Division of the Lottery

 

The enacted budget makes the following changes to the Executive Budget appropriations (analysis as of March 27, 2012):

·        Merges the Division of Lottery and the Racing and Wagering Commission into the NYS Gaming Commission, effective October 1, 2012.

·        Adds $1 million for administration of the State Gaming Commission (in the State Gaming Commission appropriation)

·        The appropriations for the Division of the Lottery, Racing and Wagering Board  and the State Gaming Commission do not include the interchange/transfer authority included in most other state agency budgets.

·        The SFY 2012-13 enacted budget (S6258D/A9058D Part Y) rejects the Executive Budget proposal to privatize functions currently performed by the State Racing and Wagering Board by allowing racetrack operators to employ the starters and judges. Starters and judges remain state employees; racetrack operators will reimburse the State for their cost.

The Senate and Assembly recommend (analysis as of March 14, 2012):

Senate and Assembly reject Executive proposal to merge the State Racing and Wagering Board with the Division of Lottery.

The Assembly approves the Executive Budget proposal to privatize functions currently performed by the State Racing and Wagering Board by allowing racetrack operators to employ the starters and judges.

The Senate rejects the Executive Budget proposal privatize functions currently performed by the State Racing and Wagering Board by allowing racetrack operators to employ the starters and judges.

The Executive Budget recommends (analysis as of January 23, 2012):

 

A SFY 2012-13 workforce of 362, with no anticipated changes to the FTE level.   However the adjusted FTE level for 2011-12 is a decrease of 37 FTEs from the level projected in last year’s budget. 

 

The following chart identifies adjustments in the current fiscal year FTEs along with the recommended differences in FY 2011-12 FTEs by program:

  

Program

SFY

11-12 FTE

Adjustment

SFY 12-13 Exec Bud

Est FTEs 3/31/13

SFY 12-13 FTE

Difference from Adjusted 11-12

Administration of Lottery

-4

305

0

Administration of VLT

-3

57

0

Total

-7

362

0

 

·  Proposes merger between Racing and Wagering Board and the Division of the Lottery into newly create NYS Gaming Commission.

 

·  Proposes “restacking” or consolidating its downstate district offices per the SAGE Commission recommendations.

 

·  An All Funds appropriation of $102.67 million, an increase of $12.96 million, or 14.5%.  The increase is associated with a one-time appropriation of $15.6 million for expenses for environmental remediation prior to the construction of the video lottery gaming facility at the Aqueduct racetrack.

 

·  The total appropriation for Personal Service is $24.50 million,  no change from the prior SFY.

 

·  The total appropriation for Contractual Services is $63.69 million, or an increase of $13.13 million or 26%.  This increase is associated with the construction of the video lottery gaming facility at the Aqueduct racetrack.

 

·  The Department employed an estimated 138 employees under consultant contracts in SFY 2011-12 (or approximately 5.5 FTEs) at a cost of $800,000. It is estimated that the FTEs will be unchanged in SFY 2012-13, but the cost will increase to $1 million. The expenditures may include more than personal service costs and is inconsistent with Office of State Comptroller data on consultant spending so it is difficult to draw conclusions about the cost per employee data on consultant spending so it is difficult to draw conclusions as to the cost per consultant employee.

 

·  Article VII legislation:

 

o   Merges the Division of the Lottery and the Racing and Wagering Board into the newly created New York State Gaming Commission. The bill contains language that preserves employees’ current civil service status and collective bargaining unit but does not subject the transfer to section 70.2 of the Civil Service Law which provides greater protections to employees. (A9060/S6260 Part A)

 

o   Would authorize licensed harness racing associations and corporations to appoint and employ the starter and one of the officiating judges at pari-mutuel harness race meetings. Currently PEF represents 13 Associate Judges and 4 Starters; it is unclear how they would be affected by this proposal as Executive Budget documents show no change in the Racing and Wagering Board workforce. (A9058/S6258, Part Y)

 

Division of the Lottery  
Program Details-State Operations 
  Enacted Proposed Enacted Change in Percent
Program 2011-12 Budget 2012-13 Budget 2012-13 Budget Appropriation Change
All Funds $89,704,000 $102,673,000 $102,673,000 $12,969,000 14.5%
Special Revenue - Other $89,704,000 $102,673,000 $102,673,000 $12,969,000 14.5%
           
Personal Services $24,502,000 $24,502,000 $24,502,000 $0 0.0%
Contractual Services $50,566,000 $63,699,400 $63,699,400 $13,133,400 26.0%
           
Administration of the Lottery Program $80,052,000 $78,446,000 $78,446,000 ($1,606,000) -2.0%
Special Revenue-Other (SRO) $80,052,000 $78,446,000 $78,446,000 ($1,606,000) -2.0%
           
State Lottery Acct - (SRO) $80,052,000 $78,446,000 $78,446,000 ($1,606,000) -2.0%
Personal Service $21,189,000 $21,189,000 $21,189,000 $0 0.0%
Regular $19,866,000 $19,866,000 $19,866,000 $0 0.0%
Temporary Service $651,000 $651,000 $651,000 $0 0.0%
Holiday/overtime compensation $672,000 $672,000 $672,000 $0 0.0%
Nonpersonal Service $58,863,000 $57,257,000 $57,257,000 ($1,606,000) -2.7%
Supplies and materials $507,000 $541,000 $541,000 $34,000 6.7%
Travel $325,000 $325,000 $325,000 $0 0.0%
Contractual Services $46,275,000 $44,635,000 $44,635,000 ($1,640,000) -3.5%
Equipment $1,445,000 $1,445,000 $1,445,000 $0 0.0%
Fringe benefits $9,705,000 $9,705,000 $9,705,000 $0 0.0%
Indirect costs $606,000 $606,000 $606,000 $0 0.0%
           
Administration of the VLT Program $9,652,000 $24,227,000 $24,227,000 $14,575,000 151.0%
Special Revenue-Other (SRO) $9,652,000 $24,227,000 $24,227,000 $14,575,000 151.0%
           
VLT Administration Acct - (SRO) $9,652,000 $24,227,000 $24,227,000 $14,575,000 151.0%
Personal Service $3,313,000 $3,313,000 $3,313,000 $0 0.0%
Regular $3,087,000 $3,087,000 $3,087,000 $0 0.0%
Temporary Service $204,000 $204,000 $204,000 $0 0.0%
Holiday/overtime compensation $22,000 $22,000 $22,000 $0 0.0%
Nonpersonal Service $6,339,000 $20,914,000 $20,914,000 $14,575,000 229.9%
Supplies and materials $52,000 $29,200 $29,200 ($22,800) -43.8%
Travel $45,000 $29,900 $29,900 ($15,100) -33.6%
Contractual Services $4,291,000 $19,064,400 $19,064,400 $14,773,400 344.3%
Equipment $230,000 $71,500 $71,500 ($158,500) -68.9%
Fringe benefits $1,618,000 $1,618,000 $1,618,000 $0 0.0%
Indirect costs $103,000 $101,000 $101,000 ($2,000) -1.9%