We TOLD YOU this would happen. Temecula loses money from gaming, the state gets it. Trickle down economics doesn't work if the State doesn't balance it's budget. Temecula gets hosed.
Pechanga is in NO hurry to negotiate. BE SURE to read the comments at the article link below.
TEMECULA: New slots equal $ for state, but what about the city?
By NICOLE SACK - Staff Writer
TEMECULA ---- The billboards along Interstate 15 announced the news clearly: "1,300 New Slot Machines."Inside the Pechanga Casino, signs asked patrons to "pardon our digital dust," as the number of slot machines increased from 2,000 to 3,300.New agreements between Gov. Arnold Schwarzenegger and four Indian tribes approved by voters earlier this year have paved the way for four tribes in the state to add 17,000 new slot machines. Locally, Pechanga, got the green light to add up to 5,500.
The new agreements, popularly referred to as compacts, alter the way the tribes will be contributing money to adjacent cities and counties that are most affected by the additional traffic and increased crime that nearby casinos can bring. Now, instead of the tribes contributing a set amount to offset local impacts, each city and county will have to meet with the tribes in their area to negotiate for a new cut of the gaming pie.
The legal language within the compacts states that before any "project" begins, Pechanga must negotiate an intergovernmental agreement with the city and the county to deal with any negatives effects that project would have on the surrounding area.But even members in the governor's office, say that those "projects" are evaluated on a case-by-case basis. Who evaluates those case-by-case scenarios? That appears to be anyone's guess.
Temecula had been a direct beneficiary of that money, receiving $2.7 million in 2006.Although the tribe no longer has to make that payment, it is making another ---- much larger ---- one. But now the money is being paid directly to the general fund, the state's main operating account.According to the terms of the new compact, Pechanga's annual payment to the general fund is a minimum of $42.5 million ---- all of which is swept into the state's bank account and none of which is passed on to local governments.
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