Budget proposal could further strain tribe's relationship with Legislature Tribe stands to lose portion of cigarette tax By Jessica La Plante News-Chronicle If Gov. Jim Doyle doesn't veto a tax provision in the new state budget, Oneida Nation leaders say it would be a throwback to the days when the tribe couldn't trust the U.S. government to keep its promises. Kathy Hughes, vice chairwoman of the tribe's Business Committee, said the provision would violate a 1988 agreement that gives the tribe 70 percent of tax revenues from cigarettes sold on the reservation. "That's an agreement that was reached with the state of Wisconsin over a decade ago," Hughes said. "There was no discussion about it between the state and tribe; they simply included it in their budget package." The measure included in the budget reverses the split to give the tribe 30 percent while the state would get 70 percent of the tax revenues. Hughes said the tribe relies on the money to help fund social-service programs for its 15,000 citizens. More than straining the tribe's resources, passing the provision could weaken the tribe's relations with state legislators. If the governor does not veto the measure, "I think there would be certainly more caution in how we proceed in entering (future) agreements," Hughes said. She said even more troubling than the loss of money is what the tribe perceives as a breakdown of communication with the state. She said written appeals sent to state lawmakers about the issue have gone unanswered. When the tribe learned of the cut, "we definitely felt left out in the cold," she said. "It brings us back to decades ago when there was tension. It's unfortunate that some of the things that occurred more than a decade ago seem to be occurring again." A new gaming compact, negotiated between Doyle and the tribe, has created tension between tribal leaders and lawmakers, Hughes said. A bill was passed in the state Assembly to override the governor's agreement, but he vetoed the measure. In exchange for expanded gambling rights for an unlimited time period, the compact requires the tribe to make a $20 million payment to the state in 2004 and 2005 and another $18 million payment in 2006. After that, the Oneida will pay 6 percent of their profits to the state in 2007, then alternate between 4 and 5 percent in following years. The Oneida are paying $4.85 million a year, tribal officials have said. To meet that obligation, the tribe will have to borrow money, making the $2 million in cigarette tax revenues all the more valuable, Hughes said. Despite the large payments the state will receive from the Oneida and other tribes, Hughes said some legislators feel Wisconsin got a bad deal. She said she fears the recent changes in the budget are an attempt by legislators to right a perceived wrong. To persuade the governor to veto the budget proposal, the tribe will increase its lobbying efforts in the upcoming weeks. "We've been referring to this as punitive actions against the tribe for disagreement on how the whole compact process was handled," Hughes said. Members of the Wisconsin Legislature, however, disagree. State Rep. Becky Weber, R-Green Bay, whose district includes part of the Oneida reservation, said the proposed tax measure was an act of desperation, not retaliation. "Because of the $3.2 billion deficit, anywhere there was a pot of money, it was taken to balance the budget," she said. Weber said she and other legislators met with the tribe on several occasions to hear their concerns about the budget. "I feel that the tribe did have as much input as anyone else did into the decision making of the joint finance committee," Weber said. "It's different to say we didn't have input than to say we had input but we didn't like the end results." She said the tribe received no more or less consideration than any other special-interest group, and said she didn't believe the provision violates any pre-existing agreements with the tribe. "I don't believe they've done anything that would be illegal by any means," Weber said. "There's a lot of money that was taken this time around that people do not feel was ethical or fair, but this is a drastic budget."