Home Page

Issues

Pertinent Web Links

Personal

Contact

GeorgeFearon     Legislator District 7

"DEIS Comments, Cayuga Indian Nation of New York Trust Acquisition Project"

Franklin Keel, Regional Director
Eastern Regional Office
Bureau of Indian Affairs
545 Marriott Drive, Suite 700
Nashville, Tennessee 37214

Mr. Franklin Keel: I am a Cayuga County Legislator representing the towns of Ledyard, Scipio and Springport. I live in the Town of Springport.

In section 3.8 G, the DEIS claims, "The Nation's LakeSide Trading and LakeSide Entertainment operations at its Seneca Falls and Union Springs properties generate economic activities that benefit the counties, and the state of New York, as a whole."

This DEIS claim is false. The direct changes projected in area employment and spending did not take into account the negative impact of lost jobs and spending in the two counties caused by unfair competition from Cayuga Indian Nation enterprises. Many competing businesses have experienced sales losses, or, in some cases, such as in Union Springs, have actually gone out of business completely. To be legitimate the DEIS would need to address all positive and negative aspects of Cayuga Indian Nation enterprises and report the real gain or loss.

LakeSide Trading in both Cayuga and Seneca counties replaced businesses that were already in place before being purchased by the Cayuga Indian Nation. Therefore, the jobs currently reported are not new jobs in the two counties.

The DEIS states, "Because the Nation is a sovereign tax-exempt entity, no sales taxes are paid on the Nation's purchases or collected on sales made by the Nation." Several United States Supreme Court decisions in the last three decades confirm that such taxes are applicable when sales are made to non-Indians.

The DEIS states that the gaming operations in Union Springs and in Seneca County have been "closed temporarily" and are "therefore not considered in the analysis of the current effects of the Nation's business activities." The Cayuga Indian Nation could easily expand its temporarily closed gaming facility in Union Springs countless times in the more than one hundred adjacent, undeveloped acres in Union Springs.

The Cayuga Indian Nation's application for land in trust states their intent to reopen gaming operations in both counties. I believe that the DEIS is grossly deficient for not analyzing the effects of the gaming operations that were in place and that are intended to be re-established. It is a gross deficiency that the DEIS does not address any potential expansions of land in trust or expansions of the use of such lands by the Cayuga Indian Nation. When something is set up that is supposed to last forever, valid projections must use more than past and present data. For the DEIS to be valid, it is imperative that projections are made regarding likely and expected future expansion of land in trust and the effects of expansion of the uses of such lands.

Research conducted by economists not underwritten by the gambling industry itself concludes that gaming has a negative effect on the general economy. Such research done by noted, unbiased economists concludes that the social costs are at least 1.9 times greater than the benefits. The DEIS fails to take into account any negative financial and social aspects of gaming. Failure to address such matters distorts the conclusions made in the DEIS.

Attached are three appendices of research done by noted economists who received no funding from the gaming industry. Consider the entire text of each appendix a part of my submission to the BIA.

Appendix #1
Grinols, Earl L., and David B. Mustard. "Business Profitability Versus Social Profitability: Evaluating Industries with Externalities, The Case of Casinos." Managerial and Decision Economics 2001:
143-162. 20 June 2009.

Appendix #2
Grinols, Earl L., David B. Mustard, and Cynthia Hunt Dilley. Casinos, Crime, and Community Cost.
June 2000. 20 June 2009

Appendix #3
Grinols, Earl L., and David B. Mustard. Measuring Industry Externalities: The Curious Case of Casinos and Crime.
March 2001. 1-35. 20 June 2009

The most comprehensive study of the economic costs and benefits of gambling in America may be found in the following:
Grinols, Earl L. Gambling in America Costs and Benefits. New York: Cambridge University Press, 2004.

The validity of FEIS could be greatly improved over the DEIS if it took into account the research results reported in this book. I am not submitting a copy of this book. For the record, consider the above title, in its entirety, to be part of my submission.

Where I Stand on Indian Land Claims
GeorgeFearon, Legislator District 7

Our nation was founded on July 4, 1776, with the Declaration of Independence, which stated that all men are created equal.  On July 19, 1848, in Seneca Falls, New York, the Declaration of Sentiments stated that all men and women are created equal.  This concept of equality is the cornerstone of our national philosophy.  The primary reason we fought both the American Revolution and the Civil War was the idea of equality and the rights that are associated with that concept.  Understandably, some of us are taller or shorter, richer or poorer, and represent different racial and religious backgrounds, in addition to many other differences among people.  The bottom line is that each of us has the same rights and privileges as Bill Gates.  We each have the right to vote.  We also have the obligation to pay taxes and are subject to all of the laws of the land.  As I see it, we are all on a level line, no one above and no one below.

I do not support the Indian Gaming Regulatory Act of 1988.  I do not support any Native Americans being exempt from paying property taxes.  I do not support Native Americans selling tobacco, alcoholic beverages and gasoline with any exemptions from paying or collecting the taxes on these products.  I believe this is not just a local problem but that, in fact, it is a national problem.

Inevitably, the federal government must deal with this problem and reestablish the equality of all peoples in our nation.  At the same time, because I believe in the equality of all humankind, I welcome anyone of any race or ethnicity as my friend and neighbor, as long as we respect each other as absolute equals.

On June 17, 1858, Abraham Lincoln stated in his House Divided speech, "A house divided against itself cannot stand."  This point relates to my thinking about all so-called Indian land claims and their ultimate resolutions.  I believe our government cannot endure permanently with some citizens paying tax and others exempt from paying tax.  I do not expect our government to fall; I do, however, expect that we must cease to be divided into citizens who pay taxes and citizens who are exempt from taxes.  It must become either one or the other, and we certainly cannot all be exempt.  Ultimately, I am certain our government will not allow the continued expansion of tax-exempt citizenry because it would threaten the very survival of the republic itself.

 In our country we too often do nothing about our problems until they reach a crisis stage.  There remain several unanswered questions. First, when will we reach the crisis stage?  Next, when will our federal officials finally begin listening to the taxpaying citizens?  Are the actions some individuals are currently taking effective in communicating our feelings to those who have the power to resolve the issue? Are the actions of some individuals actually counter-productive?  Finally,and most importantly, what, if anything, can we as a unified citizenry do to influence the time frames on this issue?
        (Printed in The Citizen on 11-29-01)

Is a Bingo Hall in Cayuga County a positive or a negative addition to our local economy?

Two economics professors, Earl L. Grinols of the University of Illinois, and David B. Mustard of the University of Georgia, are highly respected in their profession.  They are objective scholars who had no vested interest in the outcome of their research.  Together they have conducted exhaustive studies on the positive and negative effects of having gaming facilities in an area.  Ultimately they concluded that for every $1.00 dollar generated by a casino, the cost to the community was $1.90--one dollar and 
ninety cents!   

One may ask how can that be.  On the surface it is obvious that temporary jobs are created during construction.  Permanent jobs would be created to maintain and service the Bingo Hall.  The most obvious job creation would be for the people working in the Bingo Hall.  Tourism in the county would be enhanced.  It is also possible that something more than initial donations would be received from the Seneca-Cayuga Tribe of Oklahoma.  One cannot factor in such donations with any real assurance that they would continue in the long term, since the tribe has made it clear that it will not agree to any binding, permanent agreement to pay taxes or make other similar payments on an annual basis.

Although the research I read was done on the positive and negative effects of casinos, I believe that the same research would apply to bingo operations, with the only difference being the size of the operation.

On the negative side of their findings, several items stand out.  In a comparison of crime rates in every county in the United States, Professor Grinols discovered that crime in casino counties was 8-10% greater than in non-casino counties.  Other social and economic costs included increased rates of illness, stress, depression, anxiety, welfare, food stamps, divorce, separation, spousal abuse, child neglect and suicide.  For example, the suicide rate in Las Vegas is 2.5 times the national average. Pathological gamblers are responsible for most of the negative costs.  The rate of pathological gamblers in the population is about double the national average within fifty miles of a casino.  Our nation has an estimated fifteen million pathological gamblers and the number is growing as more and more gambling sites are constructed. There are other factors that should be considered to get a wider view of the impact of a Bingo Hall.  The people of the area only have so many dollars to spend on anything.  If they spend more on gambling, then they have less left to spend on everything else.  If less is spent on everything else, business in the area suffers.  Area businesses will likely end up cutting employees, which reduces the gains made by the new jobs at the Bingo Hall.  
The Seneca-Cayuga Tribe of Oklahoma says they will sell tobacco, and they do not rule out selling gasoline.  They do not plan to pay any excise taxes on such sales, and that would make it very difficult for our local businesses to compete.  Not paying the state excise tax of fifteen dollars per carton would cost the State of New York over one hundred million dollars per year if cigarette sales in our state were to match what the tribe sells elsewhere. 

In the end, one of the most unfortunate parts of having more gambling in an area is that with the transfer of money that occurs, the poor end up with less and those who are already rich end up with more.            
        (printed in the Post Standard and the Citizen)

An open letter to Clint Halftown:
You may be baffled by the fact that some of your fellow United States citizens express their objections to the way the Cayuga tribe does business.  As you are aware, some citizens refuse to buy tobacco or gasoline from the tribe.  Some citizens also participate in public demonstrations against tribal enterprises.  I am one of the concerned citizens who on occasion write letters to area newspapers discussing why we object to the way the tribe currently does business.

As a whole, our primary objection to tribal enterprises is that you collect and pay no taxes on products you sell.  We consider this to be grossly unfair to competing businesses.  As you are aware, the Supreme Court of the United States of America has for twenty-three years upheld the right of states to collect all appropriate state taxes on goods and services sold or provided to all non-tribal members.  The U.S. Supreme Court stated in its 1980 decision, Washington State v. Confederated Tribes, We do not believe that principles of federal Indian law, whether stated in terms of pre-emption, tribal self-government, or otherwise, authorize Indian tribes thus to market an exemption from state taxation to persons who would normally do their business elsewhere.  The Court also noted that the State of Washington had the right to seize unstamped cigarettes to enforce its valid taxes.  The collection by tribal businesses of sales and excise taxes from non-member customers is legal, and it is fair.  I am sure that you are aware of the many court cases based on Article I, Section 8, Clause 3 of the Constitution of the United States that have repeatedly supported the Washington State decision.

You claim that to pay such taxes is an affront to tribal sovereignty.  The reality is that tribal sovereignty in the United States is defined by actions of Congress, which the Supreme Court has ruled has an intrinsic power to deal with Indian nations in the United States.  The reality is that Indian sovereignty is in fact a dependent sovereignty not equal to the type of sovereignty held by the independent nations of the world. States are also limited in the scope of their sovereignty.  The Tenth Amendment to the Constitution makes it clear that states only have powers not delegated to the United States and not prohibited by the Constitution. The independent nations of the world, unlike American Indian tribes, are full sovereigns.  Fully sovereign nations of the world follow certain rules and regulations attempting to promote and maintain a peaceful and environmentally safe world.  The concept of tribal sovereignty you appear to be claiming puts you above all of the independent nations of the world.  Some of us do choose to recognize a sovereign that is above all others, and that entity we refer to as our creator.  Although the state currently does not collect from your enterprises the taxes allowed by law, we choose not to commit a class E felony in the State of New York by driving down public roads using untaxed fuel.  We are well aware that every cent of taxes that you are not paying to the state must be made up by other forms of revenue, for government rarely chooses to operate with reduced income.  Ultimately, we hope to be able to establish a relationship with you in which fairness rules the day.  Such a relationship would be based on the concept of equality of all people, regardless of their ancestry or their lifestyle.  We hope to work with you and have you work with us in developing this area to its potential for the mutual benefit of all citizens.  
        (Printed in the Post Standard and the Citizen)

Contaminated Water
http://freepages.genealogy.rootsweb.com/~springport/pictures207/fearon/ContaminatedWater.htm

Home   Issues   Pertinent Web Links   Personal   Contact