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January 7, 2008
REPORT: Props 94, 95, 96 & 97 Expected To Generate $16 Billion in Revenue Sharing Payments and Taxes (including $10.2 Billion to State General Fund); $44.5 Billion in Wages; 875,500 Jobs
Nationally Recognized Expert on Economics of Indian Gaming Releases Findings
SACRAMENTO –The Coalition to Protect California’s Budget & Economy today released the results of a study conducted by Alan Meister, Ph.D., an economist with Analysis Group, Inc., on the potential economic and fiscal benefits of Propositions 94, 95, 96 & 97. Dr. Meister’s findings show the net direct total statewide fiscal benefits over the life of the amended compacts included in the initiatives are approximately $16 billion, including:
- $10.2 billion in revenue sharing payments to the State’s General Fund;
- $5.4 billion in State and local taxes;
- $275 million in revenue sharing payments to local governments and;
- $128 million in revenue sharing payments to non-gaming tribes.
“The amended compacts would generate significant fiscal and economic benefits to California’s economy,” Dr. Meister said. “California is getting a better deal under this amended revenue sharing formula than it ever has before.”
The study also shows the amended compacts would generate significant direct and indirect economic benefits for California over the life of the amended compacts as a result of increased gaming activity and construction expenditures:
- $116.5 billion in economic output;
- $44.5 billion in wages;
- 875,500 jobs.
Dr. Meister has received national recognition for his annual studies on Indian gaming. His work is regularly cited by the press and relied upon by the gaming industry, governments, and the investment community. Dr. Meister's research and analyses have also been relied upon before the United States Supreme Court and a panel of the World Trade Organization, and he has been commissioned by the National Indian Gaming Commission to analyze the effects of proposed regulatory policy changes.
California is facing a fiscal crisis and new revenues from Propositions 94, 95, 96 & 97 will help fund public safety, local and state law enforcement, senior citizens and education.
The agreements in Propositions 94, 95, 96 & 97 were negotiated by the Governor and ratified by a bipartisan majority of the Legislature. Under these agreements, the Agua Caliente, Morongo, Pechanga and Sycuan tribes will pay a much higher percentage of their net gaming revenues – up to 25% – to the state. In all, these payments will provide hundreds of millions of dollars to the state each year.
The agreements also:
- Increase state regulatory oversight by allowing the state to conduct random audits and inspections of the tribes’ gaming;
- Share tens of millions from tribes’ gaming revenues with non-gaming tribes;
- Create stronger environmental standards for casino-related tribal projects; and Require the tribes to increase coordination with local governments, police and fire agencies and compensate local communities for services.
A broad coalition of public safety, taxpayer, education, labor, local government, business, Indian Tribes and community groups support Propositions 94, 95, 96 and 97.
An Executive Summary of the Meister Study is available for download here.
Click here for a full copy of the report or for more information, please visit www.YESforCalifornia.com.
Media with additional inquiries about the Coalition to Protect California’s Budget & Economy can contact Roger Salazar at (916) 444-8897.