It shouldn’t come as a surprise that the Ho-Chunk Nation missed its June30, 2008 deadline to make a payment to the state of Wisconsin for gambling operations. Since 2004, according to the Milwaukee Journal/Sentinel, the tribe has made only one payment, $30 million in 2006. The Ho-Chunk Nation now owes the state close to $100 million at a time when the state’s fiscal matters are fragile at best.
Why is the Ho-Chunk Nation refusing to make its payments? The tribe alleges that under a 2004 ruling by the state Supreme Court, Governor Doyle exceeded his authority by negotiating new Indian gaming compacts that expanded gambling into perpetuity. The Ho-Chunk Nation contends the value of its 2003 compact was reduced by the court’s 2004 ruling and has refused to make payments until a new agreement can be reached.
Some history is in order.
On May 13, 2004, the state Supreme Court, in a 4-3 decision in Panzer v. Doyle, ruled that Governor Doyle exceeded his authority by agreeing to certain provisions in the 2003 amendments to the gaming compact between the state and the Forest County Potawatomi (FCP) Tribe by agreeing to expanded games, lengthening the compact to perpetuity, and waiving the state’s sovereign immunity.
After the 2004 ruling, Diane Sykes left the state Supreme Court to become a federal judge and was replaced by Governor Doyle’s appointee, Louis Butler. The change in the make-up of the court proved to be significant.
On July 14, 2006, the state Supreme Court ruled that a 1993 amendment to the state constitution approved by voters in a statewide referendum that stated Wisconsin has enough gambling and should not expand does not apply to Indian casinos. The court also affirmed the governor’s authority to renegotiate Indian gaming compacts, paving the way for a huge expansion of gaming at the Potawatomi facility in Milwaukee.
Meanwhile, the Ho-Chunk Nation continues to fight its case in court and is lagging on payments. The inaction is affecting the state budget. As I’ve written in the past, budgets have been drafted and approved assuming the Ho-Chunk Nation will make good on its payments, but that hasn’t happened. Taxpayers have made up the difference, and the Milwaukee Journal/Sentinel reports the state has spent close to $1.4 million in legal bills to settle its dispute with the Ho-Chunk Nation.
It is concerning and very unfortunate that the issue of gambling has created a scenario that adversely affects taxpayers. Budgets adopted crossing our fingers and hoping the Ho-Chunk will come through with their payments is not sound budgeting.
