New York, NY —

State leaders are close to a deal that would let the "New York Racing Association" - also known as NYRA - continue managing Aqueduct, Belmont and Saratoga racetracks for the next 25 years.

Senate Majority Leader Joseph Bruno says the state will bailout the bankrupt NYRA, with $105 million. In exchange, NYRA would drop its claim that it owns the tracks and surrounding property. Assembly Speaker Sheldon Silver and Governor Spitzer wouldn't confirm these details.

And NYRA says it's preparing for the worst - expecting to lay off two-thirds of its employees next week when its temporary franchise extension expires.