Monday, 22 January 2007 00:28

Governor’s Proposal Pressures Lawmakers On Compacts

The Governor’s new budget proposal included 509 million dollars from Indian gaming proceeds he expects to collect from the expansion of 5 Southern California Indian Gaming Compacts and now State lawmakers are warning Gov. Arnold Schwarzenegger not to pin his hopes for balancing the state budget on these funds. The admonishment, delivered last week at the state's largest tribal gambling convention, offers a potential preview of a second blistering legislative battle over agreements that would allow five of the state's richest tribes to add up to 22,500 slot machines.
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Schwarzenegger negotiated the compacts last year for casino expansions -- of between 3,000 and 5,500 new slot machines each -- for the Agua Caliente Band of Cahuilla Indians, the San Manuel Band of Mission Indians, the Pechanga Band of Luiseño Indians, the Morongo Band of Mission Indians and the Sycuan Band of the Kumeyaay Nation. These compacts have now become a showdown between two powerful constituencies -- tribal governments and organized labor. Schwarzenegger, by using the money in the budget prior to approval of the chnages in the compacts has raised the stakes on lawmakers because the state will receive only if lawmakers approve the gambling agreements. "We have $509 million in the budget that assumes we're going to pass five compacts this year," said state Sen. Dean Florez, D-Shafter, whose Senate governmental affairs committee will review the compacts. "The governor is raising the ante," said Florez, who supports the compacts but plans hearings in March on the agreements and anticipated state revenues. "He is saying you're going to blow a hole in the budget if you don't pass the compacts.

The governor is putting a bit of pressure on the Legislature." Last year, Schwarzenegger hailed the five gambling accords for promising the state a cut of the action -- $13.4 billion to $22.4 billion in tribal payments over 25 years, depending on casino profits and number of slots installed. He said if lawmakers fail to pass the compacts, "it means they are falling short of a lot of money. And that money is going to some very important programs. We're talking about $500 million. We're talking about $20 billion over the course of the compacts. So we're losing a lot of money if they don't." 

 The Sacramento Bee contributed to this story.