Changing of the "Guards" in Sacramento/ Pete Peterson

With the concentration and growth of Indian casino political power after the February elections, an interesting change of power is taking place in Sacramento. The most powerful lobbying union in the Capitol for over a decade, the California Corrections Peace Officers Association (CCPOA) has lost some of its muscle in recent years, as a Governor (Schwarzenegger) was elected without their support and a Democrat-controlled Legislature has sought other methods of criminal punishment outside of prison.

Into the gap come the Indian casinos who recently won a major victory in the February 5th elections, which allowed them (well, some of them) to increase the size of their casinos, thereby increasing their revenues. Just last week they managed to get a bill passed by the Legislature that gave tribal leaders greater powers to remove individuals from their reservations. This is seen as new way of "disenrolling" tribe members who disagree with leadership on the reservation.

Link: http://www.sacbee.com/111/story/778909.html

Wall Street says Schwarzenegger is overselling lottery idea/Karla Saia

With California facing a $14.5 billion budget shortfall, Governor Arnold Schwarzenegger has espoused privatizing the state’s lottery. He proposes leasing the lottery to the highest bidder, and has projected the windfall from the lease could reach as much as $37 billion, half of which may be paid up front.

However, several Wall Street investment banks have concluded that Schwarzenegger’s estimate might be wildly optimistic. While Lehman Brothers did valuate the CA lottery at as much as $37 billion over 40 years, other firms, such as Bear Stearns, Citibank, Goldman Sachs, and others, value the lease anywhere between $7 and $29 billion, with as little as approximately $9 billion up front.

Further, legislators and citizens groups are worrying about the possibilities of having to relax state gambling laws, and that an increase in lottery ticket sales would fall disproportionately on Californians in lower-income brackets. Maximizing the lottery’s value would entail selling tickets through ATMs, cell phones, college campuses and at bus stations, thereby shifting the burden of the budget shortfall to those most financially vulnerable.

California, if it approves the plan, would be the first state to privatize its lottery.

Link: http://www.signonsandiego.com/news/state/20080219-1048-schwarzenegger-lottery.html

Let the Chips Fall Where They May/ Aimee Dewing

Following the robust turnout at the polls on Feb. 5th, Super Tuesday, Californians have approved a major expansion of Indian gaming for local tribes. PROPS 94, 95, 96, and 97 were each passed by 56 percent, and will allow four California tribes to expand their casinos to rival the largest in the country.

Gov. Schwarzenegger, who signed compacts with each of the four tribes on the ballot last year, said he felt “very good” about the proposition approvals. He projects the expansion of the Indian gaming industry could bring $500 million to the state, annually. While 57 tribes will now seek establishment and renegotiation of their compacts, the Morongo and Pechanga tribes can expand their casinos from 2,000 slot machines to 7,500.

Professor of Indian law at San Francisco State University, however, said he was concerned about, “the devil in the details in terms of what this means for the tribes and for the state.” And although this Golden State is no stranger to the promises of riches, as gambling now expands in California to impressive proportions, we shall see if the devil is indeed, in the details.

Link: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/07/MN55UTEED.DTL&type=politics