Compacted tribes are sending their gaming money to the state of Oklahoma where it will be held while courts decide on tribal-gaming compacts.
 
Source: StateImpact Oklahoma
 
Oklahoma tribes will pay the state an estimated $13 million dollars in Class III gaming money, next Thursday. Since tribes believe the compacts auto-renewed at the start of the year – they are going to continue to remit their gaming funds like they have been for the past 15 years.
 
But the state isn’t going to put that money directly into education – the largest recipient of gaming money – even though it’s supposed to, under state law.
 
From the Oklahoma State-Tribal Gaming Act Page 5 A1
 
“…Twelve percent (12%) of the revenue derived pursuant to this paragraph shall be apportioned monthly to the Oklahoma Higher Learning Access Trust Fund and eighty-eight percent (88%) of such revenue shall be apportioned to the Education Reform Revolving Fund;”
 
Instead, that money will be remitted into two funds and held in escrow by the state. That’s according to a letter sent to the compacted tribes by the Oklahoma Office of Management & Enterprise Services (OMES).
 
Each month for the last 15 years, Oklahoma’s 35 compacted tribes have put millions of dollars into an education money pot known as the Education Reform Revolving Fund – also known as the 1017 Fund. The money from that fund pays for many of the basics of public school operations.
 
The compact dispute’s educational impact has become a hot topic among lawmakers and educators across the state. Gov. Kevin Stitt is digging in for a fight and calling for alternative ways to fund education, but it appears, in the short-term, the absence of gaming compact funds will be minimal.
 
Gov. Kevin Stitt said during his annual State of the State Address that he wouldn’t let education funding lapse during his dispute over gaming compact payments with Oklahoma’s tribes.
 
Why is Oklahoma rejecting $13 million?
 
OMES has said even though the state will accept gaming money, it won’t spend it. That’s because of an ongoing legal dispute over whether or not the state’s compacts with the tribes automatically renewed at the start of this year. Stitt says they didn’t. The tribes – and several lawmakers – including House Speaker Charles McCall and House Minority Leader Emily Virgin – say they did.
 
Both the state and tribes have said they want to keep funding education. The compacted tribes are continuing to pay their monthly gaming fees, and they expect the state to spend that money on education. Matt Morgan is the chairman of the Oklahoma Indian Gaming Association.
 
“Tribal leadership has been clear in their desire to do business as usual, to see the funding continue,” he said. “They are remitting their fees still and hope the state of Oklahoma will continue utilizing those funds in the spirit it was intended.”
 
But during his State of the State address, Stitt suggested alternative sources to pay for education while the compact dispute is being resolved.
 
“I am asking for legislation that will allow the remaining cash balance from 2019 and funds from the Revenue Stabilization Fund to be leveraged, if needed, to compensate for any temporary pause in Class III gaming fees,” he said during his State of the State address last week.
 
The tribes don’t think Stitt can take that action, though.
 
“His choice in setting aside funds and/or asking the legislature to use other funds to try to make up that – that is his creation. He has decided to do that by himself,” Morgan said. “I’m not for sure why he’s, again, still going down this path and why he keeps creating these artificial hurdles that he feels like has to be overcome when clearly there’s a path forward for everyone – but he needs to be the one to stop and take a step back.”
 
Matt Morgan, chairman of the Oklahoma Indian Gaming Association, says he believes money collected by the tribes should go to education rather than sit idly in state coffers.