NY political fight stalls Queens video slots deal

Democratic Gov. David Paterson and Senate Majority Leader Dean Skelos haven't talked since a blowup Friday, when the Long Island Republican refused to support Paterson's choice of Delaware North Cos. of Buffalo to operate the video slot machines at the track in Queens.

Paterson's office accused Skelos of letting political interests undermine state finances. The Assembly's Democratic majority supports Paterson's choice.

In the balance hangs $370 million the company has offered up front to the state, which is facing a deficit estimated as high as $2 billion this fiscal year. The cash could help avoid some painful spending cuts when lawmakers return for a special session after the Nov. 4 elections.

Skelos met with Delaware North officials in Buffalo Tuesday to see if they would amend their proposal. On Friday, Skelos said he and Sen. Serphin Maltese, a Queens Republican whose district includes Aqueduct, wouldn't support Paterson's proposal unless there were more spin-off jobs and business opportunities for the community around the track.

"We have said from day one when this was proposed that this has to be a destination point and economic development was crucial for this to be a success," said Skelos spokesman John McArdle. "What was surprising was the timing of the governor's announcement."

A day before Paterson announced his choice, the governor endorsed Democratic Joe Addabbo, a city councilman, for the seat held by Maltese since 1988.

A senior aide in the Paterson administration said Tuesday that tensions have built over the last five days between Paterson and Skelos because of the legislative elections.

"There's been more of an edge lately," said the aide, who spoke on condition of anonymity because they weren't authorized to speak for Paterson.

"We didn't put politics in the middle of this," McArdle said, "but there was an endorsement the day before the governor announced his selection. I find it ironic that people say we're playing politics, when it was just the opposite."