Tribal College Contributions to Local Economic Development

15Reservation CasinosThe publicity about prosperous tribal gaming operations is misleading. Media stories often imply that due to thesuccess of Indian casinos all reservation economies are booming and that American Indians are improving theirsocioeconomic standing—neither of which is evident from data on income and poverty (Tootle, 1997). “Contraryto popular belief, only a quarter of federally recognized tribes operate casinos, and less than 9 percent earn enoughto provide direct payments to members” (NCSL, 1998). The isolation of many reservation communities makesviable gaming operations impossible, and poverty among American Indians has risen despite the gaming boom(National Committee for Responsive Philanthropy, 1995).Nevertheless, casino gambling has played a major role in the economic growth of some reservations, although notnecessarily on Tribal College reservations. The greatest concentration of reservation-based casino gambling is inMinnesota, where the relationship between the state and tribal governments is relatively good. 8 Some evidence isavailable that shows positive short-term effects of casino gambling, including increased employment, wage levels,and property values (Levitan and Miller, 1993); small tribes located near major urban areas appear to have benefittedthe most (National Committee for Responsive Philanthropy, 1995). Revenue from tribal gambling may be usedto invest in social welfare programs, tribal operations, economic development initiatives, or other areas (Levitan andMiller, 1993). In fact, tribes have used virtually all their gaming revenue for some aspect of economic development,by channeling it toward tribal employment programs, social and educational programs, and other business enterprises(Leonard, 1996). Some therefore consider gaming operations to be a means to an end, and many successfultribes are diversifying their economic activities with the profits from gaming. However, the long-term effects ofcasinos remain uncertain, and many fear an increase in crime and other social ills. Other concerns include thesensitivity of gaming revenue to economic cycles, and the fact that gambling is a regressive source of revenue—ittends to attract more betting by low-income people than by high-income people (Madhusudhan, 1996).Although many of the reservations on which Tribal Colleges are located have forms of gambling, only five TribalColleges have received income from gaming revenue from time to time (AIHEC, 1997). Those reservations that havecasinos are attempting to use the revenue generated from gaming to improve the local standard of living and potentiallydiversify into other, more sustainable areas of economic development. In the interim, many Tribal Colleges areoffering courses in hospitality and casino management in order to train tribal members to work in the casinos andparticipate in local tourism opportunities. For example, College of the Menominee Nation in Keshena, Wisconsinhas offered training in casino management, hospitality, and customer service through its National Indian Gamingand Hospitality Institute to keep up with the demand for labor on the reservation (D. Wells, 1994).Matching degree programs to local needsTribal Colleges offer a range of courses that are specific tolocal communities’ needs. “Program developers have beencareful to create programs that produce graduates withhigh employability in local markets” (Hill, 1995, p. 36).Thus, Salish Kootenai College first offered courses in forestry,which is a dominant industry in western Montana.Many Tribal Colleges offer degrees in such fields as socialservice, secretarial skills, and early childhood educationto address manpower needs in tribal agencies, day care centers,Head Start programs, and other government sponsoredactivities. In addition, Fort Peck Community Collegein Poplar, Montana and other Tribal Colleges have surveyedlocal businesses and community leaders to find outwhat skills are needed most. (See Figure Seven.)8The Indian Gaming Regulatory Act of 1988 opened the door to legal casino gambling and permits tribes to offer any type of gambling on itsreservation that is already allowed by the state for other purposes; casino-style gambling and gambling not legal in the state require compactsbetween tribes and states (Levitan and Miller, 1993).Tribal Colleges’ Contributions to Local Economic Development