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Indian Casino in California Delays State Payments
SAN DIEGO, CALIFORNIA --
In California, opponents of Governor Schwarzenegger's casino compacts with four Indian tribes have declared one tribe is reneging on promises made. Even though the compacts were approved by voters on a February ballot, some think the state did not get the best deal possible, and now point to a decision by the Sycuan Tribe to invoke a loophole allowing delay of payment as proof the tribes cannot be trusted.
The compacts allowed the tribes to greatly expand the number of slot machines available to them, in return for annual payment to the state of $20 million plus 15% of casino revenue.
The other three tribes, the Agua Caliente, the Pechanga, and the Morongo, are set to make payment to the state next month. And all four tribes have made prescribed payment to tribes without casinos, and to local governments for infrastructure needed to handle extra traffic.
But the Sycuan invoked a clause that required the tribal council to approve the compact before December 15th, 2006, or else the governor could void the deal. Instead, Schwarzenegger decided to allow the delay, saying in the long run it was best for the state.
The Sycuan leaders, for their part, said they had merely delayed the council vote until the casino expansions could be planned, and that they will be happy to begin payment next year.
The tribe had recently made a $45,000 donation to support a redistricting ballot initiative Schwarzenegger supports, and some claimed the donation was part of a side deal.
But the state finance office expects the Indian compacts will generate upwards of a half-billion dollars in the next year, enough to make claims about a $45,000 donation look foolish.
If the situation was not handled in the best way, it still appears the state is far better off excusing the slow movement of the Sycuan, rather than voiding the compact and losing billions for the future.
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