Inspector General to Review NYRA Financials

As reported in the State of Politics blog, the Cuomo Administration has asked the state Inspector General to examine the financials and operations of the New York Racing Association (NYRA). NYRA runs the state’s three thoroughbred tracks under an exclusive franchise.

The letter, written by Budget Director Robert Megna, expresses concerns with NYRA’s budgeting:

I continue to have substantial concerns about NYRA’s ability to bring racing operations into the black.  Your budget assumes that overall handle on NYRA races will drop by 1.4%, while total operating expenses will increase by 7.9%

NYRA has a checkered recent history.  It was reorganized and its franchise to operate the three racetracks was extended through 2033 under legislation approved in 2008.  New York State provided $105 million in direct state aid and forgave millions more in state loans.  In return, NYRA gave up its claim to ownership of the land on which the three thoroughbred racetracks are situated.

As part of the deal, the state gained expanded oversight responsibility.  The state comptroller was given the authority power to audit NYRA’s books.  So it is interesting that the Governor has chosen to ask the IG to review NYRA’s books, rather than having the Comptroller do it.