Contemporary Native American Political Issues by Johnson Troy R

Author:Johnson, Troy R. [Johnson, Troy R.]
Language: eng
Format: epub
Published: 0101-01-01T00:00:00+00:00

Page 167

percent of the total labor force. Only 28 percent of Indians with jobs earned more than $7,000 a year. 19

In spite of this situation, Congress continues to cut substantially programs for Native Americans. Tribal leaders argue that gaming is one of the few revenue sources available to help offset federal cuts. According to Rick Hill, chairman of the National Indian Gaming Association (NIGA): Tribal gaming is the one successful economic venture that has worked virtually every place a tribe has established a gaming operation. Tribes are in the gaming business like states are in the lottery business, to establish and increase revenue for governmental operations and infrastructures. 20

Economic and Social Impact of Gaming

Gaming has both positive and negative effects for Indians struggling for economic and cultural survival. According to the NIGA, an Indian gaming lobby, gaming creates jobs, reduces dependence on welfare, stimulates business activity, and generates tax revenue for states. Drawn largely from consulting studies, the NIGA cites the following examples.

Michigan Indian tribes operate 8 Class III gaming operations, employing nearly 2,000 workers, with an annual payroll estimated at $13.5 million and state and federal tax payments of nearly $700,000. 21 Minnesota's 17 casinos generate $390 million in revenues and have created more than 12,000 new jobs. In 1992, casinos paid more than $37 million in state and federal payroll taxes and benefits. Approximately 37 percent of the tribal gaming employees received state or federal welfare assistance prior to their employment, and another 31 percent were drawing unemployment compensation. Welfare payments in counties with casinos dropped 14

percent between 1987 and 1991, saving the state an estimated $7 million. 22

Wisconsin tribes operate 15 Class III<%0> gaming facilities, with a total payroll of about $68 million. Half of the 4,500 casino employees were previously unemployed, and 20 percent were receiving welfare. Welfare costs in 11 rural counties with Indian casinos dropped 26 percent over three years, saving taxpayers $470,000 per month. In 1992, casino employees paid more than $380,000 in state income tax and $2.1 million in federal income tax. Tribal gaming operations spend nearly $62 million each year, creating 470 indirect jobs in other businesses. 23

Tribal gaming in Washington State is estimated to have created 1,200 jobs, with a total economic impact of more than $65 million in 1993. Unemployment on the Tulalips' reservation has dropped from 65 percent to less than 10 percent since the tribe opened its gaming operation in 1991. The Tulalips' casino injects $25.4 million into the local economy yearly in wages and direct purchases from local businesses. 24 The MashentucketPequots Foxwoods casino in Connecticut employs more than 20,000 workers, with an annual payroll of nearly $480 million. Every Foxwoods job supports 0.74 new jobs in the rest of Connecticut.

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