A report released last week by the state’s Indian Gaming Commission contains some interesting information.
In essence, it fights the assumption shared by many that tribes with gambling casinos and other economic endeavors are siphoning money off the state’s economy.
On the contrary, it suggests that economic improvements such as those the Tulalip Tribes have made at Quil Ceda Village west of Marysville help everyone.
It’s hard not to notice what’s happened on tribal reservation land during the past few years. The tribes’ property along I-5 became home to a big casino, some small shopping centers, a Wal-Mart, a Home Depot and finally a premium outlet mall with 100 or so shops that has done so well, it’s about to be expanded.
Next week, the tribal government will break ground for a new hotel that will have 363 rooms in 12 stories. The $130 million facility will also include a day spa, two restaurants and a conference center. More development is planned.
The hotel will undoubtedly add to the jobs available for tribal members and everyone else. According to the study, economic endeavors on tribal property already provide 1,400 nongaming jobs, making the Tulalips one of the biggest employers in Snohomish County.
In addition to jobs, it will also provide the state and local governments with more tax revenue. The study notes that in 2003, Quil Ceda Village had $95.5 million in sales that generated $6.2 million in sales taxes. Last year, after the outlet stores had been in business, that number vaulted to $311 million in sales and $26 million in sales taxes for the state, Snohomish County and Marysville.
The study notes that the tribes don’t receive any of that sales tax money, even though the Tulalips literally paved the way for that tax growth by installing roads, sewer and water lines and other infrastructure in the area.
That’s been a political hot potato in the Legislature in recent years. The federal government recognizes Quil Ceda Village as a local government entity. The state does not, hence the tribes can’t share in the sales taxes they collect.
Wherever you stand on the political issue of the tribes sharing in those tax revenues, you can’t ignore the point that as the tribal government improves its own finances via Quil Ceda Village, we all share in that.
Earlier studies by the Washington Research Council have suggested that tribes are a bit of an economic sinkhole because of the state’s limited ability to tax things on reservations. The suggestion is that provides an unfair advantage to the tribes and costs the state money.
The tribal gambling commission study states there’s no evidence of that. It suggests the opposite, that instead of siphoning off tax money, new casinos increase the economic vitality of the surrounding areas and that there have been no decline in tax revenue.
“Indian participation in the Washington economy does not cause money to disappear, to the detriment of state and local government treasuries,” noted the report by a Massachusetts firm called Taylor Policy Group Inc. “To the contrary, tribal integration into the Washington economy rebounds to the benefit of employees, vendors and even the state and local treasuries….as employees turn to the Washington economy for goods and services.”
The Tulalips obviously benefit the most.
And the study notes that the government has used increasing discretionary money for things such as supporting The Heritage School, a high school in which Tulalip subsidies pay for increased teaching of tribal culture. Money has also helped pay for an improved health care center and support of the Canoe Family cultural program.
Mike Benbow: 425-339-3459; benbow@heraldnet.com.
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