The city of Salamanca is set to receive a $5 million, no-interest loan to help with its strapped finances, courtesy of New York State.
The Post Journal is reporting Friday that the Cattaraugus County city has not received any casino revenues from the Seneca Nation of Indians since 2009. The withholding of the money is largely due to the gaming compact dispute between the Seneca Nation of Indians and the state. But as a result, Salamanca has been in financial dire straits and on the verge of not being able to pay its bills.
Salamanca officials hope the non-interest loan from the state will help to keep the city afloat until an agreement between the state and Senecas can be reached. A three-member panel led by Judith Kaye, former state Court of Appeals chief justice, has been charged with settling the disagreement through arbitration. It is not known when the decision will be reached.
As for the non-interest loan, half of the $5 million loan will offset the present budget crisis in Salamanca, and the other half will be set aside for next year.
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