Schwarzenegger urged to restrict casino impact

Don Thompson

Wednesday, March 10, 2004 | 9:47 a.m.

SACRAMENTO -- About a hundred representatives of 10 communities from across California asked Gov. Arnold Schwarzenegger on Tuesday to require Indian tribes to provide compensation for the impacts of booming casinos on traffic, crime and the environment.

Lost in gambling tribes' success stories has been the harm to surrounding communities' way of life, said opposition organizers who traveled to the Capitol from Palm Springs, Barstow, San Bernardino, Plymouth, Hesperia, Rohnert Park, Santa Ynez and rural areas of the Alexander Valley, Humboldt and Tulare counties.

"There's two types of counties in California -- those that have casinos and those that will," warned DeAnn Baker of the California State Association of Counties. "It's hit the critical mass stage."

Eight of the 24 counties that currently host casinos have analyzed the fiscal affect, estimating they incur a cumulative $200 million in annual and one-time costs, she said. Only five of the eight have firm compensation agreements with their casinos, which pay a total of $21.8 million -- about a tenth of what counties pay for extra services to accommodate the popular venues.

Baker joined with the California State Sheriffs' Association, the Sierra Club, and supervisors from Yuba and Amador counties in calling on Schwarzenegger to fulfill a campaign promise to require tribes to pay their "fair share" of taxes, comply with environmental laws, and compensate surrounding communities for their expenses.

"It is inexcusable that these large 'companies' don't pay their share of taxes," unlike virtually every other business, said Lenny Goldberg, executive director of the California Tax Reform Association.

In response, the California Nations Indian Gaming Association estimated that two to three dozen tribes have agreements with their communities requiring them to pay "hundreds of millions of dollars" to offset the cost of casinos. Because each tribe negotiates separately there are no exact figures, said spokeswoman Susan Jensen.

While the tribes pay no taxes, they paid $72 million last year into a state fund to compensate surrounding cities and counties.

"With few exceptions, tribes have created working relationships with their neighboring governments," the association said in a statement. "In those isolated situations where there have been differences, tribes will continue to work diligently to resolve them."

Thirteen community representatives met privately with Schwarzenegger's legal counsel, Peter Siggins, and were assured local governments' interests are a priority as the administration tries to renegotiate 20-year gambling agreements approved by former Gov. Gray Davis, who was recalled by voters in October.

The delegation was led by Cheryl Schmit, director of Stand Up for California, who organized Tuesday's Capitol rally.

She wrote one of several initiatives proposed for the November ballot, hers requiring tribes to pay the standard corporate state income tax in exchange for being allowed to operate 3,000 slot machines, up from the current 2,000 machine cap. Schwarzenegger is backing none of the proposed ballot measures, concentrating instead on his own negotiations with tribes, said spokesman Vince Sollitto.