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Showing posts with label Niagara. Show all posts
Showing posts with label Niagara. Show all posts

Friday, May 2, 2014

How come the Predatory Gambling Industry NEVER argues about the FACTS?




Group Claims Casinos Bring Higher Taxes and Crime
Alex Crichton

The group No More Casinos Coalition has released details of analysis of property tax and crime data released by Freedom of Information Law requests to the cities of Niagara Falls and Salamanca.
Former Rochester Mayor Bill Johnson, speaking for the group, says the initial data show taxes went up 17 percent and 16 percent in Niagara Falls and Salamanca, respectively, from the period before the casinos were built there to 2012.

Certain areas of crime also increased, according to Johnson.

That includes a 22-percent increase in theft-related crimes over the same period.

WXXI tried to reach Niagara Falls mayor Paul Dyster for verification, but he was unavailable.
Gates Town Supervisor Mark Assini, who favors the idea of a casino at Rochester Tech Park in his town, says the issues of higher taxes and crime rates and casinos are unrelated.

He says pressures that force higher taxes or crime in urban areas have nothing to do with a single business, casino or otherwise, going into an urban center.

Johnson says it's clear that Seneca-run casinos aren't a panacea for local problems, and while residents in Henrietta have said "no" to the idea, it's still the subject of talk in other towns, including
Greece and Gates, and Irondequoit.

He says any community that is considering a casino should question whether a deal with the Seneca Nation to build would be a benefit for the long term, based on analysis of the data.

Johnson urges residents to bring up the issue with Monroe County lawmakers at their May 13th meeting.

Assini argues a casino would have several benefits: it will bring [LOW WAGE] jobs to region [THAT WILL REPLACE LOCAL BUSINESSES - CANNIBALIZATION], and if the town of Gates received the same offer that went to Henrietta, residents would no longer have to pay town property taxes, and Gates residents support the proposed location, Rochester Tech Park
Assini points out that the No More Casino Coaltion is funded by Batavia Downs and Finger Lakes Gaming and Racetrack, which don't want competition from Seneca run casinos.

How come the Predatory Gambling Industry NEVER argues about the FACTS?





http://wxxinews.org/post/group-claims-casinos-bring-higher-taxes-and-crime

Anti-casino coalition releases study



Anti-casino coalition releases study

Sunday, April 6, 2014

‘The New Senior Centers’



As Seniors Gamble for Fun, Some Find Only Trouble

Part 1
As Seniors Gamble for Fun, Some Find Only Trouble
Buffalo News/New America Media , News Feature, Melinda Miller , Posted: Apr 05, 2014

BUFFALO, N.Y.--After skipping doctor’s appointments for months, Gina’s father was diagnosed with Stage 4 cancer in January. That’s when she realized he had other problems, too.

While helping arrange her dad’s medical care, Gina obtained power of attorney to manage his finances during his hospitalization and recovery.

Parkinson’s Drug Feeds
Gambling Addiction


The study of Parkinson’s disease, and how the brain sends signals for movement and mood, also is shedding light on the physiology of gambling.

When patients being treated for Parkinson’s developed gambling addictions, it didn’t take long to find the link.

“There are many groups of dopamine receptors in the brain,” explains Jian Feng, a neurologist and professor in the University at Buffalo’s School of Medicine & Biomedical Sciences: “One type controls locomotion, one controls the normal cognitive state - when that is not working right, you might see schizophrenia - and the third group affects reward behavior.”

Parkinson’s results from the death of dopamine neurons in areas associated with locomotion. The illness is commonly diagnosed when people are in their 60s, Feng said, although its onset could be earlier.

Drugs called dopamine agonists, such as pramipexole (brand name Mirapex) and ropinirole (Requip), help restore connections in those receptors, calming the tremors associated with the illness and giving the patient more movement control.

But they affect the entire brain, not only the locomotion areas, which is why, Feng said, they can have unwanted side effects on personality.”

Feng said that when a person experiences an unexpected reward, like a $50 slot machine win, dopamine triggers a pleasure response. The brain wants to repeat that experience, so it signals the impulse to keep gambling. The very randomness of the reward is what heightens the pleasure, and medication that enhances a patient’s reception to dopamine heightens that pleasure even more - it can make him crave it.

“It’s addictive behavior,” Feng said. “The other aspect is gambling itself. It is basically an addictive thing.”

Mayo Clinic researchers in 2011 estimated that more than 20 percent of patients on Parkinson’s medications also experienced problems with impulse control - including a sudden, compulsive urge to gamble. (Other problems could be hypersexual behavior, binge shopping or overeating.) Indications are that the higher the dose of medicine, the greater the chance a patient will experience the side effects.

--Melinda Miller


Gina’s full name is not being used to protect her father’s privacy.

“So, I’m going through his papers and his bank accounts,” Gina said, “and I see he has $18 in the bank, and ATM withdrawals showing he was going to the casino every three or four days.”

Risked Income—and Home

In one week in January, her 83-year-old father gambled away his entire monthly income from Social Security and a small pension.

And that still wasn’t the worst of it. It looks like he will lose his home.

“He hadn’t paid his mortgage payments for 16 months, and his house had gone into foreclosure,” Gina said.

Gina doesn’t know when her father started casino gambling. She gets no answers from him, she said.

“He just fluffs it off.”

Problem gambling, while affecting a small percentage of total gamblers, is growing among people age 60 and older, a key customer base of the burgeoning casino gambling industry in Western New York. With bus trips from senior centers and casinos opening not just here, but across the country, gambling is easier than ever for retirees to pick up and, for a vulnerable minority, a hard habit to quit.

Seniors may not be more likely than other age groups to have a gambling problem. A 2012 study in Ontario indicated seniors are somewhat less likely to get addicted than younger gamblers. But they are not immune, and as more casinos create more gamblers, they also create more problem gamblers of all ages.

“Not everyone develops a problem, but for those who do, it can be quite devastating,” said David M. Ledgerwood, a researcher at Wayne State University and a clinical psychologist who has seen firsthand the harm of gambling gone wrong with several casinos in the Detroit-Windsor, Ont., area.

“And a big factor I’ve found is bereavement. An older gambler who has lost a loved one might play for hours so they don’t have to think a lot. It’s soothing, in a way.”

‘The New Senior Centers’

Some people refer to casinos as “the new senior centers,” and a visit to the Seneca Buffalo Creek Casino might show why.

It was a recent Wednesday afternoon, but the casino was so full you might have thought it was a busy Saturday night.

The gambling tables were buzzing and the rows of slot machines were chiming as the credits rang off. Almost all of the folks at the slots and half those at the tables would qualify for AARP membership.

When asked, many seniors say they would like to win but don’t count on it. One after another, they say they go to the casinos for “something to do” and a chance to have a little luck.

But they also make grim jokes about what the casinos take.

At the Seneca Niagara Casino and Hotel, the morning gamblers – almost all seniors – pile into the lunchtime buffet and say they plan to “eat up” their losses. A gray-haired woman whose jacket bears the casino’s logo laughs when asked if it was free.

“Ha! Free! I’d say I only paid about the price of a car for it over the past two years,” she said.

In 2008, Wayne State researchers found the prevalence of problem gambling in 10.4 percent of people older than 60 in the Detroit-Windsor area, where they have easy access to four casinos. The study concluded that gambling could become a serious health problem for seniors, particularly those who are alone and have incomes below $20,000.

“With the recently retired, or those in their late 70s, there are a few things that stand out as risks,” Ledgerwood said. “One, exposure to gambling, which happens as more casinos open; two, they may or may not have things to fill the free time of retirement; three, if there is a decline in health, going to a casino and gambling is easier than other activities.”

What’s more, medications may also increase the propensity for gambling. Some medications for Parkinson’s disease – mostly prescribed to seniors – can trigger obsessive behavior, including gambling addiction, in 10 percent or more of those who take it.

No Refunds Allowed

Losses can be hard to comprehend for consumers accustomed to legal protections when they overspend. Laws give people a “cooling off” period to back out of contracts, and stores let shoppers with buyer’s remorse return their purchases.

There is no procedure allowing a gambler to get a refund from a slot machine.

“They don’t realize that you can spend a lot more money than you think you’re spending, very easily,” said Renee C. Wert, a Buffalo therapist who treats addiction problems of all kinds.

Most clients she sees thought they were just having a little fun before their gambling habit went south, she said.

But when they do overspend, regret kicks in, and the hole keeps getting deeper the more they dig.

“A lot of people think, ‘If I just keep going, I can win the money back,’ ” Wert said. “And they might win it back and then walk away thinking, ‘OK, that’s how to do it!’

“But the next time, and the time after that, it doesn’t work.”

Admitting to gambling away money you couldn’t afford to lose is never easy, and for seniors it can be especially hard. The players can feel like losers personally as well as financially.

“It can be difficult to ask for help. They’re pretty embarrassed about it,” Wert said. “For all their lives, they’ve been responsible and handling their money, and all of a sudden they find themselves in debt because of gambling. It can really sneak up on them.”

Only Did Scratchers Before

That’s what happened with Gina’s father.

“He was a mechanic his whole life,” Gina said. “He worked until he was, like, 70. He didn’t gamble. Just scratch-off tickets. I would see those sometimes.”

Her parents divorced when she was a child, and Gina didn’t see her father often, but she tried to stay in touch. Recently, he was making that harder, not answering his phone, not wanting her to visit.

When she forced the issue around the holidays, she found out why. His life revolved around gambling. His house was unkempt, he had no food, and he had a pile of overdue bills.

“He never told me anything about this,” Gina said. “Anytime I called, he said everything was fine.”

That first doctor’s visit in January was only the beginning, Gina said. Her father was ignoring other health problems, too. She found overdue bills for medical co-pays and presumes her father was avoiding doctors because he didn’t want to pay the $45.

“He would rather spend it at the casino,” she said.

This is Part 1 of a series. Melinda Miller wrote this article for the Buffalo News with support from a MetLife Foundation Journalists in Aging Fellowship, a program of New America Media and the Gerontological Society of America.


http://newamericamedia.org/2014/04/as-more-seniors-gamble-for-fun-some-finding-only-trouble.php



Saturday, March 8, 2014

Casinos Rolling the Dice on Expansions




Casinos Rolling the Dice on Expansions

March 7, 2014



By Elizabeth Carey
 
 
Gambling Spree. That's the cover story in today's Business First. It shows how WNY casinos are spending millions to expand and upgrade. The stakes are high and so is the competition as casinos go after millions of visitors who patronize gambling venues.
 
The report says, in recent years, casinos from Niagara Falls, Ont., to Canandaigua have invested nearly $300 million in renovations and additions. That's more than the combined cost of HarborCenter, the Hotel Lafayette and the Tishman and One Canalside buildings.
Seneca gaming says casinos in Salamanca, Niagara Falls and Buffalo, combined, attract 16 million patrons a year. 26 percent of them are from outside Western New York.

You can read more about the investments in today's Business First.


http://www.wkbw.com/news/Casinos-Rolling-the-Dice-on-Expansions--248986271.html





Saturday, June 8, 2013

Reality Doesn't Change

New York State introduced OTB parlors into low income neighborhoods, driving up crime, chasing out local business. Now Gov. Cuomo seeks to expand the failures of community destruction, as if the evidence of the slums of Niagara weren't adequate.

The Addiction is politicians incapable of job creation and economic development that mirrors the fantasy of Massachusetts.



Seneca leader in Albany calls Cuomo a “bully”

on June 4, 2013 - 3:12 PM
 
ALBANY – The head of the Seneca Nation of Indians on Tuesday took his cause to protect the tribe’s casino developments to legislative leaders in Albany.

Seneca President Barry Snyder Sr., twice calling Gov. Andrew M. Cuomo a “bully,” said his meetings with top Democratic and Republican lawmakers were aimed at persuading them to honor the tribe’s exclusivity deal for gambling rights in Western New York.

“He’s a bully. I’ll say it again – he’s a bully,” Snyder said in an interview with The Buffalo News.
Snyder’s visit to Albany came as Cuomo has privately told officials he is readying a casino expansion bill that would open the way for one new, non-Indian casino in Western New York. He has already floated the idea of putting a casino in Niagara Falls near the Seneca Nation’s casino and hotel.

Cuomo officials don’t believe the Senecas will be serious about making a deal with the state in the dispute over the Seneca’s withholding of casino-revenue sharing until the state formally seeks to cut a real deal with a private developer for a non-Indian Niagara Falls casino, according to individuals close to the talks.

Cuomo administration officials declined to comment on Snyder’s remarks.

One lawmaker who met with Snyder said the Seneca leader made clear his frustrations in dealing with the Cuomo administration and raised doubts about being able to strike a deal with the governor before the legislative session ends June 20.

Snyder said his meetings Tuesday with lawmakers were intended to persuade them not to locate a new casino in Western New York.

“Just honor the compact,” he said he told legislative leaders.

“We don’t care where they build [casinos] as long as they don’t build in our exclusivity area. We don’t care. They can build all over the state,” Snyder said.

Still, Snyder sought to downplay concerns about Cuomo’s threat to locate a new casino in Niagara Falls.

“It doesn’t worry me. We’ve been here for 10 years. We’ve built up our customer base … I like the McDonald’s concept. McDonald’s moves in, then Burger King, then Pizza Hut. Everybody moves in the same area, and we get all the customers. I like the concept. I’m really thinking competition may be good for us. We’re not afraid of it.”

Snyder said his presence in Albany on Tuesday showed the Seneca Nation is interested in finding a solution to the dispute with Cuomo.

“We’ll do what we can, but it has to be equitable to the nation. It can’t be any other way,” he said.

The Seneca leader bristled at Cuomo’s recent suggestions that the Seneca casinos might have to close down in 2016 when the nation’s compact expires, if there is no deal with the state to resolve the $600 million dispute over unpaid revenue-sharing from the Seneca casinos. He noted the tribe’s casinos will soon employ close to 6,000 people, many of them non-Indians.

He noted that a majority of casino employees are non-Native. “They pay taxes and own homes and do all the good things for the state, so why would you want to jeopardize that if you’re a good leader?” Snyder said.

http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20130604/CITYANDREGION/130609661/1010

Economics and job growth most important factors in casino licensing

Friday, June 7, 2013
Economic activity and business development are the most important criteria for any application to get a license to operate a live-table casino in New York.

Gov. Andrew Cuomo's siting plan for three upstate non-indian casinos says the "decision by the [state resort gaming facility location board] to select a casino license facility applicant shall be weighted by sixty-five percent" based on economic factors. Those factors include nine points, such as, creating the most high quality jobs and maximizing revenues received by the state and localities.

This also includes "offering the fastest time to completion of the full gaming facility," which should benefit competing racinos. Because the racinos have most of their infrastructure in place, they would only need to expand their gaming space to hit this mark.

The full text of the bill is available HERE.

Twenty percent of the decision is based on "local impact and siting factors." These include local support for the plan, partnerships with local businesses and mitigating potential negative local effects of the casino.

Support can be demonstrated with passage of local laws or public comments.

"Workforce and societal enhancement factors" make up the remaining 15 percent of the board's decision.

The potential impact of Cuomo's legislation on the Saratoga Casino & Raceway's chances to get live-table games remains to be seen.

http://www.dailygazette.com/weblogs/capital-region-scene/2013/jun/07/economics-and-job-growth-most-important-factors-ca/



Governor Cuomo Releases the Upstate NY Gaming Economic Development Act

Thursday, June 6, 2013

Niagara's Addiction to Gambling Revenues

Just as in Massachusetts, in desperation, Niagara Falls' leaders failed to consider the community destruction caused by Predatory Gambling ----




June 4, 2013

State audit raises concerns over Niagara Falls' budget practices

Niagara Gazette — An audit released Tuesday by the New York State Comptroller's Office raises serious concerns about the city's finances, including a "pattern of structural deficits" due to a lack of incoming casino revenue and budgetary decisions made by city officials in recent years.

The audit suggests matters were "worsened significantly" as a result of the continued inclusion of unrealized casino revenues in annual budgets and a reliance on what auditors described as revenue "one-shots" drawn from fund balance and surplus capital project funds.

“Niagara Falls has nearly exhausted its resources to avoid a fiscal crisis," state Comptroller Thomas DiNapoli said in a statement accompanying the audit. "City officials cannot continue to walk a financial tightrope for much longer."

The audit describes the lack of incoming casino revenue since 2008 as one of the reasons recurring revenues have not been sufficient to fund recurring expenditures. The situation, according to auditors, resulted in a general fund annual budget gap averaging $12.4 million during the audit period from Jan. 1, 2009 through Jan. 9. The audit indicates that city officials balanced budgets using fund balance and an estimate for casino revenue averaging $5.3 million annually.

"While the dispute over gaming revenue is significant, the city’s budget challenges also stem from a number of socio-economic factors including population loss and a high unemployment rate," DiNapoli said. "The mayor and the city council are actively trying to manage their considerable hurdles, but getting on firmer financial footing will require a resolution of casino gaming issues and likely even greater assistance from the state."

The audit suggests Dyster's administration should have removed casino revenues from annual budgets during the casino cash dispute to better protect the city's overall financial position. Auditors also said the city should have developed more formalized multi-year plans for eliminating accumulated deficits.

"The city has funded these structural deficits by relying on "one-shots" such as fund balance and surplus moneys remaining in the capital project fund," the audit reads. "This approach has negatively affected the general fund's financial condition. The controller indicated that the general fund ended the 2012 fiscal year with an unassigned fund balance deficit of approximately $5.2 million.

Therefore, over this four-year period, fund balance decreased by about $21.6 million."
Auditors concluded that while it "might have been prudent" for the city to account for incoming casino revenues when the gaming revenue squabble started in 2009, as the dispute "dragged on without resolution," it should have removed those revenues from its financial plans. Instead, as of Dec. 31, 2012, the audit notes that the city incurred, in the aggregate, $23.4 million in expenditures intended to have been funded with casino money, that it has not received.

Dyster declined comment when reached by telephone Tuesday morning prior to the audit's formal release, saying he could not discuss what was at the time considered a "draft" report.
In a letter of response attached to the final audit, Dyster's administration indicated that it budgeted casino revenues to "support" the state's long-held position on the dispute itself.

"This situation is virtually unprecedented in the history of New York state, and almost beyond the control of the city of Niagara Falls," Dyster wrote. "The city has been forced to choose among largely bad options with little guidance as to what constitutes best practice under often unique circumstances. Given the state's degree of involvement and responsibility in this matter, we find it somewhat ironic that an agency of the state of New York would now find itself in a position to critique our attempts to deal with a crisis in which the state itself has been a central actor."

In their report, auditors noted that although the city's fund balance had been depleted, it continued to budget for what they described as "one-shot revenues," including in the 2013 budget which relied upon $2 million in unavailable appropriated fund balance, $2.9 million in transfers from the capital projects fund, $850,000 in debt service fund transfers and $1 million in property sale revenues. As a result, auditors concluded that the city's 2013 adopted general fund budget has a structural deficit of $12 million.

"Therefore, if the city does not receive any or an insufficient amount of casino revenue in 2013, it will have a revenue shortfall of approximately $7.2 million, representing the budgeted casino revenues and the unavailable appropriated fund balance," the audit reads. "Moreover, even with a resolution of the casino revenue impasse that would positively impact the city, the council and mayor will still need to take action to address the structural budget deficits affecting the city."
In its letter of response, the Dyster administration takes exception to auditors' reference to "one-shot" revenues.

"The report goes on to take issue with the city funding certain structural deficits by relaying on 'one-shots,'" Dyster wrote. "The city's strategy should not be characterized in this way. Large fund balance surpluses remaining on capital projects, as well as from the general fund, have been used time and again (year after year) in order to close deficits. Had the city not used those surpluses, they would have sat on the books and accomplished no purpose."

DiNapoli's office also suggested the city should have been more diligent in closing out completed capital projects and ensuring that all unexpended funds are transfered to the debt service fund and used only for "payments on all related debt." While the report notes that a "substantial amount" of unassigned fund balance in the capital projects fund was accounted for by Controller Maria Brown's office, it estimates that additional funds - ranging from $1 million to $1.4 million - may remain in other projects that could be returned to the general fund.

Reached by telephone on Tuesday, Brown said her office is not in a position to closely monitor all capital projects, including such things as road repair or construction jobs. She suggested the work was more in keeping with the duties of the city engineer, a position that has been in flux at various points under the Dyster administration.

"I repeatedly asked for a list of closed projects from engineering to no avail," she said. "I send reports on a continuous basis to the mayor and the city administrator informing them on the status and funds for projects and encouraging them to find out when, and if, projects closed," she said.
Brown said the city has maintained multi-year plans for various accounts in recent years and that, although not required to, the city was asked by state auditors to maintain those plans in a different form recommended by the state.

Brown noted that auditors took a look at "thousands and thousands" of transactions as part of a six-month review and did not identify anything improper.

"Everything was in order," she said. "Everything required of my office was in place."
The draft audit predicts "significant cash flow shortfalls" for the city in 2013 and a need for the city to issue short-term debt to address cash flow problems late in 2013. It also notes that the city's credit rating has been downgraded several times in recent months and may be reduced further in the future, possibly preventing the city from being able to issue debt or to do so at a reasonable cost.

"The biggest thing is the lack of casino funds and I don't want people to lose sight of that," Brown said. "It all boils down to the lack of casino funds that put us in the situation we are in."

FALLS AUDIT DiNapoli's office recommended that the city take the following corrective actions in the release; • Establish policies and procedures for access controls to restrict financial software permissions to only those functions that are necessary for employees' job duties • Designate someone independent of the city controller's office as the city's financial system administrator • Ensure that logs for the financial system are maintained and periodically reviewed • Establish policies and procedures for data backup and storage, and comprehensive guidelines for disaster recovery

http://niagara-gazette.com/local/x1465637714/Audit-takes-Falls-to-task-State-audit-raises-concerns-over-Niagara-Falls-budget-practices

 

Friday, May 24, 2013

We can’t grow economy by opening more casinos

Atlantic City is the Poster Child for Predatory Gambling! Mr. Bunker got it right!




Letter: We can’t grow economy by opening more casinos
 
on May 24, 2013
 

We can’t grow economy by opening more casinos

I am puzzled by Gov. Andrew Cuomo’s advocacy of casinos as an economic development strategy for upstate New York. Has the dispute with Native American tribes over reciprocal accusations of violations of the initial Indian Gaming Agreement so stirred his combative juices that his lust to win that battle confuses his thinking about the place of casinos in a healthy economy?

Quite apart from the merits of either party’s claims, any reasonable policy regarding the role of casinos in economic development must be disentangled from this dispute. State-tribe issues must be settled without the threat of an overkill of casino expansion. I hold no brief for the tribal position, but if the original agreement was reached in good faith, there must be a way to either honor or adjust it to meet all just claims.

The governor’s proposal to multiply casinos across the state is sheer nonsense. In a market in which we are surrounded by gambling venues, more casinos will not attract out-of-state revenue, but will simply suck cash from the pockets of local residents. Gambling creates other problems for host communities in the form of bankruptcies, embezzlement cases, suicides and broken homes traced to addiction. But the opportunity costs are even higher. Does the governor believe that productive enterprises essential to economic growth can be attracted to a casino playground? Will the state’s investments in higher education be well-utilized in areas saturated with gambling venues? Finally, though casinos are touted as promoting other investments, a look at Atlantic City and Niagara Falls reveals casinos surrounded by empty blocks. The costs outweigh the gains. Casinos are neither a quick nor an enduring fix. If we want to grow our economy, we have to do it with sustainable enterprises.

Douglas R. Bunker
Buffalo

http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20130524/OPINION/130529652/1074



 
The insanity of Governor Cuomo: 

GOP gambling bill: 5 upstate casinos, LI OTB video slots

Sunday, April 7, 2013

Niagara: The Cost of Hosting Seneca



April 3, 2013

Casino revenue crunch will impact lot maintenance, other city services


Niagara Gazette — Residents can expect to see more grass on city lots growing free and wild this summer.

That's according to Department of Public Works Director David Kinney who told city officials this week that his department did not have room in its budget to hire Niagara Grass Cutting, the landscaping firm it has had under contract for several years and the same one responsible for mowing lots owned by the city itself.

"I want everybody to understand that we don't have the wherewithal or the equipment to do that type of work," Kinney said in an update for city lawmakers on Monday. "So those properties, as of right now, will not (be mowed). And as we add more and more properties, in rem (auction), demolitions, we're in that same situation."

The city now owns approximately 600 vacant lots.

Kinney's department had trouble keeping up on grass mowing last year with less money available to hire temporary workers. This year, he said he will have even less money available to put boots on the streets, take care of parks as well as maintain city lots and other public spaces.

The casino cash being withheld because of the dispute between New York state and the Seneca Nation of Indians over the exclusivity clause in the 2002 gaming compact was not counted as anticipated revenues in this year's budget as it had been in previous years. So, although the city council was able to hold the line on taxes and avoid layoffs during the budget amendment process, cuts to various departments like the DPW were made.

Kinney said to clean and mow a lot he would have to pull four or five workers off of other city work - mowing in parks and forestry work - as well as dedicate equipment used for other tasks.

"I can't designate the machine nor can I designate the personnel to take care of the 600 lots that the contractor used to do," Kinney said.

In addition, the casino cash crunch has left Kinney's department with less money for other general maintenance services than it has had in previous years. This year, Kinney said he's expecting DPW to struggle to keep pace with the following:

• Potholes. The city will not have the money to rent the Pothole Killer machine, which costs about $70,000 to use for two months. As a result, Kinney said, the DPW will have to revert to the old method of a truck, laborers, shovels and stampers to patch the holes.

• Downtown clean up. Kinney has four laborers dedicated to keeping the downtown area looking nice. In previous years, he was able to hire a second crew to work nights and offer overtime for workers willing to take weekend shifts to make sure that tourists walked through a clean and trim looking cityscape. Without the funding, he said his department will no longer has access to the extra help, or the hours.

• Street replacement. Kinney will not have the personnel to use the zipper machine - a large milling machine used to take out sections of road - to replace particularly pock-marked sections of city streets.

During Monday's council meeting, Councilman Charles Walker said Kinney needs to come up with a plan to deal with the shortfalls the best way possible moving forward.

"We can't go through a whole summer not cutting these lots," Walker said.

Kinney said he has been exploring different options, but without the money to contract with private companies or more money budgeted for overtime or temporary workers he does not see a realistic solution.

"I'm looking at different avenues right now, but I have nothing solid," Kinney said.
Mayor Paul Dyster said taking care of the growing list of city owned lots is a "major stress on the system."

"That's just an immense task," Dyster said.

But, he said, it's important that the city holds itself to the same maintenance standards that it expects from its property owners even in years when revenues are lean.

"We want to make sure that we are taking care of our properties," he said.

http://niagara-gazette.com/local/x1862029754/GROWING-CONCERNS

Tuesday, December 11, 2012

Fairy Dust For Sale



Another sad example of leaders believing the Fairy Dust of Predatory Gambling that instead replicates the experience of others ---




DiNapoli: Niagara Falls, Salamanca facing dramatic revenue shortfalls

by jmaloni

Press release

Mon, Dec 10th 2012 11:30 am
 
Cities challenged by high poverty, unemployment rates
 
The cities of Niagara Falls and Salamanca continue to be hampered by population loss, decreased property values and a significant decline in revenue, according to two fiscal reports issued Monday by State Comptroller Thomas P. DiNapoli. The reports are the first in a series of fiscal profiles on cities across the state.

The reports detail the impact of the ongoing dispute over casino revenue on the two Western New York communities. The cities are home to casinos operated by the Seneca Nation - the Seneca Niagara Casino and the Seneca Allegany Casino. Niagara Falls and Salamanca have not received their "local share" of casino revenues since 2009, when the Senecas halted gambling compact payments to the state. To date, Niagara Falls has been deprived of $60 million in casino revenues.

Salamanca had been receiving more than $3 million annually as part of the compact.

"Niagara Falls and Salamanca face more severe stresses than most other cities in the state, and the loss of casino revenue has exacerbated their problems," DiNapoli said. "City officials have been forced to make drastic budget cuts, spend down reserves and seek emergency aid from the state.

Unfortunately, the systemic fiscal problems that have plagued these communities cannot be properly addressed until casino gaming issues are resolved."

In Niagara Falls, the city has struggled due to a number of socio-economic factors, according to the comptroller's report.

At its peak in 1960, Niagara Falls' population was 102,394. By 2010, the city had lost 51 percent of its population, the largest percentage drop in population for any city in New York during that time frame.

Currently, 17.6 percent of families in the city live in poverty and the city's unemployment rate (11.4 percent) is significantly higher than the statewide average for cities (8.2 percent).

Other findings in DiNapoli's report include:

•Niagara Falls has exhausted 76 percent of its constitutional debt limit and has $73.8 million in outstanding debt.

•Nearly 14 percent of properties in Niagara Falls are vacant and another 44.8 percent of property in the city is listed as tax-exempt.

The median home price in Niagara Falls is $65,400, far below the median city's price of $96,000.

"The City of Niagara Falls commends Comptroller DiNapoli for this independent assessment of the fiscal issues facing our community," said Niagara Falls Mayor Paul A. Dyster. "The challenges raised in this report present major hurdles for our city. But we remain optimistic that our economic development activities, which are vital to attracting new business investment and new visitors to the city, will be accelerated once the state's dispute regarding casino revenues is settled. By reestablishing this vital revenue stream, Niagara Falls can begin to reverse the negative trends cited in Comptroller DiNapoli's report. My administration will continue to work with Comptroller DiNapoli as we continue our efforts to redevelop our city."

In Salamanca, city officials are similarly coping with a drop in revenues, a stagnant tax base and an increasing number of families living in poverty.

In 2010-11, the city nearly depleted its fund balance after suffering a 25 percent decline in revenue.

The following year, city officials used a one-time advance of $5 million in state aid to cover operating costs and debt payments, but the city now faces a $2.5 million shortfall and could run out of cash before the end of the current fiscal year.

The report also noted:

•Since 1950, Salamanca has suffered a 34 percent decline in population and is now the fourth smallest city in New York, with 5,815 residents.

With much of the city's property located on the Allegany Territory of the Seneca Nation, Salamanca has the second highest number of tax-exempt properties in the state (62 percent).

•More than 15 percent of families in Salamanca are living in poverty.

•The median income in Salamanca of $32,741 is well below the state median of $55,603.

"The demands on city government did not go away when casino revenues did," said Salamanca Mayor Jeffrey L. Pond. "The city is still responsible for ensuring public safety, maintaining roads and providing essential municipal services. Our sustainability, however, has been complicated by the loss of these revenues and the continued erosion of our tax base. Comptroller DiNapoli's report details why it so difficult to balance our budget and pay for the vital services that our residents depend on."

In the coming months, DiNapoli will issue fiscal profiles on select cities across the state to further inform officials and citizens on some of the unique environmental and systemic pressures facing New York's cities. As part of this effort, DiNapoli will also release in-depth reports on some of the issues that contribute to the financial pressures on local governments.

In September, DiNapoli's office unveiled details of a new fiscal monitoring system that will calculate and publicize an overall score of fiscal stress for municipalities and school district across the state.

The "early warning" system will identify those headed toward fiscal crisis and give local officials and the public sufficient time to consider options for turning things around. DiNapoli recently completed the process of receiving comments from local officials about the process.

The monitoring system was announced in conjunction with a report examining the demographic and financial trends of New York's 61 cities (excluding New York City) over the past three decades. The report found that many cities are struggling to balance budgets and revitalize deteriorating local economies.

For a copy of DiNapoli's report on New York's cities, visit: http://www.osc.state.ny.us/localgov/pubs/fiscalmonitoring/pdf/nycreport2012.pdf

For a copy of DiNapoli's fiscal monitoring system plan, visit:
http://www.osc.state.ny.us/localgov/pubs/fiscalmonitoring/pdf/fiscalstressmonitoring.pdf

For a copy of the Niagara Falls profile, visit: http://www.osc.state.ny.us/localgov/pubs/fiscalprofiles/niagarafalls.pdf

For a copy of the Salamanca profile, visit:
http://www.osc.state.ny.us/localgov/pubs/fiscalprofiles/salamanca.pdf



http://www.wnypapers.com/news/article/featured/2012/12/10/108924/dinapoli-niagara-falls-salamanca-facing-dramatic-revenue-shortfalls

Monday, December 3, 2012

Niagara Falls: A Testament to the Failures of Predatory Gambling


The Gambling Vultures promised to pave the streets with gold, re-build the decaying city, just as the phony promises offered elsewhere.

It never happens.

Embroiled in a dispute with New York State, the Seneca Tribe has withheld $$$ from its host community, threatening to destroy the city further.




Withheld casino revenues still an issue    
Sat December 1, 2012

Agency promoting Falls growth faces budget cuts



The budget challenges faced by the City of Niagara Falls could be jeopardizing the efficacy of one of the city's most productive assets.



USA Niagara Development Corporation has been the catalyst behind a number of progressive developments in the city of late, among them the new downtown culinary institute. In an effort to avoid tax increases, a proposed budget would slash contributions to USA Niagara. A vote on the budget has to be taken before December 15th.

Negotiations between the city and the Seneca's over $60 million in casino revenues continue.



Credit WBFO File Photo / WBFO News

Monday, November 19, 2012

Where have all the dollars from casino revenue gone?


Did the City of Niagara Falls rely too much on the flow of slot machine revenue that started a decade ago? That’s part of the debate about projects such as the $45 million public safety complex, which the City Council chairman calls “Taj Mahal in the middle of Main Street.”
Did the City of Niagara Falls rely too much on the flow of slot machine revenue that started a decade ago? That’s part of the debate about projects such as the $45 million public safety complex, which the City Council chairman calls “Taj Mahal in the middle of Main Street.” Harry Scull Jr./Buffalo News file photo

Published: 11/18/2012

Where have all the dollars from casino revenue gone?


“One of the sad things here is we were really catching up,” Mayor Paul A. Dyster says as the city confronts a $5 million budget deficit.
  • Culinary Institute is among “signature projects” that the mayor defends as vital to prove that Falls can “get things done.”
  • Rendering of $44 million Amtrak station and Underground Railroad museum that is still under construction as the city continues to improve its tourist area as an economic driver.
  • Hope VI project is part of the $13.4 million that the city allocated for housing, demolition work and planning initiatives stemming from the expected flow of slot machine revenues.

  • NIAGARA FALLS – When slot machine revenues from the Seneca Niagara Casino started coming to Niagara Falls a decade ago, they enabled the city to improve its crumbling infrastructure, begin development projects and keep taxes low for residents.

    But some observers say the revenues also caused the city to become dependent on a stream of money that has proved to be unstable.

    The funds haven’t flowed into the city’s coffers in three years because of a dispute between the state and the Seneca Nation of Indians, and residents are upset that those funds are now causing a budget deficit that could lead to layoffs and a large tax increase.

    As it stares down a $5 million budget deficit and the possibility of layoffs and a tax hike – and considers whether to accept a bailout from the New York Power Authority – the city could no doubt use the held-up casino revenues.

    But for nearly a decade, the city did receive those funds either once or twice a year, and it spent them on a variety of large and small infrastructure, economic-development and public safety projects, according to a Buffalo News analysis. The money was spent on a few large projects and otherwise sprinkled around to a variety of smaller community upgrades, the review shows.

    Records show that the city received $69.3 million in casino revenue from the time the casino was built in 2002 until three years ago, when the Seneca Nation began to withhold the payments.

    The city was required to pay more than $20 million of that money to other local entities such as Niagara County, the city school district, Niagara Tourism & Convention Corp. and Niagara Falls Memorial Medical Center. The other $48 million in nondiscretionary funds was spent by the city in the following ways, according to records provided by Mayor Paul A. Dyster’s administration:

    • $29.1 million on infrastructure improvements such as road paving and capital projects such as the Main Street train station, debt payments on the city’s new courthouse, and for city equipment.

    • $13.4 million on economic-development projects such as the new Hope VI housing project, demolition work and a series of planning initiatives.

    • $2 million on funding for the police and fire departments and $3 million to make up for budget reduction in tax assessments.

    Looking at the city 10 years ago, few would argue that there was a better use of that money than making the infrastructure improvements.

    “It looked like hell,” said City Council Chairman Sam Fruscione. “Every article was about the condition of the roads, the condition of the abandoned houses and the closing of defunct hotels.”

    It grew so bad, one department head said, that one piece of city equipment was held together with bailing wire.

    Casino revenue helped change that, allowing the city to pave more than 200 streets – 90 large ones – and purchase long-needed paving equipment to the tune of $2.6 million.

    “One of the sad things here is we were really catching up,” Dyster said. “When I think of the roads that are in really bad shape, it’s a relatively short list, whereas before almost everything was in need of repair and it was easier to tell you what was in good shape.”

    Blight-clearing teams also were dispatched to the streets to make the area’s natural wonder look – for the first time in years – at least presentable to tourists.

    “Downtown Niagara Falls had such a bad reputation, and it was some kind of combination of blighted and deserted, desolate,” Dyster said. “That was just unacceptable.”

    The mayor said he believes that those improvements, particularly in the downtown tourism area, paved the way for larger economic-development projects such as the Culinary Institute Niagara Falls, which the city helped fund, and the development of a redesigned, $44 million Amtrak station and Underground Railroad museum that is still under construction.

    “I think we needed some signature projects that were going to be the thing to convince people that we could do projects, because we had a reputation of being unable to get things done,” Dyster said. “Even with casino revenues in hand, the government can’t be the main economic-development driver. The private sector has to take the lead, but I think government making the right type of investment is how you do that.”

    Costly police station

    However, some observers believe that the city may have counted on the money a bit too much, while others criticize the city for using a portion of the revenues for operating expenses. They say the city should have budgeted more conservatively when it had the money so that when a crisis occurred, it was in a better position to deal with it.

    “I’ve been around forever and ever, and I’ve never seen [a budget crisis] like this,” Ron Anderluh, president of the Niagara Street Business & Professional Association, told the Council last week. “It’s a shame. We’re not in favor of any more taxes in this city – we just cannot afford it.

    “Let’s use this as an awakening, and the next time, when we get all this money from the casino, let’s set this money aside.”

    Fruscione says projects that never would have been feasible without the casino profits grew more expensive than first expected, with mounting change orders and consulting fees. One example, Fruscione said, is the Main Street police station, a project that grew from a state-mandated Police Headquarters into a full-scale, $45 million public safety complex with lush judges chambers – in one of the city’s most blighted areas.

    “All of a sudden, we have Taj Mahal in the middle of Main Street,” Fruscione said. “It didn’t need to be such a grand thing.”

    Economic-development jobs also were taken from the city’s general fund and placed on casino revenues, something that State Sen. George D. Maziarz, R-Newfane, said was never the intention of those who negotiated the casino deal. Dyster has called the positions a “legitimate expense.”

    “I think the city has been a little too dependent on the money,” Fruscione said. “It’s like somebody makes a tray of pizza, and sometimes you eat too many slices.”

    Councilman Glenn A. Choolokian takes it a step further, saying the city’s financial picture “is worse now than ever in the history of the City of Niagara Falls.” The city should have saved more money when it had the funds, he said, so that it didn’t need to sever ties with city workers now to balance the budget.

    “It’s very bad planning,” Choolokian said. “Just because the money is coming in doesn’t mean you have to spend it as fast as it comes in.”

    When the Senecas stopped paying the funds three years ago, the city kept on spending – on expenses such as the Economic Development Department; the loss of yearly tax revenue; police and fire service; and debt payments on the police station, by far its largest expense at more than $4 million per year.

    It also has budgeted $7 million in “anticipated” casino revenues for next year despite the fact that the casino dispute between the state and the Senecas is in arbitration, and there is doubt about whether the city will receive those funds.

    That has angered residents such as Donald A. Supon, who addressed the Council at last week’s budget hearing. “Those are all extra dollars,” he said. “We don’t have that money yet, and we don’t know it will come. Anything funded by that should be an automatic cutout.”

    Dyster counters that the city stowed away more than $20 million for rainy-day scenarios such as the current situation in an account called the special projects fund balance. He has called it “unfair” that the city budgeted conservatively and built up a reserve, only to have it depleted by a dispute that it didn’t start and didn’t anticipate.

    “I’ve always stated my intent to try to treat casino revenues as much as possible as nonrecurring revenues,” Dyster said. “Instead of borrowing against them to do some big project upfront, you do pay-as-you-go, so if there’s a disruption of revenues, you don’t find yourself in a difficult situation.”

    The one exception to that strategy, Dyster said, was the police station, which was developed under then-Mayor Vince Anello.

    Anello himself warned that the project could easily become a “blank check” for developers. The yearly debt payment the city needs to make for the police station is now roughly the size of this year’s budget gap.

    Cutting to the bone

    Most lawmakers say the city workforce is at a “bare-bones” level, mirroring the population loss that has occurred since its all-time high of more than 100,000 people half a century ago.

    But like other municipalities across the state and nation, the costs of wages, pensions and health care have only ballooned, Dyster has said. Expenses in city government – 80 percent payroll-driven – have gone up by $19 million in the last six years, he added, though the tax levy in the city has actually decreased.

    That was made possible by inserting the casino revenue to offset the loss of revenue through the gift of the 50 acres to the Senecas for their casino and hotel, and also housing demolition work, which took more than $1 million off the property tax rolls last year.

    Some observers say the casino revenues prevented the city from having to make the hard choices faced by most upstate cities bleeding population and industry. But in the Falls, the day of reckoning has finally come.

    “Now it’s time to take a step back, shake the tree and everyone that has their hand out, you cut it off,” Choolokian said. “Now you have to look and re-evaluate this. What is important to the businesspeople and residents of the city? Everyone who wants a project, you can’t do it. This has to be a … lesson.”

    To view the casino revenues spent by the city, visit http://blogs.buffalonews.com/niagara_views/.

    http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20121118/CITYANDREGION/121119254/1109

    Thursday, November 8, 2012

    A casino in Toronto? Just say no




    A casino in Toronto? Just say no

    Published on Monday November 05, 2012
     
    Image
    By Joe FioritoCity Columnist
     

    Like everyone who bets on the turn of a card or a roll of the dice, Jason Applebaum has lost a lot of money. How much? Let’s just say he is $100,000 in debt.

    The good news?

    He has not placed a bet in 500 days, and he will be speaking Monday at city hall, where the matter of the casino will be discussed. You can guess that he opposes the casino.

    Jason is worth hearing because, as a former addict he is smart about gambling in ways that most of us are not, and also because his story is not unusual: Jason is a North York kid who grew up happy on the leafy streets.

    We had lunch the other day, at an all-you-can-eat sushi joint near his home. He told me he remembered seeing a casino in a movie when he was 7 years old; the thought of it excited him even then.

    “I was fascinated by the idea of gambling. My parents were avid gamblers. Mum played the slots. Dad played blackjack and poker. They’d take vacations in Vegas, in the Bahamas, where there were casinos.”

    He first went to Vegas when he was 12 years old. “I was too young to gamble, but the hotels are built around casinos, so you have to walk through.” He recalls peering around a corner at his mother, as she was working the slots. The flashing lights, the still and heavy air, the disorienting sounds: he was in love.

    Love blossomed.

    “In junior high, I felt I wanted to manage a casino — all the money, the excitement, and you could become rich without working hard.”

    That’s the dream.

    He was 15 when he had his first serious taste of casino life. “I got a fake ID at one of those head shops around Yonge and Dundas.” Fake, but good enough to fool them in Vegas.

    “I went down and played the slots and blackjack. I took $500 for three or four days.” Where’d he get the money? “I’m pretty sure from my parents.”
    He lost it all.

    Eventually he went to university, as most bright kids do, but he never fit in at Laurier. “I couldn’t handle the anxiety, so I started going to the casinos. I went to Niagara Falls. I was going two or three times a week.”

    He lost so much money that he had himself put on the trespass list and, in the end, he dropped out of school. He returned to Toronto, tried Ryerson and dropped out even quicker. And then?

    “I got a job at the casino in Port Perry. I knew that was where I wanted to be. I started as a dealer. I became a supervisor.” He was gambling all the while.

    Eventually, he moved to Niagara Falls, where he lost money on the American side while working in casinos on the Canadian side.

    He said, “You know the people in those casino ads? They’re happy, they’re smiling. But there’s no one smiling in casinos. Vegas could not be built on the people who spend $50 and go home.”

    Put another way: most of a casino’s profits are derived from a small handful of problem gamblers.
    Jason said, “The staff at casinos are mostly gamblers; they encourage people to make bad bets; and it all seems normal because you’re gambling, and you’re surrounded by gamblers.”

    And lurking in the shadows are the loan sharks: casinos won’t admit this, but loan sharks are the ones who make it possible for problem gamblers to keep on losing.

    He showed me a sheet of paper, one he obtained from a casino: the details of his habits. “They knew how much I was going to bet the minute I walked in the door.” They had charted his patterns, they knew how much he was going to bet, and lose, how long it would take, how much free stuff they could give him and still make a profit.

    The point?

    The game is rigged in favour of the house; much of the profit from casinos is plucked from gamblers who can’t help themselves.

    Jason has 100,000 reasons to fight a casino in this city. You now have one more.

    Just say no.

    Joe Fiorito appears Monday, Wednesday and Friday.
     
     
     

    Tuesday, November 6, 2012

    Niagara Falls Fiscal Disaster






    Published: 11/6/2012

    Albany should head off Niagara Falls disaster

    Residents of Niagara Falls are about to take it on the chin – not to mention in the nose, the gut and the wallet – because the state of New York and the Seneca Nation of Indians haven’t resolved their differences over casino gambling in Western New York.

    But make no mistake: Either way this shakes out, it is Albany that is to blame for a crushing tax increase that Niagara Falls residents and businesses cannot afford.

    Mayor Paul A. Dyster has proposed a “disaster budget” that includes property tax increases of 8.3 percent for homeowners and 5 percent for businesses. It would also eliminate the equivalent of 27.5 full-time positions, of which nine are currently vacant or about to become so through retirement.

    What seems like a small number of layoffs will have far-reaching effects, because the union contract prevents the city from hiring any temporary or seasonal workers while any full-time hourly employee is on layoff. That will cost the city 82 seasonal workers who would have done such things as paved streets and acted as lifeguards at municipal swimming pools.

    Accountability for this financial disaster lies in Albany, which has, at a minimum, played fast and loose with the terms of the agreement that put a Seneca casino smack in the middle of the city’s downtown. Without the dispute that the state fomented, Niagara Falls would be at least $60 million richer today.

    The question is whether the state has encroached on an “exclusivity zone” defined by the compact that allowed the casino to be built. Given the state-sponsored gambling under way in Hamburg and Batavia, that question seems to answer itself, but in terms of assigning blame for the Senecas’ decision to withhold the required payments, it is fair to await the results of the arbitration that should be completed next year.

    But in terms of sparing the residents and business owners of Niagara Falls a punishing tax blow – one that most can’t absorb and that the city can do nothing to control – waiting is not an option. Albany has to step in. Now.

    There was talk not long ago that Albany would front the money that is due to Niagara Falls from the casino, but that talk appears to have gone nowhere. Gov. Andrew M. Cuomo needs to come up with that $60 million because, however the arbitration ends, the money will be due to the city from the state.

    If Albany prevails in the arbitration, the Senecas will pay what they owe to the state and the state will forward to Niagara Falls its take. If the state loses, then it violated the terms of the contract and left Niagara Falls high and dry. In that case, the state’s own recklessness will have brought on the city’s financial crisis, and it will have an obligation to pay up.

    That payment needs to happen now, before a huge tax increase is allowed to take effect. The state needs to forward the city’s $60 million so it can avoid a disaster it did nothing to precipitate.

    Cuomo’s record in nearly two years as governor has been mainly thoughtful, tough-minded and right. And certainly in the wake of Superstorm Sandy he has enormous financial headaches to deal with. But to allow this tax increase to go forward, when Albany’s fingerprints are all over the problem, would be a serious misstep. He needs to take the lead and send Niagara Falls the money.
     
     
     

    Monday, October 1, 2012

    Addicted to Gambling Revenues



    A sad city believed the fairy tales of Indian Gambling and miracles that never come.
    Much as in Massachusetts, they only needed to observe the experience of others, yet allowed themselves to be blinded by the glitter of Fools' Gold.




    Monday, October 01, 2012
    TheBuffaloNews.com

  • Falls bracing for 'disaster budget'

  • James P. McCoy/Buffalo News file photo



Blighted houses in Niagara Falls stand in sharp contrast to the towering Seneca Niagara Casino & Hotel, indicative of the challenges facing the city regarding allocation of resources as Mayor Paul A. Dyster prepares to present his budget proposal to the City Council on Monday.
    James P. McCoy/Buffalo News file photo Blighted houses in Niagara Falls stand in sharp contrast to the towering Seneca Niagara Casino & Hotel, indicative of the challenges facing the city regarding allocation of resources as Mayor Paul A. Dyster prepares to present his budget proposal to the City Council on Monday.

    BY: Charlie Specht

    NIAGARA FALLS - Cities and towns across Western New York are busy putting together their budgets for the coming fiscal year.

    But perhaps nowhere is the task more difficult than in Niagara Falls.

    The dispute over gambling expansion between New York State and the Seneca Nation of Indians has put the city in a precarious financial position as it struggles to create a budget without $58 million in expected casino revenues that have not been paid in three years.
    Mayor Paul A. Dyster will present the budget proposal to the City Council on Monday. Few details about the proposal have emerged, as city department heads have been instructed not to speak with the media about it in advance of the presentation.
    But it's clear that most expect it to be painful.
    "It doesn't look good; I know that," said Dennis F. Virtuoso, city code enforcement director. "We've been making good headway, and this casino money is really going to hurt us."
    For Virtuoso, this means that unless the city finds additional grant money, as much as half of the many blighted houses in the city that need to be demolished will have to wait.
    For other departments, it means that new police cars and fire trucks will have to wait.
    The Public Works Department also is expected to see spending cuts, though city officials are unsure exactly how those cuts will affect the services the city has historically delivered to residents.
    "We have a lot of challenges we're going to face in regards to the loss of [casino] revenue and a tax base that is pretty much flat," said City Administrator Donna D. Owens.

    Departments are continuing to function, she cautioned, before noting that "we will have to look at how service levels will be [altered]."
    "But there will probably be some changes, and we'll have to talk to the public once we know what those would be and manage the expectations in regards to what [this] municipality can do in terms of services," Owens said.
    Dyster goes a step further, calling the budget a worst-case "disaster budget" that the city had hoped to avoid.
    "We've been calling it a disaster budget because on top of all the challenges facing other upstate cities - rising costs for payroll, health care and pension - we have a special circumstance of the nondelivery of casino revenues," the mayor said.
    "When you're trying to close a multimillion-dollar gap, there's going to be pain across the board - that's inevitable. "It's not confined to any one aspect of city operations."
    Dyster said that for years, the city budgeted conservatively to avoid a crisis, generally depending on $18 million in casino revenues out of a roughly $100 million budget, even though the city was slated to receive more revenues from the Senecas.
    The extra money in part was stowed away into a "special projects fund" to be used for new projects in the developing downtown core or rainy-day scenarios. Though the fund grew to $20 million, it has been totally depleted in the wake of the casino revenue shortage.
    "It seems very unfair to us," Dyster said. "We were holding the line on taxes, we were looking to the future, . and we are resigned to use our fund balance to make the payments that were not made to us.

    Through no fault of our own, the City of Niagara Falls finds itself in a real budget crisis here."
    State Sen. George D. Maziarz, R-Newfane, earlier last week questioned why the city was using the casino revenues to cover operating expenses such as salaries for full-time and seasonal workers.
    Dyster, though, said that it was wise to pay staff members to oversee the distribution of the casino funds.
    "You wouldn't allocate a large share of casino revenues to an entity that wasn't capable of spending those revenues wisely," he said. "It makes perfect sense to do with casino revenues; economic development is a legitimate expense."
    Departments have been bracing for the release of the proposed budget.
    Anticipating cutbacks, the Police Department has shifted its officers in some areas to reduce overtime.

    The Community Development Department is considering reducing hours and has cut costs through retirements and attrition.
    Council Chairman Sam Fruscione, meanwhile, has said the Council will not approve of a large tax increase.
    The Council has already rejected Dyster's suggestion that it vote to override the 2 percent tax cap in
    case it cannot bridge the budget gap.
    Talk of layoffs has swirled throughout City Hall for weeks, and many city workers are wondering whether they will keep their jobs.
    Dyster gave no indication whether layoffs would be necessary.
    "I think everyone knows that 80 percent plus of our expenses are in personnel, and we're trying to close a multimillion-dollar gap," he said. "That's all I can say about that now.
    "We're absolutely dedicated to trying to provide the absolute best services that we possibly can at the lowest possible cost to taxpayers, and we've tried not to leave any stone unturned in looking for creative ways to deal with this crisis."
    Dyster will present his budget proposal at 4 p.m. Monday in City Hall, 745 Main St.


    http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20120930/CITYANDREGION/120939948/1010

    Monday, September 24, 2012

    Seneca's Illegal Slot Barn




    Council Resolution Could Doom Downtown Casino
            September 24, 2012


    Council Resolution Could Doom Downtown Casino


    This weekend I was alerted by Joel Rose, Chair of Citizens Against Casino Gambling in Erie County (CACGEC), to a resolution that will be submitted this week to the Community Development Committee of the Buffalo Common Council. The resolution will be submitted by Delaware District Councilman Michael LoCurto, a member of the committee.

    The resolution was drafted with the help of Sam Magavern, Co-Director of the Partnership for the Public Good, a Buffalo progressive public-policy organization. The Partnership for the Public Good has been conducting research on the effects of casino gambling in Buffalo since the opening of the "temporary" casino by Seneca Gaming. Last year, it adopted opposition to casino gambling as one of its policy "planks" for 2012, and has been working with CACGEC and Citizens for a Better Buffalo (the entity funding the anti-casino lawsuit) on the public policy implications of casino gambling in Buffalo.

    A reading of the resolution, below, makes clear that, if passed, it might be a step toward the eventual closure of the casino.

    Despite the casino having been declared illegal by Judge Skretny, Seneca Gaming this summer broke ground on a revised, permanent casino at the edge of the Cobblestone District. The design has been roundly panned, and seems most notable for its smorgasbord of parking options. The quality of the revised plans, and their failure to meet the commitments originally made by the Senecas to the City of Buffalo, are among issues highlighted in the resolution. Another involves money, as the Senecas continue to withhold millions of dollars in promised casino revenue share from the cities of Buffalo, Niagara Falls, and Salamanca in a dispute with New York State.

    The Community Development Committee will meet this Tuesday, September 25, at 1:00 PM, in Council Chambers, to take up the resolution. The members of the committee are Michael J. LoCurto, Joseph Golombek, Jr. (Chair), Darius G. Pridgen, David A. Rivera, and Bonnie E. Russell.

    The public is, of course, allowed to attend the committee meeting, and individuals will have the opportunity to speak. Anyone unable to do so can contact members of the committee directly to weigh in with their views.

    If you have been following the Buffalo casino saga from the beginning, you know that, in order to develop the site, Seneca Gaming had to secure the closure of Fulton Street by the City of Buffalo. It was by no means a simple deal, with negotiations breaking down with the city administration, and a contentious vote by Common Council. To secure passage, the Senecas made a number of commitments -- most of which they have not kept, as the resolution below details. This isn't the first time the question of the Senecas' performance under the agreement has been raised by Common Council -- In early 2011, they grilled the City attorney for specifics on whether the Senecas were upholding their end of the deal.

    Well over a year later, it at least one member of Council seems to feel it's about time for Seneca Gaming to either show its cards or cash in its chips and leave the table.
    Resolution text available on link:
    http://www.buffalorising.com/2012/09/council-resolution-could-doom-downtown-casino.html