From Crain’s Detroit Business:
Fight over casino funds limits kitty for MEDC
LANSING — A southwest Michigan American Indian tribe is withholding casino revenue destined for state economic-development operations, posing the latest twist in funding uncertainty for the Michigan Economic Development Corp.
The Seventh Circuit remanded (again) the dispute over the revenue sharing provisions of the Class III gaming compact between the State of Wisconsin and the Ho-Chunk Nation.
The briefs are here:
From the Connecticut Economy, a journal published by the University of Connecticut.
The first article, “Spill-Free Gaming,” demonstrated that the operation of the Foxwoods and Mohegan Sun casinos had no adverse effect on local crime rates. A second article, “The State of Play in New England Casino Gaming,” argues that the enormous revenues generated by gaming Connecticut means that legalized gambling in Rhode Island and Massachusetts is inevitable. Another article, “Got Game?” demonstrated that these two casinos contribute $430 million a year to the Conn. general fund.
From the Leelanau Enterprise (H/T Indianz):
County receives 10 applications for aid from tribal program.
Requests for “2-percent” casino revenue funding from the Grand Traverse Band of Ottawa and Chippewa Indians will be considered for endorsement by the Leelanau County Board of Commissioners at the board’s executive committee next week.
From the Petoskey News Review:
By Ryan Bentley News-Review Staff Writer
A more specific framework has been crafted for how Little Traverse Bay Bands of Odawa Indians casino proceeds should be shared with the local community.
From Mlive:
NEW BUFFALO TOWNSHIP, Mich. (AP) — The American Indian tribe that owns the new Four Winds Casino Resort in extreme southwestern Michigan is withholding its first revenue-sharing payments from local governments and school districts.
The Pokagon Band of Potawatomi Indians says it has concerns about the organization of the board that is to oversee the distribution of the estimated $3 million a year in payments.
The Seventh Circuit will soon decide Ho-Chunk Nation v. Wisconson. The dispute involves the Class III gaming compact signed by the parties. HCN stopped payment in violation of the compact’s revenue sharing provisions. Wisconsin seeks to compel arbitration to resolve the dispute.
The briefs are here:
Ho-Chunk’s Opening Brief: Appellant Brief
Wisconsin’s Brief: Appellee Brief
Ho-Chunk’s Reply Brief: Reply Brief
District Court Decision: March 9, 2007 Order
As referenced in a prior post about the Wisconsin Legislature’s ploy to balance its budget with the theoretical proceeds of a successful lawsuit against the Ho-Chunk Nation, here is the March 9, 2007 order in the case granting partial summary judgment to the Nation: March 9, 2007 Order
Don’t think Wisconsin’s suit is a guaranteed win….
From the Houston Chronicle: “In a move described as questionable and a potential time bomb, the state’s budget balances on a gamble it will win a court case against the Ho-Chunk Nation.”If the state loses, a $72 million hole could be blown into Wisconsin’s budget.
“Passed just a week ago, the budget assumes that a court will order the Ho-Chunk to make payments to the state that the tribe says it does not owe. The state Department of Administration estimates the tribe will owe about $72 million in fees under its gambling compact by June 30, 2009.
“But a lawsuit over the money is pending in federal court and there are no guarantees that the state will win, get as much as it is seeking, or that payment will be received during the current budget cycle.
“I would consider this a potential time bomb inside the budget,” said Sen. Robert Cowles, R-Green Bay. He questioned assistant Department of Administration Secretary Dan Schoof about the case during a hearing Wednesday related to a state audit of casino payments.”
Seems like a stretch to balance a government budget with the anticipation of winning a lawsuit, given the uncertainties of litigation. Michigan just passed its budget. One wonders if the Legislature counted the revenues it might win in the Keno case.
From the Petoskey News Review:
Allied EMS emergency medical technician
Chris Heckman (left) and paramedic Erik Slifka are shown with an ambulance and heart monitor purchased with assistance from the Emmet County Local Revenue Sharing Board.
Revenue-sharing grants have helped Allied acquire seven ambulances as well as assorted equipment for the vehicles through the years. “They’ve been very instrumental in helping us keep our operation going,” said Allied chief executive officer Dave Slifka. (Ryan Bentley/News-Review)
Deciding how the community will share in Little Traverse Bay Bands of Odawa Indians casino proceeds is not a game of chance.
Under its gaming compact with Michigan, the Odawa tribe is required to provide 2 percent of electronic gaming receipts from its Petoskey casino to nearby communities. The Local Revenue Sharing Board, a three-member appointed panel, is responsible for choosing specifically what projects and resources will receive support, reviewing grant applications twice yearly to decide which requests merit awards.
“We’re servants of the public,” said revenue board chairman Les Atchison. “We’re trying to do the best we can in our judgment to see that the money is put to best use. Frankly, we welcome the suggestions of those who appoint us.”
From its inception in 2000 through the end of 2006, the board awarded about $6 million in grants funded with casino proceeds. Since the tribe’s casino site is in federal trust status and not subject to property taxes, the board paid an additional $540,000 to local governments during those years to make up for tax revenue they would have received if the property was on the tax rolls.
Turtle Talk 