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Tribes Puzzled By Davis’ Gambling Figures May 18, 2003
SACRAMENTO -- Gov. Gray Davis is looking for less revenue from gambling tribes to balance the state budget, but Indians are still wondering where he’s getting his numbers.
The state can’t tax tribes. But Davis wants them to agree to pay the state in return for additional gambling opportunities, such as more slot machines, as a result of renegotiations on tribal-state gambling agreements.
In his January budget proposal, Davis pegged $1.5 billion as the amount that he expected. But when he released his revised budget this week, that number dropped to $680 million.
The initial proposal prompted widespread complaints and head scratching by tribal leaders, who weren’t consulted about the number. "I don’t think the first one was very well reasoned," said Mark Nichols, chief executive officer of the Cabazon Band of Mission Indians in Indio.
Tribal representatives said they still had no idea about the basis for the number.
"The governor still has not revealed his methodology," Susan Jensen, spokeswoman for the California Nations Indian Gaming Association, said after listening to a discussion at a meeting of her group Thursday.
"He’s throwing numbers out arbitrarily from their point of view," she added.
Richard Milanovich, chairman of the Agua Caliente Band of Cahuilla Indians of Palm Springs, said the change probably was just a recognition of reality.
"I think he understands the initial number really was not a doable plan, all things considered," Milanovich said. But Cheryl Schmit, director of Stand Up for California, a coalition of local groups focused on the local impact of casinos, said the governor’s original number was not unreasonable.
"I was kind of surprised to see that," she said of the reduced figure. When asked for an explanation of the new dollar figure, the governor’s budget director, Steve Peace, offered the following explanation:
The number was not in any way associated with the negotiations other than the practical notion that we didn’t want to affect the negotiations by virtue of any number that we adopted, while at same time we wanted to recognize it would take more time to arrive at whatever the number ultimately is."
Tribes now pay into two state-administered funds. One fund provides money to non-gambling tribes and those with fewer than 350 slot machines.
The second fund is aimed at offsetting the impact of gambling in communities near casinos, addressing gambling addiction and covering state costs of gambling regulation.
None of the funds go into the state general fund. This is the target for the funds Davis is hoping to get through the renegotiations.
The governor has asked tribes with gambling agreements, known as compacts, to enter renegotiations and they have begun for a couple dozen or so of those 61 tribes.
Milanovich and Nichols said their tribes have answered the governor’s letter requesting negotiations, saying they were interested. "We are looking for the spaces to move to," Milanovich said. "It’s a big chess board."
"We have sent a letter indicating that we are not really looking
for anything, but we are willing to meet in good faith,"' Nichols
said. "We’re all ears."
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