California Aggie, Volume 123, Number 136, 25 October 2004 — Finding the ‘fair share for Indian gaming [ARTICLE+ILLUSTRATION]

Finding the ‘fair share for Indian gaming

By SHANNON MITCHELL Aggie Staff Writer

In an attempt to make Indian casinos pay their “fair share” of California’s debt woes, backers of Proposition 70 say the answer lies in individual casinos arriving at their own agreements. But, according to Governor Arnold Schwarzenegger, this will only provide unlimited Indian gaming expansion and little government oversight. Schwarzenegger who ran in the

October 2003 recall election on a platform of working with Indian casinos to get California’s “fair share” already signed a compact with some Indian tribes in an effort to make good

on his campaign promises. In July, the governor along with five California tribes the Pala band of Mission Indians, the Pauma Band of Luiseno Indians, the Rumsey band of Wintun Indians, the Viejas band of Kumeyaay Indians and the United Auburn Indian community signed a renegotiated compact. The compact revised the 1999 agreement that allowed tribes to operate a total of 2,000 slot machines. The tribes were required to make payments to the state, which can be used for specific purposes designated by the state. It is estimated that these payments total $lOO million annually. Under the contract, tribes are also required to prepare environmental studies analyzing the impact the casino has on surrounding areas of any new or expanding gaming areas. In the new agreement, these five tribes may operate as many slot machines as they desire. In exchange, the tribes must pay a specific amount to the state annually, which would bring in hundreds of millions of dollars. The 2004 compact also requires tribes to prepare a more detailed environmental study, negotiate with local governments regarding mitigation payments addressing the impacts of new gaming facilities on local communities and follow other provisions relating to patron disputes, building codes and labor relations. This contract expires 10 years later than the 1999 contract would have, in 2030. Supporters of Prop. 70 say the governor’s contract is anjrthing but fair, as it offers different tax rates for different tribes. According to the California voter information guide, Prop. 70 would allow the tribe to choose either the existing contract or create a renewable 99-year contract to which the governor must agree. The proposition grants exclusive tribal gaming rights, allowing for an unlimited amount of slot machines. In return, the tribes are required to contribute a percentage of net gaming income based on the 8.84 percent California state corporate tax rate.

Prop. 70 also requires impact assessment and public notice or comment opportunities before significant expansions, but does not require any negotiations with local governments. Proposition 68 will also be on the Nov. 2 ballot. However, the proposition is largely favored to not pass because efforts supporting the initiative have ceased, thanks in large part to Gov. Schwarzenegger’s efforts against

both it and Prop. 70. The governor has been traveling across the state stating his opposition to both initiatives. If passed, Prop. 68 would authorize the governor to negotiate tribal compact amendments, requiring that Indian tribes pay 25 percent of slot machine and gaming device revenue to the government. If tribes do not unanimously accept the required amendment within 90 days, Prop. 68 would authorize 16 cardroom and race tracks to install 30,000 slot machines, with 33 percent of net revenue paid to government.

But in early October the estimated $3 million-a-week television ad campaign for Prop. 68 essentially shut down. Flaws in the proposition include the fact that money would be earmarked for local programs and none would go to help the state’s budget situation. The initiative was largely backed by racetracks and card clubs, with representative groups spending more than $24 million on the campaign. The focus, however, remains on Prop. 70, and the governor calls his compacts the only fair answer for California Indian tribes.

“These renegotiated agreements represent a tremendous accomplishment for the people of California,” Schwarzenegger said in a July 1 press release. “The compacts provide a fair contribution of gaming revenue to the state and guarantee important protections, while respecting the tribes’ sovereignty.” The Yolo County Board of Supervisors also voiced their opposition to Prop. 68 and Prop. 70. County supervisor Helen Thompson said the issue is very important to Yolo County. She

noted the Rumsey band of Wintun Indians, who own and operate Cache Creek, have signed the governor’s compact. Thompson said the Rumsey tribe has been “responsive and responsible in dealing with city government.” She added that the governor’s compact helps protect growth of casinos, while the propositions do not. Both initiatives will be on the Nov. 2 ballot for voters to decide what will be a “fair share.” SHANNON MITCHELL can be reached at city@californiaaggie.com.