Lean Times

Earlier this week, we sat down with Spirit Mountain's CEO and went over their budget. Despite some predictions of an economic turnaround, we are being more cautious in our projections. That is probably for the best.
I was surprised at last week's General Council meeting, not with the Canoe Family issue, but that more members seem to be indicating they understand that times are tight. In general I think locals have a much different take on the financial situation, probably because they can access more services than non-locals, who usually get the core services of per capita, health care, timber, and Elders security, and not too much else. I look forward to seeing what kinds of comments we get from the General membership during the budget period. We always get some, a few dozen at least, sometimes near a hundred or so.
The two that stick out most from last year were contradictory. One member asked that we eliminate the "Elders only per capita" while another proposed we double the payment. A Tribal member from Portland has come to multiple meetings so far this year to ask that we incorporate a COLA to the Elders Security payment. One Council member last week told us last week this same member was down at the Elders' mealsite urging some of our Tribal Elders to picket. That seems kind of overboard but I suspect we'll hear more about it.
It is strange having to deal with this budget. In years past the casino always improved year after year, thought the annual increase in business got smaller. I personally expected some kind of plateau after 2007 but nothing like this. Economics is an odd science.
Plenty of other gaming tribes are dealing with the same kind of budget setbacks, which is some relief. While we are experiencing clear declines in revenue, it is hardly a cataclysm. Gaming, and vices in general, never suffer that much in recessions. Thus far, alcohol sales are higher than ever at Spirit Mountain, I'm sure because of the new sports bar and nightclub. Our long-delayed decision of serving alcohol on the floor might need to be dusted off.
The casino will be asked to make more cuts. Some of my co-workers say that needs to be in the marketing department but I'm not sure I agree. This is what I feared most about tough times, areas to be cut start getting singled out, and there are debates about what is more deserving. You caught a glimpse of it at the Eugene General Council meeting. At least one member asked why employees, and not Tribal Elders, were getting a COLA/merit increase. Those kinds of discussions, given enough time to go on, could get really ugly.
The two biggest increases on the governance side have been in the Tribal health plan and the Elders Security/SSI, more than $4 million between them. We are having to pick and choose. I knew that eventually our health plan would amount to more than per capita. I just didn't know it would happen so soon.
Warren Buffett, who I remember last year said the downturn in the economy would be worse than expected, is predicting a recovery. I hope he's right.