Our new Governor has a rare opportunity to cut through the quagmire and corruption that has plagued California's government in recent years. The state's 30 billion-plus deficit is not "fixable" using any conventional means without massive tax increases and/or budget cuts, policies that would hammer a state already in recession.
Governor Arnold because of his public appeal and lack of political baggage has the ability to formulate an almost perfect solution to our current crisis.
For a long time we have known and accepted that Californians leave billions if not trillions of tax revenues at the roulette wheels and blackjack tables of Nevada. Many people, myself included, felt that it was a decent trade off: organized and street crime, low-wage jobs, etc in Nevada in exchange for those tax dollars. Since the opening of a loophole in Federal law that allowed Indian gaming that trade-off doesn't exist. In fact our situation is a great deal worse. Because these Indian facilities are on "sovereign" territory, the casinos are for the most part immune from state and local laws, regulations and taxes. We end up with the worst of all possible situations, all the problems associated with gambling with none or at least much less of the money.
In addition, the Indian casinos have become one of the largest political contributors in the state. Think of it this way, the Indian casino money that should be going to taxes instead is buying State Legislators and previous Governors in order to make sure nothing changes their cozy situation.
What are they afraid of? Maybe the state will get smart and just legalize gambling. Then the state and local governments can decide where, when and how casinos should operate and the taxes they should pay. As long as the Indian gambling interests could play one politician against the other, legalized gambling was off the agenda.
Here is where our new Gov. comes in. He needs to fill in a huge deficit, as well as build a reasonable reserve. The plan is straightforward: we legalize gambling in California, the state sells bonds backed by the future revenue from gambling taxes in the amount necessary to meet the deficit and create a reserve. Even a cursory look at Nevada's gambling revenue, or gaming as they charmingly call it, indicates that the expected revenues generated by gambling in California spread out over 20 or 30 years would cover the bonds many times over.
So, we get to control gambling that is already effectively legal in our state and we get to keep the money. What about the Indians? What about Nevada? Nevada draws people from all over the world; I don't think California could ever compete with Las Vegas in the vulgar entertainment department. We'll take some money from Nevada but they will still do ok. Remember you pay far higher taxes across the board than Nevada residents. We are not shutting down the Indian casinos; they would remain as they are. They would simply have to compete with legalized gambling in locations approved by local governments. I would feel worse about the Native Americans if the majority of gambling money was truly benefiting them. In fact, the same sovereignty laws that created Indian gambling ensure that the tribes are badly governed, not subject to conventional accounting and auditing, not subject to open meeting laws and press access - in short a mess. The real beneficiaries of Indian gambling have been gambling corporations that fund, build and operate most of the Indian casinos.
Governor Schwarzenegger should propose this plan to the legislature and if it balks, put it on the March primary ballot. I have no doubt that with the Governor's active support it would win handily despite millions of dollars of Indian gambling money that I expect would be spent to defeat it.
Personally, I prefer the old days when Nevada had the gambling and California had everything else. But- if we have to have gambling, let's at least benefit ALL of the people of California.
www.vallejonews.com
Governor Arnold because of his public appeal and lack of political baggage has the ability to formulate an almost perfect solution to our current crisis.
For a long time we have known and accepted that Californians leave billions if not trillions of tax revenues at the roulette wheels and blackjack tables of Nevada. Many people, myself included, felt that it was a decent trade off: organized and street crime, low-wage jobs, etc in Nevada in exchange for those tax dollars. Since the opening of a loophole in Federal law that allowed Indian gaming that trade-off doesn't exist. In fact our situation is a great deal worse. Because these Indian facilities are on "sovereign" territory, the casinos are for the most part immune from state and local laws, regulations and taxes. We end up with the worst of all possible situations, all the problems associated with gambling with none or at least much less of the money.
In addition, the Indian casinos have become one of the largest political contributors in the state. Think of it this way, the Indian casino money that should be going to taxes instead is buying State Legislators and previous Governors in order to make sure nothing changes their cozy situation.
What are they afraid of? Maybe the state will get smart and just legalize gambling. Then the state and local governments can decide where, when and how casinos should operate and the taxes they should pay. As long as the Indian gambling interests could play one politician against the other, legalized gambling was off the agenda.
Here is where our new Gov. comes in. He needs to fill in a huge deficit, as well as build a reasonable reserve. The plan is straightforward: we legalize gambling in California, the state sells bonds backed by the future revenue from gambling taxes in the amount necessary to meet the deficit and create a reserve. Even a cursory look at Nevada's gambling revenue, or gaming as they charmingly call it, indicates that the expected revenues generated by gambling in California spread out over 20 or 30 years would cover the bonds many times over.
So, we get to control gambling that is already effectively legal in our state and we get to keep the money. What about the Indians? What about Nevada? Nevada draws people from all over the world; I don't think California could ever compete with Las Vegas in the vulgar entertainment department. We'll take some money from Nevada but they will still do ok. Remember you pay far higher taxes across the board than Nevada residents. We are not shutting down the Indian casinos; they would remain as they are. They would simply have to compete with legalized gambling in locations approved by local governments. I would feel worse about the Native Americans if the majority of gambling money was truly benefiting them. In fact, the same sovereignty laws that created Indian gambling ensure that the tribes are badly governed, not subject to conventional accounting and auditing, not subject to open meeting laws and press access - in short a mess. The real beneficiaries of Indian gambling have been gambling corporations that fund, build and operate most of the Indian casinos.
Governor Schwarzenegger should propose this plan to the legislature and if it balks, put it on the March primary ballot. I have no doubt that with the Governor's active support it would win handily despite millions of dollars of Indian gambling money that I expect would be spent to defeat it.
Personally, I prefer the old days when Nevada had the gambling and California had everything else. But- if we have to have gambling, let's at least benefit ALL of the people of California.
www.vallejonews.com
