ALBANY - (AP) - New York City Off-Track Betting Corp. islaying off 35 non-union employees as it seeks a long-term return tosolvency.

The layoffs are effective Friday. OTB Chairman Meyer "Sandy"Frucher says the action will save $2 million.

The OTB has been reorganizing its finances under bankruptcycourt protection and had threatened to shut down twice in recentweeks, laying off all its 1,300 workers if state government didn'tbail it out.

Although Gov. David Paterson and the Legislaturefailed to agree on a plan, OTB came up with its own to continue fora year by cutting costs and delaying some payments.