California Tribes Confront Arnie

Tribal gambling tax dues have become a hot issue in Arnold Schwarzenegger’s bid to become governor of California.

The American Indian group First Americans for a Better California is airing three new ads: one accusing Schwarzenegger of ''untruthful attacks'' on tribes' lawful participation in the political process; a second backing his major opponents, Democrat Lt. Gov. Cruz Bustamante and Republican state Sen. Tom McClintock; and a third touting tribes' good works.

The ads are in response to Schwarzenegger ads in which the Republican front-runner says it is time for tribes ''to pay their fair share'' of taxes, and accuses other candidates of pandering to tribes because of the $120 million he says they have spent to influence state politics the last five years.

Tribes' participation in the recall election has topped $11 million and is mounting by hundreds of thousands of dollars a day, making them the new top contributor in the California political process.

''Mr. Schwarzenegger has chosen to condemn our participation for his own political ends,'' says Mark Macarro, chairman of the Pechanga Band of Luiseno Indians, who is featured in all three of the ads.

Macarro was best known as the spokesman for the ballot initiatives that gave California Indian gambling. The Pechangas and Sycuan Band of Kumeyaay Indians since created First Americans for a Better California that is running the ads.

Schwarzenegger said Bustamante's and McClintock's acceptance of tribal money creates a conflict of interest because the governor has to approve Indian casino compacts. Early in the campaign, Schwarzenegger said he would accept no special interest money, but he soon narrowed that to contributions from tribes and labor unions that are opposing his election.

This week, Schwarzenegger said he would let tribes open more casinos, have more slot machines and increase gambling opportunities, in return for tribes paying the state ''their fair share.''

He put that share at 25 percent of casino revenues, as tribes pay in Connecticut, but said he would be open to negotiation.

California casinos have quickly grown to become what analysts estimate are a $5 billion annual cash cow, though a tribal gambling association puts the figure at closer to $3.6 billion last year.