Horse racing is often referred to as the “Sport of Kings,” but in every court, there is a jester. Throughout its 50 year history of mismanagement, corruption, and overwhelming incompetence, the New York Racing Association has made a joke out of New York’s once vibrant racing franchise.

Revenue from horse racing is intended to provide the State with a steady stream of income. But because of multimillion dollar deficits, the federal indictment of top administrators and their descent into bankruptcy, NYRA has cost New Yorkers millions of dollars. And now NYRA is asking for even more money.

NYRA’s control over the racing franchise is set to end on December 31. Before they go, NYRA is asking for a holiday gift from the people of New York — an agreement to extend their contract for another 30 years that will cost taxpayers millions. NYRA has made it clear what they offer in return: The New York State Comptroller’s recent disclosure showed that NYRA continues to report its expenses improperly and thus short-changed New York State by an estimated $11 million dollars over the past two years. Even though NYRA admitted that previous comptroller audits disclosed the same problem, they have chosen to ignore those audits, and refused to make the specified payments.

According to the 2007 NYRA Media Guide, NYRA has lost 25% of their patrons since new management for NYRA took over the place in 2003. Track attendance at the 2007 Belmont Stakes was among the lowest in its history. Dwindling attendance, however, has been the least of their problems as NYRA continues to lose record amounts of money. NYRA is currently projected to lose a record $25-$30 million this year alone. Thus, they will require a continuing taxpayer subsidy exceeding $260 million.

NYRA also has a debt to settle with the Internal Revenue Service. The IRS filed a multi-million dollar claim against them. To escape more trouble, NYRA has hired a pricey legal defense team at a cost to the public of over $10 million.

Adding insult to injury, NYRA has been unable or unwilling to learn from its mistakes. As part of the bankruptcy proceedings, NYRA was required to file a reorganization plan detailing losses incurred and their proposal to satisfy debt. In its proposal, NYRA completely ignored their employees’ pension plans, which are under-funded by $95 million. Instead, they chose to ensure that only the president’s retirement package was safe under the reorganization plan.

During the proceedings, the Official Committee of Uninsured Creditors claimed that NYRA’s disclosure statement “fails to mention and discuss claims against NYRA seeking damages in excess of $90 million based on damages allegedly suffered by individuals whose personal information was allegedly stolen and exploited by NYRA’s employees.”

NYRA’s hiring practices have recently come into question as well. The State Commission of Investigation subpoenaed a consultant hired on a no-bid contract by NYRA. The “integrity counsel” hired by NYRA at a cost to the public of $125,000, was not approved by the Oversight Board and directly violates existing State law.

The harshest impact of NYRA’s insolvency will be felt by New York’s children. Revenue from horse racing is used to help fund our children’s education. Under NYRA’s control, however, racetracks have fallen apart, meaning there is less money for schools and less money for students.

If NYRA is able to retain control of the racing franchise, they will require a taxpayer bailout of over $250 million that would otherwise have gone to State education funding. The fortune NYRA seeks should never come at the expense of school children.

If NYRA retains control over racing, the consequences will reach far beyond the future of racing. With the State expected to face a deficit of over $4 billion dollars in the coming year, and possibly a tenuous budget battle set to engulf Albany, NYRA is forcing the public to subsidize a corrupt agency.

There are many tough decisions to make in the coming months about vital programs and services that are in danger of elimination or decreased funding. Every dollar taxpayers are forced to spend bailing out NYRA results in less money that can be spent better serving the people of New York.

It is important that racing in New York gets back on track, but forcing the public to throw away more money on NYRA is not in anyone’s best interest, especially during a time when every dollar in our budget will be stretched to its limits.

In less than a month, the future of New York’s racing franchise will be settled. The public will either be free of the continual obligation to subsidize a flawed and dysfunctional NYRA or they will be doomed to another 30 years of taxpayer bailouts, incriminating audits, and obligatory debts. We can only hope that the Legislature votes on behalf of the public and not for NYRA.

Mr. Shafran is a political consultant at Sheinkopf Ltd., which has been retained by Capital Play Inc., one of the firms bidding against NYRA for the racing franchise.