Governor cuts casino money for local governments

In an effort to balance the state budget, Gov. Arnold Schwarzenegger has cut $30 million from a fund that helps local governments deal with the problems tribal casinos cause in surrounding communities, such as increased crime and traffic.

The state has distributed more than $100 million to counties from the fund in recent years.

Schwarzenegger has tried pulling money out of the tribal fund before, but the Legislature has blocked him from doing so.

In the absence of a plan from legislators to balance the budget, the governor accepted a budget with a $700 million shortfall. Last Friday, he used his veto power to cut the rest.

The governor cited a state audit that raised questions about how the money was being used, including whether the money was being used for projects unrelated to casino gambling. He said in his veto message that he would restore the money if the Legislature moves to reform the way it hands out and monitors the money.

"As evidenced in a recent Bureau of State Audits report, there is great concern regarding whether these funds are being used solely for their intended purpose, which is to mitigate the impacts of having tribal casinos in their communities," according to the governor's statement.

Sen. Jim Battin, R-La Quinta, is working on a bill to restore the money, a spokesman for the senator said Monday.

28 tribes pay into the Indian Gaming Special Distribution Fund. The money is cut into grants to help offset the problems tribal gaming causes in neighboring cities and counties. It also is designed to pay for gambling regulation and help pay poorer, non-gambling tribes $1.1 million a year each.

As of last year, the state had distributed about $105 million to the 26 counties that qualify for the grants.

Last year, the governor slashed $20 million from the fund, but Battin authored a bill to restore the money. Roberts said he was confident the Legislature would return the money again this year.

"This sweep is more of a bookkeeping gimmick than anything else," Roberts said. "But this is something we're very, very upset about."

Lynn Valbuena, chairwoman of a tribal group that represents 14 Southern California tribes including the Pechanga Band of Mission Indians, said in a written statement she hopes the Legislature and the governor can work together to restore the funds.

"Tribal governments have diligently made their contributions to the state," Valbuena said. The group "remains committed to continuing to meet the goal of working with local governments to improve our communities."

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