In the midst of accusations of unfair negotiating, California Governor
Arnold Schwarzenegger has moved forward with a deal for at least a few of
the tribes in his state. It isn’t the best deal possible, but it is not the
worst either. There is some elbow room and of course plenty to fight about.

The deal harks back to an idea floated in these pages during the recall
campaign for a potential win-win scenario. The state lifts the current cap
of 2,000 machines per gaming tribe in exchange for a renegotiated revenue
sharing agreement. Everyone wins and the tribes keep growing – a primary
goal.

The deal of renegotiated compacts also enlists the governor’s campaign
against a state proposition that would challenge the tribes’ exclusivity to
run gaming enterprises. However, it also weakens the tribal unity around
the Agua Caliente Band of Cahuilla Indians’ initiative that would lock
California’s tribal gaming operations into a fixed rate that would match
the existing state corporate tax while simultaneously lifting the
2,000-machine cap across the board. This one bears watching yet, and tribes
would always do well to support positive public initiatives – taking always
into account the opportunity to educate the general public about the
tribes’ history and current cultural-economic contributions to the state.

The five tribes pacting with Gov. Schwarzenegger involve two from Northern
California, United Auburn Indian Community and Rumsey Band of Wintun
Indians and three from the southern San Diego area, Pauma Band of Mission
Indians, Pala Band of Mission Indians and the Viejas Band of Kumeyaay
Indians. Anthony Pico, respected Viejas chairman, calls the deal, which
runs to 2030, “historic.” Attorney Howard Dickstein, representing the two
Northern California tribes, highlights a significant attribute of the new
deals, “We have maintained the right to exclusivity.”

Negotiated items include:

The tribes will in common float a $1 billion bond to the state, committing
to a pay off over the next 18 years. Additionally they will pay between
$150 to $200 million a year until the compacts expire in 2030;

The tribes gain expanded gaming operations. For providing additional
revenue to the state the signatory tribes can lift the 2,000 slot machine
cap set forth by the 1999 compacts. (This arbitrary restriction on market
forces never made sense);

The tribes will pay on a progressive scale for these additional machines up
to a limit of $25,000 per machine.

The tribes agree to increase payments to the Revenue Sharing Trust Fund,
set up for non-gaming tribes and those with small operations, by some $2
million each annually.

California gains increased regulatory power over the tribes, in tort law,
mitigation, the environment and state inspection of machines.

The current liability cap on tribes, set at $5 million, will be raised to
$10 million per incident for the signatory tribes.

Binding arbitration in regard to patron disputes over machines and disputes
with local governments over environmental and infrastructure issues is now
in force.

Unions gain as tribes must allow workers “enhanced organizing rights,” but
tribes are protected against the unions’ “right to strike.”

As will any governor in the quest to extract as much as possible from
enterprising tribes, Schwarzenegger will deal indiscriminately with
whatever tribe is in good position to take and give advantage. This will
benefit some tribes and be perhaps detrimental to others. One tribe feeling
detriment, the Rincon Band of Mission Indians, is suing over the deal,
charging that the governor is negotiating unfairly.

We state this out front. We believe in the vigorous defense of the
sovereign rights bases of the current American Indian tribal economic
revolution. Indian country has long needed its own capital base, after the
severe dispossession of the conquest and colonization of tribal lands and
resources. Nothing else has ever worked. Now the tribes are engaged in a
recovery process, a revitalization process of major empowerment. But it
should also be understood that every dollar sent to a state is one dollar
less for Indian country. With so many needs remaining unmet within the
majority of Indian communities every dollar given to the states deprives
tribal investment and sharing to improve Indian country as a whole.

Every tribe negotiates from its own specific base of interests and
possibilities. Each tribe is different, with varied political objectives.
There is a wide range of strategic talent and experience among tribes in
defending and re-building themselves. Nevertheless, continuous dialogue is
crucial. Continuous educational and public perception campaigns – not only
in the heat of political battle – are the gristmill of survival. The public
arena is primary. Unity around the fundamental bases of American Indian
tribal sovereignty is central to a long-term capital build-up and tribal
economic recoveries. To achieve sustainable economies for Indian country,
the current economic achievements must be kept up for another seven
generations.

Capital, well-trained people and labor, land and resources – guided by a
commitment to the well being of “the people” – can position Native peoples
as thriving communities. States do well and do justice to encourage full
Native use of tribal bases to stimulate their regional and state economies.
However, we’re growing increasingly concerned that American Indian
governments are ignoring their own more deserving relatives by giving away
resources that are desperately needed first and foremost in Indian country.