NEW YORK (AP) -The chairman of the state entity that handles off-track betting on horse races in New York City has resigned, citing the collapse of his plan to refinance the bankrupt company.

Meyer ``Sandy'' Frucher submitted his resignation to the governor Friday, on the eve of the Belmont Stakes.

In the letter, Frucher said he decided to quit as chairman of the New York City Off-Track Betting Corp. after the state's budget director said he wouldn't sign off on a plan to finance the company's turnaround with up to $300 million in municipal bonds.

``I have determined that it is time for me to step aside to allow you and your staff the opportunity to decide the next steps to resolve NYCOTB's situation,'' Frucher wrote.

Gov. David Paterson appointed Frucher a year ago.

One of Paterson's chief aides, Lawrence Schwartz, will take over Frucher's job, the governor's office said. Schwartz previously served as chief operating officer for Westchester County.

The OTB has been operating under bankruptcy court protection and has threatened to shut down if state government doesn't bail it out.