Erie County's WROTB board member walks the line on agency's spending
During his years in Congress, former Texas representative Ron Paul, a medical doctor by trade, gained the nickname "Dr. No" for his propensity to vote against nearly every bill that came before him.
Might the Western Regional Off-Track Betting board of directors have its own "Dr. No"?
Erie County's representative, Timothy Callan, does have a Ph.D, but, in fairness, he more often than not votes yes on board motions. When he does vote no, though, he is typically the lone dissenting voice on a board that, though made up of Republicans and Democrats from large and small jurisdictions, often hues toward unanimity.
When Callan, deputy comptroller for Erie County, votes no, the motion before him typically deals with financial expenditures.
That was the case Thursday when Callan voted against motions authorizing the OTB to hire a temporary general counsel while the board seeks a new staff attorney and voted against authorizing expenditures for advertising on Buffalo and Rochester broadcast media. He also voted against a $10,000 pay raise for the executive office manager, an apparent correction to her employment agreement.
Callan said he is concerned about the seeming rise in payroll for executives at OTB. He raised concerns in October when he voted against a reorganization plan that, as he sees it, created three new jobs. He's more concerned now, he said, because of current financial trends.
Last month, The Batavian reported that OTB was on track to return less revenue for 2024 to the 17 owner-municipalities than in recent years even while revenue has increased.
"I think that we should be much more judicious about our spending," Callan told The Batavian after Thursday's board meeting.
In July, the OTB board voted to buyout the contracts of CEO Henry Wojtaszek, CFO Jackie Leach, and VP of Operations William White.
Wojtaszek earned $299,000; Leach, $244,000; and White, $160,000 (Leach's contract was amended on Thursday to extend her employment with OTB a short time to help with the ongoing transition in her department).
Former Buffalo mayor Byron Brown replaced Wojtaszek as CEO in October at a salary of $295,000.
In October, the OTB board reorganized the executive staff, creating a chief of staff position and a director of communications position. Steve Casey was hired as chief of staff at a salary of $190,000 and Michael DeGeorge became the director of communications at an annual salary of $130,000.
Ryan Hasenauer, former marketing director, was promoted to the new position of VP/Business Development and Danielle Fleming was named VP/Human Resources as part of the reorganization.
What the reorganization plan didn't address was the need to replace Wojtaszek in his secondary role as the agency's general counsel, a position he held before taking on the primary role of CEO.
Callan said he learned for the first time on Wednesday that Brown intended to hire a staff attorney with an anticipated salary of $160,000 to $180,000 annually, plus benefits.
"I was under the impression and led to believe that Judge (John) Owens was hired as an external vendor -- he's not an employee of the corporation, but he has been serving as legal counsel for the Corporation since May or April of 2023," Callan said. "I've interacted with him last year, when I joined the board last January, and found him to be very reasonable and competent."
Callan said he is under the impression that the retainer fee for the firm that employs Owens is being increased by $25,000, but at the same time, OTB, Callan said, is paying out "hundreds of thousands of dollars" for outside counsel on a variety of legal issues facing the agency.
While Callan believes executive salary expenditures are up significantly, Brown told The Batavian in a separate interview on Thursday that "it's a wash from what it was previously."
"When you look at the top executive positions, there is no material difference in the spending," Brown said. "With the legal counsel, we were outsourcing a lot of that legal work previously, and my goal is to bring more of that work in-house and create a more competitive environment and how law firms are selected when we do have to outsource legal work."
Brown said he believes it is important for the corporation to have legal counsel on staff, available on a day-to-day basis.
"There are a lot of legal matters that come before the corporation all the time, and so for the corporation to operate more efficiently, for the corporation to save money on legal expenses, having an in-house counsel that is available daily, I think, will make the operation of the corporation even more efficient," Brown said.
Callan was appointed to the board as a result of legislation pushed by Democratic Sen. Timothy Kennedy, representing Erie County, making spurious claims about corruption at the agency, to fire all of the board members serving in 2023 and giving the larger jurisdictions among the 17 owner-municipalities greater weighted voting. This g was expected to shift the controlling interest of the corporation away from Republicans and to Democrats.
Wojtaszek is a Republican and often the target of attacks by Erie and Niagara county politicians.
In relation to Callan's assertion that executive expenses are going up in the wake of Wojtaszek from the agency, The Batavian asked Callan about the apparent "unintended consequences" of "pushing out" Wojtaszek.
Callan said he was as surprised as anybody when he learned before the July board meeting that Wojtaszek was seeking a buyout of his contract.
"That was news to me," Callan said. "I've not heard anybody say Henry was pushed out. I don't know if Henry thinks he was pushed out, but everything I was told by Henry, by our chairman, and by other colleagues here is that Henry chose to leave and wanted a buyout. I wasn't told he was pushed out. So I don't know where that sentiment would come from."
Wojtaszek told The Batavian in June that his departure was by "mutual agreement."
As for advertising spending, the board approved the expenditure of up to $1,155,000 for advertising at 14 broadcast outlets in Rochester and Buffalo.
That doesn't mean OTB will spend that amount, just that marketing staff can make ad buys up to the amounts specified for each individual outlet, ranging on an individual outlet basis from $15,000 to $250,000.
Callan said he isn't convinced the corporation has a good metrics system to ensure each outlet delivers results.
He said that during the advertising committee meeting on Wednesday, he asked colleagues to cut the authorization in half, perhaps covering only six months.
"Let's, as a board, understand the analytics behind why you're paying this TV station this amount, why this TV station in Rochester is getting this amount," Callan said.
(Disclosure: Batavia Downs has been advertising with The Batavian for about a decade but never in the amounts disclosed in the resolutions approved by the board.)
Callan said he's previously raised the question in internal meetings but has never found the answers satisfactory. He said he wants to know if an ad can be linked to betting, to meals, to track attendance, remote betting, or hotel stays.
"How do we track and know who these people are and how they came here? In other words, how do we know that a TV ad is running in Buffalo every five minutes -- it seems like -- I live in the Buffalo area -- and every five minutes on one of the TV stations I see a Batavia Downs ad," Callan said. "How do we know the effectiveness of this? How do you track people who watch Channel 2, the NBC station in Buffalo? What's the bang for the buck that -- you know, they're advertising the most, they are getting the most money in the resolution -- that's driving people to want to come here?"
Brown said Thursday's resolutions were based on an advertising budget that was passed as part of the operational plan in December.
"I was able to share with board members that my management team and I have already reduced some of the marketing spending, but it's critically important to market Batavia Downs Gaming and Hotel to keep people coming to the property, using the property, being aware of the property, so that we can continue our success in this very competitive industry," Brown said.
As for analytics, Brown said he agrees with Callan that measuring results is important.
"We want to analyze our spending," Brown said. "We want to be able to track the impact of our spending and make sure that we are spending money on the market and in other areas most intelligently and efficiently."
He said, in fact, there is already tracking in place.
"I think we have to do a better job of sharing that tracking and those analytics, and we will certainly do that," Brown said. "But already in the first part of this year, we've demonstrated to the board that we have reduced the amount of money we spend on marketing while still expanding our marketing reach."