Tribes, Schwarzenegger still negotiating agreement

Tom Chorneau

Thursday, April 1, 2004 | 11:25 a.m.

SACRAMENTO -- Tribal leaders negotiated privately Wednesday with Gov. Arnold Schwarzenegger over a proposal to give the state a share of gambling profit in exchange for the administration's support of casino expansions.

While officials said an agreement is imminent, both sides said little about the talks -- except that no agreement has been reached.

"The governor is very pleased with where the talks are going," Rob Stutzman, one of the governor's spokesmen, said. "We are in a positive place, and are continuing to make progress."

Stutzman would provide no other details nor would he comment on a report that the deal hinged on a $1 billion payout to the state that would be financed through a tribal bond measure.

"There's a lot of speculation, most of it incorrect," said Howard Dickstein, an attorney for three of the five tribes at Wednesday's meeting. Parallel talks are continuing with other tribes, he said, as they work to negotiate "a fair contribution" from tribes by May.

Facing a $17 billion budget shortfall next year, Schwarzenegger has said that he wants tribes to begin paying between $1 billion to $2 billion as the state's "fair share" of gambling profit. In exchange, Schwarzenegger is willing to consider letting tribes expand the number of slot machines.

Although some tribal leaders initially rejected the governor's overtures, others have been engaged in meetings during the last weeks with the governor's lead negotiator on Indian casinos, Daniel Kolkey.

Meeting with the governor Wednesday were leaders or their representatives from five tribes: Viejas Band of Kumeyaay Indians, Pala Band of Mission Indians, Pauma-Yuima Band of Mission Indians -- all based in the San Diego area; and the United Auburn Indian Community and the Rumsey Band of Wintun Indians in the Sacramento area.

"We're working hard, hopeful and optimistic that we can reach a final agreement by May," said Dickstein, who represents the Auburn, Rumsey and Pala tribes. "We've done some of the heavy lifting and an understanding of what it will take. This was a good meeting."

There has been some speculation that the governor's office is moving more aggressively to secure an agreement with this tribal group before another powerful tribe qualifies a measure for the November ballot that would limit contributions of tribal gaming profit to the state.

The Agua Caliente Band of Cahuilla Indians, based in Palm Springs, has proposed requiring tribes to pay as much as corporations -- but only if they have state approval to operate more games.

Stutzman said he did not believe the proposed measure was having any impact on the talks.