Seminoles offer $600 million toward gambling deal

Gov. Charlie Crist is proposing that the state solve much of its budget deficit problem this year and next year with a "front-loaded" gambling compact - in effect a loan - with the Seminole Tribe of Florida.

Under the agreement Crist just announced, but which would need approval by the Legislature, the state would get most of the first four years' worth of its share of Seminole gambling revenue in the next two years, some $1.1 billion.

Crist said it was his preference that the money go to education.

"I can't tell you how grateful I am" to the Seminoles for agreeing to the proposal, Crist said at a news conference a few minutes ago with Seminole Tribal Council member Max Osceola.

"We've distributed this to our friends in the Legislature ... and I think they'll be pleased with this kind and generous offer," he said.

But there were indications that the Legislature may not be as receptive as Crist hopes.

Rep. Bill Galvano, R-Bradenton, chairman of the House committee in charge of the Seminole gambling compact, immediately issued a statement panning the deal.

"Taking out a line of credit from the Seminoles is not a responsible way to balance our budget," he said. "It is not the best deal for Florida."

Galvano called it "a short term solution that will lead to long-term problems for our state and its industries."

Under the deal, Florida would get a 10 percent share of all Seminole gambling proceeds up to $2 billion, and then a percentage that increases up to 25 percent of everything over $5 billion.

But because of the front-loading arrangement, the agreement would give the state $600 million in the coming budget year, $500 million the following year, nothing in the third year and very little money in the fourth year.

Asked whether it's wise to depend so heavily on gambling revenue and federal stimulus dollars for the next two years, when they won't be available thereafter, Crist responded with characteristic optimism.

"The other thing that is happening, that I believe is already starting to happen, is that we are seeing the, hopefully, beginning of the end of the recession," he said.

Crist's compact allows some expansion of gambling on Seminole reservations and at existing pari-mutuel facilities. It allows more expansion of gambling than a compact approved by the state House, but less than approved by the state Senate.