New York Governor, Kathy Hochul stated on Wednesday that besides funding education, the state’s new casinos might also finance the Metropolitan Transportation Authority (MTA). She made this statement in Albany while making her budget address for the 2024 fiscal year.
The governor wants to add new casinos’ revenue to New York’s MTA which includes commuter rail across the downstate area, New York City’s bus lines, and the subway. It is among the agencies that Hochul considered in her $227 billion budget.
The MTA is in a poor financial state now as the federal government ceased providing COVID-19 relief funds. Besides, its ridership hasn’t resumed its pre-pandemic levels.
The authority’s budget for this year included $600 million in undisclosed revenues to balance and this margin will grow to $1.2 billion annually. Janno Lieber, the MTA CEO, and Chairman stated after the Board passed its budget that they will create new ways to solve its revenue challenges.
The Undisclosed Precise Amount
The downstate area is likely to have three new casinos soon. The governor’s budget address shows that part of the casinos’ tax revenues and license fees will finance the MTA’s activities. Even so, timing and the exact amounts depend on the licensing process which might start in 2026.
Hochul said that this will only affect gaming properties in the MTA’s region. Besides, they will be one of its leading revenue sources.
New York will earn $1.5 billion in revenue from one-time license fees if it issues the three downstate casino licenses. It won’t determine the tax rate before awarding the licenses. A Spectrum Gaming Group study predicts that the state will earn from $462 million to $826 million in annual tax revenue.
Even so, no one knows when New York will issue the licenses since it lacks an application deadline. Hochul isn’t certain whether lawmakers can amend the law to incorporate her proposal.
New Yorkers supported the 2013 ballot that required casinos to fund schools. But, the amendment doesn’t bind their winnings to education in the state.
Hochul stated that the process won’t affect education as her budget proposal has several funding sources like increasing payroll taxes that finance the agency and an almost $500 million extra aid from the New York City administration.
Does the Governor’s Budget Cover Other Casino Gaming Aspects?
The governor recommended the state give the New York Racing Association a $455 million loan to upgrade Long Island’s Belmont Park. She wants to lift some limitations on state lottery vendors who sell quick-draw tickets. This will earn the state an extra $11 million to fund education.
Hochul’s 2024 budget allocates online sports gambling’s $896 million tax revenue to education. She is optimistic that the 51 percent tax will earn the state $646 million in the next fiscal year.
The proposal excludes legalizing online gaming despite Joe Addabbo, D-Queens, the Senate Racing, Gaming and Wagering Committee’s Chairman proposing it. Also, it doesn’t state increasing sports gambling licenses.
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