Cuomo Proposes Returning NYRA to Private Control

New York Gov. Andrew Cuomo on Tuesday proposed that the New York Racing Association be returned to private control, but the plan would retain sizeable influence by the governor over its operations.

Cuomo, in his new 2017 state budget plan, proposed an end to the current control he has had over the NYRA board's appointments since a state oversight period of NYRA began in 2012. But the Cuomo plan still calls for a number of caveats that will make the NYRA board more accountable to state government than before it was placed under state control.

The current 17-member board would be shaved to 15. Six would be appointed by the governor, all of whom would have to be residents of New York state. Another eight would be selected by the current executive committee of NYRA, a number of whom are current Cuomo appointees. The final board slot would be held by the NYRA president.

The governor, under Cuomo's plan, has the authority to appoint the NYRA board chair for a three-year term; the person would serve at the pleasure of the governor, meaning he or she could be replaced at any time during that period.

The board would include two more appointees: a representative of the New York Breeders Inc., and the horsemen's group at NYRA tracks. Neither, however, would get a vote.

Each member of the board would also have to obtain a racetrack management license from the state Gaming Commission, meaning they would undergo criminal background and other checks.

The governor said his plan continues payments from Aqueduct Racetrack's casino revenues to help fund various racing-related programs, including NYRA's budget and purse accounts. Last year, Cuomo proposed clawing back millions of dollars from that program. Precise details, however, could not be verified in a $162 billion budget that was released late Tuesday by Cuomo's office.

The Cuomo budget also calls for expanded powers of a state panel called the Franchise Oversight Board, which now has the authority to review NYRA's operating budget and must approve each year its capital budget. Under the new Cuomo plan, the panel would have new powers to impound NYRA funds, require appointment of an outside financial advisor, and other "corrective" actions if it deems that there are "significant" risks to NYRA's finances.

The Cuomo budget would also permit nighttime racing at Belmont Park. One document released by Cuomo's budget office said the nighttime racing would be permitted at Aqueduct, but the actual budget legislation submitted to lawmakers Tuesday night said the plan affects only Belmont. The races would not be able to start until post-sundown, and must conclude by 11 p.m. and have staggered race start times with Yonkers harness track in Westchester County.

In a statement Tuesday night, NYRA president Chris Kay said the NYRA board "supports this proposed legislation, which is the result of productive dialogue with the governor's office over the last several months.'' 

The Cuomo budget plan came after a Senate racing and wagering committee hearing Tuesday heard from officials from groups representing New York breeders, horsemen and the Saratoga business community about their push to end the state's control of NYRA.

"I don't want the governor to interpret this legislative hearing as a fight with him, because I don't want polarization with the governor when it comes to protecting the racing industry,'' said Sen. John Bonacic, chairman of the Senate committee that convened the gathering.