Seneca Tribe host communities suffer

Action taken on Seneca Tribe stalemate that penalized host communities --

Council acts on casino payments

SALAMANCA — The City Council has approved a resolution asking Gov. David A. Paterson to grant the request of the Seneca Nation of Indians to make payments from casino revenues directly to host communities.

The Senecas — under a state contract—pay the host communities of Salamanca, Buffalo and Niagara Falls a percentage of slot machine revenues but have withheld around $200 million due the state since Aug. 30.

The Senecas maintain the state has not complied with terms of a 2001 Gaming Compact, by allowing similar gambling in several locations around the state.

The City of Salamanca is without payments for 2009 and 2010 and is short about 50 percent of its current $7 million budget.

As a result, the city terminated 49 positions last month and has taken other belt-tightening measures to keep the city operating.

The Salamanca City Central School District was expecting to receive a share of the casino revenues, around $875,000. If the aid isn’t forthcoming, some layoffs might be necessary, officials said.

Earlier this week, the city School Board approved a resolution asking the state to allow the Senecas to make direct payments and asking the state to give the tribe credit for those payments.

Cattaraugus County government also shares in the revenues and is waiting for about $1 million.

Legislators adopted a resolution Wednesday sending a copy to the Senecas, Paterson and other state officials, supporting the Seneca’s proposal to make payments directly to host communities.

The city further asked Paterson to support legislation required to enable the temporary solution to the financial crisis facing the host communities to take effect while a permanent solution is being negotiated and an arbitration process begun.

In the meantime, Pond is sending letters to Paterson and other elected state officials listing the financial impacts on city operations.