DC 37 Local 2021 president Lenny Allen demands long-term fix of distribution formula to save NYC OTB, praises City Council resolution #1235

(New York, N.Y.) — DC 37 Local 2021 President Lenny Allen testified today before the City Council Finance Committee and urged support for the 1,500 New York City Off-Track Betting Corporation employees whose jobs are threatened by impending plans to close the NYC OTB.

"At this time, on Tuesday, April 15, six days from now," Allen said, "the NYC OTB Corporation will be sending out in accordance with their management's plan for closure of NYC OTB layoff notices to my members and the other workers of the Corporation which will begin the process for a June 15, 2008 shut-down.

"As you know, the resolution of this problem lies with the State legislature," Allen said. He praised City Council Finance Committee Chair David Weprin and other Council members for putting forth Council Resolution #1235 which calls on the State Legislature "to amend the New York State Racing Pari-Mutuel Wagering and Breeding Law to reduce State-imposed financial mandates on off-track betting corporations which have recently been absorbing a growing portion of the NYC OTB revenues, driving the corporation into insolvency, and yielding no residual revenues for the City of New York."

"The bottom line is a long-term fix is needed immediately, no gimmicks or short-term band-aids will do," Allen continued. "As you know NYC OTB is the backbone for the entire racing industry in the state. Approximately 40 percent of all the wagering on racing in New York State is done at NYC OTB. If NYC OTB shuts down the vast majority of those bets will disappear, as will the revenue they provide to support those related jobs around the state.

"In short, if we go out of business, and my members lose their jobs, they will be quickly followed by clerks at Aqueduct, food service workers at Belmont, and farmhands at more than a thousand farms across upstate New York that are dependent on the revenue stream that NYC OTB provides. Closing OTB would leave a $1.1 billion dollar whole in the State budget."

Also testifying before the City Council Finance Committee were New York City Comptroller William Thompson and NYC OTB President Raymond Casey. Calling for "an equitable solution" Thompson called the current distribution formula "curious" and said he agreed with Mayor Michael Bloomberg's contention that the City is being "shortchanged." Casey added, "We're not asking to be rich. We're just asking to keep the money that we earn."

DC 37 Executive Director Lillian Roberts, Political Director Wanda Williams and Local 2021 President Allen have met with Assembly Speaker Sheldon Silver, Senate Majority Leader Joseph L. Bruno and other state officials to achieve a long-term fiscal solution that would protect OTB employees. At the same time, the union is keeping members updated on the latest developments and their impact.

DC 37 is New York City's largest public employee union, representing 125,000 members and 50,000 retirees.