Random Thoughts 4/27/26: More Ballroom!

I was up too today.  We have the loudest cat in the history of domesticated felines, and she doesn't take my "stop yelling!!" instructions seriously, at all, at any time of day, particularly during the wee hours of the morning. 

After getting up and trying to appease her with her favorite cat food (which she didn't want to eat today) and getting myself some coffee, I scrolled through the latest news about the White House Correspondents Association (WHCA) dinner, which I'm sure by now everyone knows was interrupted and ultimately canceled because a lone gunman who had issues with the FOTUS and/or members of his administration decided Saturday night needed some violence to shake things up. 

While there have been lots of stories about the bad guy's 'manifesto' and about the security and how close he didn't actually get to anyone in the room, and some 'tales from the crypt' from reporters who were there, I spent my time trying to wrangle my random thoughts on statements from the FOTUS and the CoolAide Cabinet (that's the MAGA influencer horde) about how the incident at the WHCA event was a reason why we need the One Big Beautiful Ballroom the FOTUS is dead set on having, whether anyone likes it or not, into something at least somewhat coherent. So, without further ado,

Just THINK of the many benefits that would flow to ALL Americans if we were able to host conventions at the new White House Ballroom and Casino!! Oh, crap - sorry, that last part is top secret. Pretend we're in a Satirical Comedic Information Facility (SCIF).

We NEED a giant ballroom at the White House - what a wonderful way to get Americans into 'our house! I mean, most of us will never get to make a separate trip to take the tour because of our social media history, or our voter registration info (Wrong Party? No Tour for You!), or (especially for the married ladies) the mismatch between our birth certificates and our LinkedIn 'Yes, that's really my resume, not one I pulled off ChatGPT' profiles. 

Now that I think about it, the way things are going, I soon won't know a single person who could pass a security check - and damn proud of it, frankly. But I digress; that's the nature of random thoughts.

Back to the task at hand: think of the activities that could be held there, if only they made the darn thing big enough! A YUGE ballroom is what we need. I mean, if the billionaires who are donating to pay for access to the administration - er, sorry, I meant to proudly pay for the facility - want more ballroom (don't they all?), they just need to spring for a bigger ballroom!! Not this four- or five-story-tall, 90,000-square-foot thing that's proposed, but one that has five, six, or even 1000% more floorspace! Just think of it!

A bowling convention, with temporary lanes, hundreds of teams, and weeks - yes, weeks! - of activity, bringing REAL Americans to the People's House! Or, the NCAA's March Madness Final Four, with boatloads of gamblers who could spend their downtime in the casino wing - darn it, pretend I didn't say that. If I'm not careful, I'm gonna end up in trouble!

CPAC! TPA! NRA! The Union of Out-of-Favor Dictators! Huge Crypto-TikTok-National Security Conferences! The Association of Former White House, Pentagon, and Local News Correspondents! The Billionaire Boys Club - their membership is growing by cheats and bounds, almost daily! Plus, they could probably help out with bunker design! Big Pharma - those conventions are massive, and I've heard they give out lots of free samples! Research Scientists - they don't have anything else to do anymore... why not let them convene at the glorious facility to commiserate, instead of having to do that via Zoom from their basement labs? Gatherings of white South African farmers, or Scandinavian Trump Card holders! The possibilities are endless!

Farm equipment displays all over the White House lawn, and inside the ballroom, especially those from Case and New Holland; after all, they make stuff in red and blue, true American colors! Sorry, John Deere, that green and yellow just don't cut it anymore - Bad Boy Mowers can handle it from here, as long as nobody brings any of those electric and battery models - just the good old 'drill baby drill' kind (insert that famous John Dean scream here). Heck, we could even have a real Tesler car sales floor, not just a couple of cars! And how could I forget military equipment? We have the best of the best, once we replenish our supplies - and we could even have the Trump family drones on display! My patriotic heart is practically beating out of my chest! 

Boxing matches! UFC cage fights! Cornhole Championships! Heck, we could even bring back Jarts, in celebration of our country's glory days when kids were kids and ERs were plentiful! And what a wonderful place to hold the new annual Congressional Paintball Tournament? Much safer than that outdoor baseball tournament, right? 

And medal presentations, in a room full of gold!! The FIFA Peace Prize! The Trump Epstein Prize! The Melania Einstein Prize! And what better place to host ceremonies for Olympic Gold Medals Won by Men! Maybe even the Noble Prize folks would want to come here for their annual festivities! And, oh, for heaven's sake, I almost forgot Pardon Parties! Woo hoo!

And just think of how cool the State of the Gold-Plated Union speeches would be! Lots of political speakers; patriotic music (yes, Kid Rock and Lee Greenwood, I'm talking about you!); miniature statues and representations of some of our wonderful national parks and monuments; merch tables - can you even imagine?! Dozens of DoorDash Grannies, legally-present farmworkers, many more relatives of crime victims, and so much more! And don't forget the Democratic and Republican Party conventions! How fun!

Between the room rental, banquet setup, media setup, catering and bar fees, entrance fees, and the money spent in the casino (oops, I said it again...), we could probably fund Social Security for another few years, or shave a few thousand percentage points off the National Debt! Not to mention that we'd need thousands of low-paid AMERICAN workers to staff the facility, and if we just hurry up and build the darn thing, they won't have to pay taxes on their tips, OT, or Social Security - honest!

This is a brilliant idea - we REALLY need that ballroom, dammit! Let's end the lawsuits, end the petty bickering, think way more bigger, and get this thing built! 

THANK YOU FOR YOUR ATTENTION TO THIS MATTER.

Top Posts of 2019

With the new year upon us, I've been cranking up the thinking and planning sections of my brain, as I'm sure many of you have. For me, that included some penciled in 'wish I could do better on...' things. Not resolutions per se, but intentions I hope to be mindful of this year.  

And it also included my annual look at the blog, updates to the Pages, considerations on changing the layout (none this year, or at least none now), and I also looked at last year's posts. In the course of that, I identified the five posts that appeared to spark your interest the most. Let's take a look. 

The top post was news in January from The Update Desk about the Allyn Family Foundation (AFF) and a new, mixed-use property it's developing in the city of Syracuse, which will house a food hall and market, office space for not-for-profit organizations, and residential units. A public name-the-market contest was held, and that's where our story picks up.

I vaguely remember the social media post where we could vote, and the overwhelming number of comments asking why it didn't mention Syracuse or the Salt City...

And it turns out, the AFF listened to what people wanted, and the name has been chosen: the Salt City Market. It's perfect, and it's a perfect example of ensuring the kind of community buy-in that the organization is looking for. Maarten Jacobs, one of the AFF folks, said

We want this to be a space that people feel they have ownership of the minute it opens.

The post was about a foundation, and a building, and a name - but it was more about the value of listening and responding to constituents, something that we often wish happened more - and something the majority of us can learn to do better. 

Number two was a TGIF post, also from January, dealing with the Covington Catholic High School kids and their interaction with a Native American Vietnam-era veteran, and the media reaction to it. But the post also included someone else who had a bad week: the president. Among other things, 

• five former DHS secretaries, including his own former Chief of Staff General John Kelly, admonished him to get the government reopened;

• he tried to bully his way into delivering performing his State of the Union address as originally scheduled, saying he was going to show up at the appointed time, until

• Nancy Pelosi let him have it with both sides of her gavel, telling him in no uncertain terms that she would not allow that to happen; 

And my favorite part?  

• he threatened to find an alternate location, finally caving in a tweet around midnight (presumably after talking with Sean Hannity) that he would accept Pelosi's decision

In November, the third most popular post also involved the president; this time, it was his proclamations which attracted the attention of the Irony Board. 

This year, in addition to celebrating our Native American heritage, we are celebrating several other things, including National Veterans and Military Families Month, with a proclamation noting (in part - ed)

...Together, we remain committed to fostering a national community of support for these brave heroes and their families.

This president signed this proclamation? This president, the guy who mocked a Gold Star family for speaking out against him; who assaulted the life and memory of John McCain; who deports  immigrant veterans despite the promise of citizenship for their patriotic service or the immigrant families of our veterans and soldiers; and who most recently has turned his "eternal gratitude" on Lt. Col. Alexander Vindman? 

But that wasn't all. Similar ironies were rampant related to his proclamation on our first-ever celebration of  National American History and Founders Month. It's mind-boggling, it really is. 

Coming in at number four? News in March from  The Update Desk, again, on our grand experiment here in New York with commercial casino gambling.

As has consistently been the case, the news is not good for our Vegas-style casinos in the Finger Lakes area, the Southern Tier, the Capital region, and the Catskills.  Leading the way, again, is the del Lago Resort and Casino down the Thruway a bit from Syracuse.

We're told of another downgrade in their credit rating and a likely continued 'negative' outlook.

If the two-year-old del Lago Resort and Casino in the Finger Lakes is to survive, it's going to need new cash investment or face a difficult restructuring of its debts and finances.

The issue? Lower than expected revenue growth and, oh yeah -- too many other opportunities for throwing your money away. The same issues confound the other three, which are not meeting their revenue estimates, either. del Lago was about 57% short of projections...

The financial issues for del Lago and the other casinos have only continued since then; I'm confident I'll have multiple updates on this subject again this year. 

And rounding out the top five was a Poll Watch entry from April, with information gleaned from a Fox News poll taken in March. As did many polls back then (and more current ones as well), it referenced the president's negative approval rating and the even more negative gap between strongly approving and strongly disapproving respondents. 

It also talked about a handful of key issues that have been part of the president's plan, and noted that on three of the four issues, he was under water with respondents.

Questioned on Trump's handling of four key issues - the economy, taxes, immigration, and health care, only on the economy, at +8, did he have a net positive. On taxes (-7), immigration (-13) and healthcare (-15), his approves were below his disapproves. Even worse, the numbers on his signature piece of legislation, the Christmas tax cut, are down from a year ago.

Of course, the only polls that matter are the ones that show him in a positive light, that show him to be the president he thinks he is.  That, too, will continue this year, I'm sure. 

In to 2020 we go - not knowing what will catch your eye this year, but intending to do just that. I hope you stick around.

The Update Desk: Sports Betting and More

I've done several updates on the experiment with non-Native American casino gambling here in New York, most recently in April, when sports betting was approved, the new regs came out, and all that excitement filled the air. Here's Schenectady-area Assemblyman Angelo Santabarbara, quoted in the April post.

Allowing sports betting in our upstate casinos brings sports betting out of the shadows and at a benefit to the taxpayers. It levels the playing field so we can create a responsible market for sports betting in a safe regulated manner... The additional revenue to the state makes it a win-win. 

Well, sure, except for reports of revenue falling well short of projections in other states that have already moved forward. Sort of sounds familiar, doesn't it?

Anyway -- the sports books at Tioga Downs, Resorts World Catskills and the Rivers Casino in Schenectady were up and running earlier, and del Lago's opened last Friday, with former SU and Philadelphia Eagles QB placing the first bet. I'll give an update on this latest "win-win" gamble once we have some data.

There are ownership changes on tap at two casinos. First, Wilmorite, the developer of del Lago and several shopping malls in the CNY area, is getting out of the casino owner business. The company, owned by the Wilmot family, is selling its shares to the property's co-owner, Peninsula Pacific. The investment firm's chairman and managing partner, M. Brent Stevens, said

This will position Peninsula Pacific as the sole owner of the property and signals our further commitment to be the premier source of gaming and entertainment in the Finger Lakes region. 

Stevens made it clear Peninsula Pacific is aware of the financial situation with del Lago and the other casinos in New York. noting

Sure, it has been disappointing. Sure, there are structural issues in the overall gaming market in upstate New York, But in the long term, we have faith in this property and we are as excited today as we ever have been about the ability to do the right thing, to grow our operations and have the right things happen within the broader industry in New York. 

Speaking on behalf of Wilmorite, chairman Thomas Wilmot Sr. said

del Lago Resort and Casino is good for our community - it has created employment opportunities, an entertainment destination and a new stream of revenue for the town and county. The continued success of del Lago is good for everyone in the Finger Lakes region.  

Meanwhile, Empire Resorts, the public company that runs the $1.2B Resorts World Catskills property, is losing money and suggested that bankruptcy might be the answer. In the end, Empire reached a deal to sell its stake to the majority owner, Kien Huat Realty and Genting Malaysia. The buyers are paying nearly $10 per share of Empire Resorts, about 15% higher than the trading price when the deal was announced. There's also an increased funding commitment - $77M - which will help with debt repayment.

Genting Americas president Ed Farrell said in an interview

We're in a unique position where we can assist with the management of Resorts World Catskills through our Resorts World New York property at a low costs. We can bring synergies to both projects and by just operating at a higher sale, we're going to be able to put the cost structure in a way that Resorts World Catskills can turn to black and we can make money going forward.

Are you a gambler? How much would you wager on any of the casinos turning things around, either through sports betting or the ownership changes?

Given their collective track record, I'm out.

The Update Desk: Sports Betting

Back in January, I did a quick recap of what New York's Sonofa Gov Andrew Cuomo had on his State of the State wish list, which included sports betting. He can wish for that now, because the Supreme Court ruled that all states could dip their toes into this gambling stream, which previously was a Nevada exclusive.

Since that update, the state's Gaming Commission has issued draft rules, and we're a couple of weeks into a 60-day comment period on them. Among other things, the proposed rules would allow only in-person betting, and

The state rules also prohibit betting on college sports taking place within New York state, or on any events in which a New York college team plays, regardless of location. 

Regardless of the limitations, there's a bit of excitement with some members of the Legislature, including Assemblyman Angelo Santabarbara, who's on the Assembly's Racing and Wagering Committee. Take a look.

Allowing sports betting in our upstate casinos brings sports betting out of the shadows and at a benefit to the taxpayers. It levels the playing field so we can create a responsible market for sports betting in  safe regulated manner...Upstate New York is home to four gaming resorts, including Rivers Casino here in Schenectady that would benefit immensely from legalized sports betting, giving our region another boost. The additional revenue to the state makes it a win-win. 

We have those upstate casinos, you'll recall, because we were literally hemorrhaging gamblers to neighboring states, according to the Sonofa Gov. And that of course is also happening now, as New Jersey and Pennsylvania are both up and running with sports betting already, and Connecticut and Massachusetts are getting close.

And I have to ask myself if we've learned anything at all since we approved gambling back in 2013.

The Update Desk: Casino Gambling (again)

Can it really be time to do another update on New York's ill-fated decision to allow non-Native casino gambling?  Why yes, yes it is - and this update is about the same as the last one, and the one before that.

As has consistently been the case, the news is not good for our Vegas-style casinos in the Finger Lakes area, the Southern Tier, the Capital region, and the Catskills.  Leading the way, again, is the del Lago Resort and Casino down the Thruway a bit from Syracuse.

We're told of another downgrade in their credit rating and a likely continued 'negative' outlook.

If the two-year-old del Lago Resort and Casino in the Finger Lakes is to survive, it's going to need new cash investment or face a difficult restructuring of its debts and finances.

The issue? Lower than expected revenue growth and, oh yeah -- too many other opportunities for throwing your money away. The same issues confound the other three, which are not meeting their revenue estimates, either. del Lago was about 57% short of projections. Here's what Moody's said, in part.

The downgrade and the negative outlook consider that despite a slight pickup in del Lago's monthly gamin revenue, this improvement is not enough to alleviate Moody's concern that Lago will be challenged to support its annual fixed charges of about $50M going forward.

And there's more news on the casino front, which is not necessarily going to be helpful to the cause, either.

The Update Desk: Casino Gambling

It's almost hard to imagine that I'm able to write - again - on New York's great experiment with casino gambling.

Most recently, in this post, we learned about the downgrading of del Lago's rating by Moody's, and it's accompanying gloomy outlook that del Lago is not viable without some restructuring, and in this post, we learned that del Lago and at least one of the other new casinos was looking for a better tax deal from the state. (These are just two of several posts I've done on this subject over the past four or five years.)

And then, just a couple of weeks ago, we got news that the newest, the biggest of the four approved casinos (please, don't let them build any more of the darn things!) is also in a bit of a pickle.

It seems that Empire Resorts, which built the new Resorts World Catskills casino, lost over $58 million in the first five months it was open. The company also owns the Monticello Raceway, what we here in NY call a 'racino' as it has both harness racing and slot machines. According to the company's SEC filing from June 30,

We cannot be certain that our business will generate sufficient cash flow from operations, that our anticipated earnings from the Casino will be realized, or that future borrowings will be available under our existing debt arrangements or otherwise to enable us to service our indebtedness or to make anticipate capital expenditures... Our future operating performance and our ability to service our debt will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control. 

As it did with del Lago, Moody's downgraded Resorts World Catskills' rating.

Now, I know the language used in SEC filings is almost as carefully crafted as a Hollywood script or a politician's concession speech, but you can see that they're struggling with cash flow and debt, the same as del Lago and Rivers. Tioga Downs, in the Southern Tier, may be doing a little better.

The latest article notes that 'informal' requests for help from the state, the ones made by del Lago and Rivers, were rejected.  And it has a link to another article that proves what most of us knew all along, and what the experts have been saying for a couple of years: the upstate market is over-saturated with gambling opportunities.

How so, you say? Well, take a look; in addition to the four new  under performing Vegas-style casinos, we have

• seven Nation owned casinos
• six racinos (including Tioga Downs and Vernon Downs, which has had its own issues)
• one thoroughbred track
• 120 Off-Track Betting locations and
• three Nation-owned electronic gaming locations

Add in the ready availability of online gambling, and legalized sports betting (likely coming to New York in the near future), and it's hard to imagine anyone would think we're over-saturated, right?  

Time will tell whether all those things that are beyond the control of the casino owners will turn in their favor or turn against them like a bad hand of cards. What remains important is that we taxpayers aren't called upon to bail them out. 

After all, while the local casinos are happy to show us pictures of their lucky winners, we never see any pictures of people the casinos bailed out after a losing streak.

The Update Desk: Casino Bailouts?

This is one of those rare posts that truly writes itself; I just has to pull the excerpts.

November 11, 2013:
Last Tuesday, New Yorkers overwhelmingly approved perhaps the most ridiculously worded, most biased proposal ever to appear on our ballot:

The proposed amendment to section 9 of article 1 of the Constitution would allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues generated.

A breakdown of the vote, as illustrated in this article by Michelle Breidenbach in the Post Standard, shows where the opposition to the measure came from: 

• Ten counties in Western New York - Seneca gambling territory - voted no by between 50 -59%. Niagara and Monroe county results were 'undetermined' at the time the article was published; however according to the unofficial results, both are leaning no but by very small margins - less than 500 votes in Monroe, and only 250 votes in Niagara. 
• Here in Central New York, four counties - Madison, Onondaga, Otsego and Tompkins - voted the proposal down; Oneida county was still up in the air but is leaning towards approval, albeit by only 401 votes. 
• In the capital area, Albany, Schenectady, Saratoga and Warren counties all said no. Rensselear was leaning yes, by just over 700 votes, while Washington was saying no, by only 65 votes.
• Further north, Hamilton county (118 votes) and Lewis county (369) were also leaning no.

And from June 22, 2014:
Enter Wilmorite, the Rochester developer who has long been engaged in Onondaga County as well: 

• Think ShoppingTown Mall and Great Northern Mall, once glistening, booming retail establishments.
• And think the proposed OnCenter Hotel, to be built downtown using the proceeds from a racino that Wilmorite wanted to build in Cicero.  
• And think, more recently, of the defaulted mortgage on the old Sibley's building, which a local developer wants to get working on, and hopefully won't be delayed by Wilmorite's default. 

Onondaga County is already using casino gambling as an economic development tool. For example, some of the money the county is putting towards the seasonal concert amphitheater on the west shore of Onondaga Lake -- a crap shoot worthy of any Las Vegas high roller --  is an advance on our projected share of the money from Oneida Nation/Turning Stone agreement, so from that perspective I guess it makes sense that we'd at least think about gambling again with Wilmorite...

...Alas, as with most gambles, timing is everything. And so is picking the right horse. The fact that McMahon couldn't rally his troops and bring the vote to the floor means we missed the opportunity to support the deal, and it will hold (or fold) without us. That may be to our benefit, as it wouldn't look good on our resume if we backed the Wilmorite horse again - and lost, again.

And this, from July 2, 2014:
Finally, and this is sort of a non-Wilmorite wild card:  in its infinite wisdom, the New York Legislature passed a bill authorizing gambling at racinos until 6AM. Racinos are horse tracks that also have limited gambling, mostly video terminals.  Revenues are down at some of these places, and so our elected representatives decided that they can stay open another couple hours to try and get a few more bucks out of the folks who can't think of anything better to do in the wee small hours of the morning.

Hmm. Revenues are down at existing gaming facilities, at a time when we're proposing a major expansion of gambling?  How ironic...  

It'll be interesting to see how our new regional casinos will fare against this backdrop, and if the promise of last fall's constitutional amendment -- "promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues produced" -- will come to fruition.

And, from November 24, 2017:
Fun times, right? Hopes were high back in those days. Not so much now, though. According to an article from earlier this month,  all three of the first licensees are underperforming. 

• del Lago Resort and Casino, down the Thruway a bit from Syracuse, opened earlier this year with projected gaming revenue of $263M for its first year. As it stands, they'll probably fall about $100M short.
• Rivers Resort and Casino also opened earlier this year in Schenectady, and is expected to fall about $80M short of its $222M projection.
• Tioga Downs, which upgraded from a racino to a casino that opened in December 2016, had lower projections - $103M - and is also expected to fall short, by around $30M.

Tioga Downs owner Jeff Gural, who also owns the Vernon Downs Racino, has a different take on things, and focuses on the economic benefits of the casinos instead of on the less-than-projected revenues.

It's been a huge success. Whatever has been promised from an economic development standpoint has been delivered by the casinos. The real losers, frankly, are the owners of the three casinos. 

I would be remiss if I failed to mention that Gural asked for and received a bailout from the state to keep Vernon Downs open; it gets to keep more of the money that would have gone to the state, and they get to use capital improvement funds for operating expenses. The racino was losing about $5K a day, state officials were told; competition was one of the main drivers of the losses, Gural noted.

And from January 14, 2018:
NY legislators and Governor Cuomo don't seem to be too worried. For example, here's a fabulously irresponsible comment from Senator John Bonacic, the Mount Hope Republican who happens to be chair of the Racing, Gaming and Wagering Committee in the state senate, who noted in effect that developers always lie to get approval for their projects.

It was a very competitive process for four casino licenses, and of course their consultants were going to put rosy projections in order to get the Gaming Commission to hopefully give them a license. 

Gee, thanks for the oversight, Senator -- you do know that means oversee, not overlook, right?

For his part, our ever optimistic Sonofa Gov noted about the new casinos

They've all been wildly successful in creating jobs and building beautiful complexes.

Which, as we know, counts for everything with him. The state is littered with beautiful buildings created as part of these economic development, money-for-schools or tax revenue generators (but that's a whole nother post.)

And finally, today's update, from the Rochester Democrat and Chronicle:

The del Lago casino in the Finger Lakes is seeking a better tax deal from the state to address its struggling revenue - slightly over a year since it opened. 

Tom Wilmot, the principal owner of the casino, told USA TODAY Network's Albany Bureau on Tuesday outside the Capitol that he hoped state leaders would assist the casino. 

He didn't say specifically what the request was, but it appears the casino is seeking a lower tax rate paid to the state.

"I think we need some help at this point, and what the future holds, time will tell," Wilmot said. 

Whether the state Legislature and (our Sonofa) Gov. Andrew Cuomo will come to the casino's aid is uncertain. 

And (del Lago isn't) the only one: Rivers Casino in Schenectady is seeking a better tax package from the state, according to Assemblyman Phil Speck, whose district includes that facility. 

Time will tell, indeed. Time will tell.

The Update Desk: Casino Gambling

Last November, I shared the news ( in this Meanwhile Back in Albany post) that New York's gamble on allowing private, non-Native American casino gambling was not doing as well as expected.

The majority of voting New Yorkers who remembered to turn over their ballots back in 2013 decided we would amend our constitution back in 2013 to allow for up to seven new casinos "for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues generated."

As I noted in that post in November, the first three casinos - del Lago Resort and Casino (Waterloo) Tioga Downs in the Southern tier (which has its own crazy story) and Rivers Resort and Casino (Schenectady) are all under performing, by some $200 million or so, according to projections.

Competition is increasing - the fourth of the 'up to seven' casinos will open in the Catskills later this spring. The new place, Resorts World Catskills, will have a 100,000 square foot casino, 2150 slot machines, and 134 table games, along with a hotel, spa, golf course, and multiple dining options.

Also opening soon is Point Place, the latest offering from the Oneida Nation, which owns Turning Stone Resort Casino in Verona (east of Syracuse) and another mini-casino in Chittenango. Point Place, in Bridgeport, is supposed to cater to folks in Onondaga County, where the Legislature doesn't want to be in the gambling business and repeatedly turns down even putting up an OTB parlor, as well as from the communities around Oneida Lake and points north.

As noted in this recent article on Casino.org,

When Point Place Casino near Syracuse opens on March 1, the boutique $40M, 65,000 square foot casino will feature 500 slot machines and 20 table games. And while that might be great news for area gamblers, it's not quite as welcomed by the competition.

New York gambling venues have been sprouting up across the state since legislators opted to legalize four commercial casinos in 2013. The result has been a increasingly crowded upstate market, with private and Native American gaming operators fighting for the same customer base. 

NY legislators and Governor Cuomo don't seem to be too worried. For example, here's a fabulously irresponsible comment from Senator John Bonacic, the Mount Hope Republican who happens to be chair of the Racing, Gaming and Wagering Committee in the state senate, who noted in effect that developers always lie to get approval for their projects.

It was a very competitive process for four casino licenses, and of course their consultants were going to put rosy projections in order to get the Gaming Commission to hopefully give them a license. 

Gee, thanks for the oversight, Senator -- you do know that means oversee, not overlook, right?

For his part, our ever optimistic Sonofa Gov noted about the new casinos

They've all been wildly successful in creating jobs and building beautiful complexes.

Which, as we know, counts for everything with him. The state is littered with beautiful buildings created as part of these economic development, money-for-schools or tax revenue generators (but that's a whole nother post.)

So as we look to March, and hundreds of thousands of square feet of new gaming space, we have this dreary outlook on Wilmorite's del Lago from Moody's, which landed on January 10th.

Moody's Investor Services downgraded Lago Resort and Casino, LLC's Corporate Family Rating today to Caa2 from B3 even while the company's Probability of Default Rating was lowered to Caa2-PD from B3-PD. At the same time, Lago's 1st lien revolver and term loan were downgraded to Caa1 from B2 and its 2nd lien term loan was downgraded to Caa3 from Caa2. The rating outlook is negative. 

In English, what does that mean (emphasis added)?

Key credit challenges include Lago's slower than expected ramp up, single asset profile, and the highly competitive nature of the market which it operates that may impede the company's ability to support its capital structure. There are five gambling facilities, including four racinos and one Native American full scale casino within 100 miles of del Lago's location...

The negative rating outlook considers Moody's expectation that, despite the likelihood that Lago will cover its cash interest obligations and remain in compliance with its financial covenants during the next 12 months, albeit marginally, without a substantial improvement in the rate and degree of ramp-up or an additional equity investment by the owners, Lago will not be able to achieve a level of performance that can support its existing debt capital structure. 

 Lago's rating could be lowered if it appears there will be debt restructuring that involves impairment to existing lenders..

Now, it would be unfair if I failed to mention spin-off economic benefits stemming from del Lago and the other new casinos. For example, the State of New York might be making some extra money.

Data obtained from the State Thruway Authority shows Exit 41 (del Lago is just across the Thruway from the toll booths) had a monthly average of 266,306 vehicles the year before del Lago opened, the casino says. Since the casino opened, average monthly traffic at Exit 41 has increased to 381,477 vehicles...

Another real success story is the Magee Diner, just down the road from del Lago. It's one of several local businesses where gamblers can use their rewards points. The diner's owner, Gary Schlegel, has seen sales increase 15% since the casino opened.

We see more and more new faces in our restaurant every day, and 80 percent of the time my customers tell me they are on the way to or from del Lago.

Schlegel plans on adding outdoor dining and said he's going to see about getting a liquor license, too. This is great news, but as with any other downstream economic effect, this will last only as long as del Lago lasts. Like those shiny under-leased or empty new buildings I mentioned above, hopes and dreams of small business owners are also scattered across the landscape.

I don't want the casinos to fail -- we're already over-invested in them. And I certainly don't want the small business owners who are seeing a bump in business go back to where they were, or worse - fail completely - should the casino 'trickle-down' revenue streams dry up. 

What I do want, though, is responsible stewardship and leadership from our elected officials. That, my friends, shouldn't have to depend on a roll of the dice or the luck of the draw. 

The Top Five Posts of 2017

OK, we've come to the last day of December, so you know what that means, right?

Yes, the time when everyone does that backwards glance over their shoulder, looks at the year that was, and makes plans for the coming year.

I'm not going to aggravate over it too much; there are professionals who are paid a ton of money to do that. Maybe we'll have the chance to catch up with some of them later, we'll see. 

In the meantime, here are the top five most-viewed posts of the year, with an excerpt from each. Not surprisingly, the president is connected to four of the five.

(1) January 21st: #NeverTrump Answers to #TrumpVoter Questions. I could have included dozens more questions and answers in this post, but limited it to a few of the most common ones that could be strung together in a conversation.

It's January 21, 2017 and it appears that at least a very vocal, and, it seems, a very large percentage of Trump voters are stuck in a 'sore winners' rut and don't know how to get out of it. Which means I guess it's up to people like me, a #NeverTrump, to try and help them out. 

 Wish me luck.

Yeah, we'll need more than luck, I'm afraid. But I won't give up the fight. And I will continue to fight Trump without mentioning Hillary, for this is not about who lost - it's about who won.

(2) June 3rd: Poor, Poor Pitiful Me (v1). Kathy Griffin was upset that she faced a backlash for her hideous 'joke'?  Oh, stop it.

Oh, Kathy Griffin, you poor thing you. Linda Ronstadt understands, she does.

I know you spend your time on the D-list, but does that mean you're living under a rock? Had you no idea that your highly offensive "comedic" video, you slowly raising your arm to gradually display a bloody, severed Donald Trump head, would bring consequences?  

Did you really think that Trump himself, the victim of your prank, would be appreciative? Did you now know that the Tweeter in Chief, his family, staff, friends and supporters would rain down 140-character responses upon your (still attached) head?

(3) October 3rd: OrangeVerse XVII Puerto Rico. The poetry posts did well this year -- apparently I'm not the only one who is fascinated by the president's use of language.

The president held a rally in (oops, my bad) visited hurricane-ravaged Puerto Rico today, and boy was he proud of himself. So proud, he made everyone else tell him how wonderful he and his administration are. And then he was bigly very proud. Here he is in his own words.

My People, Tis of Thee

And to all of my people - 
And I have to say
General Buchanan...
there's no doubt about it
you are a general.
There's a reason
 you're a general
right?
But he's not games:
I said
give me a general
I don't have to have any -- 
I don't want
to have a general
that plays games...

(4) June 4th: Sunday School 6/24/17 - this was the one where I didn't have the heart to fight my way through the Sunday talk shows, and instead provided links to arts, music and phys ed - important yet frequently cut courses when it comes to public education spending.

Maybe it's because I've been spending too much time weeding my garden, and I don't have the energy to pull the weeds out of the comments of the people who defend Trump on the news shows.

 Maybe I simply lost interest this week, after all of the absurd tweets send by #NotNowNotEver #NotMyPresident Trump. 

Or maybe, it's just covfefe. 

(5) November 24th: Meanwhile, Back in Albany (v12), in which we looked at the reality of expanding casino gambling in New York State.  Are we getting the promised benefits from the constitutional amendment? 

The sure thing the government promised us? Let's look back that that ballot initiative:

The proposed amendment to section 9 of article 1 of the Constitution would allow the Legislature to authorize up to seven casinos in New York state for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenue generated. 

Fun times, right? Hopes were high back in those days. Not so much now though, According to an article from earlier this month, all three of the first licencees are underperforming. 

So there you have it -- another year in the books. All the best to you and yours in 2018.

Meanwhile Back in Albany (v12)

Nathaniel Brooks/NY Times

Remember when New Yorkers voted to amend the state Constitution to add casinos?

It's hard to believe it was four years ago - back in 2013 - that we had the opportunity to vote on, and ended up overwhelmingly approving, this change.

I have long felt that it was a combination of two things: the promise of a sure thing from the government, and the hope for a long shot personal win - that led to the approval of the initiative.

The potential for a personal win? Go to your local casino (not to one of the ones owned and operated by Native Americans or, heaven forbid, one in another state), try your luck, and walk away with a ton of cash. After all, it happens all the time -- we see the billboards and the TV ads of the winners, and the beautiful people in their fancy clothes having a ball at the casinos, right? And who would be having that much fun if they were losing?

The sure thing the government promised us? Let's look back at that ballot initiative:

The proposed amendment to section 9 of article 1 of the Constitution would allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenue generated.

Fun times, right? Hopes were high back in those days. Not so much now, though. According to an article from earlier this month,  all three of the first licensees are underperforming. 

• del Lago Resort and Casino, down the Thruway a bit from Syracuse, opened earlier this year with projected gaming revenue of $263M for its first year.  As it stands, they'll probably fall about $100M short.
• Rivers Resort and Casino also opened earlier this year in Schenectady, and is expected to fall about $80M short of its $222M projection.
• Tioga Downs, which upgraded from a racino to a casino that opened in December 2016, had lower projections - $103M - and is also expected to fall short, by around $30M.

An Associated Press article out today goes into more detail on why we may not be seeing the 'elusive' jackpot we were all waiting for.

Analysts blame a crowded market for the disappointing new casino revenues. Aside from the five full-scale Indian casinos, New York is home to ten 'racino' horse tracks with video lottery terminals. The Oneidas, who operate the Turning Stone casino in central New York, also run a mini-casino in a strip mall near Syracuse. 

That competition is going to be increasing, too.

A fourth $1.2B casino resort selected by state officials is set to open in March in the Catskills, about 90 miles northwest of New York City. Another casino less than an hour from the New York border in Springfield, Massachusetts, is set to open later in 2018. And the Oneidas are set to open a second mini-casino near Syracuse in the spring. 

For casino hosts like Schenectady, which budgeted for revenue that's not coming in, things are not looking good. Here's Councilman Vince Riggi:

It's a plus (the new revenue that is coming in), but it's still a disappointment, that's the way I see it. We were told to expect much more.

Tioga Downs owner Jeff Gural, who also owns the Vernon Downs Racino, has a different take on things, and focuses on the economic benefits of the casinos instead of on the less-than-projected revenues.

It's been a huge success. Whatever has been promised from an economic development standpoint has been delivered by the casinos. The real losers, frankly, are the owners of the three casinos. 

I would be remiss if I failed to mention that Gural asked for and received a bailout from the state to keep Vernon Downs open; it gets to keep more of the money that would have gone to the state, and they get to use capital improvement funds for operating expenses. The racino was losing about $5K a day, state officials were told; competition was one of the main drivers of the losses, Gural noted.

Meanwhile, back in Albany, legislators are not happy. Assemblyman Gary Pretlow, a Dem from Westchester  County, wants the state comptroller to investigate, as he's concerned the state will be asked to step in and help. His letter to Tom DiNapoli, he noted (in part)

When our state passed legislation to expand gaming, our decision was based on projections of robust revenues and promises that casino development would not place new burdens on taxpayers... The last few months, however, have called into question those projections and promises.

And, he noted

It is critically important that we have reliable and realistic long-term revenue projections - so we can prevent the recent gaming expansion from creating an arms race to more and more tax subsidies.

I would add that it's critically important that local governments budget responsibly, which would include not betting the farm that all of the promised gaming revenue would actually come in - but maybe that's just me.

Oh -- about that gaming expansion Pretlow mentioned? It's going to get worse.

Here in NY, we've got another billion dollar casino resort opening in the Catskills in March, and another mini-casino from the Oneidas opening in Bridgeport, at the outer reaches of Onondaga County, also in the spring. Another is scheduled to open in Springfield, MA, a relatively short hop from the NY border.

This will be one to watch going forward. With our appetite for bailing out gambling facilities already demonstrated, this could all turn into one really ugly crap shoot.

If at First You Don't Succeed

Gamble, gamble again.

According to a report this evening, the New York State Gaming Facility Location Board (GFLB) will reopen the bidding for the 'true' Southern Tier region, the part of the region that's currently home to Tioga Downs. The part that's not the future home of Lago, a casino resort that was awarded the Southern Tier/Finger Lakes region's rights on the first roll of the dice last year.

You'll recall that the GFLB was asked to reopen the bidding process by Governor Cuomo; he made his request not long after the decision to bypass our neighbors to the south and only award three licenses - Sullivan County, Schenectady, and the Town of Tyre -- instead of four. And, right after Cuomo's experts announced the decision that fracking would not be allowed, also a blow to the Southern Tier.

While some folks, including the Sonofa Gov, believe that there could be bidders other than Tioga Downs, it seems unlikely that will happen.  Already the Binghamton area has ceded the floor to Tioga and will not complete; the thought that there would be a dark horse bidder coming out of nowhere, with a site and a plan and community buy-in and all the rest, seems like a pipe dream.

So, what happens if the re-worked bid from Tioga still doesn't pass muster?  I'm not sure that the GFLB is obligated to offer a license to the Southern Tier; after all, Cuomo has noted that he has nothing to do with the process and that it's entirely up to the Board to make their decision on the merits.  He just asked them to take another look at the merits, that's all.

Jeff Gural, developer of Tioga Downs, has said it was his 'bad job' explaining the financing that kept him from winning the bid in the first place, and moreover he seems to feel that he was used by Cuomo:

The governor asked me to spend $800,000 of my money to pass Proposition One, and then the intent was that there would be a casino in the Southern Tier. That's what he said to me, he came to Binghamton and said it, and now they put it up by Lake Ontario. I feel like a complete fool to be honest with you.

If the bid doesn't fly this time, Gural goes back to running his racino, the bad taste still in his mouth. More importantly thought, what's next for the true Southern Tier?

The Sonofa Gov Strikes Again

Andrew Cuomo has been a very busy man these past few weeks. He was pretty quiet after winning reelection in November, but he's been making some noise of late.

Photo credit: Cuomo's bio

First, he got himself engaged in the 'negotiations' over a possible pay raise for the state Legislature, trying to obtain additional concessions on ethics.  That effort failed, probably for the best; I don't know about you, but I don't believe that the Gov should be the decider on whether our elected officials in Albany deserve a raise.

He had his year-end press conference, where it was announced that fracking was a no-go for New York. That decision crushed the hopes of many in the Southern Tier, they of course being the folks under which the majority of the frackable gas resides, and the ones who can see Pennsylvania's fracking growth from their porches.

And there was the announcement by the Gaming Facilities Location Board (GFLB) letting us know who the winners were in the contest to build new casinos.  Three were authorized: one in the Catskills, one in Schenectady, and the third in the town of Tyre, near Waterloo, in Seneca County. The casino decision was another blow to our neighbors down south; the winner for "Southern Tier - Finger Lakes" region ended up not being in the Southern Tier.

Cuomo, who deflected credit (and blame) for the fracking and casino decisions, tried to say that neither had anything to do with politics and that he wasn't involved. The fracking decision was made based on science, and the casino location decision was entirely up to the GFLB; his hands were clean on both. Not surprisingly, a lot of people didn't believe him, given his record of similar statements on the 'independent'  Moreland Commission.

Now, Cuomo has stepped up with a letter to his, I mean 'the' Gaming Commission, looking to have a reopened bidding process for a casino in the 'true Southern Tier.'  At this point, the only bidder from the 'true' region is Tioga Downs, as a rival in Broome County will support the Tioga package if bidding is reopened. Cuomo suggests there might be national interest as well, although with a saturated market and casinos closing in Atlantic City, that may be as likely as the odds of winning the jackpot on a single pull on a slot machine.

However, since the Sonofa Governor has decided that we need a casino in the Southern Tier, it merely remains to be seen how he will make that happen. Maybe as part of the budget negotiations next spring? Say, a pay raise for the legislators if they pass some special bill for Tioga? Maybe he'll promise to stay away from any more ethics legislation if they go along with a win for the Downs?  It would probably serve us well to remember that the house always wins - and in this case, the 'house' is the Governor's Mansion.

And yesterday, Cuomo vetoed his own legislation delaying the implementation of teacher evaluations which included Common Core scores.  Cuomo says it was because there's no need for this particular legislation, given that just about every teacher in New York was rated as effective or higher.  He's now promising 'comprehensive reforms' in teacher evaluations next year. And we can trust that these reforms are because we need them, and not at all tied to the failure of NYSUT, the teacher's union, to support Cuomo's re-election bid.

We can trust him on all of these decisions, right?  Right?

O Little Town in Tioga

Santa Cuomo's Coming to Town. Andy We Have Heard on High. Obamacare, Obamacare.  And now, this morning's offering:  O Little Town in Tioga.  

O little town in Tioga,

How still we see thee lie

Above thy deep and dreamless sleep

The silent stars go by.

Yet in your dark hearts shineth

The everlasting light

The hopes and fears of Cuomo's years

Are met in thee tonight. 

O Wednesday's stars together,

did cut you to the core

No praises sing to Andrew, king

No gas will come. There's more:

The fracking ban was issued, 

While gathered all around,

Mere mortals weep: the angels keep

Casinos out of town. 

How silently, how silently

the wondrous gift is giv'n

As Nature imparts to PA hearts

The blessings of her heaven.

Vast fields of shale below us

Mohegan 'cross the line --

No hope for us to rise from dust

King Cuomo thinks we're fine.

O, little town in Tioga

Arise ye must, and vote

Cast out the king and enter in

One, your burdens'll tote

You'll hear Albany's angels

With great glad tidings say

Frack your land and deal your cards --

You'll rise again, some day. 

Wondering, on Wednesday (v15)

All these Christmas carols on the radio, and well, it gets a girl to thinking, and wondering on Wednesday, what would happen if the lyrics were changed up just a bit, to be more reflective of our situation here in New York.

For example:

You better watch out, you better not cry, 

I hope that you vote, I'm telling you why, 

Santa Cuomo's coming to town. 

He's making a list, and checking it twice, 

Gonna tell us who's naughty or nice, 

Santa Cuomo's coming to town.

He knows if you've been gambling, 

And he sure hopes that you will --

He's building three more places

For you to lose your fill... 

O You better watch out, you better not cry, 

I hope that you vote, I'm telling you why, 

Santa Cuomo's coming to town. 

He won't let you go fracking,

He knows that it's no good.

But he says that you'll get backing

if you bring jobs to the hood...

O you better watch out, you better not cry, 

I hope that you vote, I'm telling you why, 

Santa Cuomo's coming to town....

Santa Cuomo's coming to town!

That's right. We finally have our decision on fracking (that's a big negative) and on the new gambling meccas, which will be built in Schenectady, Sullivan County, and in the Seneca County town of Tyre, more commonly known as the place where you get off the Thruway to go to the Magee Diner, the outlet mall, or to Waterloo. 

Wilmorite, the developer chosen for the Eastern Southern Tier/Fingerlakes area, now has to get a license (a cool $35 million for that process), has promised to start work within the week, and hopes to open by the end of next year. 

That, my friends, has me wondering on a whole nother set of questions, but that's a post for a different Wednesday. 

Should We Gamble on Wilmorite?

Was the Onondaga County Legislature really thinking of throwing our support behind a proposed casino a few dozen miles down the road? Being developed by Wilmorite?

I say 'our' support, because Leg Chair Ryan McMahon and the rest of them are really speaking for us when they vote on and pass resolutions and laws.  And if you're wondering why they thought that throwing our support behind a project outside Onondaga County, proposed by a developer with a (at least recently) spotty track record inside Onondaga County is a priority, you're not alone.

As noted in a recent article by Michelle Breidenbach in the Post-Standard, Wilmorite is going to submit a proposal for one of the casinos authorized by last year's resolution to amend our state Constitution to

allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools and permitting local governments to lower property taxes through revenues generated.

The pie-in-the-sky constitutional amendment, a gamble in and of itself, was approved by 57% of New Yorkers hungry for any kind of tax relief, opening up the ground wars for developers to find places to put these job engines and start moving New York into a glorious state of economic boom.  Because that's what we promised ourselves, silly us.

As you recall, Onondaga County is not eligible for our own casino, being in an exclusive territory given to the Oneida Nation by our Sonova Governor Andrew Cuomo, who rolled the dice by negotiating with and securing an agreement from the Oneidas to protect their investment and share some of their wealth ($25 million a year) with the state and local governmental jurisdictions in the neighborhood surrounding their Turning Stone Resort and Casino.

Subsequent negotiations with other Native American casino operators established other exclusive zones around the state, leaving three zones where casinos could be built - the Fingerlakes area, including the Southern Tier; the Catskills, and the Capital District.

Enter Wilmorite, the Rochester developer who has long been engaged in Onondaga County as well:

• Think ShoppingTown Mall and Great Northern Mall, once glistening, booming retail establishments.
• And think the proposed OnCenter Hotel, to be built downtown using the proceeds from a racino that Wilmorite wanted to build in Cicero.  
• And think, more recently, of the defaulted mortgage on the old Sibley's building, which a local developer wants to get working on, and hopefully won't be delayed by Wilmorite's default. 

The racino project, which the Legislature voted to support back in 2011, had all the same promise as the casino -- jobs and sales tax revenue and the like -- except that it would have actually been in Onondaga County. Alas, nothing ever materialized on that deal, and early last year, the Legislature (with several new members) rescinded our support. We moved on, keeping Onondaga County safe from state-sponsored gambling which local politicians have long opposed here, and Wilmorite moved on to bigger and better things. Except that they came back, to ask for our support for their casino.

The casino is proposed for a spot north of the Thruway across from the big Petro station at the Waterloo exit, and across the street from an Amish family farm.  Wilmorite is again waving the promise flag, saying either that 60% of the jobs would come from Onondaga County, or that 60% of the jobs would go through unions in Onondaga County - there's some lack of clarity there, it seems -- and hoping that we would get on board to make their proposal (which promises the "high energy and excitement of Las Vegas") have more oomph than others that are expected for this gambling zone, including likely front-runner Tioga Downs.

Why are they the likely winner? Well, for starters, they have an existing racino, and more importantly, they have the advantage of being near another gambling state's border. And that was one of the big reasons Cuomo wanted casino gambling in New York, remember?

We literally hemorrhage people from the borders who go to casinos. I think it will keep the money in this state...

Legislature Chair Ryan McMahon pulled the vote on the resolution of support because it didn't have enough support even within the Republican caucus to pass, and at the same time chastised the people who would be directly impacted -- residents of Tyre -- noting that they were "muddying the issue with a fight they've already lost" and saying

They're looking at if from the merits of how it impacts them. We're looking at it from a standpoint of how this affects our constituents from an economic standpoint and it clearly would have been good as far as jobs go.

Because, as you know, once the floodgates are open and the promise of jobs is on the table, there's no reason for us here in Onondaga County to do anything other the muddy the waters in another county, and who really gives a rap about the people in the town of Tyre anyway?

Onondaga County is already using casino gambling as an economic development tool. For example, some of the money the county is putting towards the seasonal concert amphitheater on the west shore of Onondaga Lake -- a crap shoot worthy of any Las Vegas high roller --  is an advance on our projected share of the money from Oneida Nation/Turning Stone agreement, so from that perspective I guess it makes sense that we'd at least think about gambling again with Wilmorite.

Alas, as with most gambles, timing is everything. And so is picking the right horse. The fact that McMahon couldn't rally his troops and bring the vote to the floor means we missed the opportunity to support the deal, and it will hold (or fold) without us. That may be to our benefit, as it wouldn't look good on our resume if we backed the Wilmorite horse again - and lost, again.

It's Easy to be a Republican Columnist

See, with the stroke of a pen, I can write a headline almost as entertaining as the one that accompanied Steve Kimatian's latest guest column in The Post-Standard. Kimatian, a former local television station executive and Republican candidate for mayor of Syracuse, suggests that the Dems have an 'easier sales pitch' to voters, when they offer beliefs like these:

increasing entitlement benefits and minimum wages, extending unemployment insurance and that recipients don't need to work to receive any of these benefits.

Poor Republicans, on the other hand

offer(ed) fewer entitlements, said you would have to work for some of them, that they would provide training to develop your employable skills with the added caution that they were concerned about debt limits and balancing the budget.

Voters, being the blood-sucking leeches that we are, would 'hands down' take the first option, the one presented by the Democrats.  And sure, there probably are some folks who vote that way -- we all of course saw the crazed woman in the ad yelling about her Obama phone. The phone program actually started under Ronald Reagan, in an obvious attempt to buy votes. But she does not represent a single Democrat I know, or even one that Kimatian knows.

Kimatian goes on to describe the Democrat's position as 'self-serving, noting

The Democrat offer encouraged a complicit contract with the voter. If you can befriend a voting block by giving benefits, then you can secure votes and contributions for your re-election.

Hmm.  Let's pretend I'm one of those Democrats, living large on my unemployment benefit (2013 average maximum benefit? Around $400/week) after losing my $100,000 job in the Great Recession.  Assuming I'm getting lots of other safety net benefits, I'm guessing that I have at least one boatload of money to hand over to a politician to ensure my continued glorious lifestyle, maybe even two boatloads. Of course, that's only if I haven't spent it all a a strip joint, porn shop or casino.

Because, as Kimatian points out,

The extremes to which Democrats will go to ensure that benefits continue is shockingly displayed by the Speaker of the (NY) State Assembly, Sheldon Silver, who for the last two legislative sessions has blocked a vote on preventing state electronic benefits cards being used at ATMs located in strip joints, porn shops, and casinos.  Apparently the last thing Silver wants to experience is a disappointed voter's porn backlash and so he goes to great lengths to keep the benefits flowing, even for as blatantly a sordid use of public tax monies as this usage. 

I do believe I have the vapors; I might have to step away from my keyboard.

Kimatian fails to provide any statistics for his outrageous comment, but here are some figures that were reported in the press back in 2013.

A database of 200 million Electronic Benefit Transfer records from January 2011 to July 2012, obtained by The (NY) Post through a Freedom of Information request, showed welfare recipients using their EBT cards to make dozens of cash withdrawals at ATMs... (and then goes on to list several specific establishments not in our area)

That's right:  200 million transactions searched, dozens of these horribly abusive cash withdrawals identified. Oh. My. Lap dance.

He also doesn't mention the key reason this type of legislation is being considered (not just in New York but across the country). There's a risk that states will lose federal safety net funds if they don't illustrate controls over how this money is spent.  According to one Republican State Senator's website,

Federal Law passed earlier this year (2012) requires states to limit electronic benefit transactions in locations including liquor stores, casinos, and strip clubs by welfare recipients before February 2014.

For New York, that's a cool $120M in federal Temporary Assistance to Needy Families (TANF) funds.

Disregarding for a moment that a bill signed into law in 2012 would have been signed by a Democrat, I find it ironic that Kimatian puts forth an example that seems to disprove his own theory. Remember the premise: Democrats offer unencumbered benefits so that people who receive the benefits will become addicted to the benefits and therefore vote for and make campaign contributions to Democrats to keep them in office.

Well, if that's the case, wouldn't one expect Shelly Silver to be bending over backwards to ensure that we don't lost the $120 million? Because if we lose the federal dollars, we would almost certainly have to cut benefits in New York, which would almost certainly antagonize that voting block the Dems work for.

Are there other ATMs that could be used for honest, non-sinful withdrawals of EBT? Sure. Should benefits be spent this way? No. Is continuing this benefit ensuring the continued employment of Shelly Silver? Likely not. Unless, of course, those blatantly sordid ATM users are donating so much money to Silver, or voting in such huge numbers, that he can turn up his nose at 120 million bucks. Where's that data analysis, I wonder?

Folks, this is the same argument as the Republicans make about people buying lobster with their SNAP benefits; it's about as important from a policy perspective, pretending for a moment that there actually is a policy perspective buried in there somewhere. It's a red cape in front of a bull. You know it, they know it, I know it.

And FYI, bills like this also would ban using EBT for lottery tickets.  Now, I don't know about you, but apparently many in government believe that lotteries and casinos are the proper way to fund education and to grow our economy.  Can't we just consider that the benefit-sucking Democratic voters are really just trying to do their part to create jobs and pay for school books? Or, if that's too altruistic for you, that they've fallen for the advertizing the government does, that whole "dollar and a dream" stuff?

Another argument Kimatian puts up is that President Obama killed welfare reform. The same case was made by Mitt Romney and Republican minions during the campaign in which Obama won his second term.

I talked about this in a post back in September 2012, noting that the Republican platform included not one but two mentions of this 'gutting' of welfare reform.  And, the post also noted what actually happened:

• the Department of Health and Human Services acted in response to requests from several governors to give them more flexibility in how the incorporated work requirements in their benefit programs
• HHS would consider waivers to the current law in order challenge states to engage in a new round of innovation for helping families succeed in employment
• HHS would only consider waivers to the work participation requirements that make changes intended to lead to more effective means of meeting the work goals of TANF
• HHS was committed to ensuring that any demonstration projects approved under the waivers would be focused on improving employment outcomes and contributing to the evidence base for effective programs

I included other information in the post, direct citations from the actual documents that were sent to the states by HHS, all of which was easily available for reference. Nowhere in there did I see the part about creating addictive benefits to obtain campaign contributions. Don't fall for it, I said back then, and I say the same thing now.

Yeah, it's easy to be a Republican columnist. Or a moderate blogger.

Kimatian and I apparently agree that continuing to expand the safety net is not the way to run a rodeo, and that there should be some responsibility on the part of recipients to not seek these benefits in perpetuity, and on the government to make sure that real fraud, waste, and abuse of these programs is addressed and stopped.

Where we differ is in our approach. Over the weekend, I published two posts -- one on what Republicans are focusing on that they shouldn't be, and one on what the Dems are focusing on that they shouldn't be, if the goal is to create real jobs, the kind that will get folks out of the safety net and into being productive, taxpaying members of society.

Kimatian, on the other hand, chooses the road more taken -- the demonizing path, the class warfare path, the 47% path.  Sadly, in the dumb-down-the-issue, sound-bite world we wallow in, his take on this is likely to be the winning one.