Independent Economic Impact Study of Chumash Casino – County BOS Decline Information

On Feb 19, the Santa Barbara County Board of Supervisors decided, in their infinite wisdom, not to accept an independent study of the economic impacts of the Chumash Casino. They thought it was against policy.

Someone ought to review this policy and perhaps update it out of its antiquated state. To me it’s a no-brainer that the results of a study from and independent, non-biased source regarding one of the largest employers in the county should be seen as a helpful tool in understanding the impacts of the casino in our county.

The vote was 3-2 against accepting the study. Well at least there are 2 members that choose not to plug their ears, wear blinders and chant “ la la la la la “ when it comes to understanding what economic impacts the casino has on our county.

The study, paid for and commissioned by the Santa Barbara Taxpayers Association, is a 40-page economic assessment of the Chumash Casino. It was authored by economist Mark Schniepp, director of the California Economic Forecast Project, and includes an economic assessment of the impacts of the casino, which includes job creation, sales tax receipts and salaries as well as effects on businesses in the valley and the county.

The board also withdrew the taxpayers association’s request for the board to set a hearing for a presentation to highlight the study’s key findings.

Third District Supervisor Brooks Firestone called the request “inappropriate” and said it would help advocacy of gambling expansion in Santa Barbara County. Uh.. Mr. Firestone … its information. That’s all. It’s not a declaration that gambling is good for the local economy so we should put a casino in every town in the county.

I think he sees shadows of POLO lurking in the wings just waiting to pounce and he wants to avoid that spectacle again.

Firestone said, “The issue before us is whether or not to give the status of an accepted county report to something which is privately funded and privately produced…It takes on a different status as a report received by the board.”

Who said they have to accept it as “an accepted county report”? Why can’t they accept it for what it is? An independent study which was NOT paid for or commissioned by the Chumash.

Joe Armendariz, executive director for the taxpayers association was stunned by the outcome and said, “I thought it was one of the most peculiar decisions that the board made. This is not a biased study. It was commissioned by and for the county’s taxpayers association. We’re not asking the county to endorse it or take any action.”

Supervisors Joseph Centeno and Salud Carbajal were the two members who voted in favor of accepting the study and saw no reason why the board shouldn’t receive information that might prove helpful in the future. WOW! Rational thinking! How refreshing!

“This, for me, is nothing more than a bunch of information,” Centeno said. “I can take the information and do what I will.”

The study was posted at the Santa Barbara Taxpayers Association website this morning and can be found at:

http://www.sbcta.org/Final_Report__Public_Release_.pdf

Some of the highlights include the following:

(Tribal opponents continually perpetuate the myth that gaming tribes do not pay taxes. Along with the other highlights of this study please note the ones regarding taxes)

• Between 2001 and 2006, the Casino was the second fastest growing
employer in Santa Barbara County, creating nearly 900 new jobs.

• It has one of the larger direct payrolls in the County and average salaries of all workers at the Casino Resort are higher than average salaries for all workers in Santa Barbara County.

• In general, for every 10 jobs at the Casino, there are four additional jobs created in the community, and slightly more created outside Santa Barbara County. For every $10 in sales occurring at the Casino, slightly more than an additional $4 in sales is created in the community.

• The total economic impact is large at over $350 million in total dollar sales in Santa Barbara County.

• The 1,587 direct jobs at the Casino account for an additional 703 jobs created in the Santa Barbara County economy. These additional jobs produce an additional $30 million in taxable payroll dollars.

• The largest tax is from payrolls, paid by both Casino workers and the Casino, and income taxes paid to the federal and state governments. It is estimated that the Casino is responsible for the production of $35 million in tax receipts per year going to state, federal, and local governments. Total estimated indirect business taxes generated by the Casino sum to $8.6 million. The sales tax implication alone is $2.7 million. Santa Barbara County’s share is $530,000. Accounting for State and Federal government receipts, total indirect business taxes that remain in Santa Barbara County are estimated at $3.4 million.

• The Casino serves as an additional attraction of visitors from adjacent counties to Santa Barbara County.

• The presence of the Casino gives more visitors more reasons to travel to Santa Barbara County and spend dollars on other visitor attractions,restaurants, local hotels, and general merchandise.

• Increased transient occupancy taxes collected by local jurisdictions are a result of the Casino attracting many out-of-County visitors who stay overnight in Santa Barbara, Santa Ynez, Solvang, and Santa Maria.

• Total value added in the economy is $159 million. This is the total amount of income going to all claimants (workers, proprietors, local governments, and asset holding individuals and enterprises) in Santa Barbara County, each year as a result of the Casino.