Posted on 02/03/2007 9:06:31 AM PST by NormsRevenge
SACRAMENTO — Gov. Arnold Schwarzenegger's bet that the state could balance its budget next year with revenue from bigger Indian casinos is unrealistic, a report released Friday by the state's nonpartisan Legislative Analyst says.
Schwarzenegger's proposal to let tribes install some 22,500 new slot machines and then collect more than $500 million in new fees and taxes from them is critical to his plan to wipe out the state's chronic budget deficit next year.
Legislative Analyst Elizabeth Hill, who in recent weeks has blasted the governor's spending plan for relying on rosy revenue projections, on Friday took aim at its Indian gambling component, saying it would likely take three to 10 years for the state to realize the revenue boost Schwarzenegger is counting on in a matter of months.
"The governor's budget assumes that annual general fund revenues related to tribal-state compacts grow from $33 million in 2006-07 to $539 million in 2007-08," Hill wrote. "This projection is not realistic."
What's more, according to her report, the compacts could leave California on the hook for millions in unexpected costs.
The compacts would require the state to spend millions of the projected revenue increase in coming years to help poor tribes that don't operate casinos — money Schwarzenegger is relying on for the budget.
The compacts also would let the richest tribes stop paying into funds for gambling addiction and other programs, the analyst said.
"The Legislature could face funding shortfalls for gambling addition, regulatory, and local government programs," she wrote.
H.D. Palmer, spokesman for the governor's finance department, downplayed Hill's concerns and said the administration sticks by its projections.
"We're confident given the number and timing of the devices we've assumed in these agreements that we have the right dollar amounts," Palmer said. "These tribes are ready to immediately put the machines in place that form the basis of our revenue projections."
Another large hurdle for the governor's Indian gambling plan is the Democratic-controlled state Legislature.
The Assembly in September squashed the pending compacts, which Schwarzenegger has already signed, over concerns they would weaken the power of casino workers to unionize.
The deals still face heated opposition from unions, card clubs, the horse racing industry and the anti-gambling lobby. Democratic leaders also have said they would need substantial changes before they win approval.
Where's the link?
Here ya go. Thanks!
http://www.venturacountystar.com/vcs/state/article/0,1375,VCS_122_5326101,00.html
Governor Schwarzenegger Signs ReNegotiated Gaming Compacts with Five Indian Tribes
Agreement Provides Fair Contribution of Gaming Revenue and Foundation for Positive Long-Term Relationship
Praising a new partnership between the State of California, local communities and certain Indian tribes, Governor Arnold Schwarzenegger today signed gaming compacts with five tribes that provide a fair contribution of gaming revenues that will compensate the state for years to come. The agreements also guarantee important and increased protections for casino patrons and workers, the environment, and local communities.
"Today we are here to declare victory for California once again. We are going to sign new gaming compacts with Tribal Governments," said Governor Schwarzenegger at a signing ceremony in Memorial Auditorium, near the state capitol. "The new agreement respects the tribes' sovereignty, it protects their exclusive gaming rights, and it begins a new financial partnership between the tribes, local communities and the great State of California."
"This agreement helps local governments meet their law enforcement, fire protection and infrastructure needs," said Governor Schwarzenegger. "It strengthens our environmental protections. It provides more rights and safeguards for workers and guests. It brings in at least $1 billion in new state revenue this year, which I will dedicate to desperately needed transportation projects. And in addition, this agreement can generate up to another $150-$200 million a year in ongoing state revenue, which is good for California."
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