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January 23, 2020 - 9:39pm

Cuomo planning to shift $800,000 in local revenue from Batavia Downs to state government

posted by Howard B. Owens in Batavia Downs, VTL Impact Aid, batavia, news, notify.

Another proposal by Gov. Andrew Cuomo to shift local revenue to the state coffers has come to light: Cuomo is proposing eliminating the local share of video terminal lottery money from facilities such as Batavia Downs. 

That would mean a $440,000 loss in revenue for the City of Batavia, $200,000 for Genesee County and $160,000 for the Town of Batavia.

Local officials are not pleased.

County Manager Jay Gsell has a laundry list of complaints about new mandated expenses in funding. This is just an extra burden for the county to shoulder.

Gsell said what he called a "bait and switch" on Aid to Municipalities funding where county sales tax proceeds will replace direct state aid, cuts in community college aid, and no reimbursement for early voting expenses.

"NYS counties will be gathering in Albany next Monday through Wednesday to gain more insight and develop resolution and position papers for the upcoming 2020 NYS legislative session," Gsell said. "The sentiment so far coming from the executive branch is disheartening and discouraging and fraught with peril from my perspective only three weeks into the new Genesee County budget year."

City Manager Marty Moore said the news of the VLT cuts comes at a bad time -- just as the city is wrapping up its own budget process.

"The loss of the VLT money is tough considering we balance the general fund to the penny," Moore said.  "Our feeling is obvious -- please put it back."

He called on state officials to enter into some dialogue and communication with local governments and listen to the impact the cuts will have locally.  

Since Batavia Downs doesn't pay any local property tax, the VLT money helps offset the expense of hosting the facility in the county, the town, and the city.  The facility needs support for crowd control at major events, police protection, fire protection, health and safety support, along with the roads that get people to and from the gaming casino.

"I do think it's important that our operations are supported by the money that comes along with it to help pay for some of the expense," Moore said.

In a budget statement, the governor's office justifies the cuts by the suggestion that local municipalities receive more in "VTL Impact Aid" (the formal name of the program) than it costs to host the facility.

This category of State aid was created to support assumed local service needs associated with hosting VLT facilities, but the revenue benefits of hosting a facility outweigh any associated costs. Further, not all municipalities that currently host VLT facilities receive aid through this program and the State does not provide additional "impact-type" aid for other types of facilities which may have similar local public service impacts as VLT facilities, including community colleges, SUNY campuses, and State office buildings. Accordingly, the Executive Budget eliminates VLT Aid outside of Yonkers, which is the only municipality receiving this aid to direct the funds to educational purposes.

It's been a point of pride for Western OTB officials for years that the facility supports the counties that oversee the facility with VTL money. 

Henry Wojtaszek, Western OTB CEO, said he will be closely monitoring the proposal.

"We work well with local governments and understand that these VLT aid monies substantially help them," Wojtaszek said. "We hope that local elected representatives will listen to the concerns of our host municipalities and work towards the best possible outcome."

Both State Senator Michael Ranzenhofer said they will work to protect the local share of VTL funds.

"This cut in aid is unacceptable," Ranzenhofer said. "At a time when the governor is proposing more unfunded mandates on our local governments, these reductions will have devastating impacts on our local taxpayers.  The governor is attempting to fill the budget deficit, that he created by overspending, through cutting crucial funding to Genesee County communities."

Hawley said, "The Governor needs to look toward actually cutting spending (that’s what real families and businesses do). We have a self-inflicted $6.2 Billion deficit (we spent that more than we took in). Why in the world would he look to take money that is shared with our local communities (which helps keep our local taxes lower than they would be without this money)? He’ll be hurting our local communities."

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