“I will continue to work with my legislative partners and the stakeholders to keep racing viable in New York State.”

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