Scalping California Tax Dollars: Is this a Schwarzenegger "Back Room" deal with Indian Casino interests?
UPDATE: 02-06-08 GREEDY CITIZENS ACCEPT MERE PITTANCE OF WHAT THEY COULD HAVE GOTTEN IN A RENEGOTIATION OF THE GAMING DEAL
| 94 | Y | Ref on Amd to Indian Gaming Compact: Pechanga | 3,708,849 | 55.8% | 2,948,121 | 44.2% | Map |
| 95 | Y | Ref on Amd to Indian Gaming Compact: Morongo |
3,705,992 | 55.8% | 2,941,851 | 44.2% | Map |
| 96 | Y | Ref on Amd to Indian Gaming Compact: Sycuan | 3,688,649 | 55.7% | 2,944,742 | 44.3% | Map |
| 97 | Y | Ref on Amd to Indian Gaming Compact: Agua Caliente | 3,689,868 | 55.7% | 2,940,605 | 44.3% | Map |
Original Blog Entry ...
California is in crisis due to Schwarzenegger's lack of leadership...
In California , a state desperate for additional revenue to stave off a budgetary crisis (soon to be announced) caused by Governor Arnold Schwarzenegger's inability to demonstrate leadership and to control the spending of state democrats, Schwarzenegger takes to the airwaves to promote a deal to allow Indian gambling casinos to enlarge their operations in return for "billions of dollars" in revenue.
A Schwarzenegger back-room deal?
Californians are being asked to vote on February 5th whether to allow Indian gaming casinos to add up to 17,000 additional slot machines in exchange for what is estimated a combined income of at least $131 million dollars in future revenue.
What is California giving up?
Opponents to the proposition are quick to point out that California is ceding a fair amount of control over Indian gaming operations.
- No more pesky environmental reports...
"Casinos are no longer subject to the California Environmental Quality Act. Any expansion must be backed up by an environmental report that the Indian tribes can conduct themselves."
- No more pesky state auditors...
"Casinos no longer have to have an impartial auditor count the slot machine revenues; they'll be able to audit them on their own."
- State "give-ups" should the state allow other non-tribal gambling operations such as those found in local communities.
"Casinos will receive a "fail safe" guarantee that punishes the State for permitting non-tribal gambling operations. That is, if an organization other than an Indian tribe receives a clearance to build a gambling establishment, the Indian casino will be allowed to reduce its taxes to the State, or eliminate them altogether."
What does the impartial legislative analyst have to say...
About California's fiscal outlook...
"In order to balance the 2008–09 budget, the state will have to adopt nearly $10 billion in solutions. Addressing the state’s current budget problem is even more urgent because we forecast a continuing gap between revenues and expenditures."
Prop 94... The Pechanga Band of Luiseño Indians owns a casino in Riverside County with about 2,000 slot machines. The measure ratifies an amendment to the existing gaming compact that would allow the tribe to operate up to 7,500 slot machines. The tribe would make increased payments to the state annually through 2030.
Prop 95... The Morongo Band of Mission Indians owns a casino in Riverside County with about 2,000 slot machines. The measure ratifies an amendment to the existing gaming compact that would allow the tribe to operate up to 7,500 slot machines. The tribe would make increased payments to the state annually through 2030.
Prop 96... The Sycuan Band of the Kumeyaay Nation owns a casino in San Diego County with about 2,000 slot machines. The measure ratifies an amendment to the existing gaming compact that would allow the tribe to operate up to 5,000 slot machines. The tribe would make increased payments to the state annually through 2030.
Prop 97... The Agua Caliente Band of Cahuilla Indians owns two casinos in Riverside County with about 2,000 slot machines. The measure ratifies an amendment to the existing gaming compact that would allow the tribe to operate up to 5,000 slot machines. The tribe would make increased payments to the state annually through 2030.
These are only four of the Indian casino operators who are affected, what of the others who will claim that they are being "disadvantaged" by the State of California when they are denied similar expansions?
Not everybody is happy...
Major opposition to the propositions seems to be coming from the Unions who want increased unionization of Indian casino operations.
Union Status of Casino Workers...
"Under the 1999 compacts, tribes agreed to certain requirements in the area of labor relations. Unions that want to organize employees of casinos must be given access to the employees. Both the tribe and the union can express their opinions so long as they do not threaten employees, use force against them, or promise benefits. Before a union can represent employees in negotiations with the tribe, it must win a secret ballot election of the employees. (A few later compacts have a different process for determining union representation.)
Casino operators like Larry Flynt (Hustler Casino) who believes that nobody should receive preferential treatment in the casino business and that there should be a single set of rules, regulations and taxes for all casino operators.
And, of course, there are those who believe that "gambling is evil" and represents a further decline in our civilization. Or enables those who cannot afford to gamble with their household income to spend their money at casinos rather than put food on the the family table or properly clothe their children.
Suspect or manipulated accounting?
With all large sums of money, it is a question of having adequate safeguards and controls in place to prevent under-reporting income. There are those who believe that the state may be cheated by allowing the Indians to collect and distribute the money without strict state guidance.
Future revenue flow...
We already receive money from Indian gaming operations and it is unclear exactly what these new propositions add to the final revenue that will be returned to state coffers. Even $200 million dollars per year is not going to make a substantial dent in the state budget deficit unless or state legislature stops spending money on foolish and wasteful "social engineering" projects for illegal aliens rather than replacing or repairing our crumbling state infrastructure.
See for yourself what the Governor is saying...
What can YOU do?
Vote NO on propositions 94, 95, 96 and 97 to send a message to the governor and the state legislature: no more "bail out" money until you fix the spending problems.
Tell your legislators that they should dissolve all compacts with Indian gaming casinos and apply California's standard business and tax laws to all gaming enterprises. If not, curtail the flow of business to the Indian casinos by allowing local operators to open their own establishments. We do not need the Indian casinos, they need California citizens. Like any other resort operation, the problem can be solved by a free market and not by creating additional "regulated monopolies" for the benefit of the politicians.
Make the governor responsible for all of the "financial engineering" he performed in the past to push the disastrous results of profligate spending and borrowing into the future. The future has come home to roost and the governor is responsible for what has happened on his watch.
It appears that the governor, in comparison to former-governor Gray Davis, has raised more campaign funds, made more backroom deals and, in general, allowed the legislature to spend more money than the hated Davis administration. Hold him responsible.
Do not vote for any candidate or current politician who is willing to subvert the safety, security, sovereignty and economic strength of California or limit an individual's right of self-defense for their personal power, prestige or profits.
-- steve
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