New Law Sends More Gambling Money To Poorest Tribes

Gov. Gray Davis has signed a law that shifts $51 million in casino winnings to some of the state's poorest tribes, but the law may end up short-changing local governments who deal with the effects of American Indian casinos.

The measure will send $680,000 to each of the state's 75 tribes that either have no gambling or run fewer than 350 slot machines, including the La Jolla Band of Mission Indians in the Palomar Mountain area.


"Four years ago, I signed compacts that for the first time in the nation benefited gaming and nongaming tribes," Davis said in statement Tuesday announcing the new law. "Californians voted twice to help Native Americans improve the quality of their lives. This legislation furthers the will of voters by assisting tribes in their quest to gain self-sufficiency."


Under the 1999 state and tribal gambling agreements, two separate funds were created. One fund, the Revenue Sharing Trust Fund, would benefit nongambling tribes. The other, the Special Distribution Fund, was supposed to help, among other things, local governments affected by Indian casinos and programs for problem gamblers. The fund was also intended to cover any shortfalls in the revenue-sharing trust fund.


Proponents of the new law have said that nongambling tribes have been underpaid for each of the last two years. The state Legislature decides how the special distribution fund is spent.


Under the agreements, or compacts, nongambling tribes were supposed to get up to $1.1 million a year, but were paid only about $410,000 annually because the fund fell short. To make up the difference, the new law will shift $51 million from the nearly $80 million in the special distribution fund into the revenue sharing fund for tribes.


An additional $3 million from the fund will go to establish an Office of Problem and Pathological Gambling, which will conduct public awareness and prevention campaigns, operate a toll-free help line for problem gamblers, and train casino and health care workers.


Legislators are negotiating over two other bills that would shift some of the $24 million remaining tribal money to local governments to cover their costs from casinos within their jurisdiction.


But many local government leaders, including North County supervisor Bill Horn, have argued that the lion's share of the special distribution fund should go to local governments. He could not be reached for comment Tuesday. A local tribal leader said that money for nongambling tribes should be the top expenditure for gambling funds.


"The priority of Indian gaming was to strengthen and to help tribal governments," said Mark Macarro, chairman of the Pechanga Band of Mission Indians, one of the most successful gambling tribes. His tribe is also suing the state over regulators' handling of the revenue sharing trust fund.


Gambling tribes have become the state's top political contributors, and both Davis and Lt. Gov. Cruz Bustamante are poised to benefit as they run in the Oct. 7 recall election. Davis also is negotiating with gambling tribes to contribute more to help trim the state's budget deficit.


But those tribes aren't the ones who will benefit from Tuesday's legislation, said Barry Goode, Davis' legal affairs secretary.