Even as taxpayers are being squeezed, Albany is turning away potential gold-chip investors who can generate new tax revenues. That’s just terrific.
Las Vegas casino king Steve Wynn last week unexpectedly withdrew his bid to run a video-lottery “racino” at Aqueduct Racetrack in Queens, citing his frustration at ongoing “delays in the process” of selecting an operator.
His withdrawal is understandable: Gov. Paterson was expected to name a winning bidder from six contenders by Labor Day; that stretched out to the end of September — six weeks ago. Still no decision.
Meanwhile, Paterson’s office has been changing the rules for the contract to operate 4,500 video-lottery terminals: It recently notified bidders that it’s raising the minimum amount of up-front cash the winner must put up.
Why all the delays?
Paterson’s been salivating over how much money this contract will generate: at least $200 million to start, and as much as $400 million a year — in the form of a (yup!) hefty tax on operations — once the facility is fully running.
That’s cash the state desperately needs as it resolutely struggles to maintain spending levels in the face of a monster budget gap.
Alas, Paterson, Assembly Speaker Sheldon Silver and the Senate Democratic leadership, all of whom must sign off on a bidder, seem nowhere close to selecting one.
That’s beyond shameful.
Wynn was reportedly among the frontrunners for the contract. Whether he had the best bid isn’t at issue; the point is that New York can’t afford to be turning away top-rate, big-buck investors. Particularly on account of Albany’s inability to make a timely decision.
Tuesday’s tax revolt by voters should be a wake-up call: New Yorkers are tapped out. But if lawmakers are to avoid new tax hikes, they’ll need every dollar they can get from elsewhere. The state’s in no position to let official incompetence turn away key investors like Wynn.