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PECHANGA: Tribe makes $30.8 million payment to the state

Tribal officials say they paid more for this period that they did for all last year By NICOLE SACK - Staff Writer | Wednesday, July 30, 2008 8:14 PM PDT North County Times

PECHANGA INDIAN RESERVATION -----The Pechanga Band of Luiseno Indians made its first payment Wednesday to the state of California under the terms of its amended tribal compact.

Pechanga's payment to the state's general fund totaled $30.8 million, tribal officials said. That amount covers the tribe's payment to the state for the period of early February through the end of June.

This first payment is greater than the entire amount Pechanga paid to the state for all of 2007 under its original compact, tribal officials said.

Pechanga also made a quarterly payment of $500,000 into the Revenue Sharing Trust Fund, which supports non-gaming tribes throughout the state. That amount for non-gaming tribes is nearly twice the annual amount that Pechanga previously paid.

"I am sure that the voters of California are happy to hear that they got exactly what they voted for: more state revenue without raising taxes," Mark Macarro, chairman of the Pechanga Band of Luiseno Indians, said in a written statement. "The state now has the flexibility to use this additional funding for education, public safety, healthcare, and other vital public services."

Anna Carr, deputy director of legislation and public affairs for the California Gambling Control Commission, confirmed that the state had been authorized by the tribe to draw the payment on Wednesday. Carr said that while quarterly payment information is confidential under the compact, the Pechangas chose to release its numbers ---- a rather unprecedented step, she said.

Carr said payments also were received Wednesday from the Morongo Band of Mission Indians in Cabazon and the Agua Caliente Band of Cahuilla Indians near Palm Springs.

However, the economic downturn affecting Southern California has had an impact on the gaming business. Pechanga Resort & Casino announced last week that, because of the economic downturn, it was laying off about 400 members of its 4,700-person workforce.

Gov. Arnold Schwarzenegger and Pechanga reached an agreement to amend the tribe's compact in 2006, allowing Pechanga to operate up to 7,500 slot machines in exchange for significantly more revenues to the state. The compact guaranteed a payment to the state of $42.5 million annually on the casino's existing 2,000 slots and up to 25 percent of the profit from any additional slot machines.

In February, voters throughout the state approved the new compact.

Contact staff writer Nicole Sack at (951) 676-4315, Ext. 2616, or nsack@californian.com.

 


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