AUGUSTA – Leaders of the Penobscot Indian Nation told lawmakers Monday that since the Hollywood Slots gambling facility opened in Bangor in late 2005, they have had a significant reduction in revenues from their high-stakes bingo games on Indian Island. They asked that 400 of the 1,500 slot machines allowed under current state law be allocated for their use.

But the Penobscots’ proposal, which came before the Legislature’s Legal and Veterans Affairs Committee, faces opposition by Gov. John Baldacci’s administration and the city of Bangor, both of which have called for a moratorium on new gambling operations.

“I see the effects diminishing resources have on our community,” Penobscot Chief Kirk Francis told the committee. “Problems in our health care system, unmet housing needs, elder care and community fire protection. All these things we are talking about are essential to the health of any community or government, and we are no different.”

He said revenues from the existing high-stakes bingo games have decreased “dramatically” since Hollywood Slots opened. Francis previously has said profits dropped from $150,000 a couple of years ago to about $3,800 in 2006.

“We simply need to be able to compete with Hollywood Slots,” said Rep. Donna Loring, the Penobscots’ nonvoting legislative delegate. “Our community is in immediate need.”

Brenda Fields, budget officer for the Penobscots, said that like other American Indian tribes, the Penobscot Nation has no taxing authority and depends almost entirely on federal payments and bingo revenues to operate the tribal government and provide services to its members.

“The decline in federal funding has greatly affected our ability to provide for the health and safety of our community,” she said. “For instance, in this fiscal year the Penobscot Nation must reduce its health care budget by 15 percent.”

She said studies have shown that health problems facing American Indians are more serous than those facing other Americans. She said diabetes is more prevalent among American Indians and mortality ages lower.

In addition to tribal officials, the legislation drew support from lawmakers and individuals from across the state. Neil Rolde of York, who served in the Legislature in the 1970s and 1980s as a Democrat, told the committee he supports the measure as a way to bolster Maine’s economy.

“That money will stay here in Maine,” he said. “I opposed the racino proposal because that money clearly is going out of state.”

Rep. Joseph Tibbetts, R-Columbia, said the issue to him is one of fairness. He said what the tribe really is seeking is the “overflow” from Hollywood Slots.

“There is a chance for the state to make money, and a chance for the Penobscot Nation to make money,” he said.

But Robert Welch, executive director of the state’s Gambling Control Board, opposed the legislation. He said the Baldacci administration has consistently opposed any expansion of gambling beyond that approved by the voters at referendum.

“This bill goes beyond what the people approved in several respects, “he said.

He said the legislation authorizing Hollywood Slots required a harness racing track as well as local voter approval, and the Penobscot proposal has neither.

“The board also has voted to support a moratorium on new slot machines in the state,” he said. “The board has asked for this period of time to gather information on the operations of the slot facility and the effect it has on the community in which it is operated.”

Bangor Mayor Richard Green also testified in opposition to the measure. He said voters in Bangor had voted for the racino, and was the only local community to support a gambling facility at referendum.

“The city opposes any legislative action that might have a negative impact on Hollywood Slots,” he said.

But John Johnston, general manager of Hollywood Slots, told the panel his company is neither for nor against the legislation. Still, he raised several concerns about the proposal.

“My company’s commitment is based on 1,500 games, not 1,100 games,” he said, referring to Hollywood Slots’ parent company, Penn National Gaming Inc. “If this goes through, we may have to readdress our project. We may have to make it smaller.”

He also criticized the revenue provisions of the proposal, saying his company now pays more in taxes than the Penobscot Nation would under its proposal.

The state would get 1 percent of the gross under the Penobscots’ proposal. Hollywood Slots has 39 percent of its gross allocated for various activities, including 3 percent to offset the costs of the Gambling Control Board.

The tribe pays a licensing fee of $50,000 a year to the state for its bingo games. It has been operating high-stakes bingo games with prizes of up to $250,000 a weekend since 1973. The Penobscots also once operated slot machines as part of those facilities.

There is a lot of money at stake in the current debate. The Gambling Control Board reports that in 2006 Hollywood Slots had gross revenue of $564 million, with net revenues of more than $37 million. That was with 475 slot machines.

The committee plans to consider the legislation at a work session next month.

The Associated Press contributed to this report.