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January 12, 2005

Schwarzenegger backtracks on new compact revenues

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California Gov. Arnold Schwarzenegger (R) released a new budget on Monday that dramatically revises the amount he expects from new gaming compacts he signed with a small group of tribes.

Instead of $300 million, Schwarzenegger expects just $16 million from the tribes this year and $34.3 million next year. An official said the tribes haven't added slot machines as quickly as anticipated.

The tribes with new compacts are still expected to finance a $1 billion bond to help bail the state out of its budget crisis.

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