Disagreement over gambling payment continues

Saturday, Jan. 6, 2001 | 12:39 p.m.

State Administration Secretary George Lightbourn had warned that if the state did not receive the payment from the tribe by 5 p.m. Friday, the governor would issue a notice that the tribe's compact won't be renewed when it expires in May 2003.

Without the money, there will be a "$4.8 million hole" in the state budget, jeopardizing money targeted for Brown and Outagamie counties for everything from tourism promotion and economic development to the construction of a new arena in Green Bay, Lightbourn said.

The money was due Dec. 30 under terms of the federally required compact between the state and the tribe that authorizes the tribe to host Las Vegas-style gambling at its casino near Green Bay.

The state extended the deadline to Friday after the tribe raised questions about how the state is spending the money.

"The withholding of the money has nothing to do with the issues they raised," Lightbourn said Friday. "The procedure is if they have a concern, they ask for dispute resolution, which we have agreed to."

Thompson wrote a letter to Tribal Chairman Gerald Danforth accusing the tribe of not acting as a responsible corporate citizen or governmental entity.

"The notice is the consequence of the tribe's repeated irresponsible conduct," Thompson said in the letter. "The state will no longer tolerate such conduct."

Danforth said any misconduct is on the part of the state.

"During the course of this past year we have been unable to address these issues face to face with the state," Danforth said during a meeting of the tribe's business committee Friday night at the Radisson Hotel & Conference Center in Ashwaubenon.

"This is the first communication I've received from him this year," Danforth said holding the letter.

The tribe maintains that northeastern Wisconsin is not receiving its fair share of the money that the tribe contributes to the state.

Lightbourn said the state will not rescind the nonrenewal notice even if the tribe pays the money.

To continue its casino gambling operations beyond the compact's expiration date, the tribe would have to negotiate a new agreement with the state, Lightbourn said.

The state will insist on tougher provisions in a new compact, including the ability to levy fines and close a casino for noncompliance, Lightbourn said.

Oneida Bingo & Casino is one of Wisconsin's largest casinos.

Danforth sent Thompson a letter last month saying the tribe wouldn't pay until the governor and the tribe meet to "get a better understanding on why these monies are being spent the way they are."

Danforth contends the state has violated a memorandum of understanding connected with the compact that called for the governor to make his best efforts to use the money for economic development initiatives to benefit tribes and regions around casinos.

The tribe questions spending some of the money on snowmobile-enforcement programs, elk-population management and studies of crop damage by cranes, Danforth said in the letter.