BET YOU DIDN''T KNOW

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BET YOU DIDN''T KNOW

  1. 1. BET YOU DIDN’T KNOW... <ul><li>THE FACTS ABOUT TRIBAL GOVERNMENTS AND INDIAN GAMING IN MINNESOTA </li></ul>
  2. 2. PART I: SOVEREIGNTY AND TRIBAL GOVERNMENT
  3. 3. 1. THE SOVEREIGNTY OF TRIBAL NATIONS IS RECOGNIZED IN: <ul><li>A. The Declaration of Independence </li></ul><ul><li>B. The Bill of Rights </li></ul><ul><li>C. The U.S. Constitution </li></ul>
  4. 4. The correct answer is C. <ul><li>U.S. Constitution specifically recognizes tribes as sovereign governments, like states and foreign nations </li></ul><ul><li>U.S. Supreme Court has upheld this view since early 1800’s </li></ul>
  5. 5. 2. The sovereignty of TRIBAL NATIONS IS best described as a right: <ul><li>A. Conferred by Congress </li></ul><ul><li>B. Retained under treaties with the U.S. </li></ul><ul><li>C. Granted by the Supreme Court </li></ul>
  6. 6. The correct answer is B. <ul><li>Self-government is a retained right because: </li></ul><ul><li>Tribes were governing themselves, providing for their people and negotiating treaties with foreign powers, before U.S. was formed </li></ul><ul><li>Treaties with U.S. guaranteed right to continued self-government </li></ul>
  7. 7. 3. True or False? <ul><li>Tribes have the same sovereign powers and responsibilities as states. </li></ul>
  8. 8. The correct answer is True. <ul><li>Tribes, like states, are obligated and empowered to: </li></ul><ul><li>Provide housing, education, health/welfare </li></ul><ul><li>Provide roads, bridges, water, sewer/sanitation </li></ul><ul><li>Provide law enforcement, courts, emergency services </li></ul><ul><li>Raise revenues through taxes and other means </li></ul><ul><li>Negotiate agreements with other governments </li></ul>
  9. 9. PART II. THE LEGAL BASIS FOR INDIAN GAMING
  10. 10. 4. Tribes can conduct gaming activities because: <ul><li>A. The Supreme Court upheld their right to do so. </li></ul><ul><li>B. Congress authorized them to do so. </li></ul><ul><li>C. States authorized them to do so. </li></ul>
  11. 11. The correct answer is A. <ul><li>1987 California v. Cabazon decision: tribes as sovereign governments may conduct gaming on Indian lands without regulation or interference by state, as long as gambling in some form is legal in that state </li></ul><ul><li>Minnesota had state lottery, parimutuel wagering and charitable gambling at the time </li></ul>
  12. 12. 5. True or False? <ul><li>The Indian Gaming Regulatory Act (IGRA) expanded the rights of tribes to conduct gaming on the reservation. </li></ul>
  13. 13. The correct answer is False. <ul><li>IGRA actually curtailed tribal rights by requiring that tribes negotiate compacts with states in order to conduct gaming operations </li></ul><ul><li>This gave states unprecedented control over tribal government activities </li></ul>
  14. 14. 6. True or False? <ul><li>Indian gaming is unregulated because of tribal sovereignty. </li></ul>
  15. 15. The correct answer is False. <ul><li>Tribal casinos are highly regulated by: </li></ul><ul><li>Tribal governments </li></ul><ul><li>U.S. Congress </li></ul><ul><li>U.S. Department of Interior (BIA) </li></ul><ul><li>National Indian Gaming Commission </li></ul><ul><li>State of Minnesota via compacts </li></ul>
  16. 16. 7. True or False? <ul><li>The State of Minnesota has virtually no regulatory authority over tribal gaming. </li></ul>
  17. 17. The correct answer is False. <ul><li>Under compacts, the State can: </li></ul><ul><li>Inspect video slots without notice and remove non-compliant machines from play </li></ul><ul><li>License and conduct background checks on key casino personnel </li></ul><ul><li>Inspect records and documents related to slot operations </li></ul>
  18. 18. More state powers... <ul><li>Set payouts and technical standards for slots </li></ul><ul><li>Set rules of play, technical standards, staffing and video surveillance requirements for blackjack </li></ul><ul><li>Obtain CPA audits of gaming operations </li></ul>
  19. 19. PART III. THE ECONOMIC IMPACT OF INDIAN GAMING
  20. 20. 8. How many jobs are represented by Indian gaming in Minnesota? <ul><li>A. 8,000 </li></ul><ul><li>B. 12,000 </li></ul><ul><li>C. 14,000 </li></ul>
  21. 21. The correct answer is C. <ul><li>Tribal casinos account for a whopping 12,000 jobs in Minnesota </li></ul><ul><li>Annual payroll of nearly $200 million </li></ul><ul><li>This makes tribal gaming the 9th largest employer in Minnesota! </li></ul>
  22. 22. The Top Ten Employers in Minnesota #1-5 <ul><li>State of Minnesota 51,409 </li></ul><ul><li>University of Minnesota 34,309 </li></ul><ul><li>U.S. Government 33,665 </li></ul><ul><li>Dayton-Hudson 28,544 </li></ul><ul><li>3M 22,967 </li></ul>
  23. 23. The Top Ten Employers in Minnesota #6-10 <ul><li>Allina Health Systems 20,200 </li></ul><ul><li>Northwest Airlines 17,000 </li></ul><ul><li>Mayo Foundation 15,940 </li></ul><ul><li>Tribal Casinos 12,000 </li></ul><ul><li>Hennepin County 10,490 </li></ul>
  24. 24. More on Tribal Gaming Jobs... <ul><li>75% are held by non-Indians, 25% by Indians </li></ul><ul><li>95% are full-time with full benefits </li></ul><ul><li>60% are rural, 40% are urban </li></ul><ul><li>Average wage is $16,082 ($7 per hour) </li></ul>
  25. 25. 9. How much tax revenue do tribes remit to state and federal governments? <ul><li>A. $20 million annually </li></ul><ul><li>B. $40 million annually </li></ul><ul><li>C. $60 million annually </li></ul>
  26. 26. The correct answer is C. <ul><li>Tribes pay more than $60 million yearly: </li></ul><ul><li>$25+ million in Social Security/Medicare </li></ul><ul><li>$19+ million in federal withholding </li></ul><ul><li>$8 million in state withholding </li></ul><ul><li>$2 million state and federal unemployment </li></ul><ul><li>$6 million in state/local payments in lieu of taxes </li></ul>
  27. 27. 10. How much do Minnesota tribes spend annually purchasing goods and services from Minnesota vendors? <ul><li>A. $30 million </li></ul><ul><li>B. $75 million </li></ul><ul><li>C. $100 million </li></ul><ul><li>D. More than $100 million </li></ul>
  28. 28. The correct answer is D. <ul><li>Actual tribal gaming purchases of goods and services from Minnesota vendors: </li></ul><ul><li>In excess of $110 million annually </li></ul>
  29. 29. 11. The Mall of American is the #1 tourist attraction in Minnesota. Which of the following is second? <ul><li>A. Valleyfair </li></ul><ul><li>B. Tribal Casinos </li></ul><ul><li>C. The Minnesota Zoo </li></ul>
  30. 30. The correct answer is B. <ul><li>Tribal casinos are state’s 2nd largest tourist attraction </li></ul><ul><li>Tribal casinos attract 3.3 million out-of-state visitors each year </li></ul><ul><li>Casino visitors spend $116 million annually at Minnesota lodging, dining, retail and convenience stores </li></ul>
  31. 31. More on Tribal Casinos and Tourism... <ul><li>Tribal casinos spend, in aggregate, about eight times as much as the state’s own Department of Tourism on tourism promotion to attract out-of-state visitors to Minnesota. </li></ul>
  32. 32. 12. True or False? <ul><li>Tribal gaming hurts counties because Indian tribes don’t pay property taxes. </li></ul>
  33. 33. The correct answer is False. <ul><li>In counties with tribal casinos: </li></ul><ul><li>Welfare costs have declined </li></ul><ul><li>Economic activity has increased </li></ul><ul><li>Property values have risen </li></ul><ul><li>Source: Arthur Anderson Study 1998, Runge Study 2005 </li></ul>
  34. 34. Tribal Gaming and Scott County: An Economic Success Story <ul><li>Property tax revenues up 56% since 1990, but tax rate up only 12% </li></ul><ul><li>Job creation up 29% since 1985 </li></ul><ul><li>Total wages up 57% since 1985 </li></ul><ul><li>Retail sales up 54% </li></ul><ul><li>Employment up 52% since 1992 </li></ul><ul><li>Market value of real property up 100% since 1986 </li></ul>
  35. 35. PART IV. MEETING THE NEEDS OF TRIBAL COMMUNITIES
  36. 36. 13. How much of the money wagered at casinos is retained by tribes as net income? <ul><li>A. 4% </li></ul><ul><li>B. 15% </li></ul><ul><li>C. 30% </li></ul>
  37. 37. The correct answer is A. <ul><ul><li>Gross Wager 100% </li></ul></ul><ul><ul><li>Prize Payouts -88% </li></ul></ul><ul><li>Net Gaming Revenue 12% </li></ul><ul><ul><li>Food/Beverage Sales +4% </li></ul></ul><ul><li>Total Net Revenue 16% </li></ul><ul><li>Operating Expense -12% </li></ul><ul><ul><ul><li>Net Income 4% </li></ul></ul></ul>
  38. 38. 14. What is the largest expense for most tribal governments? <ul><li>A. Government operations and infrastructure </li></ul><ul><li>B. General welfare of tribal members </li></ul><ul><li>C. Economic development programs </li></ul><ul><li>D. Charitable contributions </li></ul>
  39. 39. The correct answer is A. <ul><li>Government operations and infrastructure development account for 40 - 50% of most tribal budgets. As for the rest: </li></ul><ul><li>General welfare programs 25 - 35% </li></ul><ul><li> and services (on/off res) </li></ul><ul><li>Economic development 10 - 20% </li></ul><ul><li>Charitable contributions 5 - 15% </li></ul>
  40. 40. 15. True or False? <ul><li>Tribal gaming only benefits Indians who live on the reservation. </li></ul>
  41. 41. The correct answer is False. <ul><li>Every tribe finances programs and services for off-reservation members </li></ul><ul><li>All tribes contribute to urban centers where Native Americans from Minnesota and elsewhere can obtain assistance </li></ul>
  42. 42. 16. How many of Minnesota’s eleven tribes pay per capita payments to members? <ul><li>A. Four </li></ul><ul><li>B. Six </li></ul><ul><li>C. Seven </li></ul><ul><li>D. Nine </li></ul>
  43. 43. The correct answer is B. <ul><li>Only the 4 Sioux tribes make monthly per capita payments--fewer than 500 members each, very small reservations </li></ul><ul><li>Two Chippewa tribes pay small annual amounts--thousands of members, rural casinos, high demand for programs, services and infrastructure upgrades </li></ul>
  44. 44. More on Per Capita Payments... <ul><li>Under federal law, per capita payments: </li></ul><ul><li>Must be approved by federal government before distribution to tribal members </li></ul><ul><li>Can only be paid after community needs are met </li></ul><ul><li>Are taxable income to tribal members </li></ul>
  45. 45. 17. What is the largest unmet need still facing Minnesota reservations? <ul><li>A. Education </li></ul><ul><li>B. Housing </li></ul><ul><li>C. Health Services </li></ul><ul><li>D. Public Works and Safety </li></ul><ul><li>E. Capital Debt Retirement </li></ul>
  46. 46. The correct answer is B. <ul><li>#1 Housing $120,000,000 </li></ul><ul><li>#2 Debt Retirement 100,000,000 </li></ul><ul><li>#3 Education 96,000,000 </li></ul><ul><li>#4 Govt Operations 76,000,000 </li></ul><ul><li>#5 Health Services 70,000,000 </li></ul><ul><li>#6 Public Works 34,000,000 </li></ul><ul><li>TOTAL UNMET NEEDS: $500,000,000 </li></ul>
  47. 47. PART V. INDIANS, TAXES AND LAND
  48. 48. 18. do INDIANS PAY FEDERAL TAXES? <ul><li>A. Indians are exempt from federal income taxes. </li></ul><ul><li>B. Indians pay some federal taxes, but at lower rates than others. </li></ul><ul><li>C. Indians pay the same federal taxes everyone else pays. </li></ul>
  49. 49. The correct answer is C. <ul><li>Indians pay federal income taxes just like everyone else on all income, including per capita payments from gaming. </li></ul>
  50. 50. 19. True or False? <ul><li>Indians are exempt from state income taxes. </li></ul>
  51. 51. The correct answer is False. <ul><li>The vast majority of Indians pay state income tax like everyone else. </li></ul><ul><li>Only exceptions: Those who live and work on the reservation--(fewer than 20% of all Indians in Minnesota) </li></ul>
  52. 52. 20. True or False? <ul><li>Indians are exempt from county property taxes. </li></ul>
  53. 53. The correct answer is False. <ul><li>60% of Minnesota Indians live off-reservation, and pay county property taxes like everyone else </li></ul><ul><li>Reservation Indians living on fee land pay county property taxes like everyone else </li></ul><ul><li>Only exception: those who live on federal trust land within reservation boundaries </li></ul>
  54. 54. 21. True or False? <ul><li>Indians are exempt from excise and sales taxes. </li></ul>
  55. 55. The correct answer is False. <ul><li>Indians pay all federal excise taxes. </li></ul><ul><li>Indians pay all state sales taxes under voluntary agreements between tribes and the State of Minnesota </li></ul><ul><li>Without voluntary agreements, the State has no authority or mechanism for collecting state taxes on the reservation </li></ul>
  56. 56. 22. What share of tax-exempt lands in Minnesota belongs to tribes? <ul><li>A. Less than 1% </li></ul><ul><li>B. 5% </li></ul><ul><li>C. 10% </li></ul><ul><li>D. 20% </li></ul>
  57. 57. The correct answer is A. <ul><li>Tribes hold less than six-tenths of 1% of all public lands in Minnesota by market value </li></ul><ul><li>Other large tax-exempt land holders: </li></ul><ul><ul><li>U.S. government </li></ul></ul><ul><ul><li>State of Minnesota </li></ul></ul><ul><ul><li>County governments </li></ul></ul><ul><ul><li>School districts </li></ul></ul><ul><ul><li>Churches </li></ul></ul>
  58. 58. 23. True or False? <ul><li>Allowing tribes to purchase land and put it into trust for government purposes harms counties by denying them the tax revenue those lands might have generated. </li></ul>
  59. 59. The correct answer is False. <ul><li>Counties gain far more than they lose when tribes use trust land to operate casinos or other successful businesses, especially in rural areas </li></ul><ul><li>This fact explains why most cities and counties offer tax-relief or tax-funded incentives to stimulate new business and job creation </li></ul>
  60. 60. 24. Which of the following did not benefit from taxpayer-funded public investment or incentives? <ul><li>A. The Mall of America </li></ul><ul><li>B. Polaris, Inc. </li></ul><ul><li>C. Northwest Airlines </li></ul><ul><li>D. Tribal casinos </li></ul>
  61. 61. The correct answer is D. <ul><li>Tribal casinos were developed without a nickel of state investment… </li></ul><ul><li>That means the 14,000 jobs created in tribal gaming didn’t cost taxpayers a dime! </li></ul>
  62. 62. That’s it…how did you do? <ul><li>Give yourself 1 point for each correct answer: </li></ul><ul><li>21-24 correct...You’re a whiz! </li></ul><ul><li>17-20 correct... Not bad but keep at it </li></ul><ul><li>14-16 correct... You’re on shaky ground </li></ul><ul><li>Less than 14 correct… would you like a copy of this presentation for future study? </li></ul>

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