Thursday, December 13, 2007

How Exaggerated are Pechanga's Claims on Expanding Funds?

Increase in Payments to the State.

Under the compact amendment, the Pechanga tribe’s payments to the state would increase significantly. Its payments to the RSTF would increase to $2 million per year—up from the current annual level of about $300,000.

The tribe’s annual payments to the SDF—currently around $28 million—would end. WHAT?!? Would END? They aren't letting us know that in the commercial.

For the first time, however, the tribe would make payments to the General Fund, the state’s main operating account. (The General Fund receives about $100 billion each year from all sources, and its funds can be used by the Legislature for any purpose.) WOULD THIS BE the SAME General Fund that Politicians can't balance?

The Pechanga tribe’s annual payment to the General Fund would total at least $42.5 million under the compact amendment. So, cities and local governments LOSE and the state doesn't get enough to cover much.

In addition to this minimum payment, the tribe would pay to the General Fund an annual amount equal to 15 percent of the net revenues of the next 3,000 slot machines it adds to its casinos after the compact amendment takes effect. (In general terms, a slot machine’s net revenue is the amount of money that gamblers put in the slot machine minus the money paid out as prizes from the machine.) Pechanga would report that "net win" based on their own audits and could say, 'SORRY, there WAS no net win this summer, high price of gas..blah blah)

If the tribe operates more than 5,000 slot machines, it would pay the General Fund an annual amount equal to 25 percent of the net revenues of those additional slot machines. OP: RAISE YOUR HAND IF YOU can count to 4,999! I can, I can!

Covering Shortfalls in the RSTF. The compact amendment requires the state to use a part of the tribe’s payments to the General Fund if they are needed to cover shortfalls in the RSTF—the state fund that gives each tribe with no casino or a small casino $1.1 million each year. OP: You mean the tribes that aren't terminating their membership like Pechanga.

Tribal Payments to State May Decline in Certain Instances. OP: WHAT?!? They haven't mentioned that in their ads!

Under the compact amendment, if the state allows a nontribal entity to operate slot machines or certain card games in nearby areas, the tribe’s required payments to the state would be significantly reduced or eliminated Greed.....
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