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THE NEW MEXICAN Wednesday, December 18, 2013
Sues: State says it has negotiated in good faith
Gap: Group expects at least 3 years before next recession
Continued from Page A-1 “The course of negotiations between the State and the Tribes, Pueblos and Nations within New Mexico, including Pojoaque, over the gambling issue has been lengthy and litigious.” Pojoaque Pueblo was one of two tribes that refused to sign compacts that other tribes agreed to in 2001. Pojoaque didn’t sign on until 2005. In 2007, the state agreed to extend the term of the 2001 compacts for tribes that agreed to a tax increase of up to 10.75 percent of net win, or gross gaming revenue. Pojoaque Pueblo again balked. According to the lawsuit, the “most glaring demonstration of the state’s failure” to negotiate in good faith is insisting that Pojoaque pay the increased tax under the 2007 compact. That would raise the revenuesharing requirement from 8 percent to 9.5 percent of the tribe’s gross gambling revenues. This percentage would increase gradually to 10.5 percent over the 23-year life of the compact. This “illegal tax” would result in “a substantial percentage of the Pueblo’s critical governmental revenue being deposited directly into the state’s general fund,” the lawsuit says. The lawsuit notes that while the state is demanding what the pueblo calls a “tax,” the state has lowered the corporate income tax from 7.6 percent to 5.9 percent. Pojoaque also objects on the state’s insistence that the pueblo limit its gaming operations to two, as well as “numerous provisions that are not directly related to the licensing
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Pojoaque Pueblo business managers and attorneys held a conference call with investors Tuesday to update them on the lawsuit against the state. CLYDE MUELLER/THE NEW MEXICAN
or regulation of Class III gaming.” Among these are certain restrictions related to alcohol service, such as not allowing drinks on the gaming floor, prohibiting complimentary food, drinks or lodging, and mandating certain employment benefits. Pojoaque, according to the suit, has been requesting compact negotiations with the state since June 2010. The state didn’t appoint a negotiator until April 2012. “Since May 23, 2012, representatives of the state and the tribe have met on numerous occasions in the context of negotiating a new compact. Although there has been progress made on a few, nonsubstantive issues, the state’s demands regarding the crux of critical issues have not changed,” the lawsuit said. Knell said: “We’ve engaged in nearly
20 months of good-faith negotiations with several tribes and nations, striving for an agreement that would be fair for both the tribes and the state. The terms being discussed in our current negotiations are very reasonable — consistent with federal law and previously negotiated compacts.” The Navajo Nation also is pushing for a new compact that would allow the tribe to open three more casinos in New Mexico and to lower the percentage of winnings it shares with the state. That proposed new compact originally passed through legislative committees in March, but the Legislature adjourned before it could be approved. The Legislature is expected to consider the new Navajo compact in the legislative session that begins in January. New Mexico currently has 27
tribe-owned-and-operated casinos and five non-Indian racetracks, each of which may operate up to 750 gaming machines. The state has gambling compacts with 14 tribes and received more than $134 million in taxes and a share of tribal casino profits during the last fiscal year. Pojoaque Pueblo has contributed a total of $10,000 to the campaign of Attorney General Gary King, who is running in next year’s Democratic gubernatorial primary in hopes of running against Martinez in the general election. The Associated Press contributed to this report. Contact Steve Terrell at sterrell@ sfnewmexican.com. Read his political blog at roundhouseroundup.com.
Alcohol: MADD to receive 10 percent of food sales Continued from Page A-1 cans at risk by contributing to drunk driving will not be tolerated in New Mexico.” Jim Hargrove, president of Santa Fe Dining — the company that manages Blue Corn and several other restaurants owned by Santa Fe businessman Gerald Peters — said in a written statement Tuesday that the company has “seriously examined its procedures” since the March 5, 2010, incident and has instituted new training protocols for employees concerning the serving of alcohol. The sisters died after Albuquerque resident James Ruiz, now 38, slammed a pickup into the back of their family’s vehicle on Cerrillos Road near the Santa Fe Auto Park after spending several hours drinking with friends, first at Applebee’s Neighborhood Grill and Bar and then at the Blue Corn Cafe and Brewery. The sisters’ parents, David and Darlene Peshlakai, also were injured in the accident, as were Ruiz and his two passengers, according reports at the time. The Peshlakai family’s dog also died in the incident. Ten hours after the crash, Ruiz’s blood alcohol level was recorded as 0.22, almost three times the level at which a driver legally is presumed drunk in New Mexico. Ruiz was found guilty of two counts of vehicular homicide and two counts of causing great bodily harm with a vehicle while driving under the influence. He was sentenced to 42 years in prison — his sentence was increased by 24 years because he had four prior DWI arrests — and is serving that time at a state prison in Grants. Nearly four years after the tragedy, its effects continue to ripple through the community. In addition to the sanctions announced Tuesday, at least two civil lawsuits stemming from the incident are still pending. One is a wrongful death claim filed
Albuquerque resident James Ruiz caused a deadly crash on Cerrillos Road after spending several hours drinking, first at Applebee’s Neighborhood Grill and Bar and then at the Blue Corn Cafe and Brewery on March 5, 2010. Two sisters were killed and several others injured. The state has fined Blue Corn $10,000 and halted the sale of alcohol at the bar for 15 days. NEW MEXICAN FILE PHOTO
against Blue Corn, The Peters Corporation, Applebee’s International and related corporations by the Peshlakai family in 2010. The mother of the deceased girls — who now uses the name Darlene Thomas — said Tuesday she was afraid to make any comment because of ongoing litigation related to the incident. Another case involving the 2010 incident is a personal injury complaint that Ruiz filed in March against Applebee’s International, Blue Corn II Inc., Santa Fe Dining Inc. and The Peters Corporation. In that complaint, Ruiz seeks damages from the establishments that served him, claiming they violated their “common law duty of care” when they sold liquor to him even though he was obviously intoxicated.
The complaint also blames Gilbert Mendoza, the owner of the truck Ruiz was driving the night he smashed into the Peshlakai family, saying Mendoza knew Ruiz was drunk and knew he had previous arrests for driving while intoxicated, but gave him the keys to his truck anyway. Online court records indicate that complaint is still pending, though the most recent action was a request for a hearing filed in November. The final order by state regulators imposing sanctions on Blue Corn Cafe and Brewery was issued Dec. 4. It allowed the restaurant 30 days to pay the $10,000 fine and 60 days to fulfill the requirement for suspension of alcohol sales for 15 consecutive days. Hargrove said the business plans to fulfill that requirement in “mid-
January.” The bar and restaurant will donate 10 percent of all food sales made during that period to Mothers Against Drunk Driving in memory of the victims of the crash, according to a written statement from Hargrove. In a separate action announced Tuesday by the state Regulation and Licensing Department, El Alto Bar and Station in Las Vegas, N.M., was sanctioned for overserving a customer who subsequently caused a fatal crash in March 2010. An 18-yearold girl returning home from college was killed in that case, according to the state agency. The establishment was ordered to pay a $2,500 fine and cease serving alcohol for eight days. Contact Phaedra Haywood at 986-3068 or phaywood@ sfnewmexican.com.
Reforms: Formal allotment expected in the spring Continued from Page A-1 open and share some resources with the International Baccalaureate school, to be located at the back of the campus on Llano Street. Under the plan, the district will open a Transition Education Program at the Zona del Sol facility on the south side of town in January and a “twilight school” offering evening classes come next fall. Over time, it also plans to expand from its current offering of four career/college pathway programs to nine, specializing
in such topics as the arts, medicine, digital design and sustainability. Boyd started promoting this plan shortly after he came on as superintendent in the summer of 2012 in an effort to offer more options to students and keep them engaged in school. Just before Boyd was hired, the district approved a five-year strategic plan aimed at increasing its graduation rate from about 62 percent to 70 percent, but Boyd recently said his goal is to hit the 80 percent mark by the end of the five years. Some of the initial funding for the
startup money may come from the district’s impending closure on a sale of its vacant Manderfield Elementary School on Canyon Road, which should net almost $1 million dollars. Santa Fe developer Clare Maraist has announced her intent to transform the site into living spaces for artists and others. Board member Glenn Wikle said Tuesday that by the time the budget approval process rolls around in the spring, “We will need to know what’s what” in terms of specific recurring expenses under the plan.
During the meeting, Boyd announced that the Santa Fe district did not win approval of its application for a $10 million Race to the Top grant, though the district was one of about 30 national finalists among about 200 original applicants. The district submitted a plan for the grant money that included summer instructional programs and reducing the student-to-counselor ratio in schools. Contact Robert Nott at 986-3021 or rnott@sfnewmexican.com.
Obama also called for an increase in the federal minimum wage, now $7.25. Republican leaders in the House oppose an increase, arguing that it would slow hiring. Several states are acting on their own. California, Connecticut and Rhode Island raised their minimum wages this year. Last month, voters in New Jersey approved an increase in the minimum to $8.25 an hour from $7.25. Income inequality has steadily worsened in recent decades, according to government data and academic studies. The most recent census figures show that the average income for the wealthiest 5 percent of U.S. households, adjusted for inflation, has surged 17 percent in the past 20 years. By contrast, average income for the middle 20 percent of households has risen less than 5 percent. The AP survey collected the views of private, corporate and academic economists on a range of issues. Among the topics were what policy decisions, if any, the Federal Reserve might announce after it ends a policy meeting Wednesday. Three-quarters of the economists surveyed don’t think the Fed is ready to announce a pullback in its economic stimulus. Speculation has been rising that the Fed will soon scale back its $85 billion in monthly bond purchases because of the economy’s steady gains. The bond purchases have been intended to keep long-term loan rates low to induce people to borrow and spend. Most of the economists think the Fed will begin slowing its bond buying in January or March. And most don’t think the economy needs the Fed’s help. Just over half say they believe growth could reach a healthy 3 percent annual pace even without the Fed’s extraordinary help. As Janet Yellen prepares to succeed Ben Bernanke as chairman early next year, most of the economists expect the Fed to become more “dovish” — that is, more focused on fighting unemployment than on worrying about higher inflation that might result from the Fed’s actions. The Senate could confirm Yellen as soon as this week. The economists are also confident that U.S. growth is picking up. Threequarters said the recovery, which officially began 4½ years ago, has yet to reach its peak. And nearly all think the next recession is at least three years away; half think it’s at least five years away. The economists forecast that growth will average 2.9 percent in 2014. That would be the healthiest annual pace since 2005. One reason they expect healthier growth is that the effects of tax increases and government spending cuts that kicked in early this year should fade. A budget bill that passed a pivotal test in the Senate on Tuesday will reverse some of those spending cuts. That should add slightly to economic growth. The bill also removes the threat of another government shutdown next year. Among the economists’ other views: u The Obama administration’s health care law will make little or no difference to the job market. About two-fifths said the law would cost jobs. None said it would increase hiring. The law has drawn fierce opposition from many small business owners, who say it will raise hiring costs by requiring companies with 50 or more employees to provide coverage starting in 2015. u The stock market isn’t in a bubble. While the Dow Jones industrial average reached record highs earlier this year, most economists said that higher profits largely justified the gains. u Europe will keep growing and avoid a recession in 2014. But growth will remain so tepid that inflation will be nearly non-existent. Nearly twothirds of the economists forecast that inflation won’t consistently reach the European Central Bank’s inflation target of 2 percent until 2016. u Inflation in the United States will remain low for the long run. A majority of economists think consumer inflation won’t consistently meet or exceed the Fed’s 2 percent target level until 2015 or later. Economists appear to be increasingly concerned about the effects of inequality on growth. Brown, the Raymond James economist, says that marks a shift from a few years ago, when many analysts were divided over whether pay inequality was worsening. Now, he says, “there’s not much denial of that … and you’re starting to see some research saying, yes, it does slow the economy.”