[Senate Hearing 111-5]
[From the U.S. Government Publishing Office]
S. Hrg. 111-5
EXAMINING PROPOSALS TO CREATE JOBS AND STIMULATE INDIAN COUNTRY
ECONOMIES
=======================================================================
HEARING
before the
COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
JANUARY 15, 2009
__________
Printed for the use of the Committee on Indian Affairs
U.S. GOVERNMENT PRINTING OFFICE
46-627 PDF WASHINGTON : 2009
----------------------------------------------------------------------
For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800
Fax: (202) 512�092104 Mail: Stop IDCC, Washington, DC 20402�090001
COMMITTEE ON INDIAN AFFAIRS
BYRON L. DORGAN, North Dakota, Chairman
LISA MURKOWSKI, Alaska, Vice Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
KENT CONRAD, North Dakota TOM COBURN, M.D., Oklahoma
DANIEL K. AKAKA, Hawaii JOHN BARRASSO, Wyoming
TIM JOHNSON, South Dakota _____, _____
MARIA CANTWELL, Washington _____, _____
CLAIRE McCASKILL, Missouri
JON TESTER, Montana
RICHARD BURR, North Carolina
Allison C. Binney, Majority Staff Director and Chief Counsel
David A. Mullon Jr., Minority Staff Director and Chief Counsel
C O N T E N T S
----------
Page
Hearing held on January 15, 2009................................. 1
Statement of Senator Barrasso.................................... 6
Statement of Senator Dorgan...................................... 1
Statement of Senator Murkowski................................... 4
Statement of Senator Tester...................................... 6
Witnesses
Butterfield, Robin, Vice President, National Indian Education
Association.................................................... 20
Prepared statement........................................... 22
Franklin, Reno, Chairman, National Indian Health Board........... 25
Prepared statement with attachment........................... 27
Johnson-Pata, Jackie, Executive Director, National Congress of
American Indians............................................... 15
Prepared statement........................................... 17
Kitka, Julie, President, Alaska Federation of Natives............ 32
Prepared statement with attachments.......................... 33
Middleton, Dr. Robert, Director, Office of Indian Energy and
Economic Development, U.S. Department of the Interior;
accompanied by Jack Rever, Director, Facilities Management and
Improvement.................................................... 7
Prepared statement........................................... 11
Appendix
Allen-Weddell, Cyndi J., Vice President, Flandreau Santee Sioux
Tribe, prepared statement...................................... 174
Barrett, John A., Chairman, Citizen Potawatomi Nation, prepared
statement...................................................... 108
Bordeaux, Rodney M., President, Rosebud Sioux Tribe, prepared
statement...................................................... 165
Brundin-Miller, Kara, Tribal Chairperson, Smith River Rancheria,
prepared statement............................................. 93
Cook Inlet Tribal Council, prepared statement.................... 119
Council for Tribal Employment Rights, prepared statement......... 111
Devers, Hon. Chris, Chairman, Pauma Band of Mission Indians;
Chairman, Council of Energy Resource Tribes, Prepared statement 102
Jerred, Hon. Jeanne, Chairwoman, Confederated Tribes of the
Colville Reservation, prepared statement....................... 117
Jurrius, John P., President/CEO, Native American Resource
Partners, LLC, prepared statement.............................. 130
Lukachukai Community Board of Education, Inc., prepared statement
with attachments............................................... 135
Martin, Hon. William E., President, CCTHITA, prepared statement.. 95
National Center for American Indian Enterprise Development
(NCAIED), prepared statement................................... 161
National Council of Urban Indian Health, prepared statement with
attachments.................................................... 163
Native American Contractors Association, prepared statement with
attachment..................................................... 149
Navajo Nation, prepared statement................................ 157
NCAI:
Indian Country Economic Recovery Plan........................ 57
Tribal Government Economic Recovery Plan..................... 73
Pesata, Levi, President, Jicarilla Apache Nation, prepared
statement...................................................... 126
Shuravloff, Marty, Chairman, National American Indian Housing
Council, prepared statement with attachment.................... 153
Smith, Chad, Principal Chief, Cherokee Nation, prepared statement 106
Turtle Mountain Band of Chippewa Indians, prepared statement..... 169
Wilson, Ryan, President, National Alliance to Save Native
Languages, prepared statement.................................. 176
Supplementary information and letters submitted for the record
by:
Allen, W. Ron, Chairman, Jamestown S'Klallam Tribe........... 281
Barlese, Warner, Chairman, Summitt Lake Paiute Council....... 256
Barrett, John A., Chairman, Citizen Potawatomi Nation........ 208
Bear, Robert C., President, Shoshone-Paiute Tribes of the
Duck Valley Indian Reservation............................. 249
Begay, Dixie, President, Ramah Navajo Chapter................ 238
Box, Matthew J., Chairman, Southern Ute Indian Tribal Council 254
Buckner, Diana, Chairperson, Ely Shoshone Tribe.............. 281
Cagey, Henry, Chairman, Lummi Indian Nation.................. 281
Carroll, Marie, President/CEO, Arctic Slope Native
Association, Ltd........................................... 198
Charles, Ronald G., Chairman, Port Gamble S'Klallam Tribe.... 234
Charles, Frances, Chairwoman, Squaxin Island Tribe........... 281
Chavez, Ervin, President, Dzilth-Na-O-Dith-Hle Community
Grant School Board......................................... 195
Coby, Alonzo A., Chairman, Fort Hall Business Council........ 281
Cooeyate, Norman J., Governor, Pueblo of Zuni................ 264
Cook, Robert, President, National Indian Education
Association................................................ 297
Culler, Melissa, Executive Director, Shiprock Associated
Schools, Inc............................................... 248
DeCoteau, Betty, Port Gamble S'klallam Tribal Chairperson.... 281
Denson, Miko Beasley, Chief, Mississippi Band of Choctaw
Indians.................................................... 196
Doney, Julia, President, Fort Belknap Indian Community....... 218
Donohue, Esq., Patrick B., Founder, The Sarah Jane Brain
Foundation................................................. 244
Enos, Diane, President, Salt River Pima Maricopa Indian
Community.................................................. 242
Fink, Judy E., Tribal Council Chairperson, North Fork
Rancheria of Mono Indians of California.................... 230
Franklin, Reno, Chairman, National Indian Health Board....... 228
Gipp, David M., President, United Tribes Technical College... 275
Garcia, Martha, President, Ramah Navajo School Board, Inc.... 197
Guerro, Steve, President, Alamo Navajo School Board, Inc..... 181
Harris, Cynthia M., Chairman, Sauk-Suiattle Indian Tribe..... 246
Hill, Richard G., Chairman, Oneida Tribe of Indians of
Wisconsin.................................................. 281
His Horse is Thunder, Ron, Chairman, Standing Rock Sioux
Tribe...................................................... 285
Ivanoff, Steve, Transportation Planner, Village of Shaktoolik 274
Johnson, Dr. Sherry, Superintendent, Enemy Swim Day School... 211
Kashevaroff, Don, CEO, Alaska Native Tribal Health Consortium 281
Killam, Linwood, CEO, Riverside-San Bernardino County Indian
Health, Inc................................................ 240
Lake, Michael C., President/CEO, Norton Sound Health
Corporation................................................ 281
Lopeman, Dave, Chairman, Squaxin Island Tribe................ 281
Marcallais, Richard J., Tribal Chairman, Turtle Mountain Band
of Chippewa Indians........................................ 258
Martin, Lonnie L., Chairman, Chitimacha Tribe of Louisiana... 281
Meshigaud, Kenneth, Tribal Chairperson, Hannahville Indian
Community.................................................. 290
Millett, Jerry, Duckwater Shoshone Tribe..................... 281
Moyle, Alvin, Chairman, Fallon Paiute Shoshone Tribe......... 179
Nelson, Charlene, Chairwoman, Shoalwater Bay Indian Tribe.... 281
Nez, Willis, President, Ch'ooshgai Community School Board of
Education, Inc............................................. 186
Panamaroff, Jr., Alex, Chairperson, Kodiak Area Native
Association................................................ 226
Patterson, Brian, President, United South and Eastern Tribes,
Inc........................................................ 260
Pavel, Joseph, Chairman, Skokomish Tribal Council............ 251
Pearson, Myra, Tribal Chairperson, Spirit Lake Tribe......... 281
Penney, Samuel N., Chairman, Nez Perce Tribe................. 294
Pino, Henry, President, Blackwater Community School Board.... 184
Pinto, Sr., Robert, Tribal Chairman, Ewiiaapaayp Band of
Kumeyaay Indians........................................... 212
Pyle, Gregory E., Chief, Choctaw Nation of Oklahoma.......... 281
Rogers, C. Bryant, Attorney, VanAmberg, Rogers, Yepa, Abeita
and Gomez, LLP............................................. 183
Rolin, Buford L., Tribal Chairman, Poarch Band of Creek
Indians.................................................... 232
Romanelli, Larry, Tribal Ogema, Little River Band of Ottawa
Indians.................................................... 281
Sanchez, Chandler, Governor, Pueblo of Acoma................. 292
Secatero, Tony, President, To'hajiilee Community School Board
of Education, Inc.......................................... 190
Sharp, Fawn, President, Quinault Indian Nation............... 236
Sharp, Jr., Willie A., Chairman, Blackfeet Tribal Business
Council.................................................... 200
Shopodock, Philip, Chairman, Forest County Potawatomi
Community.................................................. 216
Schuerch, Paulette, President/CEO, Copper River Native
Association................................................ 283
Toledo, David, Governor, Pueblo of Zuni...................... 268
Tripp, Maria, Chair, Yurok Tribe............................. 262
Yazzie, Fernie, President, Borrego Pass School Board......... 185
EXAMINING PROPOSALS TO CREATE JOBS AND STIMULATE INDIAN COUNTRY
ECONOMIES
----------
THURSDAY, JANUARY 15, 2009
U.S. Senate,
Committee on Indian Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 2:30 p.m. in room
628, Dirksen Senate Office Building, Hon. Byron L. Dorgan,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. BYRON L. DORGAN,
U.S. SENATOR FROM NORTH DAKOTA
The Chairman. We are going to call the hearing to order.
This is a hearing of the Indian Affairs Committee of the United
States Senate. I will be joined by Senator Murkowski
momentarily and a couple of other colleagues. I appreciate the
witnesses being with us today.
Today the Committee is going to examine the need for
infrastructure and job creation on Indian lands and in Indian
Country in this Nation of ours. We are having this discussion
because of the current state of the national economy and
because the President-elect has talked about the urgent need to
create an economic recovery program, described by some as a
stimulus program. Work is underway now, I am chairman of one of
the appropriations subcommittees, and work is underway in my
subcommittee and all subcommittees on the economic recovery
program.
The President-elect and many others have described a need
for a very substantial program. The press reports talk about
$500 billion, $700 billion, last week I heard $1.2 trillion. If
so, the question is, where is that investment made and what
kind of jobs will it create in what area of our Country?
It is the case that there will be no earmarks on this
legislation. This will be legislation, when it is completed,
and the size of it has not yet been finally determined, it is
legislation that when completed that will provide funding for
what are to be job-creating opportunities and investments. And
that funding in most cases will be sent to a Federal agency to
be determined with respect to the investment around the
Country.
For example, roads and bridges, my expectation is that
funding will go to the State governments, and the State
governments under some formula have already projects on the
shelf that are engineered and ready to be completed. The
contracts have not been awarded because the funding does not
exist. But when such funding is made available, those contracts
will be awarded, people will be hired and the projects will be
pursued: roads, bridges, water projects, and the list goes on.
Nowhere in this Country is the need for infrastructure
greater than on Indian reservations. The unemployment on those
Indian reservations is very, very substantial. I have a chart,
I believe, somewhere that shows the unemployment rate of 49
percent. We have very substantial unemployment in the tribes in
the Great Plains region, which is the region that I am from.
Forty-nine percent unemployment nationally on Indian
reservations. We also have a chart that shows the majority of
residents that are living in eight of the ten poorest counties
in this country. The majority of those residents are Indian
Country, Indian reservations.
[The information referred to follows:]
I don't need to continue to make the case about
unemployment and poverty. But the second case that attaches to
all this as you determine where the desperate need for
investment in roads is, it is in Indian reservations. Roads are
in desperate disrepair on those Indian reservations.
Where are some of the poorest maintained schools in the
Nation? On Indian reservations. Where are some of the poorest
health facilities in this Nation, the poorest maintained health
facilities and the most desperate need for new health
facilities? On Indian reservations. Detention facilities, where
is the greatest need? On Indian reservations.
So my point is, to call this hearing not to believe there
will be earmarked funding for any projects in this economic
recovery package. It is, however, to say that whatever
mechanism exists to get projects started, to create jobs and
make investments in areas where those investments are
desperately needed, Indian nations, tribal governments ought to
be a portion of that consideration, given the economic
circumstances on those reservations, and given the need for the
investment and given the special need for those jobs.
So that is the purpose of this hearing. I very much
appreciate the witnesses who have agreed to be with us. Dr.
Robert Middleton, the Director of Indian Energy and Economic
Development is with us. Dr. Middleton, we appreciate your being
here. You are accompanied by Mr. Jack Rever, the Director of
Facilities Management and Improvement.
We will hear from Ms. Jackie Johnson-Pata, the Executive
Director of the National Congress of American Indians; Ms.
Robin Butterfield, who is the Vice President of the National
Indian Education Association; Mr. Reno Franklin, Chairman of
the National Indian Health Board; and Ms. Julie Kitka,
President of the Alaska Federation of Natives in Anchorage,
Alaska.
We appreciate very much your testimony today. I will call
on you in a moment, but I want to call on the Vice Chairman of
the Committee, Senator Murkowski.
STATEMENT OF HON. LISA MURKOWSKI,
U.S. SENATOR FROM ALASKA
Senator Murkowski. Thank you, Mr. Chairman. I appreciate
your scheduling this very important hearing. I also want to
commend you. I have been your Vice Chairman now for this past
Congress, and I am going to leave this role as Vice Chairman,
still be on the Committee, but won't be sitting to your
immediate right here, as I take over as Ranking on Energy.
But your passion on the issue as they relate to our First
People, American Indians, Alaska Natives, Native Hawaiians, is
clear in so many different areas. The recognition that we have
failed to do right, whether it is in health care, whether it is
in law enforcement, whether it is in education or housing, and
your commitment to work to make a difference in their lives.
While I won't be your Vice Chairman for this next Congress,
I do pledge to you that I will continue to work with you in
every way that I can to help make a difference to those who we
have such an obligation to, and recognizing that we still have
so far to go. So I wanted to put that in the record, first and
foremost.
We recognize that our economy, our Nation's economy is in a
very difficult spot at this point in time. And around the
Country, we are seeing job layoffs, we are seeing unemployment,
we are seeing families really hit by the consequences to our
economy. But what many people don't realize is that what our
Country has been seeing for this past year is really nothing
compared to many of the economic conditions and situations that
have been prevailing in so many of our Native communities for
over a hundred years.
Mr. Chairman, on your chart there you indicate the poorest
counties, poorest districts throughout the Country, and the
Wade Hampton Census District, which is in the Yukon Kuskokwim
area, shows on your chart there as being the poorest in the
Nation. And it is certainly the poorest in the State of Alaska.
One of the villages in the Wade Hampton area is a village
called Emmonak. And Emmonak has about 800 people. Today, in
Emmonak, there is a food crisis going on due to a very
unfortunate chain of events that I think demonstrates just how
vulnerable our Indian communities are. I will take just a
moment here to detail what is happening in Emmonak right now.
This is a village that is a subsistence village. They rely
primarily on fishing. Fishing was bad last summer.
The village is powered by diesel, and they get two barges,
one in the spring, one in the fall. Well, the fuel barge
couldn't get in this fall. So Emmonak bought its winter fuel at
the very, very record prices that we were seeing this summer.
And then when the barge wasn't able to get in because of early
onset of winter, this community had to receive their fuel flown
in to their community, 500 gallons at a time. So the cost to
heat a home in Emmonak right now is absolutely astronomical.
Right now heating fuel is costing $7.83 a gallon. So you
have a situation where you have a fuel crisis, you are trying
to pay for your fuel, and they have paid for it because they
need it, it is cold right now, very cold. But they have no
money to purchase food. So the decision is made, do I heat my
home or do I feed my family. That is the choice that they are
facing.
Mr. Chairman, I would ask unanimous consent that a letter
to the editor of the Bristol Bay Times that was written by
Nicholas Tucker, Sr., of Emmonak, describing Emmonak's
predicament in some detail be placed in the record.
The Chairman. Without objection. *
---------------------------------------------------------------------------
* The information referred to is printed on page 41.
---------------------------------------------------------------------------
Senator Murkowski. We recognize that here in Congress we
have made some steps. Last year we doubled, nearly doubled the
LIHEAP funding. We added substantial funding to the
weatherization program. But there is still such a tremendous
gap between assistance that is available and the needs.
In Alaska, a State as blessed as we are in resources, as
much money as we have in our permanent fund, our emergency
relief plan in the State of Alaska, when it comes to heating
assistance, essentially is coming from Hugo Chavez and Citgo.
Many of the villages received a donation of subsidized fuel
over the past couple of years. This year there was some
uncertainty whether it was going to happen, it was on again, it
was off again. We understand now that it is on.
Some villages turn those donations down out of principle.
For others, it was a matter of necessity. They gratefully
accepted it.
But it really is very, very tragic that Alaska Native
villages have to depend on Venezuela for their safety net. We
owe a trust responsibility to these people.
And I use the village of Emmonak to demonstrate the
situation there. But we know that in many communities, the
needs are so great. You have mentioned also in your chart, Mr.
Chairman, the national unemployment. We are at about 7.2
percent. In many of the Native communities, we are at about 15
percent. In some of the reservation communities, we are looking
at 80 percent.
I am truly hopeful that we can once again act in a
bipartisan manner and work to include funding to address the
urgent needs of Indian Country in this proposed stimulus
package. We need to do better. We need to provide the stimulus,
and I look forward to working with you on this.
The Chairman. Senator Murkowski, thank you. And let me
thank you for your work as Vice Chair. You have done a great
job, and you also have great passion for these issues and I
think have made a real difference. It has been a pleasure to
work with you.
I assume you are going to remain on this Committee?
Senator Murkowski. I am on the Committee. You can't get rid
of me that easy.
The Chairman. All right.
Senator Tester.
STATEMENT OF HON. JON TESTER,
U.S. SENATOR FROM MONTANA
Senator Tester. Thank you, Mr. Chairman. I want to echo
your comments to Vice Chair Murkowski. I really very much
appreciate your leadership on this Committee and your hard work
to do what is right for Native Americans across this Country
and Alaska. I just really appreciate it, I am glad to hear you
are going to stay on the Committee. But we will miss you as
Vice Chair, I promise you that.
Mr. Chairman, I want to thank you for holding this hearing,
too. It is good to be back here in this 111th Congress, dealing
with issues that are critically important in Indian Country. I
can tell you that unless you have lived it, you don't fully
understand it. Senator Murkowski talked about 7 percent
unemployment around the Country, 50 to 80 percent unemployment
in Indian Country. We have talked on this Committee several
times, many times about education deficiencies, health care
deficiencies, law enforcement deficiencies, deficiencies in
infrastructure like housing and water. We have a lot of work to
do in Indian Country to help turn their economy around and give
hope for the future and create jobs and reduce that
unemployment rate and really move them forward.
I appreciate your leadership, Mr. Chairman, in bringing
forth the issues that are important in Indian Country. You have
done that over the last two years, and you continue to do that.
I look forward to hearing from the panelists on their
perspectives on how we move forth this economy, these very,
very stagnant economies in our Indian nations. Hopefully we
will get some good ideas here today and be able to move it
forward to some good, solid policy in the future.
The Chairman. Senator Tester, thank you.
Senator Barrasso, do you have a comment?
STATEMENT OF HON. JOHN BARRASSO,
U.S. SENATOR FROM WYOMING
Senator Barrasso. I do, thank you, Mr. Chairman. I am
looking forward to working with you in the years ahead and
continue with your terrific leadership and also continuing to
serve with Senator Murkowski, once we get committee
appointments made.
I would like to say that as we discuss proposals for the
stimulus package, we do have a serious responsibility before
us. We must provide the utmost service to the American people
at the most efficient, effective cost. It is important to
remember that all too often, Government programs create winners
and losers, and that there are never enough funds to build
every road or every building that is needed in communities all
across America.
So as we look at the stimulus package, if we are going to
spend billions of taxpayer dollars, we need to be absolutely
sure that we are targeting the money where the money can do the
most good. It is imperative, Mr. Chairman, that the stimulus
create an even platform upon which everyone can compete and the
rules need to be clear and efficient. Every request should be
evaluated by need and readiness to meet our goals. Government
should not create winners and losers. We should develop a fair
system and let the best project win.
And with that introduction, Mr. Chairman, I would say that
the Eastern Shoshone and Northern Arapaho Tribes in Wyoming
should compete on an even playing field, as all other
communities. We have a great need in Wyoming for health care
facilities, for irrigation improvements and other necessary
projects. If our projects are truly necessary and ready to
implement, then they should compete well for Government
funding.
But under the current proposal, the needs for water
development on the Wind River Reservation would be
shortchanged. This is not for a lack of need, but based on a
policy decision in the current proposal. Funds have been
directed for tribes with Congressionally ratified water
settlements. This ignores those tribes who have settled their
water rights in court; not been Congressionally ratified. The
Wind River Reservation irrigation system truly is a historical
relic. We had to complete and archaeological study last year
before we could even begin planning improvements. The
Government has not met its responsibility to develop this
system and the people of the Wind River Reservation should not
be further shortchanged based on a political whim here in
Washington.
There is a need, the projects are ready to implement, and
we should be able to compete for funding along with everyone
else. I know, Mr. Chairman, under your leadership, we can work
to make sure that that is rectified, so that there are
opportunities for all folks to compete for the funds. So thank
you, Mr. Chairman, thanks for your leadership.
The Chairman. Senator Barrasso, thank you very much.
I might note that we are joined by Senator Udall, who
although not yet a formal member of this Committee will be, I
believe, very shortly, perhaps today. I invited him to join us,
we appreciate your being here. He has a great passion also for
these issues, coming from the State of New Mexico.
Let us turn to the witnesses. Dr. Middleton is the Director
of the Office of Indian Energy and Economy Development. We will
ask all of the witnesses to summarize. Your entire full
statements will be made part of the permanent record.
Dr. Middleton, welcome. You may proceed.
STATEMENT OF DR. ROBERT MIDDLETON, DIRECTOR, OFFICE OF INDIAN
ENERGY AND ECONOMIC DEVELOPMENT, U.S.
DEPARTMENT OF THE INTERIOR; ACCOMPANIED BY JACK REVER,
DIRECTOR, FACILITIES MANAGEMENT AND
IMPROVEMENT
Dr. Middleton. Good afternoon, Mr. Chairman, Madam Vice
Chairwoman, members of the Committee and Senator Udall.
It is a pleasure to be here today to speak about job
creation and infrastructure development on Indian lands. I am
accompanied by Mr. Jack Rever, the Director of Facilities,
Environmental and Cultural Resources for the Bureau of Indian
Affairs. He will have some remarks on the programs under his
purview after I finish.
Programs such as school construction, road maintenance and
energy and economic development strive to maximize the economic
benefit of infrastructure development. These programs have
established priorities and the standards that allow us to
effectively allocate our resources and provide Indian Country
with the opportunity to develop the infrastructure necessary
for job creation and economic development.
Ultimately, viable economies, stable economies, will help
tribal leaders achieve the goal of self-determination and self-
governance. I would like to highlight a few of these programs
that are in my testimony.
The Indian Loan Guaranty, Insurance and Interest Subsidy
Program was established by the Indian Finance Act in 1974. It
has been a very effective program to move capital investment
into Indian Country. Indian businesses obtain loans from
private lenders who would otherwise be unwilling to make such
loans because of risk differential. The loan guaranty program
leverages appropriated dollars at about 13 to 1. So for every
million dollars of appropriation that is made available to my
office, we are able to put $13 million of loans on the street
for small Indian businesses.
Since its establishment, the program has guaranteed 835
loans, totaling about $915 million. These loans support small
business which are integral to job creation.
The Energy and Minerals Program assists tribes by providing
expert advice and economic analyses, negotiating energy
agreements and strategic planning with regard to energy and
minerals project development on Indian land. However, one part
of the Energy and Minerals Program I would like to highlight is
the construction aggregate, sand and gravel opportunities out
there.
With infrastructure development taking the forefront in the
united States, every bridge that is out there, every roadway
that is laid down, every building that is built, requires sand
and gravel. Sand and gravel in the United States is about a $26
billion a year industry. There are many tribes that have the
opportunity to take advantage of sand and gravel and other
construction aggregate on reservations, to help participate in
the infrastructure development that may take place, whether it
be on-reservation or off-reservation. We have identified and
worked with a number of reservations on various parts of the
Country that are primed to take advantage of economic
development opportunities through infrastructure development.
Renewable energy programs are also very valuable to Indian
tribes. We have identified about 77 reservations that possess
commercial scale wind resources and the ability to support
viable wind-based economies. We look at factors such as the
amount of contiguous land that is available to the reservation,
how close they are to transmission lines, what the wind scale
is in the area, and where the population load or the demand
load would be. Based upon this, we are working to partner with
tribes to develop commercial scale opportunities working with
wind developers and the tribes themselves.
The job placement and training program is a very important
program for our office. Enhancing America's infrastructure will
require the skills of thousands of working men and women. We
want to make sure Indian Country has the skills and opportunity
to participate. My office has started partnerships with a
number of trade unions, as well as the Council on Tribal
Employment Rights, to provide life skills to unemployed and
under-employed tribal members.
For example, the Bureau of Labor Statistics projects that
America will need about 450,000 welders over the next five
years. We have started a partnership with the Plumbers and
Pipefitters Union to provide training to tribal members who are
currently on general assistance. We just recently graduated a
class from Chicago. One of the members of that class was
immediately offered a job starting at $27 an hour. Tomorrow, I
will be in Phoenix to graduate a class from Phoenix that is
made primarily up, or solely up of people from the Navajo
Reservation. We anticipate that there will be 100 percent
placement of all the graduates and they will be offered
starting salaries of between $16 and $20 an hour.
Indian land consolidation is also one of our greatest
challenges that faces us. Fractionation of Indian land, because
of their trust status, occurs because they are primarily
transferred through inheritance. With each successive
generation, individual interest in the lands becomes further
divided. This creates a situation where fairly large parcels of
the land become uneconomic because there is not a consolidated
control over its use. However, Indian Affairs remains committed
to focusing on the critical issue of fractionation and is
currently exploring various options to decrease the effects of
fractionation and to the economic benefits from trust land.
Through all these programs, we have pieces in place to
efficiently deliver jobs and economic development throughout
Indian Country. We look forward to working with this Committee
to enhance the quality of life for Indian communities and
provide opportunities for enhanced self-determination. I thank
you for the opportunity to contribute to this hearing.
Mr. Rever. Mr. Chairman and Madam Vice Chair, I would like
to turn attention to the public safety and justice construction
program, irrigation, dams, safety of dams program, road
maintenance programs and new school construction for just a
moment. Indian Affairs, in consultation with the tribes, has
developed a replacement school construction priority list. That
list ranks schools based on criteria used to calculate the
facility's condition index and in the development of the list,
an independent contractor conducted reviews to evaluate health
and safety deficiencies, environmental deficiencies, and
accessability for people with disabilities and the condition of
existing utilities and site improvements.
The schools were then ranked in order of need, based on the
original priority list. Indian Affairs originally published in
2004 a list of 14 schools on that priority list. As of today,
we have worked out way through the top seven of those
priorities and are now looking forward to the opportunity to
complete that priority list of construction projects. And we
have in place the mechanisms necessary to do that in a very
rapid fashion.
In 2005, Indian Affairs revised the space guidelines and
the criteria for construction and published the first
architectural engineering standards for design and construction
that put in place common design elements for classrooms,
cafeterias, gymnasiums, heating and cooling systems and other
facility needs, thus standardizing the design for our school
program. That resulted in a complete acceleration of our school
construction program, to the extent that we have reduced our
carry-over backlog in construction from three years ago of
about $380 million to down to about $57 million in each
successive year.
Beginning in 2006, we adopted new procedures and methods
for school construction programming as well as constructing
contracting. We started to plan and design projects two years
prior to the request for funding, and with the goal of
beginning construction on major projects in the year of
appropriation. That strategy has multiplied our benefits ten-
fold. We are completing projects early in the planning and
design phase and are ready to begin when the funds are
appropriated. The projects that start on time bring huge
benefits to the students themselves who have a crying need for
these new facilities. These new procedures have already
increased the annual obligation rate, again as I mentioned
before, to 87 percent rather than 44 percent in prior years.
In the public safety and justice construction program, we
are making great progress in our effort to assess the detention
center needs in Indian Country and develop a plan of action.
Indian Affairs is using the lessons learned through the
development of our successful school construction program to
develop priority lists to address justice systems facility
requirements throughout Indian Country.
We continue our commitment to consult with tribes and
coordinate with the Department of Justice to ensure that the
future construction program for law enforcement, courts and
incarceration are well coordinated. In addition, Indian Affairs
has recently been assessing the justice program across Indian
Country that goes beyond just construction. The goal is to
create a priority list of needs to include all facets of
justice intervention.
The irrigation and safety of dams program provides economic
opportunities and public safety through sound management of
irrigation, dam and power facilities owned by Indian Affairs.
In the Indian irrigation program alone, there are 100
individual projects and systems on Indian lands. Indian Affairs
irrigation projects provides water vital to agricultural
production in the west and continued ability to provide
irrigation water to over 780,000 acres of farm land. These
projects are an integral part of the local and regional
economies. Irrigation lands served by the 16 BIA irrigation
projects produce in excess of $300 million in gross crop
revenues each year. Beginning several of the large Indian
irrigation projects have developed into multi-million dollar
economies. Indian Affairs delivers irrigation water through
hundreds of miles of canals and through more than 100,000 aging
irrigation structures themselves.
Turning our attention now to the safety of dams. This is a
life safety program that corrects identified safety
deficiencies in dams, rehabilitates and maintains each
significantly hazardous dam to lower its risk of failure and
monitors each dam for signs of safety deficiencies. Indian
Affairs is responsible for 131 dams. Yet 70 are classified as
being in poor condition. Indian Affairs uses a technical
priority rating system to determine the priority of correction.
Now turning to road maintenance. The road maintenance
program is a source of funds for maintenance of BIA roads and
bridges constructed through the Highway Trust Fund resources.
Under that program, it consists of approximately 29,000 miles
of roads and 940 bridges on Indian reservations in communities
and villages throughout the Nation. Adequate maintenance is a
fundamental yet critical requirement of safe accessibility to
health and education facilities, tourism, employment,
recreation and economic development opportunities.
With that, Mr. Chairman, I have one other comment, and that
has to do with the road maintenance program, which I addressed
before. With the 29,000 miles of roads and 940 bridges, there
is a tremendous need for continuing daily maintenance of those
roads to permit this economic development.
With that, sir, we thank you for the opportunity to make
our comments. We are prepared to answer any questions you have.
[The prepared statement of Dr. Middleton and Mr. Rever
follows:]
Prepared Statement of Dr. Robert Middleton, Director, Office of Indian
Energy and Economic Development, U.S. Department of the Interior; and
Jack Rever, Director, Facilities Management and Improvement
The Chairman. Mr. Rever, thank you very much.
Next we will hear from Ms. Jackie Johnson-Pata, who is the
Executive Director of the National Congress of American
Indians.
STATEMENT OF JACKIE JOHNSON-PATA, EXECUTIVE DIRECTOR, NATIONAL
CONGRESS OF AMERICAN INDIANS
Ms. Johnson-Pata. Thank you very much, Mr. Chairman. I
appreciate the opportunity to be able to be here today, and
Madam Vice Chairman, I also want to thank you for your
leadership that you have provided. Senator Tester and our
newest Senator Udall, again, glad to see you move over from the
House.
But really I wanted to thank you, the Committee and your
staff, for the work you have done and the leadership you
provided to be able to help get the leadership of both houses
to put forward the request to President-elect Obama, as well as
helping us put together a strong package for Indian Country.
I don't need to tell you, as you all know, that Indian
Country lags behind the rest of the Nation in every aspect of
reservation life and tribal governance. It is critical that
tribes are included into the American economic recovery and
investment plan, for three very compelling reasons.
The first one is, as we all know and we spoke about today,
is the lack of basic infrastructure investment is the single
greatest impediment to economic development in Indian Country.
Reservations are mired in poverty and under developed. And they
offer unique opportunities for rapid economic growth, once the
basic infrastructure is in place. Thereby, investing in tribal
governments, America will ensure that the populations that have
persistently lived in the poorest economic conditions as
demonstrated by your charts have the same path to success as
the rest of America.
And secondly, tribal governments lack a tax base and rely
on revenue from economic development to provide the core
services to their citizens. This reliance makes tribal
governments much more vulnerable than other governments during
economic downturns. And finally, it has been proven that
investments in Indian Country is an investment that produces
good returns for America, especially rural America.
This downturn is having a dramatic effect on tribal
governments who already occupy the bottom end of the
socioeconomic scale, and promising energy deals have slipped
away, tribes from communities such as mine where timber is now
close to closing down for good. And even high profile gaming
tribes around the Country are laying off thousands of workers.
The real per capita income of Indians living on the
reservations is still less than half of the national average.
Unemployment is double what it is in the rest of the Country.
And as shown, eight out of the ten poorest counties in the
United States are home to Indian reservations.
Despite these challenging conditions, there are examples of
economic success resulting from investments in tribal
infrastructure. Mississippi Choctaw is a good example. Early in
the 1980s, prior to the 1980s, they had a housing condition
that was highly substandard. Ninety percent had no indoor
plumbing, and one-third had no electricity. But in the 1980s,
the tribe decided to turn around those conditions. And they did
so by building an infrastructure needed to draw industrial jobs
onto the reservations. After completing the industrial park,
the Tribe convinced a division of GM and American Greetings
Company to locate on the remote reservation. And soon after,
the Tribe diversified. And today, it is Mississippi's second
largest employer, with over 8,000 employees. After generations
of living in the worst economic conditions, the Tribe became
the regional economic leader of the South.
Mississippi Choctaw is not an isolated example. Tribal
governments, when given the right tools, can lift their
populations out of poverty. NCAI worked with the organizations
sitting here and many others that aren't at the table with us
here today to put together an economic recovery plan that
includes projects that are shovel ready, that have funding
mechanisms already in place, to ensure the accountability that
is necessary that has direct funding to tribes that will create
tens of thousands of jobs, local jobs, and allow tribes and
surrounding communities to effectively compete locally,
regionally and globally regardless of location.
Our tribal governments request $6 billion. While modest in
comparison to other governments and their requests, it is
needed to make a real and lasting impact in tribal communities.
Infrastructure spending should be the target. We have
highlighted building 21st century green schools for our kids,
creating energy-efficient homes and tribal government
buildings, building and repairing our roads and bridges,
creating healthy and safe communities by investing in clean and
wastewater facilities, telecommunications, public safety
buildings and health facilities, using our vast natural
resources and work force to move toward energy independence.
NCAI's recovery plan also includes a component that
provides needed tools to help leverage Federal funds and
sustain economic gains. So it is not just about infrastructure,
it is also about how do we sustain it after. We have included
some clarification of the use of low-cost tax-exempt financing
for tribes, clearing the way for tribes to invest in one
another, such as a fix through the SEC, making tribes an
attractive alternative energy partner by getting access to the
existing tax credits and expanding the use of guaranteed loans
to allow tribes, businesses and individuals to fully
participate in the infrastructure build-out.
We see this as a once in a lifetime opportunity to build
tribal governments, to repair infrastructure, create jobs,
generate energy. And we are looking forward to working with you
to ensure that we are included in the Energy Recovery Act.
In closing, I would also like to state that there was other
testimony submitted by other tribes in writing, and they have
asked, including Tlingit and Central Council Tribes of Alaska,
to have their testimony included in the record.
Thank you very much.
[The prepared statement of Ms. Johnson-Pata follows:]
Prepared Statement of Jackie Johnson-Pata, Executive Director, National
Congress of American Indians
The National Congress of American Indians (NCAI) is the inter-
governmental body for American Indian and Alaska Native tribal
governments. For over sixty-years tribal governments have come together
as a representative congress through NCAI to deliberate issues of
critical importance to tribal governments.
Economic development in Indian Country lags behind the rest of the
nation and impacts nearly every aspect of reservation life and tribal
governance. It is critical that tribes are included in the American
Economic Recovery and Reinvestment Plan for three very compelling
reasons.
First, the lack of basic infrastructure investment is the single
greatest impediment to economic development in Indian country.
Reservations offer unique opportunities for rapid economic growth once
the basic infrastructure is in place. By investing in tribal
governments, America will be meeting its moral obligation to ensure
those populations that have persistently lived in the poorest economic
conditions have the opportunity to go down the same path to success as
the rest of America. And second, tribal governments rely on revenue
from economic development to provide core services to their citizens in
lieu of a sustainable tax base. This reliance makes tribal governments
much more vulnerable than other governments during economic downturns.
Finally, it has been proven that an investment in Indian Country is an
investment in America.
Tribal Socio-Economic Conditions
Hundreds of tribes suffer economic hardship and remain nearly
invisible. They struggle to preserve their reservations, their culture,
and their sovereignty. They are now feeling the full effects of the
economic downturn. For some tribes, once promising opportunities in
energy development are no longer viable, while other tribes have seen
tribal industries like timber production--once considered economic
staples--closing their doors. Even higher-profile gaming tribes around
the country are currently laying off thousands of workers affecting
entire regions. The downturn is having a dramatic effect on tribal
governments that, as a population, already occupy the bottom end of the
socio-economic scale.
Most reservations are characterized by extensive land bases, spread
out communities, and homesteads mired in one long-standing poverty
cycle. Most Indian tribes experience economic and social conditions
that are on par with many developing nations.
Real per-capita income of Indians living on reservations is still
less than half of the national average. Unemployment is still double
what it is for the rest of the country. \1\ A full 8 of the 10 poorest
counties in the United States are home to Indian reservations. Although
Indian specific data is not available to analyze the precise impact of
the recession on Indian country, signs point to the recession hitting
low-income Americans hardest. Between September 2006 and October 2008,
the unemployment rate for workers age 25 and over who lack a high
school diploma, a very low income group, increased by 39 percent. \2\
In 2007, 20 percent of American Indians aged 25 and over lacked a high
school diploma, compared to 14 percent for the U.S. population. \3\
---------------------------------------------------------------------------
\1\ Overview of Federal Tax Provisions Relating To Native American
Tribes and Their Members, Scheduled for a Public Hearing Before the
Senate Committee on Finance on July 22, 2008 Prepared by the Staff of
the Joint Tax Committee on Taxation, July 18, 2008
\2\ Parrott, Sharon. (2008, November 24). Recession Could Cause
Large Increases in Poverty and Push Millions into Deep Poverty.
Washington, DC: Center on Budget and Policy Priorities.
\3\ U.S. Department of Commerce, U.S. Census Bureau (2007). 2007
Annual Social and Economic Supplement. Current Population Survey (CPS).
---------------------------------------------------------------------------
Many tribal governments lack the ability to provide the basic
infrastructure most U.S. citizens take for granted, such as passable
roadways, affordable housing, plumbing, electricity and telephone
service. It is difficult to believe that in America, where 97.5 percent
of households have a phone, there are reservations are unable to
provide basic telephone service to 70 percent of their citizens. In
addition, there is a tribal average of 3 in 10 households without basic
means of communication.
These substandard economic and quality of life indicators have a
social toll as well. Health disparities are prevalent and suicide rates
(a symptom of lack of opportunity) are high with over 60 percent more
incidents than the average in America. Alcoholism on reservations and
diseases like Tuberculosis are both over 500 percent higher among
Indians.
Despite the challenging social and economic conditions on
reservations, there are examples of economic success that have resulted
from tribal investments in infrastructure and use of available federal
tools to grow their local economies and provide their citizens with a
better quality of life--the goal of every government.
For example, in the 1960's, rural Neshoba County in Mississippi was
once one of the country's most economically-depressed areas. Neshoba
County is home to the Mississippi Band of Choctaw Indians who lived
under miserable economic and health conditions. Nearly all houses on
the reservation were considered substandard: 90 percent had no indoor
plumbing; one-third had no electricity. \4\
---------------------------------------------------------------------------
\4\ NPR, All Things Considered, July 17, 2004
---------------------------------------------------------------------------
In the 1980's the Tribe worked hard to turn conditions around by
building the infrastructure necessary to draw industrial jobs to the
reservation. After completing an industrial park, the tribe convinced a
division of General Motors and the American Greetings company to locate
on the remote reservation. Soon after, the tribe diversified its
economy by creating service sector enterprises. Today, the tribe is the
state of Mississippi's second largest employer with over 8,000
employees on its payrolls. \5\ After generations of living in the worst
economic conditions, the tribe has become a regional economic leader in
the south.
---------------------------------------------------------------------------
\5\ Neshoba County Website, Community Development Partnership,
Mississippi Band of Choctaw Indians Timeline.
---------------------------------------------------------------------------
Mississippi Choctaw is not an isolated example. Tribal governments,
when given the right tools, can effectively lift their populations out
of poverty and fully participate in the American economy. Not only can
tribes raise their economic profile, but they have proven time and
again that investing in tribes is an investment in rural America.
Surrounding communities, and sometimes entire regions, are also
beneficiaries of tribal success.
NCAI has developed a Tribal Government Economic Recovery Plan that
provides targeted infrastructure spending for projects that are proven
shovel-ready and already have funding mechanisms in place to ensure
accountability. The unmet infrastructure need or backlog throughout
Indian Country is substantial. Targeted spending to meet this need
promises to have a dramatic effect on tribal economies as well as the
economies of the surrounding communities.
The Tribal Government Economic Recovery Plan targets $6.13 billion
in infrastructure spending that will create thousands over 50,000 local
jobs and allow tribes to effectively compete in the global economy
regardless of their location by building 21st century schools, energy
efficient government buildings and the infrastructure needed to develop
locally, regionally and globally.
The infrastructure and long-term efficiency requests included in
the Tribal Government Recovery Plan met the requirements of being
shovel-ready, provided long term effects, created efficiencies for
competitiveness and allowed participation in green energy production
and jobs. Investments in tribal government infrastructure spending
targets:
Building 21st century schools
Creating energy efficient homes and tribal government
buildings
Building and repairing our roads and bridges
Creating healthier and safer communities through investments
in clean and waste water facilities, public safety buildings
and health facilities through repairs and technology
improvements
Using our vast natural resources and workforce to move
toward energy independence
Improving our access to emergency and broadband networks
Meeting pent-up housing needs, and
Making unworkable lands more viable for economic development
through a land consolidation program.
The American Economic Recovery and Reinvestment Plan's targeted
infrastructure development offers tribal government a proven path to
economic success. Funding streams are already in place for tribal
governments to fully participate in building needed infrastructure.
Tribal governments simply need to be directly funded under these
programs as other governments are to ensure that we are not left out.
Inclusion not only meets the Congressional trust responsibility, but
offers tribes a solid economic base to pursue self-sufficiency and self
determination--for the tribe and for its citizens.
NCAI's Tribal Government Economic Recovery Plan also includes an
important component that gives tribal governments and businesses access
to the tools needed to sustain economic gains made from targeted
federal infrastructure spending.
Tribal Government Revenue--Removing Barriers and Providing Access
The plan calls for removing barriers to the capital needed for
tribal governments to effectively grow their economies and to ensure
their local citizens have the ability to directly participate in
building and repairing our infrastructure. Without access to these
tools, tribal governments will be placed on the sidelines while other
governments build effective infrastructure and outside companies
participate in contracting opportunities that could be completed
locally.
Congress, federal agencies and other partners should do everything
they can to support and promote tribal economic development. Tribes
simply cannot rely on decreasing federal funds or a severely-limited
tax base to provide needed government infrastructure and services.
Economic revenue becomes a necessity for tribal and individual self-
sufficiency and self determination.
Access to Credit Markets
Currently, with the economic downturn, state and local governments
are feeling the effects of a frozen credit market. Low cost tax-exempt
debt has become a necessity for state and local governments when
financing schools, roads, health facilities and economic activities.
When the credit markets effectively froze in the fall, state and local
governments sought federal intervention including calls for federal
guarantees for investor reassurance and the removal of Alternative
Minimum Tax for high-net worth investors to make tax exempt debt more
attractive.
Tribes, however, have never had full access to the tax-exempt
markets and because of the strict interpretation placed on the tribal
use of tax-exempt financing, the market for tribal bonds has been
effectively frozen for the past decade. Tribal governments need access
to the same low-cost debt to build and repair schools, roads and
healthcare facilities. Since tribes rely on economic development
revenues in lieu of a tax base, tribal governments need access to the
low-cost debt market to provide economic development revenue for the
tribe. Clarifying tribal government use of tax-exempt bonds would help
tribes to stimulate their local economies and provide better services.
Access to Capital Markets
Many tribes, especially large land-based tribes, are centered in
rural and remote areas of the country. Creating an economic base and
attracting capital is a challenge. Many of these tribes want to utilize
their large land bases to develop alternative energy and participate in
lessening our dependence on foreign oil.
There are two impediments that currently exist that make investing
in tribal energy and other enterprises less attractive. The first is an
oversight in the tax code that gives businesses an incentive in the
form of a tax credit to invest in alternative energy projects. Tribal
government cannot use these tax credits so the current tax code
provides a disincentive for tribes to partner in developing alternative
energy.
The second impediment is also an oversight. When the Securities and
Exchange Commission drafted Regulation D, which determines private
equity participation and securities registration, it did not explicitly
list tribes as governments. This oversight prevents tribes that are
economically successful from investing in other tribes as equity
partners.
Tribal leaders often have greater needs than their non-Indian
counterparts and, at the same time, tribal governments have fewer
resources with which to fulfill their governmental responsibilities.
The Economic Recovery and Reinvestment Plan offers an opportunity to
correct these oversights and give tribal government access to the tools
they need to succeed. This means clarifying the use of tax-exempt debt,
allowing tribes to transfer tax credits, and listing tribes as
governments for investment purposes. In addition, those programs that
are clearly working should be enhanced.
Community Participation
The American Economic Recovery and Reinvestment Act should support
utilizing successful programs to meet the increased need for business
capital that is sure to follow a large stimulus. The Tribal Government
Recovery Plan supports increased funding for an existing Department of
Interior guaranteed loan fund not just for business loans but for
surety bonding and energy production loans.
Capital to start businesses and surety bonding is difficult to come
by for tribally-owned construction companies. It is important that
local participation is encouraged to build local capacity and support
local economic development.
The Tribal Economic Recovery Plan has been developed with tribal,
federal and organization partner input. It is comprehensive and
designed with the access to capital and credit requests intended to
enhance and leverage the targeted federal infrastructure spending
requests. The total amount requested, while modest in comparison to
other government requests, is needed to make a real and lasting impact
on tribal economies.
Tribal governments are too often an afterthought in the development
of significant national policy initiatives. They are either
inappropriately shoe-horned into legislation at the eleventh hour, or
left out entirely. As a result, Indian tribes are left farther and
farther behind.
The American Economic Recovery and Reinvestment Plan presents a
once in a lifetime opportunity for the nation, including tribal
governments, to repair existing infrastructure, create jobs, and
generate energy and income. It would be a travesty for Indian Country--
which is persistently burdened with high unemployment and poverty
rates, inadequate housing and infrastructure, and economic under-
development--to be left out of much of the opportunities created by the
Economic Recovery Plan.
The Chairman. Ms. Johnson-Pata, thank you very much.
Next we will from Ms. Robin Butterfield, who is Vice
President of the National Indian Education Association.
Ms. Butterfield?
STATEMENT OF ROBIN BUTTERFIELD, VICE PRESIDENT, NATIONAL INDIAN
EDUCATION ASSOCIATION
Ms. Butterfield. Chairman Dorgan, members of the Committee,
on behalf of the National Indian Education Association, I would
like to take the opportunity to thank you for being able to
speak to you.
I am the Vice President of the Association. I am a Ho-Chunk
Anishanabe with over 35 years of experience working 10 years as
the Director of Indian Education for the State of Oregon and
over 4 years working in the BIE. NIEA commends Chairman Dorgan
for his tremendous efforts to ensure that Indian Country is
included in the stimulus package. NIEA strongly supports
Senator Dorgan's request, signed and supported by 14 other
Senators, for funding for BIE school construction and
maintenance.
Senator Dorgan's request of $334 million for new
construction of K-12 school facilities and $150 million for
maintenance and repair is similar to NIEA's request submitted
to President-elect Obama and to the Senate and House
appropriations and authorizing committees. This funding would
assist in replacing condemned facilities and repairing
dangerous conditions present in many BIE schools, and can be
implemented within 24 months, which would create much-needed
new jobs.
In our Indian communities, the schools are the center of
community activities, and are supposed to provide a safe haven
for our children. However, many of the BIE schools pose serious
health and safety risks. These risks are due to the Federal
Government's failure to honor the Federal trust
responsibilities. In May of 2007, the Interior's OIG issued a
flash report that describes the conditions at BIE schools and
requires immediate action to protect the health and safety of
students and faculty. In the report, the IG cites deterioration
ranging from minor deficiencies such as leaking roofs to severe
deficiencies, such as classroom walls buckling and separating
from their foundation. In conclusion, the IG states that the
``failure to mitigate these conditions will likely cause injury
or death to children and school employees.''
In 2008, NIEA conducted a series of field hearings on
issues facing BIE schools. Hopi tribal chairman Benjamin
Nuvamsa stated ``While waiting for funding, our students and
staff are subjected to exposure to hazardous materials. Almost
all schools have asbestos and radon issues, which puts students
and staff at risk.''
In North Dakota, the Mandaree Day School has taken out a
loan of $3 million to cover the costs of new building, even
though the Federal Government has the obligation to provide
this funding. This school could wait no longer. The loan only
covers the facility structure. The 210 children at this school
have no playground, and the teachers do not have a paved
parking lot. The BIE is also responsible for the Southwest
Indian Polytechnic Institute and it is undergoing annual
regular repairs to their facilities.
But these are just a few of the examples of the unmet needs
in BIE schools. On the average, BIE schools are 60 years old,
while 40 years is the average for public schools. The deferred
maintenance backlog is estimated to be over $500 million and
increases annually by $56.5 million. Of the 184 BIE schools,
one-third are in poor condition and need of either replacement
or substantial repair. We must take action now to ensure our
Indian students are in the safest environments possible while
receiving their education.
NIEA would be remiss if we did not also mention the
tremendous backlog of construction needs for public schools on
Indian lands that receive Impact Aid funding from the
Department of Education. The Impact Aid program provides
resources directly to State public school districts with trust
lands. Many public schools on reservations are crumbling,
unsafe and should be replaced. We strongly urge the Committee
to request funding for Impact Aid school construction needs.
These projects could be completed also in a 24 month time frame
and would create a significant number of new jobs.
Finally, we understand that provisions are being considered
in the stimulus package that may create new authorizations for
school construction. While we support new programs for school
construction like new public schools and charter schools in
Native communities, the BIE school system is a Federal
responsibility. We hope that the new Administration and
Congress will consult with NIEA and Indian Country on any new
school authorization provisions. We want to make sure that the
new authorizations do not create unintended negative impacts on
BIE schools.
Further, NIEA urges that funding for BIE school
construction be separate from funding for public schools,
territorial schools or other types of schools. BIE schools are
unique, due to treaty rights and the Federal trust
responsibility. We must do all that we can to ensure that our
Indian children do not have to risk their lives in
deteriorating buildings, while aspiring to achieve academic
success.
In conclusion, NIEA thanks the Committee and Senator Dorgan
for your hard work and diligence on behalf of our communities.
We also have some additional documents to submit for the
record. Thank you.
[The prepared statement of Ms. Butterfield follows:]
Prepared Statement of Robin Butterfield, Vice President, National
Indian Education Association
Chairman Dorgan, and Members of the Senate Committee on Indian
Affairs, thank you for this opportunity to submit testimony on behalf
of the National Indian Education Association on the staggering unmet
needs of Bureau of Indian Education (BIE) school construction and the
importance of including funding for BIE and other educational projects
in the economic stimulus plan, known as the Economic Recovery and
Reinvestment Plan. NIEA commends Chairman Dorgan in particular for his
tremendous efforts to ensure that Indian Country is included in the
stimulus package and is deeply appreciative of his commitment to Native
education.
Founded in 1970, the National Indian Education Association is the
largest organization in the nation dedicated to Native education
advocacy issues and embraces a membership of nearly 4,000 American
Indian, Alaska Native and Native Hawaiian educators, tribal leaders,
school administrators, teachers, elders, parents, and students.
NIEA makes every effort to advocate for the unique educational and
culturally related academic needs of Native students. NIEA works to
ensure that the federal government upholds its responsibility for the
education of Native students through the provision of direct
educational services and facilities that are safe and structurally
sound. This is incumbent upon the trust relationship of the United
States government and includes the responsibility of ensuring
educational quality and access. The environment in which instruction
and educational services are provided is critical to the achievement of
our students to attain the same academic standards as students nation-
wide.
Accordingly, NIEA strongly supports Senator Dorgan's request,
signed and supported by 14 other Senators, for funding for BIE school
construction and maintenance in the economic stimulus package. Senator
Dorgan's request of $344 million for new construction of K-12 school
facilities and $150 million for maintenance and repair of K-12 school
facilities is similar to NIEA's request submitted to President Elect
Obama and to the Senate and House appropriations and authorizing
committees for inclusion of BIE school construction in the stimulus
package. \1\
---------------------------------------------------------------------------
\1\ NIEA also strongly supports the plan set forth by Senator
Dorgan in his request for funding for infrastructure projects at tribal
colleges and universities.
---------------------------------------------------------------------------
In its own request, NIEA seeks a total of $500 million in the
economic stimulus package for the following: (1) school facilities new
construction ($300 million); (2) school facilities improvement and
repair ($150 million); and (3) school facilities employee housing
repair and maintenance ($50 million) at K-12 schools administered or
operated by BIE within the Bureau of Indian Affairs, Department of the
Interior. Based upon our discussions with BIE officials and with tribes
with BIE schools on BIE's list of facilities in need or repair or
replacement, $500 million would allow for the construction of at least
4 schools, repairs and improvements at no less than 25 schools, and
repair and maintenance of employee housing at no less than 14 schools.
These projects can be completed within a 24-month time frame and
would help to jumpstart the reservation economies in which these school
facilities are located by providing significant numbers of jobs in
economically depressed areas where unemployment rates have, over
decades, been consistently much higher than the national average. These
projects are typically the biggest construction projects in these
communities and provide often times the only base for economic
stimulation and revitalization in these areas. This funding would be a
wise investment in not only the infrastructure on many reservations but
also in the education provided to our Native students. Further, this
funding would assist in replacing condemned facilities and in repairing
dangerous conditions present at many of these schools.
There are only two educational systems for which the Federal
Government has direct responsibility: the Department of Defense Schools
and federally and tribally operated schools that serve American Indian
students. The federally supported Indian education system includes
48,000 students, 29 tribal colleges, universities and post-secondary
schools. NIEA is committed to accountability, high standards, and the
rigorous education of our children and will continue to hold the BIE
accountable for ensuring that BIE students meet their academic
potential with educational programs that consider their cultures,
languages, backgrounds, and identities. We believe with good faith
collaboration that we can provide our children with an education that
honors their Native identities while simultaneously preparing them for
successful futures by providing them with a safe environment conducive
to learning.
NIEA scheduled five field hearings in 2008 throughout Indian
Country: Rapid City, South Dakota; Seattle, Washington; Tulsa,
Oklahoma; Albuquerque, New Mexico; and Window Rock, Arizona. The
purpose of these NIEA-facilitated sessions was to gather information on
the challenges faced by BIE schools, including how the No Child Left
Behind Act (NCLB) is being implemented and additional concerns of BIE
schools as they relate to the achievement of their students. Testimony
from the witnesses focused on the following topics: (1) NCLB and
Adequate Yearly Progress standards; (2) Indian school construction and
facilities maintenance; and (3) student transportation. These sessions
served as a focused follow up discussion to the eleven field hearings
NIEA held in 2005 on the implementation of NCLB in Indian Country and
served as the basis for the legislative language NIEA has proposed for
inclusion in reauthorization of NCLB. Today our testimony focuses on
the construction needs of schools funded by the BIE.
Indian School Construction
In 1997, GAO issued a report, ``Reported Condition and Costs to
Repair Schools Funded by the Bureau of Indian Affairs,'' that
documented an inventory of repair needs for education facilities
totaling $754 million. In 2004 the backlog for construction and repair
was reported to have grown to $942 million.
More recently, in March of 2008, the Consensus Building Institute
(CBI) with the U.S. Institute for Environmental Conflict Resolution
issued a Final Convening Report: Negotiated Rulemaking Committee on
Bureau of Indian Affairs--Funded Schools Facilities Construction. CBI
reported in their findings of the conditions of the schools that ``many
schools are ill equipped for the information age,'' ``security needs
and related funding are major sources of concern for many schools,''
``aging or poor design may lead to a substandard educational
environment,'' ``operation and maintenance needs are not matched by
operation and maintenance annual funding,'' and ``overcrowding is a
major concern and a source of accelerating physical decline.'' \2\
Additionally, the report stated in the findings that the Facility
Management Information System (FMIS) doesn't sufficiently allow for
educational programming needs, including libraries, adequately sized
classrooms and gymnasiums, wiring to allow for technological needs and
partitions and noise reducing walls. \3\
---------------------------------------------------------------------------
\2\ The Consensus Building Institute with the U.S. Institute for
Environmental Conflict Resolution (March 5, 2008). Final Convening
Report: Negotiated Rulemaking Committee on Bureau of Indian Affairs--
Funded School Facilities Construction, pp. 16-18.
\3\ Ibid., p. 19.
---------------------------------------------------------------------------
In May of 2007, the Office of the Inspector General, Department of
Interior, issued Bureau of Indian Affairs and Bureau of Indian
Education: Schools in Need of Immediate Action, a flash report that
describes the conditions at BIE schools that require ``immediate action
to protect the health and safety of students and faculty.'' Although
the Inspector General visited thirteen schools as part of their
investigation, four schools were highlighted in the flash report--
Chinle Boarding School, Shonto Preparatory School, Keams Canyon School,
and the Kayenta Boarding School. In the report, the Inspector General
cites deterioration ranging from ``minor deficiencies such as leaking
roofs to severe deficiencies such as classroom walls buckling and
separating from their foundation.'' In his conclusion, the Inspector
General states that the ``failure to mitigate these conditions will
likely cause injury or death to children and school employees.'' This
flash report describes the alarming and life threatening situation at
BIE schools that the federal government has created in its failure to
properly maintain these schools. Native children should not have to
risk their lives on a daily basis to access their fundamental right to
an education.
Testifying at the NIEA-sponsored BIA/BIE regional hearing in Navajo
Nation/Window Rock, AZ, Hopi Tribal Chairman, Benjamin Nuvamsa stated,
``our students are at extremely high risk because of exposure to
hazardous materials in our school facilities . . . [recently]severe
reductions in annual appropriations for the building Operations,
Maintenance and Repairs (OM&R) program results in the ever-increasing
number of projects placed in the Facilities Maintenance Inventory
System (FMIS). While waiting for funding, our students and staff are
subjected to exposure to hazardous materials . . . almost all schools
have asbestos and radon issues which puts the students and staff at
risk.'' \4\
---------------------------------------------------------------------------
\4\ Bureau of Indian Affairs and Bureau of Indian Education:
Hearings before the National Indian Education Association, Widow Rock,
AZ (August 21, 2008) (testimony of Benjamin Nuvamsa, Hopi Tribal
Chairman).
---------------------------------------------------------------------------
In North Dakota, the Mandaree Day School has taken out a loan in
the amount of $3 million to cover the costs of building a new BIE
education facility even though the federal government has the
obligation to provide funding for a new school. The Mandaree Day School
could not wait any longer for the funding from BIE to build their
school. The loan only covers the facility structure and the 210
children attending this school have no playground and the teachers do
not have a paved parking lot. These are just a few examples of the
construction needs of BIE schools that are not being met under current
funding.
The purpose of education construction is to permit BIE to provide
structurally sound buildings in which Native American children can
learn without leaking roofs and peeling paint. It is unjust to expect
our students to succeed academically when we fail to provide them with
a proper environment to achieve success. The amount of funding over the
past few years has failed to fund tribes at the rate of inflation, once
again exacerbating the hardships faced by Native American students.
Further, the funding that has been allocated over the past few years
will not keep pace with the tremendous backlog of Indian schools and
facilities in need of replacement or repair.
Indian Education Facilities Improvement and Repair Funding
The continued deterioration of facilities on Indian land is not
only a federal responsibility but has also become a liability of the
federal government. Old and exceeding their life expectancy by decades,
BIE schools require consistent increases in facilities maintenance
without offsetting decreases in other programs if 48,000 Indian
students are to be educated in structurally sound schools.
Of the 4,495 education buildings in the BIE inventory, half are
more than 30 years old and more than 20 percent are older than fifty
years. On average, BIE education buildings are 60 years old; while, 40
years is the average age for public schools serving the general
population. 65 percent of BIE school administrators report the physical
condition of one or more school buildings as inadequate. Although
education construction has improved a bit over the last few years, the
deferred maintenance backlog is still estimated to be over $500 million
and increases annually by $56.5 million. As noted by the House Interior
Appropriations Subcommittee in its Committee Report accompanying the FY
2006 Interior appropriations bill, ``much remains to be done.'' Of the
184 BIE schools, \1/3\ of the schools are in poor condition and in need
of either replacement or substantial repair.
Public and Other School Construction Needs
NIEA would be remiss if we did not mention the tremendous backlog
of construction needs for public schools on Indian lands that receive
Impact Aid funding from the Department of Education. The Impact Aid
program directly provides resources to state public school districts
with trust status lands within the boundaries of a school district for
operational support. Many public schools on reservations are crumbling,
unsafe and should be replaced.
In Idaho, several reservation public schools have attempted bond
levies in their communities to repair or replace dilapidated facilities
to no avail, as community members struggle with increasing taxes while
enduring economic stagnation. The Nez Perce Reservation school in
Lapwai, Idaho has over 82 percent American Indian/Alaska Native
enrollment and has had four failed bond levies and has not received an
Impact Aid construction grant allocation to assist with replacing
facilities. The Coeur d' Alene Reservation public schools, located in
northern Idaho, which have nearly 65 percent American Indian/Alaska
Native enrollment has also had several failed bond levies for the K-12
public school, and no allocation of Impact Aid construction grants to
assist with repairing or replacing the facilities.
Impact Aid schools received a total of $1.302 billion for fiscal
year 2008 but an amount of $70 million over last year's funding would
allow for some progress to be made to meet the continually increasing
public school construction needs on reservations. We strongly urge the
Committee to consider requesting funding for Impact Aid school
construction needs. These projects also could be completed in a 24-
month time frame and would create a significant number of jobs in their
communities.
Additionally, NIEA encourages funding for renovation projects for
Native language immersion K-12 schools, many of which are public and
public charter schools. There is a need for numerous renovation
projects for schools that support Native language instruction, many of
which are housed in abandoned and neglected buildings and are in dire
need of repair and maintenance.
New Authorizations for School Construction in the Stimulus Package
Further, we understand that provisions are being considered in the
stimulus package that may create new authorizations for school
construction. While we support new programs for general school
construction, especially new public schools and charter schools in
Native communities, we urge you to consider that the BIE school system
is a federal responsibility that has unique needs and circumstances. We
hope that the new Administration and the Congress will consult with
NIEA and Indian Country on any new school construction authorization
provisions to ensure that new authorizations do not create unintended
adverse impacts on BIE schools. Further, NIEA urges the inclusion of
funding for BIE school construction, maintenance, and repair as a
separate provision in the economic stimulus package distinct from
funding for public schools, territorial schools, or other types of
schools given that BIE schools are uniquely situated due to treaty
rights and the federal trust obligation for the education of Indian
children.
Conclusion
We must do all that we can to ensure that our children do not have
to risk their lives in deteriorating buildings while aspiring to
achieve academic success. NIEA thanks the Committee for its hard work
and diligence on behalf of Native communities. With your support, we
are hopeful that Indian Country will have the resources it needs to
build the educational facilities that it deserves.
The Chairman. Ms. Butterfield, thank you. Thank you for
your work on the Indian Education Association.
Next, Reno Franklin is with us, who is the Chairman of the
National Indian Health Board. Mr. Franklin?
STATEMENT OF RENO FRANKLIN, CHAIRMAN, NATIONAL INDIAN HEALTH
BOARD
Mr. Franklin. Thank you, sir.
Chairman Dorgan and Vice Chairman Murkowski, and
distinguished members of the Senate Indian Affairs Committee
and future member Mr. Udall, let me introduce myself first. I
am Reno Keoni Franklin, I am a tribal council member for the
Kashia Band of Pomo Indians and the Chairman of the California
Rural Indian Health Board and the newly-elected chairperson for
the National Indian Health Board. On behalf of NIHB, it is both
my honor and my pleasure to submit the NIHB's testimony to you.
During our discussion, we will focus on three
recommendations to create jobs and stimulate tribal economies
as it relates to health care. These recommendations are
reauthorization of the Indian Health Care Improvement Act,
improved access and enrollment into Medicare, Medicaid and
SCHIP, and health care funding of $1.485 billion for
infrastructure and support needs.
Before I continue, please allow me to express my gratitude
and the gratitude of the tribes for the work the Committee did
during the 110th Congress. You were able to help us reauthorize
the Indian Health Care Improvement Act, S. 1200. We were
disappointed to see that the final reauthorization did not make
it, but we are very hopeful that it will.
NIHB believes strongly that the economic stimulus plan
provides an ideal opportunity for reautohrization of the Act.
President-elect Obama, in recognizing the unique government-to-
government relationship with Indian tribes has said Indian
nations have never asked much of the United States, only for
what was promised by treaty obligations to their forebears.
Reauthorization of the Act is not asking for much, only the
same opportunity to receive basic health care services that the
rest of the Country receives. While the Nation suffers from
economic crisis, Indian Country has always suffered from both
an economic and a health care crisis. American Indians and
Alaska Natives suffer a disproportionate disease burden because
of inadequate education, sub-par housing, poverty, unemployment
and lack of employment opportunities. Indians live in some of
the poorest, most remote locations where health care is limited
and in some cases completely not accessible.
In my own community in California, my tribal members have
to drive nearly four hours round trip to make it to our local
health care facility. Today is our opportunity to invest in
health care and infrastructure to strengthen tribal economies
and bring the Indian health care system into the 21st century.
NIHB's recommendations are consistent with President-elect
Obama's economic vision.
The reauthorization of the Indian Health Care Improvement
Act provides authorities to ensure a healthy Indian reservation
work force. It creates jobs, it provides for infrastructure
development in Indian reservation communities and expands
access to Medicare, Medicaid and SCHIP. Due to the economic
crisis in some tribal communities, we expect an increase in
enrollment in these safety net programs. Revenue generated from
Medicare, Medicaid and SCHIP, an IHS estimate of $780 million
annually, support tribal economies through employment of health
care professionals and maintenance and renovation of health
care facilities.
The NIHB supports the January 9th, 2009 letter from the
U.S. Senate outlining a comprehensive plan to stimulate the
economy in tribal communities. At the NIHB winter board meeting
held on January 8th and 9th in 2009, the NIHB passed Resolution
2009-01, which we have attached as a part of this testimony.
Consistent with the Senate request, the NIHB recommends $400
million in Health care facilities construction, $250 million in
facilities improvement and maintenance, $250 million in
sanitation construction, $200 million in contract health
services, and another $150 million in health information
technology.
In addition, the NIHB resolution recommends that $285
million in contract support costs shortfall funding be included
to stimulate employment opportunities in Indian Country. For
every $10 million in CSC shortfall funding, it is estimated
that 100 jobs and $6 million in third-party revenues are lost.
On behalf of the National Indian Health Board, I appreciate
the opportunity to present testimony today on behalf of the
tribes. We appreciate your leadership and we look forward to
working shoulder to shoulder with you to realize a healthy
future for our tribal communities.
I am available to answer any questions the Committee might
ask. Thank you.
[The prepared statement of Mr. Franklin follows:]
Prepared Statement of Reno Franklin, Chairman, National Indian Health
Board
Introduction Chairman Dorgan, and Vice-Chairman Murkowski and
distinguished members of the Senate Indian Affairs Committee, I am Reno
Franklin, a tribal council member of Kashia Band of Pomo Indians,
Chairman of the California Rural Indian Health Board, and newly-elected
Chairman of the National Indian Health Board (NIHB). \1\ On behalf of
the NIHB, it is an honor and pleasure to offer the NIHB's testimony on
proposals to create jobs and stimulate Indian Country economies.
---------------------------------------------------------------------------
\1\ Established in 1972, NIHB serves Federally Recognized AI/AN
tribal governments by advocating for the improvement of health care
delivery to AI/ANs, as well as upholding the federal government's trust
responsibility to AI/ANs. We strive to advance the level and quality of
health care and the adequacy of funding for health services that are
operated by the IHS, programs operated directly by Tribal Governments,
and other programs. Our Board Members represent each of the twelve
Areas of IHS and are elected at-large by the respective Tribal
Governmental Officials within their Area. NIHB is the only national
organization solely devoted to the improvement of Indian health care on
behalf of the Tribes.
---------------------------------------------------------------------------
During our discussion we will focus on three recommendations to
create job and stimulate Indian economies as it relates to healthcare.
These recommendations are:
1. Reauthorization of the Indian Health Care Improvement Act.
2. Improved Access and Enrollment in Medicare, Medicaid and
SCHIP.
3. Healthcare Funding of $1.485 Billion for Infrastructure and
Support Needs in Indian Country.
Before I continue, please allow me to express the gratitude of the
Tribes for the work the Committee did during 110th Congress to advance
the reauthorization of the Indian Health Care Improvement Act (IHCIA),
S. 1200. We are especially thankful for the leadership of Senators
Dorgan and Murkowski, and other members of the Committee, for their
tenacity in ensuring successful passage of S. 1200 by an overwhelming
bi-partisan vote of 83-10.
The NIHB believes strongly that the economic stimulus plan provides
an ideal opportunity for reauthorization of the IHCIA. As members of
this Committee appreciate, Indian Tribes ceded over 400 million acres
of land in exchange for health care for their people. President-Elect
Obama, in recognizing the unique government-to-government relationship
with Indian Tribes, has said ``Indian nations have never asked much of
the United States--only for what was promised by the treaty obligations
made to their forebears. So let me be absolutely clear--I believe
treaty commitments are paramount law, and I will fulfill those
commitments as president of the United States.'' Reauthorization of the
IHCIA is not asking for much--only the same opportunities to receive
basic health care services that the rest of the Country receives.
While the Nation suffers from an economic crisis--Indian Country
has always suffered from both an economic and a health care crisis.
American Indians and Alaska Natives (AI/AN) suffer disproportionate
disease burden because of inadequate education, subpar housing,
poverty, unemployment and lack of employment opportunities, and
discrimination in the delivery and access to health services. AI/ANs
live in some of the poorest and most remote locations where health care
is limited and in some cases, completely not accessible. The Indian
Health System (IHS) system is funded at only approximately 40 percent
of the level of need in comparison to services available to the general
population. In some parts of Indian Country, health care is limited to
``life or death'' emergencies. As a result, AI/ANs suffer lower life
expectancies, disproportionate health disparities, and die at higher
rates from alcoholism (550 percent higher), diabetes (190 percent
higher), and suicide (70 percent higher) than the general U.S.
population. Approximately 13 percent of AI/AN deaths occur among those
under the age of 25; a rate three times that of the total U.S.
population. Our youth are more than twice as likely to commit suicide,
and nearly 70 percent of all suicidal acts in Indian Country involve
alcohol.
In a speech on January 8, 2009, President-Elect Obama outlined his
vision of a proposed American Recovery and Reinstatement Plan to
jumpstart job creation and long-term growth. The plan proposes to
invest in priorities like energy, education, health care and the new
infrastructure necessary to keep us strong and competitive in the 21st
century. As the President-Elect said: ``Perhaps more than anyone else,
the Native American community faces huge challenges that have been
ignored by Washington for too long. It is time to empower Native
Americans in the development of the national policy agenda.'' Today is
your opportunity to change this. Invest in health care and
infrastructure to strengthen Tribal economies and bring the Indian
healthcare system into the 21st century. Just say--``Yes We Can.''
NIHB Proposal to Create Jobs and Stimulate Indian Country Economies
1. Reauthorization of the Indian Health Care Improvement Act
The reauthorization of the IHCIA should absolutely be included in
an economic stimulus package because it provides authorities for
methods to ensure a healthy Indian reservation workforce, creates jobs,
provides for infrastructure development in Indian reservation
communities, and expands access to safety net programs such as Medicaid
and State Children's Health Insurance Program (SCHIP).
Including the IHCIA bill as part of the economic stimulus package
is consistent with the position of the Senate Finance Committee,
prominent national organizations and academic scholars who agree that
health care reform is an important component to improving this
Country's economic crisis. Reauthorization on the IHCIA bill would
stimulate and promote more prosperous and self-sufficient Tribal
economies.
The economic stimulus plan is expected to include key health care
provisions to stimulate local economies. Some of these provisions would
enhance the State Medicaid programs by providing funding opportunities
and expansion of Medicaid services for the unemployed. It is also
expected that the economic recovery plan will include healthcare
specific provisions to address health care spending, incentives for
health care professionals to participate in Medicare, and construction
and maintenance of community health centers.
Including the IHCIA, and at a minimum, Title II of the bill, will
help stimulate Tribal communities by ensuring a healthy workforce,
create jobs, and provide new and expanded authorities for health care
facilities construction. In some parts of Indian Country, such as the
Rosebud Sioux Tribe located in South Dakota, unemployment rates are at
84 percent; and at Standing Rock located in North and South Dakota, the
unemployment rates are at 71 percent. As many Tribal leaders have
testified before your Committee before--why is it that the United
States sends billions of dollars abroad to build homes, jails,
government buildings, schools and hospitals, yet cannot do things for
its own citizens, the First Americans.
A healthy workforce is the foundation for any healthy economy.
Tribal communities are no different: without good health, Indian people
cannot go to work, might have to stay home to care for a family member,
or will not seek employment or educational opportunities to improve
their family's economic status. The IHCIA bill provides for new
authorities to improve the health care of Indian people:
new and expanded health promotion and disease prevention
activities;
expanded authorities to prevent and treat chronic
conditions;
expanded authorities for cancer screenings;
comprehensive behavioral health care programs to address the
high rates of alcohol and substance abuse and mental illness.
The IHCIA bill would facilitate creation of health care jobs in
underserved Tribal communities which suffer from chronically high
unemployment through:
programs for recruitment, retention of health care
professionals, with preferences for Indian applicants (who are
more likely to remain in the Indian community);
education allowances to encourage Indians to enter health
care training;
authority for hiring tribal outreach workers for Medicare,
Medicaid and SCHIP enrollment assistance.
The IHCIA bill authorizes innovative methods for construction of
health care-related and community sanitation facilities through:
new authority for provision of long-term care and assisted
living which will spur construction of such facilities in
underserved reservation communities;
revised criteria for selection of sites for construction of
new and expanded hospitals and clinics and for identifying
Indian communities in need of water and sewer facility
construction;
authority for construction of youth treatment facilities;
authority for IHS and Tribal joint venture projects for
health care facility construction;
authority for construction of ambulatory clinics for small
tribes.
2. Improved Access and Enrollment in Medicare, Medicaid and SCHIP
Title II of the IHCIA amends the Social Security Act and improves
access to and enrollment of Indian people into Medicare, Medicaid, and
SCHIP. Due to the economic crisis in some Tribal communities, we expect
an increase in enrollment in these safety net programs. Revenues
generated from Medicare, Medicaid and SCHIP (IHS estimate of $780
million annually) support Tribal economies through employment of health
care professionals and maintenance and renovation of health care
facilities.
3. Healthcare Funding of $1.485 Billion for Infrastructure Needs in
Indian Country
Healthcare Facilities Construction
The average age of IHS facilities is 33 years, compared to
mainstream healthcare facilities in the United States are only 9 years
old. Many IHS facilities are overcrowded and were not designed in a
manner that permits them to be utilized in the most efficient manner in
the context of modern healthcare delivery. The condition of these
facilities varies greatly depending on age and other factors. Some are
in need of maintenance. In addition to maintenance, there is a need for
modernization or expansion to address population growth, to accommodate
modern equipment, or to meet the needs of rapidly changing health care
delivery systems. Some areas, like the Portland Area (representing
Washington, Oregon, and Idaho) and the California Area, have no
inpatient hospital facilities at all. Because there is no hospital for
AI/AN patients in these IHS Areas, these facilities depend on Contract
Health Services (CHS) funds. Forcing patients to travel great distances
to receive specialty care with limited funds. There needs to be a large
influx of funding for healthcare facilities construction so that the
facilities on the IHS facility construction priority list are
completed, and other Areas in Indian Country, that have no projects on
the priority list, can receive health care facility construction
funding to address their needs.
The IHS estimates that approximately 27 percent of the $2.6 billion
in priority health facilities projects can be under construction within
two years, approximately 35 percent of the $336 million in maintenance
and improvement projects can be under construction within two years,
and approximately 45 percent, or approximately $1.1 billion of the
economically feasible projects, can be under construction within two
years.
Health Information Technology
Approximately $233 million for enhancements in health information
technology (HIT) can be implemented within two years. An investment in
health information technology within the IHS will directly benefit the
economy through expenditure of funds in the private sector for goods
and services. The current HIT needs within the IHS require additional
infrastructure acquisition at the local, regional and national levels.
Meeting these needs requires significant purchases of technology
hardware and other IT peripherals through commercial IT vendors.
Contract Health Services
CHS services are provided by private or public sector facilities or
providers based on referrals from the IHS or tribal CHS program. Due to
the severe underfunding of the CHS program, the IHS and tribal programs
must ration health care. Unless the individual's medical care is
Priority Level 1 request for services that otherwise meet medical
priorities are ``deferred'' until funding is available. Unfortunately,
funding does not always become available and the services are never
received. For example, in FY 2007, the IHS reported 161,750 cases of
deferred services. In that same year, the IHS denied 35,155 requests
for services that were not deemed to be within medical priorities. In
addition, in 2007, IHS was not able to fund 895 Catastrophic Health
Emergency Fund (CHEF) \2\ cases. Using an average outpatient service
rate of $1,107, the IHS estimates that the total amount needed to fund
deferred services, denied services not within medical priorities, and
CHEF cases, is $238,032,283. This estimate also does not capture
deferred or denied services from the majority of tribally operated CHS
programs (nearly one-half of all tribes).
---------------------------------------------------------------------------
\2\ The CHEF is administered by IHS Headquarters and pays for high
cost CHS claims.
---------------------------------------------------------------------------
Contract Support Costs
Contract Support Cost (CSC) funding provides resources to Tribes
and Tribal organizations, that operate health programs under the Indian
Self-Determination and Education Assistance Act, to cover
infrastructure and administrative costs associated with the delivery of
health care services. Specifically, approximately 70-80 percent of CSC
funding is used to pay salaries of Tribal health professionals and
administrative staff. Without adequate CSC funding, Tribal health
programs are forced to reduce the levels of health care in order to
absorb the infrastructure and salary costs. In most instances, cutting
health care services is the only alternative to financing these costs.
Chronic underfunding has resulted in a substantial shortfall of CSC
funding in the amount of $285 million (FY 2009--$132 million and FY
2010--$153 million). An influx of $285 million in CSC funding shortfall
will enable Tribes to create more jobs in Indian Country.
NIHB Support of Senate Plan
The NIHB supports the January 9, 2009 letter from the U.S. Senate
outlining a comprehensive plan to stimulate the economy in Tribal
communities by addressing infrastructure needs and the creation of
jobs. At the NIHB Winter Board meeting held on January 8-9, 2009, the
NIHB passed Resolution 2009-01, which we have attached as part of this
testimony. Consistent with the Senate request, the NIHB recommends
that:
$400 million in health care facilities construction
$250 million in facilities improvement and maintenance
$250 million in sanitation construction
$200 million in contract health services
$150 million in health information technology is included in
the economic stimulus plan.
In addition, the NIHB resolution recommends that $285 million in
CSC shortfall funding be included to stimulate employment opportunities
in Indian Country. For every $10 million in CSC shortfall funding, it
is estimated that 100 jobs and $6 million in third party revenues are
lost.
Conclusion
On behalf of the NIHB, I appreciate the opportunity to present
testimony on recommendations on healthcare infrastructure and support
needs of Indian Country. The NIHB recommends that the American Recovery
and Reinstatement Plan include reauthorization of the IHCIA, and in the
alternative Title II of the bill, and infrastructure funding to address
healthcare facilities and sanitation construction, maintenance and
improvement of facilities, contract health services, health information
technology, and contract support costs.
We appreciate your leadership in bringing these important economic
proposals forward for discussion and we look forward to working with
you and your Committee to improve the health of Indian people and the
health of our Tribal economies.
I am available to answer any questions the Committee might have.
The Chairman. Mr. Franklin, thank you.
Finally, we will hear from Julie Kitka, who is the
President of the Alaska Federation of Natives.
While I introduce you, Ms. Kitka, I want to indicate that
we have been joined by the Junior Senator from Alaska, Senator
Begich. Will you ultimately be on this Committee, do you know?
Senator Begich. Mr. Chairman, I was actually enjoying
sitting by the press, because I could see what they were
writing. But I am happy to be here.
The Chairman. Well, whether you are ultimately on the
Committee or not, I know that you will have an abiding interest
in these issues, especially coming from Alaska, as Senator
Murkowski has had, and a good number of other Senators from
Alaska. So we welcome you today to join us, and we are glad you
are here.
Speaking of Alaska, Ms. Kitka, you may proceed.
STATEMENT OF JULIE KITKA, PRESIDENT, ALASKA FEDERATION OF
NATIVES
Ms. Kitka. Thank you, Mr. Chairman, Madam Vice Chairman,
other members of the Committee. It is our pleasure to
participate in the hearing today.
I first want to ask that our written comments be included
in the record, including our addendum on the Emmonak situation.
As all of us know, we in the United States are in the midst
of a crisis. It is a transformational crisis. As we go through
this, and it is not only affecting us as Native Americans, but
us as Americans, and ourselves as citizens of the world, it is
our view that the world we live in will be completely different
than when we are through it. And the challenge to us is how to
manage the crisis that is going on, and how to prepare for what
the world is going to be like after this crisis is over.
It is our view that working together with you, it is going
to be really important to connect the dots of all the different
signs that we see in the economy and put forward good Federal
policies, implemented with the help of strong Native leadership
across the Country and have solutions that have long-term
value, good value for the U.S. money, and that will get us to a
place that we want to be globally in the United States, where
Native Americans and other Americans are able to compete in the
world and in the economy, and not just barely make it through
the crisis.
In my testimony, I quoted Bill Gates, a recent comment that
he made where he said that the highest leverage work that
Government can do is to set policy and disburse funds in ways
that create market incentives for business activity that
improves the lives of people, including the poorest and most
marginalized Americans. I think that is really important to
keep in mind as you go forward with this recovery. It is about
setting the investment climate, setting the market conditions,
where the tremendous American can-do spirit is unleashed and
business is helping to address some of these issues and
problems. And the incentives on the tax credits and everything
to get going, it is on different for Native American
communities, the need to unleash these market incentives to try
to make things happen.
I also quote in our testimony that a mere recovery from
this crisis is not going to be enough to have sustainable
success. During World War II, for example, the famines of 1944
led some military planners to look ahead to the war's end and
how to rebuild Europe, and how they would rebuild its shattered
farms and infrastructure. That is where they came up with the
Marshall Plan. They looked ahead, past the crisis to see what
needed to happen. We can do no less for Native American
communities. I would like to recommend to the Committee that we
put forward a Marshall Plan for the villages in Alaska, a
Marshall Plan for our reservations, and that we look past the
crisis on where we want to be and not just barely make it
through. It is that magnitude of effort that needs to take
place.
I have a number of recommendations, about 11, 12
recommendations on energy I would like to put forward. But if I
could leave just one message, it is, it really is going to take
this Committee to bring that message to the leadership in the
Congress and to the Administration, that Native Americans
shouldn't be left behind. We are some of the largest land
owners in the Country. We have tremendous energy resources. We
have a tremendous capacity that has been developing for decades
all across the Country in the Native Americans.
And we are ready to help this Country pull out of this
recession. We want to be a part of it. We don't want it done to
us, we want to be a part of it and help drive it. We have
resources, we have leadership. We just need to have the
appropriate tools.
In addition, I would like to talk about, on the emergency
in Emmonak that was brought forward, it is a really critical
situation in Emmonak and a number of villages. The choice
between whether or not to heat your home or have food for your
family is real. We could have growing problems and we really do
need help in this recovery to bring down the cost of energy to
make it affordable. We need greater emergency relief
capabilities to deal with food shortage problems. I would
venture to say it is no different than in many other
reservations across the Country where people that don't have a
lot of resources are forced to choose between heating their
homes, providing basic things for their children, as well as
putting food on the table.
I just ask that the rest of our recommendations be brought
forward. One last one, and again we have quite a number of
recommendations, we really think there is a need for a Native
American Economic Council. There is tremendous capacity of
Native leadership, whether or not you are talking about gaming
tribes, whether or not you are talking about Native
corporations, you are talking about the Navajo Tribe. Having a
structure, an economic council, where we can engage at the
level that many other people engage in, would be very helpful.
It would be one of those pieces that could help bring us
forward and help us to help ourselves.
Thank you very much, and I appreciate the time to testify.
[The prepared statement of Ms. Kitka follows:]
Prepared Statement of Julie Kitka, President, Alaska Federation of
Natives
Mr. Chairman, Members of the Committee, Ladies and Gentlemen:
For the record, my name is Julie Kitka; and I serve as President of
the Alaska Federation of Natives. AFN is a statewide Native
organization whose membership includes over 200 villages and tribes, 13
regional Native corporations and 12 regional non-profit tribal
consortia that contract and run federal and state programs.
Thank you for inviting AFN to provide testimony today. I ask that
the hearing record be kept open for a period of time to allow our
tribes and corporations, and interested individuals to provide
additional written comments.
In many ways, we can describe rural Alaska and other Native
communities as ``emerging economies'' similar to other countries around
the world. As ``emerging economies'' we are and will continue to be hit
very hard by the recession. Economic stimulus programs to help our
economy will need to be tailored to the unique circumstances in our
Native communities. To generate economic growth, we need U.S. financial
and tax incentives to increase both local and expanded investment in
our villages, which can lead to stronger and more responsive economic
performance levels and badly needed jobs.
Recently, Bill Gates was quoted as saying the highest leverage work
that government can do is to set policy and disburse funds in ways that
create market incentives for business activity that improves the lives
of all people, including the poorest and most marginalized Americans.
Within AFN, we agree wholeheartedly with this observation.
This economic recovery effort will allow new thinking and has the
opportunity to bring solutions many people take for granted, to people
who can't get them. The federal effort will play a life-changing role
in whether we continue to build capacity to build sustainable
economies, or if we are sidelined in the new economy.
A mere recovery from the crisis is not enough to deliver
sustainable success. During World War II, for example, the famines of
1944 led some military planners to look ahead to the war's end and how
they would help Europe rebuild its shattered farms and infrastructure--
an effort that became the Marshall Plan. Long-term success was achieved
not just by how well they handled a downturn, but also by their
foresight in preparing for the upturn.
Native Americans need a Marshall Plan--we need to be part of the
recovery and we need to be prepared for the upturn. AFN urges the
Senate Indian Affairs Committee to adopt sweeping recommendations to
the full Congress and embrace an effort to allow Native Americans to
have the tools we need for the new economy.
Together, we need to be proactive in taking advantage of the
opportunities presented in these extraordinary times. We must be the
drivers of change. Federal policy and our leadership must encourage
entrepreneurship to jumpstart the economic engines of our communities.
We must not get distracted by the negative headlines, but instead
remain focused on the opportunities at hand. We must rethink our
assumptions about the future, rethink our strategies in light of the
transformation-taking place and focus on laying the groundwork for
economic success in the 21st century.
Recession
A recession is defined as significant decline in activity across
the economy, lasting longer than a few months. The technical indicator
of a recession is two consecutive quarters of negative economic growth
as measured by a country's gross domestic product (GDP). We are in a
recession in the United States, and it will probably be the deepest
recession any one of us will experience in our lifetimes--but these
especially tough economic times bear with them especially exciting
opportunities.
Recovery and Opportunities
Thanks to the efforts of the Congress and the new Administration,
we will soon see a massive stimulus bill, the likes of which we have
never seen before, to build new infrastructure, to create new jobs and
stimulate the credit market. This stimulus bill will be one of the most
important, transformational federal efforts in our lifetime. If done
right, it will provide an opportunity for people throughout the United
States to re-engage with the economy in three major ways: (1) Direct
Economic Stimulus--encourage entrepreneurship; (2) Infrastructure
Building--ensure inclusion for Native communities & workers; and (3)
Alternative Energy--secure economic support for new & existing energy
resources. The Senate Indian Affairs Committee should ensure Native
Americans are included in a significant way in all major sections of
the bill.
Pooling of Resources--Indigenous Sovereign Wealth Fund
Looking at Native communities as emerging markets within the United
States market, we can also see an opportunity to create indigenous
sovereign wealth funds. Through the combined capital or combined
resources in these funds, Native communities could have the opportunity
to track more resources and invest more wisely and create more jobs
then ever before. Federal policies should encourage, provide
incentives, support, and guarantees to make this happen.
What are Sovereign Wealth Funds?
Pools of money derived from a country's reserves, which are set
aside for investment purposes that will benefit the country's economy
and citizens. The funding for a Sovereign Wealth Fund (SWF) comes from
central bank reserves that accumulate as a result of budget and trade
surpluses, and even from revenue generated from the exports of natural
resources.
Some countries have created SWF to diversify their revenue streams.
For example, United Arab Emirates (UAE) relies on its oil exports for
its wealth; therefore, it devotes a portion of its reserves in an SWF
that invests in other types of assets that can act as a shield against
oil-related risk.
AFN Requests for the Congress and New Administration
1. Applicable economic stimulus funds intended to assist federally
recognized tribes or Alaska Native Claims Settlement Act (ANCSA)
corporations should be directly funded from the federal government, and
not through the States.
2. There should be clarifying language stating that the ANCSA
corporations shall be treated as Indian Tribes for the purposes of the
Economic Recovery bill.
3. Any matching fund requirements in authorizing law under the
Economic Recovery bill should be temporarily waived for Indian tribes
and ANCSA corporations.
4. The Congress should authorize, and President-Elect Obama should
establish, a Native American Economic Council to provide Native
Americans an opportunity to have a seat at the table when major
economic decisions are made, to allow involvement in major new economic
restructuring which will affect Native Americans, and to help focus on
productivity and encourage Native American involvement in building U.S.
competitiveness in the global economy. Native Americans need to be
brought into major new economic restructuring which will affect our
communities--right from the start, and not after the fact. We have the
capacity across the nation because of our experience in tribal
enterprises (both for profit and not-for-profit) to contribute
expertise in development, which is sound.
5. The Congress should authorize and President-Elect Obama should
establish, a Native American Development Bank, similar to the Asian
Development Bank or the Inter-American Development Bank and capitalize
it in the economic recovery package he submits to the Congress.
6. The Congress should encourage inter-tribal economic
collaboration including the creation of Indigenous Sovereign Wealth
Funds.
7. The Congress and new Administration should strengthen and expand
government contracting as a model to diversify and provide value to the
US government during this recovery. The SBA 8(a) program is a success
and can be a strong vehicle in the economic recovery. Tribal small
businesses are a key vehicle for ramping up job creation at the same
time providing real value, transparency, and accountability.
8. The Congress and new Administration should encourage
entrepreneurship and small business development. A successful example,
which could be ramped up is the public-private partnership--the Alaska
Marketplace Ideas Competition.
The final set of recommendations deal with actions, which can be
taken on energy.
So what can we do to deal with the immediate energy crisis in rural
Alaska, and how can the Federal Government play a key role in
addressing the problem? We believe a multi-faceted approach much be
taken--one that provides greater economic opportunities for Native
tribes and corporations to develop energy resources and one that drives
down local costs of energy. Here are some practical ideas, as a
starting place:
1. Congress should urge the Department of Interior to publish
regulations on an expedited basis to implement the programs authorized
by the Indian Tribal Energy Development and Self-Determination Act,
Title V of the Energy Policy Act of 2005, and Congress should fully
fund their implementation. The Indian Tribal Energy Development and
Self-Determination Act authorizes a variety of financial, technical,
environmental and other programs that are intended to empower tribes
and Alaska Native Corporations to develop energy resources. It
authorizes the Department of Interior's Office of Indian Energy Policy
and Programs to reduce energy costs, enhance tribal energy
infrastructure and improve delivery of electricity to tribal
communities. It also authorizes a multi-billion-loan guarantee program,
as well as other assistance to encourage development of renewable and
non-renewable resources by tribes and tribal organizations. We have
projects that are being held up because of the delay in the publication
of regulations implementing this legislation. An important
consideration for Alaska in the regulations is the inclusion of the
Native corporations, who are crucial stakeholders. The Native
corporations hold our land and resources, and must be included in any
program affecting our land base.
2. The congressionally created Denali Commission has requested
Letters of Interest on developing small-scale alternative/renewable
energy and energy efficiency projects in Alaska, with a budget of only
$5 million. The Commission has received far more proposals that it has
funds to support. Congress should increase funding to the Denali
Commission for developing alternative/renewable energy projects.
3. State and federal strategies should be developed to provide
economic incentives to conserve energy (including tax credits, low
interest loans, rebates and grants to weatherize homes, and grants to
purchase more efficient heating systems, wind generators, solar panels,
and other technologies.
4. Congress should increase the supply of energy by encouraging
exploration and development of private, state and federal uplands, both
onshore and offshore. This can be done by providing incentives, such as
OCS revenue sharing for Alaska's coastal communities, as has been done
for Florida, Louisiana and Texas. If our communities could count on
sharing some of the revenue from offshore leasing for their own
critical infrastructure and other needs, there would be greater local
support for exploration and development in offshore areas. AFN strongly
supports the right of self-determination for our Native communities and
urges that leases, which have generated a lack of widespread community
support be revisited and discussions opened up with affected
communities to address their concerns.
5. Congress should work closely with the State to ensure that in
development of a Natural Gas Pipeline in Alaska, our communities have
access to the natural gas that will pass through that pipeline through
spur connections and pipe; and that ownership, partnership, and
contracting opportunities for Alaska Native tribes and corporations be
part of the development. Serious training funds should be appropriated
for workforce development to ensure broad Native participation in the
projects. If the Committee is interested, we could submit much more
detailed information and recommendations on the natural gas project.
6. Congress should provide additional funding for the Low-Income
Home Energy Assistance Program (LIHEAP) in Alaska--and should urge the
State to add its own appropriations for this excellent program. This
country should be concerned when its poorest citizens are left to rely
on the generosity of companies like Citco to meet their basic energy
needs.
7. Congress should urge, and provide incentives for, states to
develop their own comprehensive energy plans, with effective processes
for local input. This is perhaps the most critical step of all, since
it can open the door to more specific solutions at the regional and
community levels.
8. Congress should create real opportunities for alternative energy
projects, at least one major demonstration project within each Native
region in Alaska. And further projects should be structured to
encourage Native-to-Native partnerships, both within Alaska and with
Native American tribal partners. There is much sharing of information
and experience, which can take place, and greater inter-tribal
collaborations are to be encouraged.
9. Congress should fully fund and implement the Energy Independence
and Security Act of 2007, which was authorized last year. That bill
includes a host of provisions to further renewable energy development,
including a Renewable Energy Deployment Grant Program that would
provide federal grants for up to 50% of the cost of building a wide
variety of renewable electricity projects, including wind, geothermal,
ocean, biomass, solar, landfill gas and hydroelectric projects in
Alaska. It provides for a federal grant program specifically to help
with construction of geothermal energy projects in areas of high
electricity costs like rural Alaska.
10. Congress and the State should provide homeowners with
incentives to shift to supplemental alternative energy, including a
weatherization programs, rebates for installation of energy saving
changes.
11. Congress should re-introduce, enact and fund S. 2232, the
Native American Challenge Demonstration Project Act, creating a total
of five pilot projects in remote, predominately Native American areas
modeled after lessons learned from the US experience in providing
foreign aid to the developing world. The project would use a compacting
model to channel significant development funds to implement locally
designed economic development strategies, including energy strategies.
The objectives would be to enhance the long-term job creation and
revenue generation potential of Native economies by creating
investment-favorable climates and increasing Native productivity.
Thank you for the opportunity to share our ideas. Thank you for
your dedication and hard work. The task you are undertaking right now
will shape our collective future, and that of our whole country. We
wish you wisdom and strength to do it right.
The Chairman. Ms. Kitka, thank you very much.
A couple of questions, first for Mr. Rever and Dr.
Middleton. On Indian roads, my understanding is that there is
an unmet need of about $20 billion for transportation
infrastructure in Indian Country. And funds are made available
for Indian roads through the Department of Interior and the
Department of Transportation.
Let me ask if you have a sense of how many construction and
maintenance and improvement projects could the Department have
ready to begin in 30 to 60 to 90 days? In other words, are
there a lot of projects that are already engineered, waiting
for funding?
Mr. Rever. Allow me, Mr. Chairman. The road program is very
fortunate in that, typically, in the design of roads and the
underlying substrata of roads, it is very easy to design roads.
Bridges are a little bit more difficult. I don't have an exact
answer for you on the number of projects that are ready to go
to contract at the moment, but I can provide that at a later
date, tomorrow, for you. But I just don't have that number in
front of me at the moment.
The Chairman. I had understood it is somewhere around 900
projects. Does that sound right to you?
Mr. Rever. It is going to be something in that nature, yes,
sir, but I don't have the exact number.
The Chairman. The recent Interior report noted that the
unmet needs for tribal detention facilities is about $8
billion. Is that correct?
Mr. Rever. Yes, sir, that is correct.
The Chairman. Of that backlog, and all of us who have been
on Indian reservations and toured these facilities, I mean, I
assume most of us have seen, as I have seen a young teenager
laying on the floor of the detention facilities with adults, in
a facility in desperate disrepair and so on, a situation that
is pretty pathetic. So there is an urgent need to address it.
Of the $8 billion that is unmet as a need, what do you think in
the next year or two the Department will be prepared to do?
Mr. Rever. Mr. Chairman, I think that the Department is
prepared to support the Department of Justice in the
administration of construction and improvement of the prior
program, which currently enjoys that authority and
responsibility. And that is an issue for them to answer in
administering their grant program. Should that program be
redirected to the Department of Interior for construction
design and administration, it will take us a while, because we
are behind in starting that process. We are just now developing
a priority list and have yet to consult with tribes and others
in coming up with a list of projects that would be high on the
list.
But of all of the projects and the type of construction
that you have mentioned, that will be the one that the
Department of Interior would have the most difficulty bringing
to fruition in a very short period of time, months instead of a
year.
The Chairman. Ms. Butterfield, since 2002, the Congress has
provided replacement funding for 32, I believe, Indian schools.
Of the 32, 12 have now been completed, so 20 remain to be
completed. You described in your testimony some of the
conditions, so we don't have to review that. All of us again
who have toured these schools understand the desperate
disrepair that exists in some areas.
What is your sense of the priority? I described at the
start of this a priority for Indian roads, Indian schools,
Indian detention facilities. I have gone on with the list.
Where does education rank for you, and that is repair and
building of schools?
Ms. Butterfield. Of course we would rank it close to the
top, if not first, simply because of the safety issues that we
are talking about in terms of children and staff. And some of
the magnitude of the infrastructure need the repair that we
cited in the report.
The Chairman. Ms. Johnson, your assessment of the
priorities?
Ms. Johnson-Pata. The priorities outside of education,
because she spoke a little bit about the priorities there, but
the energy, the access to energy credits, and to be able for us
to develop, become energy developers in our community, which
means the tools that are available for us. I think the tribes
are ready and willing for alternative energy and other models.
We make some recommendations around looking at a study on what
the challenge has been, access to the energy grid.
Transportation is a big issue for us. I think they spoke
about transportation. And as you note, in our document, all the
links lead to the reports that we were able to actually get to
what the lists were, so that we could identify ready projects,
and be ready for this.
I think a couple of things for tribes, tools for us for
tribes to be able to take advantage of all the infrastructure
development, we talk about infrastructure between schools and
sanitation facilities and health care facilities and
transportation. But then in addition to that, we are looking
at, tribes want to be direct funding to the tribes, so that we
can actually hire, but also be contractors. Some of the
challenges for that is just construction bond financing. So we
even in our package look at some of those tools so that part of
this BIA loan guaranty funds will actually go for some
guarantees on surety bonding.
The Chairman. The issue of accountability has been
described by the panelists. I think that is important as we
proceed. I think, Mr. Franklin and Ms. Kitka, you have laid out
in your testimony the priorities from your perspective. I think
you have made some good suggestions, and I wanted to make that
point. I am not going to ask further questions, because we have
others here that I know want to inquire. But my purpose of
having a hearing today is because while the stimulus or the
economic recovery program is not complete and likely will not
be complete until just prior to the President's Day recess,
which I think is when we will take action, things are moving
quickly. I am a subcommittee chairman on appropriations, and we
are moving very rapidly to complete the Senate portion of it.
But I wanted to put on record today from your perspective,
all of you, what you think the priorities are with respect to
the Indian tribal governments and the Indian nation. Not for
the purpose of suggesting there should be earmarks, but for the
purpose of suggesting that tribal governments around this
Country represent a form of government that is important, that
has significant needs, so that we should not just talk about
local governments, city government, State government. Let's
also talk about tribal government, and when you do, you have to
understand that it is the highest rate of unemployment in the
Nation, it is by far the most significant area of unmet needs
in law enforcement, education, roads and so many different
areas.
For that reason, there needs to be a component, not
earmark, but component that understands and recognizes and
addresses these needs, all of which are job-creating. I am
someone who believes that I want a recovery program that
focuses like a laser on creating jobs. But I guarantee you, you
put a road in my home county, in Hedinger County for
maintenance or a new road, it is going to create jobs. No more
jobs, however, than a road that you put on an Indian
reservation. You hire contractors, put people to work.
That is what this recovery program should be about. And it
ought to go, in my judgment, ought to focus on some of the
areas of greatest need, where you can, in addition to
addressing some of the greatest need, put people to work at the
same time.
So my purpose in calling this hearing was simply to create
the highlight of this need as we are all working to try to
figure out, where does this investment go to try to promote
economic recovery. So I thank all of the witnesses for giving
us the opportunity to put this in that kind of a setting today,
so that everybody who is working on this understands that this
too is a priority.
Senator Murkowski.
Senator Murkowski. Thank you, Mr. Chairman. It goes back to
my comments in the opening about the fact that the rest of the
Country is in a very difficult economic situation, with jobs
and job losses. It is not a good situation. But I think many
out in Indian Country are saying, well, welcome to our world,
in a very harsh way. And I am not saying that it is good or it
is acceptable in any way, but it is a reality that has been
faced in corners of our Country for far too long, that the
economic situation has been in crisis.
And yet, unemployment rates in Alaska have been sky high,
and that is just the way they have been. It is not something
that should accept.
Dr. Middleton, I want to ask you a question. You had the
opportunity to join me when we had our field hearing in Bethel,
Alaska in August. I appreciate your attendance there. I think
you got a first-hand look at some of the issues that we faced,
the community that you were in, the Bethel region. That is the
area, the region where Emmonak is. You heard from so many that
had attended that field hearing, and just the local people who
were there as listeners. You heard of the crisis in the region,
you were focused very specifically at that time about the high
energy prices and the impact.
You have probably had some time to think a little bit more
about what we might be able to do in regions like the Wade
Hampton district, villages specifically like Emmonak. Ms. Kitka
has also introduced into the record a further update on the
crisis that we are facing right now. When it hits the front
page of the Anchorage Daily News, it is getting folks'
attention.
Do you have any other ideas about not only what a community
like Emmonak can do, very remotely located, 800 people, it is
small, but what we can be doing further in the area of energy
to help these people stay in the village that they want to stay
in? And then a second question to you, I don't know if you are
the right person to take this, but you are here today. So if
you are not the one to answer it, I would like you to help me
find somebody who is.
We have an Alaska Native village governed by a federally-
recognized tribe. The community is facing a critical and
immediate food crisis. Does the BIA have any authority to help
alleviate the crisis? Is there any Federal agency that has the
authority to step in? My office has been talking with USDA,
with some of the other agencies. But I would like to know if
there is any way that you all can assist in this very immediate
crisis. And again, if you don't have the answer to that, I
would like to know somebody that might be able to help us out.
So if you can answer those, please.
Dr. Middleton. Yes, Senator, thank you so much. I will
address the second question first. I actually do not have the
answer to that, but I will go back immediately and speak with
the Assistant Secretary of Indian Affairs, as well as the
Director of the BIA. And we will find an answer for you
quickly, because it needs to be done quickly. So I would like
to the opportunity to take that back and get back in touch with
you.
Yes, you are exactly right. Alaska is in a very unusual
situation for energy. A lot of people don't realize it, that
there is no grid to speak of up there. You have grids in the
Anchorage, Juneau and Fairbanks area. But in the outlying
villages, they rely upon locally-generated electricity
resources, and most of it via diesel. The solution really is
for us, and diesel, local diesel generation is going to be
expensive in Alaska, and it is always going to be a gamble, as
you mentioned. They were prepared to get a barge that would
have carried them through the winter time, but it didn't show
up. Or if they had miscalculated and a barge had come in, they
would be in the same situation.
So we need to be able to find alternative energy resources
that we can take advantage of in these areas. Obviously there
are some of the villages up there who could take advantage of
geothermal resources, because there are some geothermal
resources up there. Some may have hydro for some of the areas
that don't ice up totally, and wind energy. But there is always
going to be somewhat of a reliance on that base energy resource
of diesel until we have other technologies that we can bring to
bear that would help eliminate the need for as much diesel
generation as occurs up there.
Senator Murkowski. Let me ask you, Ms. Johnson, because you
kind of spoke to some of the financing options. We have the
resources, whether they be geothermal, wind or ocean energy or
energy from the river, biomass, we have it all. But in order to
allow for the technologies to be cost efficient in small
villages, it is very difficult.
Some of the funding mechanisms that you mentioned in
talking about renewable energy projects and being part of this
economic stimulus package, you said that some of the funding
mechanisms are in place. Are we having much luck with the
tribes, and this is not just with Alaska, this is throughout
the Country, in funding energy development projects with the
private sector, commercial credit markets? How is that all
coming together?
Ms. Johnson-Pata. Well, I think we have some challenges.
First of all, the list goes on, but first of all, we have an
office in the Department of Energy that has been under-utilized
and underfunded.
Senator Murkowski. Is it staffed?
Ms. Johnson-Pata. It is staffed with someone who shares a
hat with another position currently. I think if you have a
full-time person there, that is the beginning.
But secondly I think also, the technical, because part of
that is the technical assistance that is necessary to be able
to help the tribes, not only to help them ferret out a deal to
work with the private sector, but also the tools to get the
private sector engaged, being able to have access to the energy
tax credits, to be able to use that as a leveraged part of the
deal, to be able to deal with some of the things that we are
talking about with the past projects of accelerated
depreciation. The point when you negotiate, are able to
determine where there is a point of contract or whether you
actually have the job, so you can negotiate some of those
benefits.
Being able to have the bonding capacity, because we are
talking about large scale projects now. So we need to be able
to have the guaranty funding available to be able to help with
those projects. And I think just really, and then of course we
still have some issues I think with the TARA that we need to
resolve a little bit, which allowed for the tribes to develop
their own regulatory kind of process, approval process for
these projects.
So we have a list of those, in addition to the challenges
of access to the energy grid. I have to say, in forward
thinking, thinking about some of the things that Julie brought
up, the challenges that this Country is going to be really
defining is energy corridors. And we want to be able to make
sure that we have capable, competent people who know our
challenges, to be able to sit at the table, to be able to make
sure that we are representing Indian Country well, so those
court orders don't get developed and exclude or bypass Indian
Country, as we have seen in other developments, whether they be
cell tower placements or just railroad stations.
And so we want to be able to make sure that all those
pieces are there. I think Indian Country is ready and wiling.
We need to be able to have both Department of Energy and
Department of Interior working in collaboration together,
having the right kind of technical support and staffing. Tribes
are ready and willing, and we have the resources. There is no
doubt about it.
Senator Murkowski. Mr. Chairman, I have a couple more
questions, but in deference to my colleagues, the clock is on
running, so I don't know how long I have been talking.
Dr. Middleton. Senator Murkowski, if I could mention, we
actually received an answer that we think the emergency
provisions of the general assistance program could be a
mechanism available. We have folks looking into it right now,
and we will get back to you as soon as we can.
The Chairman. Thank you.
Senator Tester.
Senator Tester. Thank you, Mr. Chairman. It was two years
ago that the large land-based tribes had a meeting that I was
at. One of the first questions I asked them was, what are your
needs. And it didn't take long, 15 or 20 or 30 minutes, when I
said, hold it, you are going to have to prioritize. Because
there are too many. And in fact, they did, and I commend them
for that.
But I think in this recovery bill that we are dealing with,
I think we can do a lot of things to make giant leaps forward
to address some of the needs in Indian Country, and hopefully
in the end that will be done. The Chairman talked about
infrastructure, and I couldn't agree more. I know you folks
agree also, it is critically important, and it is an
opportunity to do some things and do some things right.
Dr. Middleton, you talked about assessment of the justice
system requirements. I believe it was you that talked about
that, or was it Mr. Rever?
Dr. Middleton. Jack Rever.
Senator Tester. My apologies. Has there been an assessment,
I am just curious, an assessment done on the shortfall in the
number of people infrastructure, the cops on the street? Has
there been an assessment of that? The Chairman talked about the
$8 billion shortfall in prisons. Has there been anything talked
about by the people who are involved?
Mr. Rever. Yes, Senator, there has. As one would suspect,
it shows a significant shortfall in the per capita distribution
of policemen on the street in Indian Country as compared to the
rest of the Nation.
Senator Tester. Do you recall how big a shortfall that was?
Mr. Rever. I do not in specific numbers, but can get it to
you very quickly.
Senator Tester. I would love that.
Jackie, you talked about the Mississippi Choctaw. From your
testimony, I gather we are not doing well, and now they are
doing reasonably well, or as well as anybody. What did they do?
What did they invest in to pull themselves up to a point where
they could be the second largest employer in Mississippi?
Ms. Johnson-Pata. They invested in the infrastructure early
on. One of the first things that they did was the strip mall
that they had there. They collaborated with the governments as
governments. If you have ever watched their video, it is really
pretty interesting. But the way that they knew that was a
longer term strategy, they had a longer term strategy, they
worked hard on collaborating with the governments, and they
developed infrastructure. Now if you look even in the expansion
of their projects, you can see everything still was, they still
are very conscientious of being responsible for infrastructure
development and business development with the capacity of
building their tribal members. Not so that the tribe owned them
all, but they created an entrepreneurial environment too, in
addition to the tribal businesses that were there.
Senator Tester. How long did it take, once they made that?
Ms. Johnson-Pata. I think it was at least a 20-year
investment. I think they are now at 30, 40 years. But it was a
20-year investment before they started to see some recovery.
Senator Tester. So you are talking about economic recovery?
Ms. Johnson-Pata. Talking about economic recovery, yes.
Senator Tester. Robin, you talked about education needs. I
am particularly interested in technology infrastructure. I know
it is lacking. And I think it is a priority to move forward
with it. The goals of connectivity are big, and they are big
challenges. Could you tell me what efforts are out there right
now to support the goals of better connectivity as far as
technological infrastructure goes?
Ms. Butterfield. Actually, I don't have the specifics on
that. But I concur, it is huge in Indian Country. It has been a
long time coming in terms of updating our classrooms and the
skills of our schools because of their rural nature. So we can
find that information for you.
Senator Tester. That is good. When it comes to health care,
and I appreciate the information that you gave us, Mr.
Franklin, could you address the urban Indian health clinic
situation? I know we requested $1.2 billion in the recovery
package. What would you anticipate would be used, and I don't
want to take any focus off of what is going on in Indian
Country, but from an urban health care standpoint, those urban
clinics?
Mr. Franklin. I don't have those numbers, sir, but I can
certainly get them to you.
Senator Tester. I am thinking more, you don't have to give
me numbers, that is fine, I am thinking about your vision. How
important are those urban health care centers? Are they as high
a priority? Less of a priority? From your perspective, just
your perspective.
Mr. Franklin. I would think that from my perspective, sir,
Indians are Indians, no matter where we are. So whether or not
they are in the cities or on the reservations, they have the
same rights to health care that any one of us would. So those
urban clinics, they serve a very important purpose for our
urban communities. Not just in health care, also for meeting
places and creating healthy Indian families in urban
environments is a challenge when you take our tribal members
off of their traditional lands and put them in urban settings.
Maintaining that connectivity to being Indian people, our urban
clinics are very important. They serve multiple roles,
including that healthy family.
Senator Tester. Very good.
Ms. Kitka, you talked about, you all did, actually, want to
have a place at the table to help drive the economy forward,
that you have solutions to do that. This is just a comment,
more than a question. I couldn't agree more. I think that not
only, if we invest in infrastructure in Indian Country, not
only will it help Indian Country, it is going to help
everybody. You guys can be a major, major driver in this
turnaround. Hopefully, when all is said and done, we will be
able to do more than we say.
Thank you very much.
The Chairman. Senator Begich, our new Senator is here. By
the way, I was just hoping that Senator Begich, when this is
completely evaluated in terms of Committee assignments, that
you might be on the list to join this Committee. Would either
of you have questions that you would like to inquire?
Senator Begich. Mr. Chairman, I like your style compared to
Armed Services, because the clock never moves. So I like it.
[Laughter.]
Senator Begich. Don't worry.
I just have one question. I may have missed something at
the beginning, Mr. Chairman. Thank you for the courtesy to be
here and to be able to ask a quick question. Someone may have
asked this already or answered this, in regard to elder
housing, senior housing infrastructure needs. If they answered
that, that is fine, I will get it later. But maybe someone
could comment on what the needs might be with regard to senior
housing, elder housing. I know we recognize it in Alaska as a
growing concern. I don't know if anyone would be the
appropriate person, whether it is Julie or Jackie.
Ms. Johnson-Pata. I might be able to answer that, thank
you.
Housing needs in Indian Country are just as great. And with
the growing aging population we are really starting to see an
increase in the need for senior housing. It has been very
difficult in our reservations and our small communities in
rural Alaska to be able to have housing that is designated for
our seniors or our elders and to be able to make it cost
efficient
One of the challenges, and we have been able through
agriculture programs and NAHASDA to be able to provide some of
that housing. But what we haven't been able to do is actually
provide any in-home care, or to be able to find the next level
of care facilities, so that our elders can actually stay within
our communities when they do need a little bit of care in their
housing facilities. I think that is an area that we really need
to focus on.
In addition to that, regarding economic stimulus, one of
the areas that I find challenging is that we don't have access
to the weatherization programs. And many of our elders really
need that weatherization program to be able to deal with the
affordability issues. So when we look at that, we look at
additional dollars to the HIP program, which is a BIA program,
which I understand there are some issues about the Department
of Interior trying to RIF those employees as of March.
But what we are trying to say is that this is a viable
program for delivery of services, and primarily does go to our
elders. It is a program that actually deals with our
weatherization issues. In the Department of Energy, although we
are eligible, we have not received funds from the Energy
program for weatherization. That is another area we should look
at when we look at the stimulus and the impacts that are
happening to Indian Country.
The Chairman. And I should have called on you first,
Senator Udall, do you have inquiry?
Senator Udall. That is fine, I want to defer to my young
colleague here.
[Laughter.]
Senator Udall. Thank you very much for letting us
participate, both of you. I know that we aren't officially on
the Committee yet, and I really very much hope to be in this
Committee, because it is such an important committee to the
Nation and to New Mexico and many of our States with
significant Native American populations.
The thing that the Chairman pointed out that I think it
significant is when we talk about billions of dollars of
backlog, and you mentioned $20 billion of backlog in terms of
roads and bridges, it isn't just this area, it is every area
that we have these backlogs. We have it in schools, we have it
in housing. We have it across Indian Country. It is such a big
piece, it is such a big amount that you can't do it in one
year.
I just wonder, we are going to have to start thinking, in
this next Administration, like the Clinton Administration did,
of a plan for getting rid of the backlog. We may not be able to
do it in one year, but boy, maybe we can do it in four years
and have a specific plan to do that.
So I hope that all of us think of a way to move forward
dramatically. Jackie, your testimony highlighted that, and I
think everyone, when Ms. Kitka, you talked about a Marshall
Plan. We need to look specifically at how we really weigh in,
in a big way to remedy the situation that we have right now. I
would just open it up, if any of you have any comments on that,
or if you have given any thought at Interior along that line.
Thank you very much, Mr. Chairman, Ranking Member.
Ms. Kitka. Senator Udall, through the Chair, I did, in
thinking about other models that are going on, and I spent a
lot of time kind of studying what some of the wealthiest
countries in the world are doing. For example, in Saudi Arabia,
when they look at their populations, and they look at this
growing, young male population and the need to create jobs for
them, what they have done is they have created and set as a
national goal what they are calling economic cities. They have
six major economic cities that they are planning and putting
their wealth behind, with the specific purpose of creating jobs
and diversifying off of just being oil.
I think that we need to look at some of these leading
models that are out there. I describe it as creating economic
villages. Model ones, communities for the future that have
diversified economies, but they are consciously designed for
economic purposes and putting all their energies together to
make them a success. That is what I am hoping in this economic
recovery that we can do, is we can look at our reservations, we
can look at our rural communities and say, this is where we
want to be 10 years from now, what can we put into place that
will accomplish that and look at some of these models.
Ms. Johnson-Pata. If I could just add to that, when we were
looking at this and we wanted to make sure that we weren't
dealing with issues of backlog as far as us delivering, and
wanted to make sure that we got the money spent, and it was
accountable, and when money goes directly to the tribes, we
actually get the projects on the ground faster. So there is,
even when we look at the transportation programs and other
programs, when you see any kind of a backlog in the Government,
it is usually because of the review process, and maybe some
design or engineering that is being provided actually by the
departments themselves.
I think that, and our recommendation is, as much as
possible we want the money to go directly to the tribes, we
don't want the Government to be a barrier. We believe that the
money can get expended and the projects, as we noted, the
projects are designed, ready to go. We can get those done and
out the door faster.
The Chairman. Well, let me thank the witnesses. As I
indicated previously, I think putting on the record today in
this setting the needs, particularly the unmet needs on Indian
reservations at a time when this Country appears prepared to
make very substantial investment in infrastructure for the
purpose of creating new jobs, I think this is a very fertile
area for that kind of investment and the creation of jobs, and
represents one of the great unmet needs in our Country.
So let me thank all of you for coming to the hearing, and
this hearing is now adjourned.
[Whereupon, at 3:55 p.m., the Committee was adjourned.]
A P P E N D I X
The information printed on pages 57-93 was attached to several
letters and prepared statements in this appendix.
______
______
Prepared Statement of Kara Brundin-Miller, Tribal Chairperson, Smith
River Rancheria
Chairman Dorgan, Ranking Member Murkowski, and distinguished
Committee members, please accept this testimony on behalf of the Smith
River Rancheria, a federally recognized Indian tribe of Tolowa Indians
that is located in the Pacific Northwest three miles south of the
Oregon-California border. The Smith River Rancheria consists of 1,253
Tribal members who form the general membership. My name is Kara
Brundin-Miller and I am Tribal Chairperson of the Smith River Rancheria
and I appreciate the opportunity to comment on massive economic
recovery legislation that is being developed by Congress. I have
provided information about the Smith River Rancheria's transportation
planning process to illustrate not only the transportation needs in
Indian country, but that funding can be used to address many of these
needs as quickly as funding can be made available.
The poor condition of roads and bridges in Indian country continues
to jeopardize the safety of Tribal members and the traveling public. In
response, Tribes from around the country have submitted countless
numbers of shovel-ready projects to the Bureau of Indian Affairs and
the Federal Highway Administration in hopes of obtaining funding for
transportation improvements. Without these improvements, the health,
safety, security and economic well-being of Smith River Rancheria
Tribal members, and members of Tribes around the country will continue
to be at risk. This is why it is imperative that Congress include
sufficient funding for the Indian Reservation Roads (IRR) Program and
other Tribal transportation programs when it takes up the Economic
Recovery and Reinvestment Plan so that Tribes can make necessary
transportation improvements in Indian Country.
The Smith River Rancheria has used its limited resources to do what
it can to meet the transportation and safety needs of pedestrians,
bicyclists, and motorists that travel through the Smith River
Rancheria, and we have worked diligently to instill the values of
livability and walk-ability in all of our transportation systems. We
have actively sought out opportunities to collaborate with the states
of California and Oregon, and we have worked with the counties of Del
Norte and Curry to promote self-determination and cooperation. We have
also sought to integrate these systems with our elder housing, health
clinic, social services, and economic programs for the benefit of our
region.
Over two years ago, the Tribe, with funding assistance from the
California Department of Transportation's (Caltrans) Environmental
Justice/Community-Based Transportation Planning Program, initiated a
comprehensive and nationally-recognized planning process to improve the
safety and construction of our tribal, local, state and federal roads
that will contribute to economic development in the region. As a
culmination of this planning process, Smith River Rancheria is in need
of funding for the North/South Indian Road Safety Project, which will
make the intersection of North/South Indian Road and Highway 101 safer
for vehicles and pedestrians. This intersection is at the heart of the
Rancheria and is heavily traveled because of its proximity to the
Tribe's medical clinic, Head Start building, cultural center, and
various other heavily visited areas. Currently, the road is not wide
enough to accommodate the volume of traffic traveling on Highway 101
(which is only expected to increase) and it does not have sidewalks or
other pedestrian pathways, which forces people to walk on the edge of
this busy highway.
A Traffic Accident Summary Report that was provided by Caltrans for
this project area corridor over a five year period (2002-2007) provides
additional details. Over this 5-year report period, there were a total
of 138 collisions, which included 80 that involved property damage
only, 51 involving injuries, and 7 fatalities; and traffic has only
increased as the Tribe has continued to grow. An additional accident on
Dr. Fine Bridge over the wild and scenic Smith River since the end of
this reporting period resulted in another fatality for a total of 139
accidents and 8 fatalities over the last 5 years. The Traffic Accident
Summary provides additional information as presented below:
------------------------------------------------------------------------
Primary Collision Factor Type of Collision
------------------------------------------------------------------------
28% Improper turn 45% Hit Object
24% Speeding 23% Rear-end
12% Other 13% Broadside
10% Alcohol 6.5% Overturn
8% Failure to Yield 4.3% Heads-on
1.4% Fell asleep 7% Sideswipe
0.7% Auto/pedestrian
------------------------------------------------------------------------
The North/South Indian Road Safety Project is an Indian Reservation
Roads (IRR) transportation facility and is included on the federal IRR
Inventory. This project was approved and certified in a special session
of the Tribal Council on December 13, 2008. The Tribe has authorized
the Federal Highway Administration (FHWA) and the Bureau of Indian
Affairs (BIA/DOT) to place this project on an IRR HPP Transportation
Improvement Project list if the project is selected and approved for
funding.
This project is shovel-ready and can be completed in three phases.
The Smith River intends to contribute approximately 50 percent of the
funding for Phase 1 of this project and 12 percent of the total project
cost.
1. Phase 1 ($1 million): Improve vehicle and pedestrian safety
by constructing storm drain system, curb, gutter and sidewalk
on south side of North Indian Road, east of Highway 101 and
Pedestrian walkway and planter strip on the west side of South
Indian Road.
Status: completed PSE and BIA's Environmental Assessment
(EA)/Finding of No Significant Impact (FONSI). Amount of IRR
HPP funds requested: $1 million.
2. Phase 2 ($3.5 million): Underground overhead utilities
(electric, TV, cable) Widen roadway and expand shoulders,
construct overlay and stripe.
Status: Initial environmental review and geotechnical
completed and PSE initiated, depending on review and approvals,
PSE will be completed in 90-180 days.
3. Phase 3 ($1 million): Traffic calming at intersections with
State Highway 101 (i.e. roundabout, stoplight, pork chop
islands, etc.).
Status: Initial environmental review and geotechnical
completed and PSE initiated, coordinating with Caltrans for
necessary design input and approval, PSE can be completed in
180+ days.
I would like to thank you again, Chairman Dorgan, Ranking Member
Murkowski, and Members of the Committee for the opportunity to testify
today on behalf of the Smith River Rancheria. Again, it is imperative
that Congress include sufficient funding for the Indian Reservation
Roads (IRR) Program and other Tribal transportation programs when it
takes up the massive economic recovery legislation. I have provided
information about the Smith River Rancheria's transportation planning
process to illustrate not only the transportation needs in Indian
country, but that funding can be used to address many of these needs as
quickly as funding can be made available. Should you have any
additional questions, please contact the Tribe's Tribal Administrator,
Russ Crabtree at [email protected] or 707-487-9255.
______
______
Prepared Statement of Hon. Chris Devers, Chairman, Pauma Band of
Mission Indians; Chairman, Council of Energy Resource Tribes
Introduction
Good afternoon Chairman Dorgan, Vice Chairman Murkowski, and
distinguished members of the Committee on Indian Affairs. I want to
thank you for your leadership in holding today's hearing on ``Job
Creation and the Economic Stimulus Plan in Indian Country'' because
Indian people are being hit hard by the current economic challenges we
are facing in America.
My name is Chris Devers and I am Chairman of the Pauma Band of
Mission Indians in California. I am also Chairman of the Council of
Energy Resource Tribes (CERT) which is located in Denver, CO. On behalf
of the 57 member Indian tribes of CERT, I am pleased to submit for the
Committee's consideration the following statement regarding energy
development, environmental stewardship, and job creation in Indian
Country.
CERT was founded in 1975 by American Indian tribal leaders when our
country was in the midst of what was then known as the ``Arab Oil
Embargo.'' The embargo was put in place by the Organization of
Petroleum Exporting Countries in response to America's support for
Israel in the 1973 Arab-Israeli War. Many of us remember that the
embargo caught America flat-footed and resulted in higher prices for
heating oil and gas rationing that created long lines at the gas
stations.
Back then, our national leaders promised that we would ``end our
dependence on foreign oil'' and return America to a position of
unquestioned strength in the world. Well, here we are nearly 40 years
later and our dependence on imported oil and even natural gas has,
incredibly, grown worse. The reason I raise the issue of historical
context is that the mission of CERT is to support its member Indian
tribes in the development of their management capabilities and the use
of their energy resources to build sustainable economies and strong
political institutions.
For purposes of today's hearing, the point is that American Indian
energy development is American energy development and with it comes job
creation and increases in household incomes for those that work in the
energy sector.
The Unmatched Potential of American Indian Energy
American Indian energy holds enormous potential to create thousands
of good-paying jobs, generate revenues, and aid in the development of
tribal economies as well as help satisfy the American economy's need
for a reliable energy supply. Three factors contribute to this
scenario:
1. The enormous reserves of oil, gas, coal, and renewable
resources owned by Indian tribes;
2. The pricing environment for energy products; and
3. The enactment by Congress in 2005 and 2007 of classically
liberal, pro-production energy policies. \1\
---------------------------------------------------------------------------
\1\ These are the Energy Policy Act of 2005 (Pub.L. 109-58) and the
Energy Independence and Security Act of 2007 (Pub.L. 110-240). Both
statutes contain provisions favorable to Indian tribal energy
development and environmental management.
One merely witness the phenomenal success of the Southern Ute
Indian Tribe in southwest Colorado, the Ute Tribe of the Uintah and
Ouray Reservation in northeast Utah, and the Osage Nation in eastern
Oklahoma to understand that American Indian energy resources, developed
properly, can transform Indian economies and assist tribes in achieving
real and lasting self determination.
1. Indian Tribal Energy Resources and the Pricing Environment
American Indian tribes in the lower 48 states--especially those in
the Rocky Mountain west--own an enormous amount of energy resources.
With the current Federal restrictions on exploring for energy in the
Great Lakes, the eastern portion of the Gulf of Mexico, the California
coastline, and the Alaska National Wildlife Refuge (ANWR), Indian
tribal resources and lands in the Rocky Mountain West present one of
the most significant opportunities for domestic production in the
United States.
In what is now a dated analysis, in 2001 the U.S. Department of the
Interior (DOI) estimated the total dollar value of energy produced from
Indian tribal lands for the period 1934-2001 to be $34 billion. These
revenues derived from 743 million tons of coal, 6.5 billion cubic feet
of natural gas, and 1.6 million barrels of oil. In terms of undeveloped
reserves and undiscovered resources, the DOI projected that Indian
tribal lands could prospectively generate $875 billion, derived from 53
billion tons of coal, 37 billion cubic feet of natural gas, and 5.3
million barrels of oil.
These projections were made in 2001 and in the intervening 7 years,
the price of energy products has increased significantly so that,
currently, the likely revenue projection would be nearly $1.5 trillion.
A comparison of the 2001 and 2008 prices for oil, gas and coal is
illustrative:
------------------------------------------------------------------------
2001-Forward (2008
1934-2001 (2001 Prices) Prices)
------------------------------------------------------------------------
Oil $15 Billion $715 Billion
Gas $7.9 Billion $227 Billion
Coal $10.6 Billion $537 Billion
Total $33.5 billion $1.479 trillion
------------------------------------------------------------------------
2. The New Energy Laws of 2005 and 2007
On August 8, 2005, President Bush signed into law the Energy Policy
Act of 2005 (Pub.L. 109-58) which included as title V the Indian Tribal
Energy Development and Self-Determination Act. The new law authorizes a
variety of Federal technical and financial assistance to participating
Indian tribes and seeks to reduce administrative obstacles at the
Federal level to encourage greater levels of energy development on
tribal lands.
Unlike some congressional enactments, the new Indian tribal energy
law does not discriminate in terms of renewable versus non-renewable
resources. Instead, the law leaves the decisions over whether and how
to develop tribal energy resources to the Indian tribe and the energy
markets. The centerpiece of the new law is the authority provided to
the Secretary of the Interior to negotiate and enter agreements with
willing tribes that would govern energy and related environmental
activities on tribal lands.
Similarly, in 2007, Congress enacted and the President signed the
Energy Independence and Security Act (EISA, Pub.L. 110-140). The EISA
contains significant opportunities for Indian tribes and tribal
colleges to receive research, development, and production grants
related to renewable and alternative energy development. The Act
authorizes tens of billions of dollars for these purposes and
represents the most significant energy research law to be enacted in
years.
3. The Next Step is Actual Project Development
The new energy laws were signed into law in 2005 and 2007 and the
regulations to implement them are now in effect. For the past four
fiscal years, the Congress has appropriated funds for the Department of
Interior's Office of Indian Energy and Economic Development and the
Department of Energy's Office of Indian Policy and Programs, both of
which are charged with administering the new laws.
These offices have been very active and responsive to the potential
for Indian tribal energy and have assisted Indian tribes that seek to
develop their energy resources.
CERT's perspective on all of these developments is that the next
steps involve Indian tribes inventorying their energy resources,
identifying potential projects, and working with energy and financial
partners to bring these projects to completion.
The Economic Stimulus Plan and Indian Energy
On January 9, 2009, this Committee's leaders, along with 13 other
U.S. Senators, issued a letter to President-elect Obama urging the
inclusion of billions of dollars in Indian tribal projects in the
Economic Stimulus Plan. CERT and its member tribes were happy to note
the inclusion of some $4.4 million for energy development on Indian
lands.
As CERT understands the discussions now taking place, in order for
specific projects to benefit from the Economic Stimulus Plan, they must
(1) spend the funding quickly, (2) create jobs in the short-term, and
(3) constitute and serve sound national economic policy in the long-
term.
In addition to enormous amounts of non-renewable resources,
primarily oil, natural gas, coal, and coal bed methane, Indian tribes
have significant development potential in renewable sources of energy
such as wind, solar, hydro, biomass, geothermal, and others.
Reliable information suggests that the vast majority of potential
renewable energy projects in Native communities are modest in size and
more akin to the community development scale than the commercial
utility scale. As a result, most of these projects might only require
an environmental assessment and not a full-blown environmental impact
statement under the National Environmental Policy Act (NEPA). More
often than not, these projects require Federal support to fund the
construction costs in order for them to proceed to construction.
1. DOE's Recent History of Funding Renewable Projects on Tribal Lands
From 2002 to 2008, the U.S. Department of Energy's Tribal Energy
Program funded 93 tribal energy projects totaling $16.5 million. These
federal funds were leveraged by $6.4 million in cost-share contributed
by participating tribes.
The following chart relating to tribal renewable projects is
derived from the DOE's website.
Given the funding history of the last 7 years as well as the
significant additional and unmet demand for financial support for other
tribal projects, additional funding of approximately $200 million is
justified. Not reflected in the DOE's funding history is the lack of
energy-related infrastructure needed to facilitate and serve these
projects and make them viable. Such infrastructure includes
transmission lines, electrical lines and similar infrastructure that
would require addition hundreds of millions in Federal assistance.
2. Proposal for a ``National Tribal Energy Efficiency Initiative''
In addition to renewable projects, there is another initiative that
would satisfy the criteria laid out above and it would (1) generate
more jobs in the short-run and long-run; (2) cost less in terms of
Federal dollars; (3) have greater environmental impacts in Indian
Country; and (4) produce greater economic benefits for virtually every
Indian tribe and have the greatest impact on the tribes with the
largest number of poor and working poor families. The initiative CERT
has in mind would be something along the lines of a ``National Tribal
Energy Efficiency Initiative'' that could fund virtually every Indian
tribe. The initiative would be massive but, if properly structured,
would maximize the use of local labor and local Indian contractors.
In addition to home weatherization, the initiative could include
all tribal government buildings and Federal facilities located on
tribal lands. The high cost of heating and cooling because of poorly-
constructed and poorly-insulated buildings equipped with highly
inefficient lighting and H-VAC systems erodes program budgets, reduces
services and produces environments that are not healthy for workers or
for people who use access the facilities. It would dramatically reduce
the operating and maintenance costs for health clinics, hospitals,
schools and tribal colleges, tribal administrative buildings, and other
structures on tribal lands.
The initiative would also have an immediate impact on the utility
bills for heating for the most vulnerable Indian populations in the
Northern tier of the country from the Pacific Northwest to Maine, the
Tribes of the Four Corners Area, and the poor families of the Oklahoma
Indian Tribes. And for the desert southwest Tribes, their weather
related issues come in the summer months. Regardless of their
geography, all of the Tribes have vulnerable populations: the elderly,
infants and the disabled.
In a relatively short period of years, the initiative would
transform Indian Country from among the most energy inefficient to
among the more energy efficient and would lead to better health, more
efficient programs and more competitive tribal economies. The energy
savings could be measured in real dollars because the good thing about
energy efficiency is that the savings are not one-time occurrences but
accrue year after year. Even a massive Federal expenditure in an
initiative of this type would be repaid in savings in 3 to 5 years, and
would continue for another 10 to 20 years, depending on building
maintenance.
For this initiative to succeed, the funding would need to be
administered through an agency that is able to direct the money very
quickly to each interested Indian Tribe. One way to expedite the
funding process would be to convene regional ``pre-application
workshops'' so interested and eligible Indian tribes could respond
appropriately to the agency distributing the funding. If the funds were
routed through the Administration for Native Americans (ANA) in the
Department of Health and Human Services, that agency would do a superb
job of fund distribution with minimal red-tape because it has a
demonstrated ability to move money very quickly into tribal programs.
The ANA has a network of regional and national technical assistance
contractors already in place to provide the workshops and hands-on
technical assistance to ensure every interested and eligible Indian
Tribe has the best chance to access the program.
In addition to CERT, there are other national Indian organizations
that could be of assistance in mobilizing Indian contractors and the
local pool of Indian labor such as the National Council on Tribal
Employment Rights (NCTERO) which has a national network of local TERO
offices that have data on the local workforce and the relationship with
labor unions for training and apprenticeship programs, as well as data
on local, Indian-owned companies. The National Center for American
Indian Enterprise Development (NCAIED) has an excellent network of
larger Indian and tribal construction companies as well as a network of
major private sector companies, such as Home Depot, that might be
included in such an initiative to supply the material needed for these
activities.
Conclusion
Mr. Chairman, this concludes my statement and I thank you again for
the opportunity to share CERT's perspectives with you and the Committee
on Indian Affairs.
______
Prepared Statement of Chad Smith, Principal Chief, Cherokee Nation
______
Prepared Statement of John A. Barrett, Chairman, Citizen Potawatomi
Nation
______
Prepared Statement of the Council for Tribal Employment Rights
______
Prepared Statement of Hon. Jeanne Jerred, Chairwoman, Confederated
Tribes of the Colville Reservation
On behalf of the Confederated Tribes of the Colville Reservation
(``Colville Tribe'' or the ``Tribe''), I am pleased to provide the
Committee on Indian Affairs this prepared statement on proposals to
create jobs and stimulate Indian economies. I would also like to
express the Colville Tribe's thanks to the Committee for developing its
own $3.58 billion proposal for Indian country as set forth in the
January 9, 2009, letter to President-elect Obama.
As the Committee is aware, the National Congress of American
Indians (NCAI) developed and disseminated the ``Indian Country Economic
Recovery Plan,'' which contains a number of suggestions for inclusion
in the economic stimulus legislation. Using the Colville Tribe as an
example, this statement will explain how the economic downturn has
impacted Indian country and illustrate how the NCAI and the Committee
proposals would immediately benefit the Colville Tribe and similarly
situated Indian tribes nationwide.
Although now considered a single Indian tribe, the Confederated
Tribes of the Colville Reservation is, as the name states, a
confederation of 12 smaller aboriginal tribes and bands from all across
eastern Washington State. The Colville Reservation encompasses more
than 1.4 million acres and is located in north central Washington
State. The Colville Tribe has more than 9,300 enrolled members, making
it one of the largest Indian tribes in the Pacific Northwest. About
half of the Tribe's members live on or near the Colville Reservation.
The Colville Tribal Enterprise Corporation (CTEC) is a tribal law
corporation that operates nearly all of the Colville Tribe's
businesses. CTEC operates more than a dozen businesses, including
retail, tourism, and construction. Collectively, the Colville Tribe's
government and CTEC employ approximately 2,000 individuals, making the
Colville Tribe one of the largest employers in all of eastern
Washington State.
Impact of the Recession on the Economy of the Colville Tribe
The Colville Reservation contains approximately 800,000 acres of
harvestable timber. Although the Tribe has diversified into several
lines of business, timber remains the Tribe's largest source of revenue
for governmental programs and services. The Colville Tribe owns and
operates a traditional sawmill, Colville Indian Precision Pine, and a
plywood manufacturing facility, Colville Indian Power and Veneer
(CIPV). CIPV is the only tribally owned and operated plywood plant in
the U.S. that remains in operation.
The health of the Tribe's wood products industry is tied closely to
the nation's housing market. The severe downturn in the housing market
has impacted the Colville Tribe particularly hard. The housing downturn
has weakened demand for wood products generally, which has resulted in
lower prices and decreased sales. The depressed market conditions,
coupled with the record high fuel prices that persisted through most of
the past 12 months, resulted in steep losses for CTEC's Forest Products
Division. In an unprecedented move, the Tribe closed CIPV for a two-
week period during the Christmas and New Year's holidays to reduce
operating losses.
In light of the accelerating losses and the deteriorating economic
outlook, the Colville Tribe's governing body is currently contemplating
the difficult decision to close CIPV indefinitely until market
conditions improve. Closure of CIPV would affect not only the nearly
200 employees who work there, but also the secondary jobs that the
facility supports, such as contract loggers and truck drivers. The
Tribe is gravely concerned that any layoffs will result in an immediate
strain on the Tribe's social services programs and personnel. These
tribal government programs, most of which are funded by the Tribe's
timber revenue (in addition to third party grants), are already
stretched thin with the current high unemployment rate on the Colville
Reservation. Like state and local governments, the current state of the
national economy has presented the Colville Tribe's government with
extremely difficult choices on how best to provide for its citizens. If
state and local governments stand to benefit from an economic stimulus
plan, so, too, should Indian tribal governments.
Finally, as the Committee and its members are well aware, Indian
tribes have a government-to-government relationship with the United
States that is memorialized in the U.S. Constitution and federal law.
As such, Indian tribes have traditionally received funding directly
from the United States and not through state governments. Federal
agencies have established mechanisms for transferring federal funds to
Indian governments quickly. Tribal governments, therefore, should not
be required to work through state governments to receive financial
assistance that may be made available in any stimulus plan.
The NCAI and Committee Proposals Would Immediately Benefit the Colville
Tribe and Similarly Situated Tribal Economies
Both the NCAI proposal and the Committee have proposed $310 million
for new Indian Reservation Roads projects and $258 million for roads
maintenance projects in their respective proposals. Indian roads and
transportation infrastructure are of paramount interest to Indian
country and would immediately benefit the Colville Tribe and similarly
situated Indian tribes. New funding for roads in Indian country would
not only create jobs, it would also address the high traffic fatality
rates on many reservations caused by dangerous or inadequately
maintained roads, including on the Colville Reservation.
The Colville Tribe has identified nearly $23 million in backlogged
road maintenance and new roads projects that would, if funded, create
at least 250 new jobs on the Colville Reservation and in the
surrounding communities. The Colville Reservation and the surrounding
communities are home to a large workforce, including managers,
mechanics, laborers, and operators. The Tribe estimates that there are
nearly a dozen road construction general contractors in the area that
are available to begin work immediately on new projects. Logging
shutdowns in the area have already forced scores of individuals to seek
unemployment and the infusion of new construction jobs would help stem
these job losses.
In addition, the Colville Tribe is particularly supportive of the
NCAI proposal to provide $25 million in funding for USDA Rural
Development's Business and Industry program. The infusion of funding
for direct loans to tribal governments would provide an alternative
source of capital to those Indian tribes and tribal enterprises that,
for whatever reason, cannot access capital through conventional
financing or through loan guarantees.
The Colville Tribe is an unfortunate example of this need. The
Tribe's primary lenders are unwilling to lend in the current economic
climate for needed upgrades to CIPV that would make the facility more
efficient and competitive. If financed, these upgrades would eliminate
most of the facility's operating losses and would allow CIPV to remain
open even during the current market downturn. The Tribe has observed
that banks continue to lend to the wood products industry, but only to
keep businesses afloat and not for capital improvements. The rationale
for this ironic result is that banks have calculated that they will
lose less money by extending credit to keep mills operating, rather
than inheriting and being forced to operate the mills themselves.
Uniform Criteria for Construction Project Funding
As members of the Committee and its staff continue to work with
leaders in both chambers to seek inclusion of Indian-specific
provisions in the stimulus legislation, the Colville Tribe respectfully
makes the following recommendation. As the Committee is aware, various
organizations and interested entities assembled lists of specific
projects to justify stimulus funding proposals. At the time, these
lists of specific projects were undoubtedly helpful in providing a very
rough indicator of need for which to justify funding requests for a
particular activity.
The Colville Tribe strongly believes, however, that any funding for
construction activities that may be included for Indian country in the
stimulus should be allocated based on uniform criteria and not on
reliance on preexisting lists of specific projects. The Tribe is
concerned that any list of ``shovel ready'' or ``ready-to-go'' projects
that were assembled in the haste of formulating stimulus proposals may
be unreliable in that they do not reflect the entire universe of need
for a particular activity. Rather, if funding for a particular
construction project is conditioned on that project having all design,
engineering and environmental work completed by a date certain, that
criteria--not a preexisting list--should control which projects are
funded.
Once the substantive requirements for project funding are
established, federal agencies should be required to update any project
lists that they may maintain to ensure that they include all projects
that satisfy the requirements.
The Colville Tribe greatly appreciates the work of the Committee
and its staff to ensure that the needs of Indian country are considered
in the development of the stimulus legislation. The Tribe looks forward
to working with the Committee on this and other issues of interest to
Indian country in the 111th Congress.
______
Prepared Statement of the Cook Inlet Tribal Council
We are in the midst of a ``once in a century'' national financial
crisis. Congress has acted swiftly to safeguard financial institutions
and improve access to credit. Congress is currently deliberating
massive additional measures to help workers hurt by the economy,
advance new technologies and sources of energy, repair and improve our
national infrastructure, and transform our educational system to meet
the needs of the future.
While we applaud the speed and scope of the Congressional response
to the current crisis, we also believe that current economic conditions
are only a prelude to the economic and social situation we will face as
a nation if we cannot reverse the high number of dropouts from our high
schools. The situation is most acute among poor and minority
communities, and none more so than Indian Country.
Nationally, the problem is complicated, and requires thoughtful,
effective, and broad-based solutions. Solutions strictly focused on
keeping students from dropping out will not succeed. Instead, we must
focus on providing an education that engages young people throughout
their school years: an education that is relevant, that builds on their
strengths more than it focuses on their weaknesses, and that enlists
the support of their families and communities. We must create an
educational experience that helps young people to imagine a future of
personal success, a future of choices that include higher education and
highly skilled careers.
Tackling the problem of dropouts is, at its core, a matter of
taking the steps needed to prevent the exclusion of a large proportion
of youth out of the pool of skilled professionals that a 21st century
economy will demand. Individually, it is about fulfillment of human
potential. Nationally, it is about maximizing the number of citizens
who will make positive contributions to a collective future. It is
about how we plan to avoid the extraordinary financial and social cost
that we will all pay if a large and growing number of unskilled
dropouts continue to disproportionately populate the ranks of our
nation's poor, sick, and incarcerated.
For Native communities already struggling to achieve educational,
economic, and social equity, the cost of this lost potential could be
unbearable. Native communities are a microcosm of the effects of this
``silent epidemic'' of dropouts, and as such are especially vulnerable
to its consequences. For Native people across the country, the future
of our communities and our cultures is literally at stake.
Our comments to the committee concern the investments urgently
needed in Native communities in order to stem the mortgaging of our
future, which is embodied in our youth. Here, we offer the Committee
comments on the situation as it pertains to Alaska Native people, and
point to some of the steps that have been taken toward effective
solutions--solutions that are designed to engage young people in
learning, and prepare them for futures involving higher education and
meaningful employment.
In this time of national economic crisis, we ask for your support
to continue, expand, and share these solutions, not only for the sake
of Alaska Native communities but for both Native and non-Native
communities throughout the United States. We believe that the programs
described represent a critical reinvestment in our communities, which
help break the cycle of poverty and all that attends it, and which
ultimately yield ample economic and social returns for the future.
Understanding the National Economic Impact of Dropouts
It is estimated that during every school day, across the country,
almost seven thousand students become dropouts--translating into some
1.2 million individuals each year who are statistically far more likely
to be unemployed or underemployed, incarcerated, and addicted to
alcohol and drugs. For the United States, the lost lifetime earning
potential of students who did not graduate in one year (2007-2008) is
estimated at more than $319 billion. Beyond this, the negative ripple
effect of high school dropouts is truly staggering: \1\
---------------------------------------------------------------------------
\1\ Data in this section derived from the National Dropout
Prevention Center, the Alliance for Excellent Education, and the Silent
Epidemic coalition website.
There are nearly 2,000 high schools in the U.S. where the
typical freshman class loses 40 percent of its students to
dropouts by their senior year; it has been predicted that the
national dropout problem will likely escalate over the next
---------------------------------------------------------------------------
decade without significant and effective intervention.
Each year's class of dropouts will cost the country over
$200 billion during their lifetimes in lost earnings and
unrealized tax revenue, based on a 1985 study.
Increasing minority students' participation in college to
the same percentage as that of white students would create an
additional $231 billion in GDP and at least $80 billion in new
tax revenues.
U.S. companies lose billions of dollars annually because of
illiteracy. If literacy levels in the United States were the
same as those in Sweden, the U.S. GDP would rise by
approximately $463 billion and tax revenues would increase by
approximately $162 billion.
Dropouts are more likely than high school graduates to be
unemployed, in poor health, living in poverty, on public
assistance, and single parents with children who drop out of
high school; dropouts were more than twice as likely as high
school graduates to slip into poverty in a single year and
three times more likely than college graduates to be unemployed
in 2004.
Students with low academic achievement are twice as likely
to become parents by their senior year of high school, compared
to students with high academic achievement.
High school dropouts are 3.5 times more likely than high
school graduates to be arrested in their lifetime; a one-year
increase in average education levels would reduce arrest rates
by 11 percent; 75 percent of America's state prison inmates are
high school dropouts; a 1 percent increase in high school
graduation rates would save approximately $1.4 billion in
incarceration costs.
Dropouts are four times less likely to volunteer than
college graduates, half as likely to vote or participate in
community projects, and represent only 3 percent of actively
engaged citizens in the U.S. today.
The Impact of Dropouts on Alaska Native People
Overall, Alaska's dropout rate was double the national average in
2005-2006. It is predicted that 38 percent of current Alaskan ninth
graders will not have a high school diploma in ten years. \2\
---------------------------------------------------------------------------
\2\ Anchorage Daily News, November 16, 2008.
---------------------------------------------------------------------------
Alaska Native students are twice as likely to drop out as their
non-Native peers. With more than 44 percent of the Alaska Native
population currently under the age of 19, \3\ we are faced with nothing
less than a ticking time bomb.
---------------------------------------------------------------------------
\3\ Our Choices, Our Future: Analysis of the Alaska Natives Report,
2004. Alaska Native Policy Center.
---------------------------------------------------------------------------
As noted above, dropout rates are correlated with higher incidence
of unemployment and other social issues but for Alaska Natives the
incidence of these issues is already disproportionately high: \4\
---------------------------------------------------------------------------
\4\ Ibid.
---------------------------------------------------------------------------
33 percent of Alaska's unemployed are Alaska Native people.
About 20 percent of Alaska Native people have incomes below
the federal poverty line--nearly three times the rate of non-
Native people.
More than one-third of all prison inmates in Alaska are
Native people, almost double the percentage of Native people in
the total population.
Native teen birth rates, smoking rates, and use of marijuana
are significantly higher than non-Natives.
Alaska Natives have significantly higher incidences of
health issues that correlate with poverty, such as diabetes.
Demonstrating Integrated Solutions
Although the history of Alaska Native education has been one of
inequity, there are recent models that clearly demonstrate that Alaska
Native students are capable of high achievement when they are provided
with the right academic environment.
The state-funded Mt. Edgecumbe High School in Sitka, Alaska
encompasses four key components for student success: academic learning,
responsible citizenship, personal wellness and community service. The
school strives to prepare the students for the greatest possible number
of alternatives for pursuing life after high school. Preparation for
these options requires a rigorous academic program, the fostering of a
love for active learning, and the development within students of a
commitment to high quality intellectual work.
Mt. Edgecumbe's success in providing quality education to
disadvantaged students from rural Alaska has been recognized
regionally, nationally, and globally. In a recent survey of Mt.
Edgecumbe graduates, 78 percent of the respondents indicated that they
were attending college within a year of their graduation, and 50
percent were in the workforce. 25 percent of the respondents had
achieved a graduate or professional degree. Seventy-six percent
believed that the school had done an excellent job of developing their
academic skills. \5\
---------------------------------------------------------------------------
\5\ An Exploration of Experiences and Outcomes of Mt. Edgecumbe
High School Graduates (1986-2006). Institute of Social and Economic
Research, Anchorage. (Powerpoint)
---------------------------------------------------------------------------
Many of the successful programs that are now functioning in Alaska
have been developed and implemented by funding provided by the Alaska
Native Educational Equity, Support, and Assistance Act, also known as
the Alaska Native Education Program (ANEP). \6\ ANEP programs have
demonstrated significant academic progress for Alaska Native students,
and provided extensive experience to communities and educators
regarding successful educational approaches.
---------------------------------------------------------------------------
\6\ Title VII, Part C of No Child Left Behind.
---------------------------------------------------------------------------
One of the recipients of the ANEP funding is Cook Inlet Tribal
Council (CITC), which is the primary education, workforce development,
employment, and training center for Native people in Anchorage, which
is Alaska's largest urban center. Our educational programs are designed
to address the continuing disparity in the quality of life experienced
by Alaska Natives as compared to other Americans, a disparity rooted in
a history of poverty and inadequate educational opportunities.
CITC's mission is to work in partnership with Our People to develop
opportunities that fulfill Our endless potential. All of CITC's
programs are rooted in the understanding that true self-determination
is based in self-sufficiency and the ability to take responsibility for
one's own life, family, and community. CITC is not a welfare agency but
an organization that provides a ``hand up instead of a hand out.'' Our
goals are a positive reflection of this attitude toward self-reliance,
promoting--above all else--educational opportunities and jobs. CITC
recognizes; however, that some individuals must overcome personal
challenges in order to take full advantage of the opportunities
available to them.
CITC has a 25-year history of providing programs that effectively
meet the challenges of inadequate education, unemployment and poverty
through effective and integrated approaches to educational enrichment,
dropout prevention, job training and placement. CITC builds human
capacity by partnering with individuals to establish and achieve
educational and employment goals that result in lasting, positive
change for themselves, their families, and their communities.
Completion of quality education that leads to employment promotes self-
sufficiency, personal responsibility, and helps Alaska Native people
assure the sustainability of the communities and cultures.
CITC Education Programs
CITC provides strengths-focused, culturally-based educational
support services for the purpose of increasing student engagement,
self-confidence, and academic performance. Our programs are designed
not only with sensitivity to the distinctive issues of cultural
dislocation and the multiple challenges that face many of our students,
but also to capitalize upon the cultural assets that students possess.
Such application of asset-based and culturally relevant approaches to
education have been shown to be effective in educational programs for
Alaska Natives, American Indians, and Native Hawaiians. The ultimate
goal is to help students to imagine and fulfill a positive life path,
based on intentional choices, and to build the skills that will allow
them to achieve their ambitions.
CITC's programs recognize the need for a continuum of educational
services from elementary school through high school. Programs are
provided in partnership with the Anchorage School District, through a
unique tribal-school collaborative relationship that allows CITC to
hire teams of staff, including highly qualified certificated teachers,
who provide core content academic classes to Native students within the
public schools. CITC currently serves approximately 1,000 K-12 Native
students and their families across the Anchorage School District. CITC
classes follow required district curricula while also interweaving
cultural content and methodology, and meet or exceed state standards in
a variety of content areas such as language arts, math, science, and
physical education.
While the partnership between CITC and the Anchorage School
District is at the heart of our programs, the collaboration is much
wider, including the US Department of Education, and the Alaska Native
community. Community involvement is critical just as family and
community involvement, and culturally relevant teaching methods and
curricula, are essential ingredients for student success.
CITC's programs recognize that education is a traditional value
that our Native community holds in high regard. We know that education
is the key to our people's success both now and into the future. We
believe that in order to achieve high quality academic outcomes and
goals, our schools must provide all students with educational
opportunities that holistically strengthen and support youth as our
most valued resources to be nurtured and developed--rather than using
the dominant, deficit-based framework of viewing our students and their
achievement as problems to be solved. While all of CITC's educational
services target dropout prevention, we directly address this challenge
through the concept of developing lifelong cultural, social, emotional,
and academic success in our students.
CITC's programs fulfill a crucial need for Alaska Native students
and their families who often face overwhelming challenges associated
with the transition from rural lifeways to the urban environment where
they are a minority.
Current CITC educational programs include:
Chinook (K-6 elementary students). Chinook means ``Winds of
Change'' in the Dena'ina Athabascan language. This program focuses on
increasing early childhood literacy and math skills for students who
are below proficiency in these areas through individualized
instruction, utilizing school district curricula as well as culturally
enriched curricula.
Partners for Success (middle and high school students). This
program focuses on increasing the overall academic achievement and
decreasing the dropout rate of Native students. Partners for Success
provides language arts and math classes, utilizing individualized
instruction and multiple modes of assessment, along with life skills
and social-emotional learning. Students are engaged in interactive
classrooms that integrate cultural and place-based hands-on learning
activities.
Math/Science, Media, and Technology (high school students).
Supplemental educational programs increase the competency and skills of
eligible high school students in high-level mathematics and science
classes that are prerequisite to postsecondary studies in science,
technology, engineering, and math (STEM) fields. CITC is a partner with
the Alaska Native Science and Engineering Program (ANSEP) at the
University of Alaska Anchorage. In addition, students enhance their
technology and critical thinking skills through involvement with MEDIAK
(Media Educational Development Institute of Alaska), which engages
Native youth in the creation of multiple forms of media.
Physical Education/Healthy Life Skills (high school
students).Through a health and wellness initiative, students have
access to culturally relevant academic physical education activities
aimed at promoting healthy lifestyle choices. Over the summer, CITC
provides the opportunity for youth ages 14-18 to participate in a
Culture and Reforestation Camp.
Measuring educational effectiveness is a key component of CITC's
programs. External evaluation confirms that CITC's integrated
educational approach is demonstrating significant positive results. \7\
The analysis states, in part, that:
---------------------------------------------------------------------------
\7\ Excerpts September 22, 2007 letter from CITC external
evaluator, Spero M. Manson, Ph.D, Professor and Head of American Indian
and Alaska Native Programs, School of Medicine, University of Colorado
Denver.
Our analyses--reported in greater depth during [former United
States] Secretary [of Education] Spelling's visit--reveal that
the Partners Program is having a substantial, positive impact
on the academic achievements of participating Alaska Native and
American Indian students (AN/AI). Witness the following
---------------------------------------------------------------------------
findings over the last 2 school years:
Students participating in the Partners Program were less
often absent, less often dropped out, and more often graduated
than other AN/AI students at the same schools who did not
participate in the Partners Program. Their GPAs were
approximately the same.
Among the AN/AI students in the Partners Program, less
absences, higher GPA, higher Standardized Base Assessment test
scores in reading and writing, and greater rates of graduation
were related to more frequent participation in the program.
Among the AN/AI students who did not pass the Standardized
Base Assessments in the 2005-2006 school year, 1 year later,
substantially more students who participated in the Partners
Program passed the Standardized Based Assessments of reading
and writing than those who did not participate in the Partners
Program.
With regard to changes in actual SBA test scores, between
the 2005-2006 and 2006-2007 school years:
--students in the Partners Program improved markedly in
their reading and math test scores, and
--these improvements were substantially greater for
Partners than for non-Partners students.
Beyond the evidence provided by the program evaluators, CITC has
been working with the Anchorage School District to develop meaningful
comparisons between the performance of students involved in CITC's
programs and Alaska Native students not included in CITC's programs. We
are also working to expand the power of our own evaluative models in
order to understand program results across the broader array of
competencies that our programs are designed to address, and provide a
clearer picture of how well the programs are succeeding in preparing
students.
CITC Employment and Training Programs
Over the past 5 years (2004 through 2008) CITC served 17,345
individuals with career counseling and job placement services,
emergency financial assistance, case management, crisis intervention,
and training information in order to move participants into employment
and self-sufficiency. Of the 17,345, CITC assisted 6,241 unemployed
participants to enter unsubsidized employment. Alaska Native
participants in CITC's programs originate from every region of Alaska.
CITC's programs are based on the premise that effective solutions
to workforce development require integrate approaches to ensuring job
readiness, training, and placement--approaches that are capable of
moving people from welfare to work, and maximizing human potential in
order to meet the challenges and opportunities of the future.
Accomplishing this requires seamless coordination and active
cooperation between schools, social service agencies, job trainers, and
employers. CITC actively collaborates with the Alaska Department of
Labor and Workforce Development (DOLWD), the US Department of Labor,
union leaders, Native and non-Native forprofit employers, and CITC-
owned microenterprises--all of which build ladders of opportunity for
our participants.
TANF--CITC is the sole provider of Temporary Assistance for Needy
Families (TANF) for Alaska Native/American Indian families in
Anchorage. CITC has transformed TANF from an entitlement-based program
to one of self-determination and personal responsibility. Instead of
receiving ``handouts,'' TANF participants served by CITC are required
to complete and sign a mutual plan of action with their case manager
that outlines their responsibilities: to get a job and to participate
in various other training and support services that may be needed to
achieve that goal. As a result, the number of families dependent upon
TANF has been reduced, with families making major strides toward self-
sufficiency.
Alaska's People Career Development Center--is a comprehensive one-
stop resource center that provides assessment, education, training and
employment services for Alaska Natives and American Indians and their
families. The center provides individualized case management to
facilitate access to physical and behavioral services to address issues
that can impact long-term employment.
Project-specific Corporate Partnerships--CITC actively seeks to
partner with corporations investing in projects requiring a skilled
labor force. In partnership with CIRI, an Alaska Native regional
corporation, CITC has placed participants in apprentice and journeyman
construction and retail positions. Future partnerships with CIRI
involve the planned Fire Island wind power generating facility, which
will equip Alaska Natives with employment skills related to emerging
green technologies.
Skills Development through Social Enterprise--CITC oversees a
variety of partially subsidized small businesses (e.g. an art gallery,
a diner, and coffee shops) which allow participants to gain real-life
work experience in a supportive environment. Future social enterprise,
such as a local transportation initiative, will be based upon a
``triple bottom line'': business performance combined with job
training/social service, while addressing broader community needs.
CITC's employment and training services have achieved significant
results. For the period FY 2008, for example:
Conclusion
As Congress considers the American Recovery and Reinvestment Act of
2009, we would like to ask for the Committee's support in recommending
that the Act as signed into law include specific provisions for support
of essential programs for Alaska Native education and workforce
development.
While the current economic situation is having substantial negative
impact on all Americans, the most affected are Native communities
already struggling to overcome longstanding economic and educational
inequities. For these communities, the current downturn will impede
progress toward equal opportunity, or worse, serve to reverse the slow
progress that we have all worked so hard to achieve.
For Alaska, it is essential that we cultivate a strong workforce by
ensuring that our schools develop the full potential of our students,
and provide the critical bridge to meaningful employment and higher
education.
We ask, therefore, that the Committee considers these factors as it
makes its recommendations to the full Senate, and as it continues its
essential work on behalf of Native people.
______
Prepared Statement of Levi Pesata, President, Jicarilla Apache Nation
Introduction
On behalf of the Jicarilla Apache Nation (``Nation'') in New
Mexico, I would like to thank this Committee for convening this hearing
to gather testimony on economic stimulus need in Indian Country. I
would like to focus more specifically about how targeted funding for
tribal rural water infrastructure projects, such as the Jicarilla
Apache Rural Water System, as authorized by Congress through the Bureau
of Reclamation can drive job creation and economic development for
Indian Country.
The Nation is a federally recognized Indian Tribe, and our
Reservation, which consists of approximately 1 million acres, is
located in Northern New Mexico. We have over 4,000 members and 85
percent of the population lives on our Reservation in the town of
Dulce, which serves as our tribal headquarters. We understand Congress'
desire to quickly provide state and local governments with an infusion
of funds for infrastructure projects, and we respectfully request that
you work to ensure that Native American Tribal governments are also
considered as potential recipients of funding through the proposed
second economic stimulus. Like state and local governments, Tribal
governments provide essential governmental services to our citizens and
neighbors and are similarly in dire need of basic infrastructure
development.
Specifically, the Nation prioritized the following areas of need
for the Senate Committee on Indian Affairs to consider for inclusion in
the proposed economic stimulus:
Infrastructure
--$10 million for the Jicarilla Apache Rural Water System
Project;
--$1 million for Jicarilla roads;
Healthcare--$1 million; and
Housing--$1 million.
For our part, during the last nine years we have been working to
address the failing public drinking water and wastewater systems on our
Reservation, which were constructed, owned, operated and managed by the
federal government. We worked with Congress to authorize a $45 million
project to repair and replace the dilapidated and failing federal
infrastructure and since that time we have committed significant
additional funds and resources to the project.
We worked tirelessly to implement the statutory directive placed on
the Secretary of the Interior to comply with the law and construct our
project. Unfortunately, although Congress authorized our water system
infrastructure project and President Bush signed it into law in
December of 2002 (P.L. 107-331), the Bush Administration has repeatedly
failed to include any funding for our project in the Administration's
annual budget to Congress. We also understand our project is the only
one that acknowledges and mandates corrective action for the Federal
Government's liability for establishing and creating a deficient and
unsafe public drinking water system serving an Indian reservation
population.
Through the leadership and commitment of our New Mexico
Congressional delegation we have received almost $2 million
appropriations funding for the effort, however a much larger infusion
of funds is needed. The current situation requires action now as it has
forced the Nation to put other construction projects on hold due to
lack of infrastructure. In addition to fully meeting our statutory
project share (approximately $15 million), we have invested millions of
more additional dollars into repairing and replacing the system, but we
have reached our debt capacity. The Nation is prepared to immediately
utilize funding to continue our work on the water system so that we can
ensure a safe and reliable water supply for our people. In addition, we
expect that funding for this infrastructure project will provide
between 30-50 jobs immediately in our community which is significant in
the extreme rural and depressed region where we reside. The long-term
effect of investing in this project will provide greater employment
opportunities to the approximately 2,300 tribal members ready for work,
as more construction and development opportunities will move forward
once the water infrastructure is in-place.
Background
The dilapidated condition of the current public water system and
waste water infrastructure on the Jicarilla Apache Reservation stems
from generations of neglect by the Bureau of Indian Affairs (BIA), an
agency of the U.S. Department of the Interior, which, as creator, owner
and operator of the system, did not properly design, plan for, manage,
repair and upgrade portions of the system over the last 90 years. The
system diverts water from the Navajo River-a pristine water source, and
its initial structures served the original BIA facilities on the
Reservation in the early part of the 1900's. As the community of Dulce
became the center of activity, members began moving there from other
areas of the Reservation. In response to the growth, the BIA expanded
the water line to allow members to access the water from common areas.
As the area grew with housing and other facilities, water lines were
extended, on an ad hoc basis, with no planning or recording. By the
1990's the community's system had every type of water piping, including
clay, asbestos lined, other metals, as even some wood piping has been
unearthed and apparently still in operation in some parts of the
system.
In October 1998, the system completely collapsed at the river and
left the Nation without water for a week. The home of one of our elders
burned down, with no water to put out the fire. The National Guard
brought in bottled water and portable restrooms. The Nation funded
emergency efforts to restore water delivery and received no funding
from the BIA. In 2006, the wastewater system failed and caused a backup
in the Jicarilla Apache Public Library forcing it to close for a long
period of time. Other buildings and homes were similarly condemned due
to these dire conditions.
The Federal Government's neglect and failure to manage and maintain
its public water system serving our people has caused many dire health
threats and circumstances and economic hardship including: degraded
water quality in the lines, obsolete and non-compliant sewage lagoon
ponds which were operating without proper permits because the ponds did
not meet the Federal standards, pollution from unlined sewage ponds
spilling into the community and into a nearby arroyo which fed back
into the Navajo River towards downstream users and stymied economic and
housing development opportunities. The most disturbing circumstance,
however, is that a large number of tribal members are experiencing
serious intestinal and other internal diseases and more community
members have been diagnosed and are dying from stomach and other forms
of cancer, many documented cases of those living on and served by the
main and oldest stem of the water system.
Statutory Project Authorization
A combination of the water outage, delayed housing and economic
develop opportunities and the dire health related circumstances led the
Nation's leaders to Washington D.C. to request assistance repairing the
Federal Government's broken system. Our first step was to approach the
owner and operator of the system, the BIA headquarters in the U.S.
Department of the Interior in Washington. They told us they had no
funds to address the problem. The Nation sought help from other Federal
agencies, who were sympathetic but generally unable to assist because
the BIA owned and operated the system at the time. They also informed
that the enormity of the problems with the system required a
significant investment of resources that they would not be able to
accommodate.
Working with our Congressional delegation from New Mexico and
others sympathetic to our case, we developed and pursued a legislative
route to authorize a project specifically to repair the system. In
2000, Congress passed a law which directed the Department of the
Interior, through the Bureau of Reclamation (BOR), to conduct a
feasibility study on upgrading the system. See Public Law 106-243. The
Nation worked directly with BOR on conducting the study which was
completed in September of 2002.
The study concluded that $45 million would be needed to replace the
deficient water delivery and wastewater infrastructure. The report
acknowledged the Nation's efforts in contributing $15 million to
improve portions of the system including: replacement of the diversion
structures and pipeline at the river and up to the water treatment
plant; building a new water treatment plant and expanding its capacity;
repairing and replacing old water towers; and replacement of
infrastructure on the expansion Mundo Ranch property.
Following the completed report, our New Mexico Congressional
delegation introduced legislation to direct the Secretary of the
Interior to repair and replace the infrastructure based on the
recommendations in the feasibility report; the legislation also
authorized the Department to expend funding to undertake this project.
On December 13, 2002, President Bush signed into law the Jicarilla
Apache Reservation Rural Water System Act, Public Law 107-331, Title
VIII, which directs the Secretary of the Interior to proceed with a
project to replace the defunct infrastructure, as outlined and
recommended in the feasibility report, and which authorizes the
appropriation of funds ($45 million) for our project. There are no
sunset provisions in the law and its construction mandate is
specifically not subject to the availability of appropriations.
Inadequate Federal Funding and Failure to Implement the Law
Since Congress authorized our project and mandated the Secretary of
the Interior to commence construction of the project nearly six years
ago, the Nation has worked tirelessly to secure funding for the
development of our project through the Bureau of Reclamation's account
in the Energy and Water Development Appropriations bill and through the
annual budget process. During the feasibility stage, Congress
appropriated $200,000 for this effort and in the Fiscal Year (FY) 2002
cycle, Congress appropriated $2.5 million for design and related work
to prepare for project authorization.
Unfortunately, in spite of our diligence, neither Congress nor the
Administration provided any funding for our project in the FY 2003,
2004 and 2005 appropriations cycles. Finally, in FY 2006, Congress
provided $250,000 for our project in the Energy and Water Development
Appropriations bill. In total, since Congress authorized our project
which was signed into law nearly six years ago, the Nation has received
less than $2 million for our project. Currently, Congress has included
$3 million in the House FY 2009 Energy and Water appropriations bill
and $1 million in the Senate FY 2009 Energy and Water appropriations
bill, though it remains unclear the fate of the remaining un-enacted
appropriations bills. While we are very grateful for these funds in a
tough fiscal environment, there is an overwhelming need for Congress to
provide a greater infusion of funds for this project.
The Administration has failed to include funding for our fully
authorized project in their annual budget request to Congress. We have
regularly met with the Office of Management and Budget, the Assistant
Secretary for Water and Science and the BOR Commissioner urging them to
implement the law and take action to help us address this serious pubic
health crisis. Sadly, our pleas fall upon deaf ears during the Bush
years.
``Ready-to-Go'' Project and Impact of Inadequate Investment
The Nation is ready to move forward on repairing and replacing
existing water lines in the town of Dulce and also completing water and
sewer line extensions to new housing projects. The Nation's rural water
infrastructure project meets the criteria set forth by the House
Transportation and Infrastructure Committee's memorandum
(``Memorandum'') outlining ``ready-to-go'' projects.
More specifically, the Nation's project mirrors an example of a
project located in the state of New York, the ``Village of Cuba, New
York'' wastewater treatment system. The Memorandum states that the
Village of Cuba project ``is served by a sanitary sewer collection
system constructed in the 1920's that utilizes mainly vitrified clay
tile piping.'' Similarly, the Nation's water system was also
constructed in the early 1900s and currently consists of clay and wood
pipes. As a result, the Nation suffers constant line breaks from the
clay pipes, which have no flexibility and are more prone to root
intrusions and structural cracks.
The Memorandum further states that ``most wastewater treatment
utilities have small capital-related projects on the shelf that could
be carried [out] very quickly,'' thereby citing the cost of the Village
of Cuba as $2.1 million. The Nation's economic stimulus needs for our
rural water infrastructure project falls between the cost range
provided by the Memorandum (wastewater projects ranging from $2.1
million to $103 million).
Furthermore, Village of Cuba example details that the median
household income is well below the New York State median household
income, therefore, further justifying Congressional investment in the
project. Indian Country comprises some of the most depressed and remote
areas of the country. The Nation's location in the rural and remote Rio
Arriba County limits economic development tied to the major
metropolitan areas of the state of New Mexico and affects the Nation's
overall economy. Specifically, according to the 2000 Census, the
Nation's unemployment rate was 14.2 percent and the per capita income
was $10,136. However, in comparison to the State of New Mexico 2000
Census data, the unemployment rate was 5 percent (the U.S. average was
4 percent) and the per capita income in 2000 was $17,261.
In addition, the BIA 2005 Labor Force Report (``Report''), the most
recent report available, details that the Nation's unemployment rate is
52 percent. According to the Bureau of Labor and Statistics, the State
of New Mexico's unemployment rate for 2005 was 5.2 percent. Notably,
the Nation's unemployment rate is 10 times higher than the state's
average. Also, of the Nation's tribal members, approximately 2,310
individuals are available for work and approximately only 1,112
individuals are employed. This data illustrates the overwhelming need
for employment opportunities for the Nation's tribal members and
reflects the critical need for Congressional investment in the Nation's
rural water infrastructure system.
Nation's Housing, Economic Development and Stimulus Needs
Similar to the current crisis state and local governments are
experiencing with stalled infrastructure and development projects, the
Nation also has authorized economic development opportunities for its
community and tribal members and is currently foregoing further
progress until the proper infrastructure and investment are
established. For example, the Jicarilla Apache Tribal Utility Authority
(JATUA) is developing the Mundo Ranch property to accommodate multiple
facilities including institutional, single family housing, and small
commercial properties. To date, the Nation has authorized the
expenditure of $7.5 million in funds towards the development of the
Mundo Ranch. This is a critical project needed to address the more than
400 home backlog on the Reservation.
The first phase of the single family housing plan includes $3.5
million expended by the Nation through JAUA to construct utilities,
roads, and site preparations for 46 housing units. To date, 35 units
have been completed and are currently rented at $300 per month, under a
15-year-rent-to-own program. However, the Nation still has a current
waiting list of over 400 families for housing. To provide additional
housing resources for its tribal members, the Nation has acquired post-
Katrina Federal Emergency Management Agency (FEMA) mobile homes that
have been allotted to tribes. The waiting list for the mobile home
units alone is 150 and are considered ``category 1'' need for housing.
The Nation requests $1 million to alleviate the major housing need on
our Reservation. The Nation would be able to begin construction for
housing and spend the funding in a two-year period. Also, as the Nation
continues to receive the mobile home units, it is vital for the Nation
to set-up and establish the proper infrastructure to serve the newly-
acquired mobile homes for families to immediately inhabit them.
Therefore, an investment in our rural water infrastructure system
deeply affects our ability to provide housing and safe, reliable
drinking water to our tribal members.
The Nation is an oil and gas producing tribe. With the current
snowfall, the roads become impassable and require a great deal of work
to shovel. Most of the roads are unpaved, which are very difficult to
maintain and plow during harsh weather conditions. In addition, the
roads will wash-out after a major rainstorm, leaving the Nation little
or no access to our oil and gas resources. Therefore, safe and reliable
roadways must be constructed and maintained to access the oil and gas
resources on the Reservation.
The Nation contracts their roads program from the BIA under P.L.
93-638 and employs tribal members for the roadway work. The Nation
maintains about 700 miles of BIA and tribal roadways. However, there
are still dirt streets in our residential areas in Dulce and across the
Reservation, and the Nation plans to extend the bike and pedestrian
path to a new housing development and new elementary school. The Nation
requests $1 million to work to repair, maintain, and pave our roads.
Furthermore, it is difficult for the Nation to proceed with these
initiatives when the water infrastructure is incomplete and non-
existent in certain areas on the Reservation.
The Nation is currently in major-need of a dialysis center for our
tribal members. Diabetes deeply affects our tribal members health, and
the construction of a specific-diabetes center on the Reservation would
greatly benefit our tribal members. Further work and completion on our
rural water infrastructure in tandem with the construction of diabetes
center would ensure that an adequate water supply is in-place for the
proposed diabetes center. The Nation would be able to immediately begin
work on a diabetes center and spend the funding in a two-year period.
The Nation requests $1 million for this project.
The Nation's rural water infrastructure system is a vital link in
providing adequate services to our tribal members and communities.
Without a completely updated and properly-repaired system, the Nation
is unable to move forward on pending projects. Therefore, the Nation
cannot provide employment opportunities in roadwork for our tribal
members; maintain, expand, and upgrade our roadways for community and
economic development use; and further construct and make available
housing units to our tribal members. It is our responsibility as a
tribal government to provide the necessary services for our tribal
members, and the Nation has continuously and consistently made the
investment in our community to the extent possible. However, the Nation
is in-need of assistance in this current crisis from Congress, just as
state and local governments are requesting.
Conclusion
Since the legislation's enactment in December 2002, the Nation has
been forced to borrow millions of additional dollars on the project
because of the urgency and crisis facing our people. But, we have
reached our debt capacity. While progress has been made on the project,
the Nation has been forced to put a number of important projects on
hold due to the lack of infrastructure and funding shortfalls. For
example, there is a tremendous need for new housing on the Reservation.
In fact, we currently have over 400 people on a waiting list for homes.
We cannot build these new homes until the infrastructure is available
to support them.
It is time for the Federal Government to invest in Indian Country
and meet its statutory and moral obligations owed to the Nation. The
United States has a trust responsibility to the Nation, our citizens
and our trust resources. Notably, ours is the only project Congress has
authorized which is fully encompassed in an Indian reservation and
which has 100 percent Indian project beneficiaries. We hope that you
will work to ensure that Native American Tribal governments are
included as governmental recipients of funds, along with state and
local governments, for infrastructure work in the second economic
stimulus. We also hope you consider other major tribal government needs
regarding road construction and maintenance, housing, and health care.
The proposed economic stimulus provides a major opportunity for tribes
to address the overwhelming need and disturbing conditions in Indian
Country.
Again, thank you for holding this very important hearing for Indian
Country and for the opportunity to express our views and concerns as
you move forward with the economic stimulus legislation.
______
Prepared Statement of John P. Jurrius, President/CEO, Native American
Resource Partners, LLC
Introduction
I would first like to commend Chairman Dorgan and Vice Chairman
Murkowski for holding today's hearing on what I consider the most
pressing issue in Native communities: job creation for tribal members
and economic growth for tribal economies.
Every day the news reports bring more bad economic news with more
Americans being laid off, slumping demand for goods and services, and
the business community bracing for even more difficult times ahead.
My name is John Jurrius and I am the President and Chief Executive
Officer of Native American Resource Partners, LLC (NARP), a private
equity firm dedicated to working with and investing with Indian tribes
to help them realize their economic development objectives.
My Background in Indian Economic Development
Some background is in order before I make my statement. Prior to
founding NARP I served as financial advisor and strategic counselor to
several Indian tribes. From 1995 to 2001 I served in these capacities
to the tribal council of the Southern Ute Indian Tribe located in
southwest Colorado. From 2001 to 2007 I served in these capacities to
the tribal council of the Ute Tribe of the Uintah and Ouray Reservation
in Utah.
I was honored to work with the leadership of these tribes and my
role was to help them access the capital markets, provide strategic
guidance to aggressively deploy and maximize their energy resources,
and bring discipline to the interaction between tribal government
decision-making and tribal commercial operations. In particular, I
aggressively pursued what was then a novel concept in the realm of
Indian energy: the active participation by Indian tribes in the
development of energy resources on tribal lands. These activities were
made possible by securing over $900 million in capital for tribal
development partnerships and the creation of several billion dollars of
commercial value by forging partnerships between Indian tribes and
industry participants.
The tribes I worked with made the crucial decision to re-assume
control over their energy assets and, since then, have made remarkable
strides in generating revenues, creating job opportunities, and
achieving long-term economic stability for their members.
The Ute Tribe of the Uintah and Ouray Reservation had no commercial
ownership of their energy activities when I began working with them in
2001. Eight years later, the tribe is an owner of Ute Energy LLC, which
owns commercial interests in over one hundred oil and gas wells on
tribal lands, generates tens of millions of dollars in energy revenues,
and possesses an interest in one of the largest gas processing plant in
the State of Utah served by some 120 miles of gas gathering pipelines
and related infrastructure of which the tribe has a major ownership.
These projects represent successful partnerships between the tribe
and well-known and respected corporate partners such as Anadarko
Petroleum Corp., Bill Barrett Co., Berry Petroleum, Questar Exploration
and Production, and others. The tribe's progress is a testament to its
leadership and tenacity in wanting to improve the lives of the Ute
people.
I am particularly proud of the accomplishments of, and success
enjoyed by, the Southern Ute Indian Tribe. As recently as 1990, the
tribe was a poor tribe with 63 energy companies operating on the
reservation. In 1992, the tribe formed a tribal energy corporation to
buy back the leases it had entered with the private energy companies.
Through expanded energy development and skillful acquisitions, by 2005
the tribe came to own commercial assets worth more than $3 billion. The
tribe has a bond rating that exceeds the ratings of Denmark and Japan,
operates a sprawling real estate portfolio, and is identified by
industry as owning the eleventh largest private energy company in the
United States. This tribe, by any standard, is engaged in Indian Self
Determination on a scale and to a degree that no one could have
foreseen just 18 short years ago.
Proposals to Create Jobs and Stimulate Indian Country Economies
Today's hearing is particularly important because Indian country's
drive for economic self-sufficiency is hampered by challenges that most
communities do not have: geographic remoteness, distance from markets
and population centers, a lack of physical infrastructure, a mixture of
governmental and business functions, and a lack of capital and
financial expertise.
With the Congress now considering the American Recovery and
Reinvestment Act of 2009, this Committee and Congress can assist Indian
country in alleviating the multi-billion dollar backlogs tribal
communities face in terms of physical infrastructure like roads and
bridges, transmission lines and other energy infrastructure, housing,
hospitals and clinics, and education.
The twin aims of the stimulus effort--creating jobs in the short-
run and laying the groundwork for economic growth in the long-run--can
be achieved in Indian country by focusing on building the kind of
physical infrastructure necessary for renewable and non-renewable
energy development in Indian communities.
Energy Development in Indian Country
My statement will focus on how the development of Indian tribal
energy is in many respects a ``two-fer'': it will achieve the jobs and
economic growth goals that the President and Congress have articulated,
and it will also serve to wean America from her dependence on foreign
sources of energy including oil, natural gas, and other resources.
This past May 2008, this Committee held an Oversight Hearing
entitled ``Regaining Self-Determination over Reservation Resources.''
In the course of that hearing, the Committee heard about the enormous
potential of Indian energy, the new legal and regulatory regimes
provided by the Indian Tribal Energy Development and Self-Determination
Act of 2005, and the current challenges tribes face in achieving their
energy development objectives.
Indian tribes in the lower 48 states possess a very large volume of
energy resources--both renewable and non-renewable--and with Federal
restrictions on exploring for energy in many parts of the country,
tribal resources present one of the most significant opportunities for
domestic production in the United States.
In 2001 the U.S. Department of the Interior (DOI) estimated the
total dollar value of energy produced from Indian tribal lands for the
period 1934-2001 to be $34 billion. These revenues derived from the
production of coal, natural gas, and oil. In terms of undeveloped
reserves and undiscovered resources, the DOI projected that Indian
tribal lands could prospectively generate $875 billion derived from
these same three sources of energy. In the intervening 7 years, the
prices of energy products have increased so that, currently, these
revenue projections would be billions of dollars higher.
In a real sense, the new Indian energy law authorized a sort of
``energy stimulus'' plan for Indian country: the new law includes
financial and scientific assistance for tribes to identify and
inventory their energy resources, requires the Federal purchase of
energy produced on Indian lands, directs the Department of Energy to
establish a $2 billion dollar Indian energy guaranteed loan program,
and includes many other provisions.
The comprehensive nature of the new Indian energy law reveals
Congress' clear intent that the law be used to help tribes bring their
energy objectives from the concept phase to the project development
phase.
As with any authorization enacted by Congress, the new Indian
energy law is comprehensive in scope and will encourage the development
of Indian energy resources but what it does not (and cannot) provide is
the financial capital that modern energy project development requires.
The economic stimulus plan now being developed provides the
Congress with a once-in-a-lifetime opportunity to provide funding for
tribal energy projects that will create jobs immediately and will
result in lasting physical infrastructure and capital assets to help
grow tribal economies in the out-years.
Capital for Indian Country Energy Project Development
The leadership of this Committee has lead efforts in Congress to
make sure Indian country is included in the stimulus plan that will
become law very shortly. On January 9, 2009, Committee leadership,
together with 13 other U.S. Senators, issued a letter to President
Obama urging the inclusion of billions of dollars in Indian tribal
projects in the economic stimulus plan.
While I am happy to note that the January 9th letter proposed $4.4
million for energy development on Indian lands, I must say that this
amount is woefully inadequate to meet the need for tribal energy
project development.
The need for capital in Indian country is not a new phenomenon.
Eight years ago, in November 2001, the Department of Treasury's
Community Development Financial Institutions Fund issued ``The Report
of the Native American Lending Study''--a comprehensive study of
lending and investment practices on Indian reservations and other lands
held in trust by the United States. The Report issued dozens of
findings and made recommendations to the Congress and the President to
overcome the obstacles encountered by Indian tribes and their members.
Among its conclusions, the Report states:
``Native American economies have about half the level of equity
that comparable international economies (that is, countries or
regions with similar GDP, population and other demographic
factors) have. Further, the Equity Investment Research Report's
comparisons to Indian Lands to similar economies suggests that
if external equity investors were located in or serving Indian
Lands and if the strategies to overcome existing obstacles were
pursued and were successful, an additional $10 billion in
equity could be invested in the Native American economy.''
The need for capital in Native communities is great but only part
of the demand is being met. Some Indian tribes own financial
institutions to support economic development and housing. In addition,
there are 19 tribally owned banks helping to provide banking services
and capital to tribes and their members. There are also credit unions
and Federally-created tools like Community Development Financial
Institutions that are now operating in Native communities.
As important as these sources of capital may be for purposes of
housing, consumer credit, and small business loans, the volume of
capital is simply too modest and the institutions lack the capacity for
the kind of risk involved with energy development. The Native American
Bank, a consortium of Indian tribes, Alaska Native Corporations, and
other depositors, has just $59 Million in capitalization to lend across
the breadth of Indian country and not available for risk associated
with energy development projects.
These entities provide services that help meet the demand for
capital but, frankly, the need for investment capital and growth in
Indian country are simply too great to be satisfied by the existing
lenders.
Capitalizing Tribal Energy Projects
Whereas historically Indian tribes have assumed a passive role in
the development of their energy resources, NARP's vision is to be
partners in investing alongside tribes in their own tribal energy
corporations. The Southern Ute Indian Tribe and the Ute Tribe of Utah
have both used similar models to achieve extraordinary success and
benefits for their members.
Whereas the passive model relies on a lessor-lessee relationship
between an Indian tribe and its energy partner, NARP's business model
will help tribes build and operate lasting tribal enterprises that
bring significant returns to the tribe and jobs and incomes to the
tribal members.
The reason I founded NARP is to create an avenue for private sector
capital to be channeled into Indian country for the development of
energy and associated resource opportunities. The NARP model relies on
the proven methodology of providing needed capital to tribes to create
co-partnered tribally-energy resource companies in the service of
Indian Self-Determination.
NARP's focus is not on developing or encouraging private sector
energy companies in Indian country but investing in energy companies
owned and operated by the tribes themselves.
Over the course of more than 15 years working with Indian tribes I
have raised large amounts of capital for those tribal clients as needed
for specific projects. My experience demonstrated to me the reality
that there simply was not an avenue for private capital to be accessed
by Indian country for development purposes.
In recognition of the billions of dollars of capital that has moved
into the energy sector over the last 5 years seeking and competing for
investment opportunities in exploration and development, mid-stream and
service companies, the opportunity to establish a ``private equity
fund'' committed to Indian country at large was necessary and
appropriate.
NARP is backed by Quantum Energy Partners, a private equity firm
founded in 1998 and specializing in the energy industry with over $5
billion in capital currently under management. With the resources and
contacts of the Quantum team behind it, NARP will have access to
significant capital to be used in pursuing energy opportunities with
Indian tribes, including opportunities to develop oil and gas reserves,
midstream and downstream assets, power generation and transmission
assets, geothermal assets, renewable energy assets and water rights and
associated infrastructure.
NARP anticipates that it will leverage the capital and contacts of
Quantum to make direct investments as well as sponsoring the
development of other energy opportunities involving other participants.
I am pleased to inform this Committee that NARP was not only successful
in attracting capital for the purpose of investing in Indian country
but has secured a level of commitment never seen before in Indian
country: As a Quantum portfolio company, NARP is a member of an energy-
sector private equity fund with $5 billion under management, and
therefore has access to significant capital. Under NARP's mandate, its
capital is solely dedicated to Indian country energy projects, thus
providing a new and unprecedented capital source for Tribal energy
investments.
NARP's Current Efforts
Since inception only seven months ago, NARP officials have visited
some 15 Indian reservations in the U.S. and no fewer than 21 Canadian
First Nations. We have entered agreements with the Assiniboine and
Sioux Tribes of the Fort Peck Reservation, Montana, and the Chippewa
Cree Tribe of the Rocky Boy's Reservation, Montana, to create and
develop tribal energy companies for the purpose of developing tribal
resources.
In addition, NARP in the advanced discussions stage for similar co-
partnered tribal or First Nation energy companies with tribes here and
north of the border. We believe that the strong and immediate demand
for NARP's capital and expertise arises from the capital starvation
that these tribes and First Nations have experienced for over a century
and, in particular, this demand arises from the fact that NARP's co-
partnered tribal energy company structure allows tribes and First
Nations to take active control of their economic and sovereign destiny
by proactively pursuing development of the energy resources in and on
their lands.
Recommendations
One major recommendation that I would respectfully make to the
Committee and the Congress is to increase the length of time allowed
for developing projects that rely on the use of Federal tax and other
incentives. This could be accomplished by extending for an additional
period of years the placed-in-service or other qualification periods
for such incentives and projects, rather than setting them to expire
year-by-year and then renewing them year-by-year. The recent practice
of Congress in extending these tax incentives on a year-to-year basis
simply fails to afford the tribes or their private sector partners with
the kind of certainty and predictability that is required for
successful project development.
While the current situation is a hardship for any capital investor
undertaking a significant capital project that relies on Federal
incentives, it is an extreme hardship for capital investors in Indian
country in general and for the tribes with which they collaborate in
particular. The reason for this is that, given the remoteness of most
Indian reservations (and the associated long lead time required to
bring the necessary infrastructure to support the project) and the
uniqueness of contracting with Indian tribes due to their sovereign
status and lack of commercial experience, an even longer lead time is
necessary to make such incentive-driven projects even remotely possible
to pursue, even for willing capital providers like NARP.
The existing renewable energy Production Tax Credit and New Market
Tax Credit are examples of incentives that would be much more useful,
and therefore used, in projects in Indian country if they were not set
to expire each year or two and then renewed or reinstated at the last
minute.
Just as Congress has seen fit to inject liquidity directly into the
U.S. banking system, it should also consider providing Indian tribes
with capital to begin or increase their participation in the formation
and operation of tribal energy companies with qualified industry and
financial partners. This capital will serve to stimulate the
development of good-paying jobs for tribal members and strengthen
tribal economies in the long-run.
In so doing, reinvigorated tribal economies can serve as local and
regional engines of economic growth. In this role, tribal economies
will perform like those ``emerging markets'' to stimulate rural
regional economies as have the Southern Ute Indian Tribe in Colorado
and the Ute Tribe of the Uintah and Ouray Reservation in Utah.
Conclusion
Mr. Chairman, I am certain that under your leadership the Committee
will ensure that the needs of Indian country and Indian people are
included in the stimulus plan so that the plan will have a positive
impact there and, in the process, help tribes meet the everyday
challenges faced by their members.
That concludes my statement and I thank the Chairman for the
opportunity to present my views on this important issue.
______
Prepared Statement of the Lukachukai Community Board of Education, Inc.
______
Prepared Statement of the Native American Contractors Association
______
Prepared Statement of Marty Shuravloff, Chairman, National American
Indian Housing Council
Introduction
Good afternoon and thank you Chairman Dorgan and Vice Chairman
Murkowski for this extremely important hearing on ``Proposals to Create
Jobs and Stimulate Indian Country Economies.'' It is sad but true that
even before the collapse of the American housing and financial sectors
in the fall of 2008, most American Indian and Alaska Native communities
were plagued by extraordinarily high unemployment and poverty rates. In
fact, our people have struggled economically not for 100 days but for
100 years.
Housing development in Native American communities involves more
than simply building dwelling units. Because most American Indian
reservations and Alaska Native communities are in geographically remote
and rural areas, community development often starts with the design and
construction of basic physical infrastructure and amenities that most
Americans take for granted. This includes water and wastewater
infrastructure, electricity, heat and cooling systems, and a host of
others. Providing these assets while building homes is an extremely
costly endeavor and one reason for the high cost of housing development
in Native communities.
In Alaska Native Villages, for instance, water and wastewater
treatment systems are often insufficient or non-existent with nearly 33
percent of rural Alaskan homes without indoor plumbing. Without
adequate sewer systems, villagers must use alternative waste disposal
methods that can create risk of health complications for the community
and/or possibly create an environmental disaster by contaminating the
same water supply they use for drinking.
According to the U.S. Indian Health Service as recently as 1995,
the gastrointestinal death rate for American Indians and Alaska
Natives, was 40 percent higher than the rate for all other races in the
United States. Safe drinking water is essential in preventing the
spread of several diseases including, hepatitis, typhoid, cholera, and
paratyphoid.
Indian Development Involves Multiple Agencies
The U.S. Indian Health Service (IHS) strives to uphold the Federal
government's obligation to promote the health of American Indian and
Alaska Native people and to protect the sovereign rights of Indian
Tribes. One facet of the IHS' mission is to ensure that comprehensive
personal and public health services are available and accessible to
American Indian and Alaska Native people.
The Office of Environmental Health and Engineering within IHS
houses the Sanitation Facilities Construction Division which is charged
with providing American Indian and Alaska Native homes and communities
with essential water supply, sewage disposal, and solid waste disposal
facilities.
Federal funding is insufficient to address the health needs of
Native people and for these activities in particular is highly
competitive among Indian Tribes and Alaska Native Villages. In addition
to funding shortfalls, there are restrictions in the law that prevent
IHS Facilities Construction funding dollars from being blended with
Federal housing funds in the construction of homes in Native
communities.
Native American Housing Assistance and Self-Determination Act
The Native American Housing Assistance and Self-Determination Act
of 1996 (``NAHASDA,'' as amended, 25 U.S.C. Sec. 4101) addresses the
need for affordable homes in safe and healthy environments on Indian
reservations, in Indian communities, Alaska Native villages and on
Native Hawaiian Home Lands. Since its enactment, NAHASDA has enhanced
Indian tribal capacity to address the substandard housing and
infrastructure conditions in by encouraging greater self-management of
housing programs, greater leveraging of scarce Indian Housing Block
Grant (IHBG) dollars, and greater use of private capital through
Federal loan guarantee mechanisms.
Housing activities that may be funded with NAHASDA assistance
include new construction, rehabilitation, acquisition, infrastructure,
and various support services. Housing assisted with these funds may be
either for rental or for homeownership. NAHASDA funds can also be used
for certain types of community facilities if the facilities serve
eligible, low-income residents. While NAHASDA was first enacted in
1996, it has been amended four times: in 1998, 2000, 2002, and 2008.
The NAIHC appreciates the unswerving commitment of this Committee
to last year's reauthorization and cannot say enough about how the
efforts of the Chairman and Vice Chairman and their excellent staff
made the reauthorization possible.
Key to the success of the Economic Stimulus Plan and the long-term
health of Native economies is physical infrastructure. In addition to
the ongoing unmet needs in Native communities, few would argue that a
sound physical infrastructure plays a vital role in encouraging more
productive tribal economies. As is the case with non-Indian
communities, a well built and maintained road system, housing,
electricity, wastewater, and land improvements all contribute the
necessary foundation for economic growth, increased safety and improved
quality of life for Native people.
Recurring challenges to the physical infrastructure issue involve
access to capital and financing, conflicting statutory and regulatory
provisions, and a need for comprehensive planning. Current
appropriations language prevents IHS sanitation funds to be used in
conjunction with NAHASDA funds to connect new water and wastewater
infrastructure to the new homes.
The Economic Crisis and the Stimulus Plan
It seems that the daily business reports continue to paint a bleak
picture of the American economy: rising unemployment, tight credit,
weak consumer spending, and falling producer prices.
Congress began consideration of stimulus legislation in the final
months of 2008. In fact, legislation was introduced in the 110th
Congress (H.R. 7110) to authorize what seems now like a paltry sum--$50
billion--to be spent on a variety of infrastructure activities
including airports, roads and highways, transportation and transit,
water projects, schools, and housing. This legislation is said to be
the ``starting point'' for the stimulus package to be considered in the
first weeks of February 2009. As these efforts move forward, it should
be kept in mind that American Indian and Alaska Native economies have
been plagued by far higher rates of unemployment and poverty for
decades.
I hope my statement offers ways that might help alleviate the
economic difficulties facing America's Native people by focusing on
initiatives that will have the greatest immediate effect on job
creation and income stabilization.
Both President-elect Obama and congressional leaders have suggested
that of highest priority are those projects that (1) will have
significant, immediate effects on jobs and income creation in the
communities they are built and also (2) serve to facilitate and
encourage future economic growth in those communities.
As the American economy continues to perform poorly in terms of
creating jobs and providing income to citizens, Congress and President-
elect Obama are focusing on an Economic Stimulus Plan that would pump
nearly $1 trillion of direct Federal spending on projects that involve
our country's physical infrastructure: housing, schools, hospitals,
water facilities, electricity delivery and renewable energy.
I applaud those 15 Senators, led by Chairman Dorgan and Vice
Chairman Murkowski, who on January 9, 2009, issued a letter to
President-elect Obama outlining the billions of dollars in ``shovel-
ready'' projects that are poised for development in Indian country
including health facilities, schools, detention and justice centers,
and others. The January 9, 2009, letter also encourages the expenditure
of stimulus funding on energy projects and land consolidation, both of
which hold great promise for immediate job creation and long-term
economic growth.
Funding for Indian Housing and Infrastructure
While the January 9, 2009, letter includes $50 million for the
Department of the Interior's Housing Improvement Program (HIP), it
fails to include any funding for housing construction, repair, or
rehabilitation for the Office of Native American Programs (ONAP) within
the Department of Housing and Urban Development (HUD). As this
Committee knows, the ONAP administers the Indian Housing Block Grant as
well as funding for housing-related infrastructure, the Title VI Loan
Guarantee, and the Section 184 Home Loan Guarantee.
After an exhaustive review of housing and related infrastructure
needs and potential projects, the NAIHC has concluded that there are
more than $2 billion in ``shovel-ready'' projects that can and should
be funded in the Economic Stimulus Plan.
Evidently, some in Congress believe that HUD is ``sitting on''
nearly $1 billion in Indian housing and related infrastructure project
funds and are using this misperception as the rationale to exclude
Indian housing programs at HUD from the Economic Stimulus Plan. I can
assure this Committee that any already-appropriated funding held by HUD
is obligated for Indian housing. The nature of the housing construction
industry is such that funding may be obligated for certain projects and
expended over many months if not years. In any event, the notion that
there is fresh, unaccounted for Indian housing funding in HUD's account
is simply not true and there is every reason to include HUD's Indian
housing programs in the Economic Stimulus Plan.
Other Recommendations
In addition, there are a number of qualitative proposals and
initiatives that can help ensure the success of the Economic Stimulus
Plan. For instance, in new housing construction, rather than insisting
on tribal compliance with Federal environmental processes, the U.S.
might consider relying on the environmental processes developed and
being implemented by Indian tribes across the country. Just as other
Federal laws (such as the Davis-Bacon prevailing wage law) are pre-
empted by the application of tribal laws, this would go a long way in
expediting construction projects and ensuring the maximum number of
workers in Indian country are put to work quickly.
In addition, given the emergency nature of our economic situation,
Congress might consider lifting the prohibition on using Indian Health
Service funding for housing-related wastewater and water service
infrastructure in the construction of HUD-assisted housing on tribal
lands. If Indian tribes and their tribally-designated housing entities
were authorized to, in essence, ``blend'' Federal funding in this
manner, homes on tribal lands would be assured of having sanitation and
water services as a matter of course.
Congressional leadership and the incoming Obama Administration are
jointly coming to the same conclusion that the ``most ready'' of the
``shovel-ready'' projects are those that involve repair and
rehabilitation of existing structures such as schools, houses,
hospital, or other buildings. We believe the same holds true for Indian
country and therefore urge the Committee to consider the expenditure of
hundreds of millions if not billions of dollars in stimulus funding to
enable Indian tribes and TDHEs to initiate a ``Building Rehabilitation
Initiative'' that can put large numbers of tradesmen and others to work
in a very short amount of time.
As the Committee is well aware, Federal and tribal structures that
were built over the past several decades are in bad shape and in need
of immediate attention. Making these structures energy efficient
through retrofitting and the application of state-of-the-art technology
makes a lot of sense and will create large numbers of good-paying jobs
for Indian people.
Federal and tribal health facilities located on tribal lands would
also benefit enormously from the widespread deployment of information
technology and such as tele-health and tele-medicine, such as the use
of electronic medical records, long-distance radiology and others.
The resultant health benefits to tribal members and other users of
these technologies would be significant and long-term.
Similarly, these efforts would include remediation of
methamphetamine lab activities, removal and disposal of asbestos, lead
paint, and black mold, and other structural problems that make these
structures uninhabitable.
The most expeditious way to channel stimulus funding to these
activities on tribal lands would be to use existing Indian Self-
Determination and Education Act (Pub.L. 98-638) contracts to tribes to
carry out these initiatives.
The Committee should also encourage the long-term or permanent
extension of the Indian Wage Credit and Accelerated Depreciation tax
incentives that will expire at the end of December 2009. These
incentives serve to attract capital investment and capital equipment to
Indian reservations that are used in commercial enterprises that rely
on Indian labor and bring physical infrastructure to reservations that
otherwise would not benefit from such investments.
Conclusion
I thank the Chairman for the opportunity to provide the
perspectives of the NAIHC and our members and look forward to working
with the Committee in the weeks and months ahead.
Attachment
______
Prepared Statement of the Navajo Nation
Chairman Dorgan, Vice Chairman Murkowski, and members of the
Committee, thank you for this opportunity to provide testimony on
behalf of the Navajo Nation on job creation and economic stimulus in
Indian Country. My name is Rex Lee Jim. I am an elected Delegate to the
Navajo Nation Council and serve as the Chairman of the Public Safety
Committee of the Navajo Nation Council.
The Navajo Nation has a population of more than 300,000 spread over
an area larger than West Virginia. The Navajo Nation includes over one-
third of the national on-reservation population of Indian Country.
Unemployment levels above 50 percent persist on the Navajo Nation
despite our efforts to find ways to attract various types of businesses
to locate on the reservation to create jobs and spur economic
development.
The Navajo Nation is challenged daily with attracting businesses to
a reservation that has little or no infrastructure. Many businesses
explore the possibility of locating to the Navajo Nation before
realizing the obstacles of inadequately paved roads and the lack of
electricity, water, and telecommunication services, not to mention
inadequate public safety services due to limited police presence and
lack of detention and court facilities.
The economic downturn in the U.S. and the world economy has
exacerbated the economic difficulties that were already facing the
Navajo Nation. Therefore, we support the enactment of an effective and
targeted economic stimulus plan that includes measures to assist Indian
Tribes in creating jobs and expanding economic opportunity in Indian
Country.
Stimulus Package Should Fund the Emergency Fund for Indian Safety and
Health
The 110th Congress recognized the tremendous need in Indian Country
and responded by enacting the $2 billion ``Emergency Fund for Indian
Safety and Health'', which was approved as part of the reauthorization
President's Emergency Plan for Aids Relief (PEPFAR). This landmark
legislation authorizes funding for public safety, health care, and
water projects in Indian country. The Navajo Nation applauded the
enactment of the authorization for the Emergency Fund, and now we urge
Congress to provide the necessary funding to achieve the important
goals that the Fund seeks to achieve. Therefore, the Navajo Nation
urges Congress to provide $800 million for the Emergency Fund as part
of any economic stimulus bill.
Public Safety is a Key Element of Economic Prosperity
One of the basic tenets of economic prosperity is a safe
environment for businesses and citizens. Our economy cannot prosper
without providing basic public safety to its citizens. Unfortunately,
public safety on the Navajo Nation has declined due to the lack of
sufficient police presence, lack of adequate detention facilities and
an absence of sufficient court facilities.
It is widely recognized that Indian Country law enforcement has
been underfunded at nearly all levels of police, investigation,
prosecution, courts, detention and rehabilitation. Numerous
Congressional hearings, government reports, and media investigations
have documented that there is a public safety crisis in Indian Country.
American Indians experience per capita rates of violence that are much
higher than those of the general population. According to DOJ
statistics, Native men and women are still more than twice as likely to
be a victim of a violent crime as any other racial or ethnic group.
Nearly a third of all American Indian and Alaska Native women will be
the victim of sexual assault in their lifetime, the highest rate of any
racial or ethnic group. Most reservations have well-below the
recommended number of police officers per capita. Also, U.S. Attorneys
decline to prosecute more than two-thirds of cases originating in
Indian Country, which is also well-above national averages. The
conditions of tribal jail facilities are a national disgrace.
The U.S. Attorney's Office in Flagstaff estimates that violent
crime on the Navajo reservation is six times higher than the national
average. However, we cannot incarcerate criminals without putting them
at significant physical and health risk due to deteriorating
facilities. Therefore, in many instances, tribal court is just a
revolving door for many criminals, and criminals and their victims have
a complete disregard for our criminal justice system. Communities
across the reservation and neighboring towns are at risk.
It takes no imagination whatsoever to understand the scarring
impact of these high crime rates not only on the victims, but also on
their communities and on the business environment. In the Native way,
when one person is harmed, everyone is harmed. Adequate funding for the
provision of basic public safety services is an essential part of any
strategy to reduce Indian Country crime rate and provide the same safe
and secure environment for Native peoples that is enjoyed by most other
Americans. Without sufficient police, detention facilities, courts, and
general public safety resources, we cannot address the growing problem
of crime, which retards our ability to provide peaceful communities and
a healthy environment for business activity.
The Federal Government has assumed responsibility for much of the
day-to-day law enforcement services on Indian reservations. Under the
Major Crimes Act and other federal laws, Indian communities are
dependent on the Federal Government for investigation and prosecution
of many crimes committed on Indian reservations. The Department of
Justice and Department of Interior share responsibility for law
enforcement and detention facilities in tribal communities. In
addition, the Department of Health and Human Services through SAMHSA
and the IHS, provide much needed treatment, rehabilitation, prevention,
and early intervention programs. The high rates of crime on
reservations indicates that this system does not provide sufficient
resources to keep Indian people safe.
Detention Facilities
One of the most pressing problems facing Indian Tribes is the lack
of detention facilities. In 2004, the Department of Interior Inspector
General published a study of Indian detention facilities entitled
``Neither Safe Nor Secure--An Assessment of Indian Detention
Facilities'' (Report No. 2004-I-0056). The Inspector General's office
was shocked by what it found:
``Early in our assessment, it became abundantly clear that some
facilities we visited were egregiously unsafe, unsanitary, and
a hazard to both inmates and staff alike. BIA's detention
program is riddled with problems and, in our opinion, is a
national disgrace with many facilities having conditions
comparable to those found in third-world countries. In short,
our assessment found evidence of a continuing crisis of
inaction, indifference, and mismanagement throughout the BIA
detention program. BIA appears to have had a laissez-faire
attitude about these horrific conditions at its detention
facilities.''
According to the recent report of Shubnum Strategic Management
Applications, the federal government needs to spend $8.4 billion to
bring tribal and federal detention centers in Indian Country up to
current standards and to relieve overcrowding. According the Report,
when the jails were inspected in spring 2006, many had too many inmates
and not enough jailers. At the Navajo Nation's Window Rock Detention
Center in Arizona, two detention officers were assigned to guard 68
inmates at a time. ``The 68 inmates were packed' on every horizontal
space in the dormitory cells,'' the report says. ``This included two
individuals on a single bunk bed and several individuals on the only
available floor space below the bunk beds. The foul stench was
extremely high at this hour with the crowded condition.''
We are grateful that Chairman Dorgan has led the effort to make the
results of the Shubnum study public, and hope that the Committee will
continue to lead the fight to address this massive and widely
acknowledged problem. The federal government must honor its trust
responsibility to the Tribes and provide resources to repair existing
facilities and build new detention facilities across all of Indian
Country.
Navajo Nation Detention Facilities
In the late 1950s and early 1960s, the Navajo Nation constructed
six detention facilities. Of our many urgent public safety needs, our
highest priority is to replace or fully renovate these out-of-date and
dilapidated facilities. For example, the Tuba City and Chinle detention
facilities have been closed for health and safety reasons. Our
remaining facilities at Kayenta, Crownpoint and Window Rock are only a
few years away from joining Tuba City and Chinle as facilities not fit
to house animals, much less human beings.
The detention facilities on the Navajo Nation have deteriorated so
severely that prisoners can only be kept overnight in three of our six
adult detention facilities. Since we only have 113 jail beds for the
entire Navajo Nation, many inmates serve only a portion of their
sentences due to the lack of available detention facilities. Unless we
build more detention facilities, criminals arrested in Navajo Nation
are essentially getting a ``get out of jail free'' card. The problems
facing the Navajo Nation are not unique. Many other tribes are
suffering from a lack of detention facilities and deteriorating
conditions in existing facilities.
The Navajo Nation has recognized the lack of detention facilities
as a paramount priority enacted a 1 percent sales tax dedicated for
judicial/public safety facilities. We have raised our own taxes,
despite the poor economic situation in the Navajo Nation, to address
this vital issue. It is time for the federal government to fulfill its
trust responsibility and join us in providing funding for new detention
facilities.
Federal Neglect of Navajo Nation Detention Facility Needs
The Navajo Nation has raised the need for detention facilities for
many years, and many federal officials have recognized the need for
additional facilities. However, despite the obvious need of new
detention facilities, the BIA and the DOJ have not provided the
necessary funding, or provided solutions for rebuilding the Navajo
Nation jails. In the last decade, a joint Justice-Interior initiative
has built or expanded 22 detention facilities in Indian country, but no
new adult facilities have been built on the Navajo Nation. In fact, at
the start of this initiative a list was compiled prioritizing the
facilities needed across Indian country. There were three Navajo
facilities on that list; every facility ahead of these three have been
built, as well as several after.
In fact, the FY 2003 President's budget request contained the names
of eleven detention center facilities on a priority list that remained
to be funded. The following table reported in the FY 2003 President's
budget request lists the eleven remaining facilities, by ranked order:
Table 1. Unfunded Detention Facility Priority List
------------------------------------------------------------------------
Rank Tribe/Reservation
------------------------------------------------------------------------
7. Salt River Pima
8. Colville Confederated Tribes
9. Navajo-Crownpoint, NM
10. Navajo-Kayenta, AZ
11. Navajo-Shiprock, NM
12. Mississippi Band of Chocktaw Indians
13. Tohono O'odham
14. Confederated Tribes of the Umatilla Indians
15. Eight Northern Pueblo
16. San Carlos Apache Tribe
17. Three Affiliated Tribes of Ft. Berthold
------------------------------------------------------------------------
The Navajo Nation was scheduled for three detention facility
construction projects according to the priority list that was included
in the President's FY 2003 budget. However, funding for the Tribal
Prison Construction program has been cut, and the detention facilities
on the priority list have apparently been abandoned by BIA and the
Department of Justice.
Lack of Funding for Tribal Prison Construction
The Correctional Facilities on Tribal Lands program was authorized
by Section 20109 of the Omnibus Consolidated Rescissions and
Appropriations Act of 1996 (Pub.L. 104-134). The Program has provided
grants to Native American and Alaska Native tribes to assist them with
the planning and construction of correctional facilities for people
convicted under and subject to tribal law. However, in recent years
Congress and the Administration have dramatically reduced funding for
this vital program:
Despite the shocking Inspector General Report in 2004, and the
incomplete priority list, the Correctional Facilities on Tribal Lands
Program has been reduced to only providing planning grants and for the
completion and repair of the facilities that have already begun
construction. The FY 2006 Justice Appropriations bill, for the first
time in several years, provided $7,000,000 for construction of the
Choctaw Justice Center in Mississippi. Since the Administration was not
acting to address the need for detention facilities, Congress was
forced to provide an earmark for the construction of one facility.
Ironically, that facility was ranked lower on the priority list than 3
Navajo facilities.
Need for Increased Funding for Police
The President's FY 2008 budget for the Department of Interior, the
Bush Administration proposed a $16 million increase to combat a
methamphetamine crisis in Indian Country by improving policing
capabilities in Indian Country. However, the need for resources for law
enforcement in Indian country is so great that this increase did not
adequately resolve the shortfall in police and detention personnel
facing Indian public safety agencies. In fact, the ``FY 2008
Departmental Highlights'' document outlining the Safe Indian
Communities Initiative states that the new funding will, ``Increase the
percent of BIA/tribal law enforcement agencies that are on par with
recommended national staffing levels from 38 percent in 2007 to 40
percent in 2012.'' So, the increase helped marginally, but the need for
law enforcement staffing assistance in Indian is much greater, and
federal spending has been consistently inadequate.
The Navajo Nation understands that Senator Leahy and others have
called for funding in the stimulus package for the Community Oriented
Policing Services (COPS), the Byrne grant program and other initiatives
that assist state and local law enforcement agencies by providing
resources to hire more police officers and to buttress other anti-crime
efforts and proven crime prevention strategies. In recent years, these
and other anti-crime programs have suffered funding cuts that have
resulted in staffing shortages across the country and fewer cops on the
street.
Senator Leahy recently stated that, ``The budget priorities of the
Bush administration have weakened some of our most important federal
anti-crime programs. As the nation plunges deeper into recession, it is
essential that we restore funding to programs like COPS and the Byrne
grant program so that state and local communities strapped for funds
can prevent a rising tide of crime.'' If Congress acts to increase
funding for law enforcement in the stimulus bill, we urge Congress to
include Indian Country in these efforts.
Emergency Fund
Congress took a positive first step in enacting a $2 billion
Emergency Fund for Indian Safety and Health as part of the PEPFAR
legislation. The new law authorized funding for Indian public safety,
health care and water projects. The infrastructure, public safety, and
health projects to be funded by new Trust Fund are exactly the types of
programs that will provide jobs and spur economic recovery. However,
while the authorization has been approved, it is uncertain how funding
will be appropriated into the fund.
The legislation authorizing the Emergency Fund states, ``There is
established in the Treasury of the United States a fund, to be known as
the Emergency Fund for Indian Safety and Health, consisting of such
amounts as are appropriated.'' The authorizing legislation does not
describe which appropriations bills will provide the funding or how the
appropriations will be provided. The Navajo Nation is anxious to
partner with federal agencies and Congress to assure that the
authorization is fully funded. Without getting appropriations to the
fund, no money can be spent from the fund as envisioned in law.
The economic stimulus bill provides an ideal opportunity for
Congress to fulfill the promise established with the enactment of the
Emergency Fund. Therefore, we urge Congress to provide $800 million to
the Emergency Fund as part of any stimulus legislation enacted by
Congress.
Working Together the Crisis in Indian Country Public Safety Can be
Addressed
The Navajo Nation has enacted a 1 percent sales tax increase
dedicated to solving this problem. It is time for the Federal
Government to join us in providing funding for detention facilities.
How else is America's largest populated Indian reservation ever to turn
around its high rate of crime? How else is our criminal justice system
ever to adequately partner with other jurisdictions, when all we do is
release our criminals back into our communities? How are we to protect
our children, families, communities and nation from violent individuals
who do not respect law and order? It is time to fix this unacceptable
situation.
This Committee has shown great leadership in focusing attention on
public safety issues in Indian Country. We urge your continued support
and ask that you seek the highest possible funding for the Emergency
Fund for Indian Safety and Health.
Thank you for this opportunity to share the concerns of the Navajo
Nation. Please do not hesitate to contact me if you have any questions
or if we can be of any assistance. The Navajo Nation looks forward to
working closely with the Committee to address public safety concerns in
Indian Country.
______
Prepared Statement of the National Center for American Indian
Enterprise Development (NCAIED)
Mr. Chairman and Members of the Committee, the National Center for
American Indian Enterprise Development (NCAIED) applauds you for always
providing a strong voice to help effectuate initiatives designed to
spur economic and business development, job creation, and self-
sufficiency in Indian Country, particularly in these challenging times.
This statement is presented on behalf of the NCAIED, its Board of
Directors (a renowned group of Native American business and opinion
leaders), and its network of centers whose dedicated business
consultants help Indian tribes and Native entrepreneurs start, maintain
and strive to grow their business enterprises. These centers do
yeomen's work and, with adequate funding, they could do even more to
spur business growth and job creation. It is imperative that the
economic stimulus package ultimately enacted will meet the serious
economic needs of tribal governments, Native communities and Native
businesses across the country by including the three groups of
provisions recommended below.
Celebrating 40 years of service to Indian Country, the NCAIED is
the oldest Native non-profit organization dedicated solely to
developing Native American economic self-sufficiency through business
ownership. The NCAIED and its network of Native American Business
Enterprise Centers (NABECs) and American Indian Procurement Technical
Assistance Centers (AIPTACs) deliver critically needed business
development, management and procurement technical assistance to Indian
tribes, Alaska Native village and regional corporations, enterprises
owned by them, and businesses owned by individual Native entrepreneurs.
The NCAIED-related centers have proven records of assisting a
majority of the tribes, providing business and procurement technical
assistance training to over 10,000 tribal members and 25,000 Native
businesses over time, and creating economic stimulus by:
assisting clients to secure over $2 billion in contract
awards in the last 2 years; and
generating an estimated 41,000 jobs as a result.
Every NABEC and AIPTAC across the country, whether under our
umbrella or independent, serves on the front lines with Native
contractors and other businesses poised for award and performance of
the ``shovel-ready'' infrastructure, transportation, facilities
construction, energy development, health IT, and many other stimulative
initiatives contemplated for the economic recovery package now under
consideration.
I. Support NCAI's Stimulus Plan
The NCAIED fully supports the thrust of the plan proffered by the
National Congress of American Indians (NCAI), as well as the plan
outlined in the recent letter to President-Elect Barack Obama co-signed
by Senate Indian Affairs Committee Chairman Byron Dorgan, Ranking
Member Lisa Murkowski, and other Senators supportive of Indian Country
both on and off the Committee. Both the NCAI plan, and the Senators'
plan insist that the finally enacted economic recovery package must
include provisions that specifically direct funds toward tribal
governments' infrastructure and capital needs (not just those of state
and local governments). Tribal governments, working together through
the NCAI and other national native organizations have identified
shovel-ready infrastructure projects that will create much-needed jobs
on reservations. The NCAIED fully supports the NCAI plan that requests
a total of $5.4 billion to stimulate Indian reservation and surrounding
rural economies nationwide and put tens of thousands of local residents
to work. The NCAIED worked with the Native American Contractors
Association (NACA), as well as with the NCAI, to develop joint NACA-
NCAIED-NCAI economic stimulus recommendations that list the specific
amounts that make up the total amount requested in the NCAI plan.
The NCAIED also urges that the recovery package contain the NCAI-
recommended ``Access to Capital'' provisions, including authority for
tribes to gain better access to loans, taxable bonds, and surety
bonding through expanded loan guarantees. These authorities, also
discussed in the joint recommendations, are essential to enable tribes
and Native businesses to participate more fully in rebuilding our
infrastructure and economy.
II. Increase Support for Native Business Development
It is particularly important that the economic recovery package
includes provisions for Native American business development. Both the
NCAI plan and the Senators' January 9 letter recommend substantial
funding for Indian business development through a combination of
increased authority for guarantee of loans, taxable bonds and surety
bonds. The NCAIED supports these proposals. The Senators' January 9
letter also proposes a $2 million increase Community Development
Financial Institutions (CDFIs) in Indian Country. This modest increase
will help make more funding available in tribal communities for
business startups, loans, etc.
In addition, the NCAIED strongly recommends funding one more
essential program to spur business development in Native American and
minority communities throughout the United States: the network of
business development centers supported by the Minority Business
Development Agency (MBDA) of the U.S. Department of Commerce. These
centers include 8 Native American Business Enterprise Centers (NABECs)
and nearly 30 Minority Business Enterprise Centers (MBECs) and Minority
Business Opportunity Centers (MBOCs).
We note that the Reid-Byrd economic stimulus proposal of November,
2008 (S. 3604) provided additional funds for grants of $200,000 to
certain veterans resource centers. Similar provisions should be
included in your economic stimulus package to augment funding for MBDA
to make additional grants of $100,000-$200,000 to each of its existing
NABECs, MBECs and MBOCs to help them assist struggling businesses owned
by Indian tribes and native and minority business entrepreneurs to
access small business loans, stimulus-related contracting, surety
bonding, and other business assistance. Depending on the level of
funding for additional grants, the total amount would be only $3.5 to
$7 million and would have incredible business generation and job
creation effects (as reflected in the impact figures listed on page one
of this statement) in communities suffering the highest poverty and
unemployment rates in the country.
III. Enhance Tools to Expedite Stimulus Project Completion
The NACA-NCAIED-NCAI recommendations look beyond the funding issues
toward mechanisms to enhance the ability of Native American businesses
to participate in economic recovery infrastructure projects once they
are funded. To achieve the desired stimulus effect, federal, state,
municipal and tribal governments will need to initiate and complete
these projects in short time-frames and will likely rely on contractors
to do some of the work. Our recommendations will facilitate this
process by: (1) expanding opportunities to use the Buy Indian Act at
the Department of Interior and Department of Health and Human Services;
(2) enhancing the ability of small businesses to form a team to combine
capabilities to compete more effectively for infrastructure and other
stimulus-related construction work; and (3) providing better access to
financing for tribal- and individual Native-owned businesses pursuing
work on economic recovery-related projects.
Conclusion
The U.S. constitution recognizes the distinct nature of tribal
governmental political structures. The Federal Government has created
distinct economic funding streams for tribal governments separate from
those in place for state governments, and Indian preferences in
contracting and employment when federal funds are appropriated for the
benefit of tribes and their members. Accordingly, the NCAIED urges the
Congress and the new Obama Administration to honor this unique
relationship between Native Americans and the Federal Government and
include tribes and Native business development in meaningful and
appropriate provisions of any economic stimulus package, as well as
Fiscal Year 2010 appropriations, prior to final enactment.
______
Prepared Statement of the National Council of Urban Indian Health
Economic Stimulus
UIHP Infrastructure Projects: The National Council of Urban Indian
Health has identified five ``ready to build'' infrastructure projects.
Details of these projects can be found in the appendixes. These
projects are facilities construction projects designed to accommodate
increased patient load and services. All of these projects are
construction ready with finalized, or near to finalized, architectural
plans and appropriate permits. These projects were stalled due to the
economic crisis and failure to secure additional lines of necessary
credit.
The Urban Indian Health Program does not currently receive
facilities construction funds from the Indian Health Service however
Title V of the IHCIA will allow for the distribution and management of
these types of funds. Typically, for an Urban Indian clinic or program
to build new facilities or implement large scale renovation projects
the individual clinic or program must find additional funding streams
to bankroll that project. The credit crisis has placed substantial
burdens upon non-profit clinics and programs to finance facilities
construction and renovation at a time when these facilities are most
needed. Moreover, because the UIHP does not receive facilities
construction funds from IHS many of these projects have been
substantially delayed. These projects will allow the programs to
provide more efficient services as well as expanded services to meet
the needs of the patient population.
The additional services that could be provided upon the completion
of these infrastructure projects include expanded preventative health
care, dental services, social services, and primary care. These are
services not easily accessed by the American Indian and Alaska Native
community. If the Urban Indian health clinics and programs are unable
to provide these services often patients chose to go without necessary
care. Numerous studies have demonstrated that when patients delay
seeking care the cost of treatment increases exponentially for everyday
care is delayed, especially for conditions such as heart disease and
cardiovascular disease. Increasing the Urban Indian Health Program's
ability to provide services and accept additional patients will relieve
pressure from other parts of the I/T/U system and thus reduce costs to
the entire system.
Total Cost: $19,650,000
Additional Patients served: 43,942
New Jobs: Uncalculated, detail is provided in projects summaries
attached.
Recommendations:
Inclusion of the ``ready-to-build'' infrastructure projects
identified by NCUIH in the infrastructure section of any
economic stimulus package.
Appendixes:
A. UIHP 12 Month Infrastructure Summaries
B. UIHP 24 Month Infrastructure Summaries
Appendix A--Urban Indian Health Programs--12-Month Infrastructure
Projects
Hunter Health Clinic, Wichita, KS
Request: New Facility Build (Health Clinic)
Cost: $7,600,000
Jobs: 100
Description: Hunter Health Clinic needs an updated and larger
facility to provide culturally competent and comprehensive health
services to the potential 9,000 American Indians living in the Wichita
metro area. Currently, Hunter Health Clinic is housed in an 80-year-old
building that does not support the technology needs for electronic
records. Hunter Health Clinic provides services to 20,000 patients a
year and this expansion will allow for 5,000 more patients to be served
in the first year with continued capacity expansion in subsequent
years. Everything is ready to begin on this project including rezoning,
architectural engineering, design, contractor, and preconstruction
phase.
Indian Health Care Resource Center of Tulsa, Inc, Tulsa, OK (Note:
12 to 16 months)
Request: Facility Expansion (Health Clinic)
Cost: $8,600,000
Jobs: 125 construction, 25 additional clinic staff
Description: Indian Health Care Resource Center of Tulsa needs to
expand the size of the current facility to increase capacity of
services for medical and behavioral health, as well as, to create a
permanent home for the health and wellness and substance abuse
treatment programs. This project also includes construction of a drive
through pharmacy, implementation of an electronic health records system
(EHR), and upgrade to digital radiology. The clinic currently serves
the 3rd largest urban Indian center in the country and this expansion
is expected to increase capacity to serve American Indian in the Tulsa
area by 220% (26,973 current visits to 59,341 with expansion). It is
expected that the New Construction debt Services will by $755,000 per
year for 15 years. If Indian Health Care Resource Center did not have
to borrow the money to meet the need of the growing population, there
would be $11,325,000 more dollars to provide direct health care
services over the 15 year period. Currently, the clinic has completed
all of the engineering and construction drawings and is ready to break
ground on the project.
South Dakota Urban Indian Health, Sioux Falls, SD
Request: New facility (Health Clinic)
Cost: $300,000
Jobs:
Description: The South Dakota Urban Indian Health Clinic needs to
build a new facility to expand services and capacity to serve the
potential 8,000 American Indians living in the Sioux Falls metro area.
Currently, the clinic is housed in a very small 2-exam room facility
with no patient parking and wiring that cannot appropriately handle the
electronic system infrastructure needs. The new facility would triple
the number of patient's the clinic can serve, from 1,203 unduplicated
users last year to 3,609 users with the new facility. Currently, the
South Dakota Urban Indian Health Clinic has the space identified, and
are working with the architect to finalize plans.
Native American Rehabilitation Association Northwest, Inc.,
Portland, OR
Request: Facility Remodel and Energy Efficient (Residential
Treatment)
Cost: $2,000,000
Jobs:
Description: The Native American Rehabilitation Association
Northwest (NARA) needs to update the 50-year-old Substance Abuse
Residential Treatment facility. Currently, NARA has 62 beds and
provides culturally competent substance abuse treatment American
Indians. This project would provide space for 10 new patients per day
for a total of 3,650 additional patient bed days per year. The project
would expand and remodel the building and include much needed energy
efficient modifications including heating and cooling system,
biodegradable septic system, solar power, and energy efficient
lighting. NARA owns the property; plans have been completed, and are
awaiting implementation.
Native American Rehabilitation Association Northwest, Inc.,
Portland, OR
Request: Facility Conversion/Remodel and Energy Efficient
(Outpatient Treatment)
Cost: $750,000
Jobs:
Description: The Native American Rehabilitation Association
Northwest (NARA) needs to remodel the old outpatient services facility
and convert to a transitional housing program for men. There are very
few places for men to live in a clean and sober environment upon
leaving residential facilities and this problem is even greater for
Native men. This project will allow for supportive housing to
approximately 18 men per year transitioning from residential Alcohol
and Drug facility. NARA owns the property, plans are in place for the
remodel, and are ready to begin construction.
Appendix B--Urban Indian Health Programs--24-Month Infrastructure
Projects
South Dakota Urban Indian Health, Sioux Falls, SD
Request: Facility Remodel (Treatment and Support for Release
Inmates)
Cost: $400,000
Jobs:
Description: The South Dakota Urban Indian Health Clinic needs a
facility to provide a new service to approximately 400-500 American
Indian individuals who are released from the State Women's Prison and
the State Penitentiary, both of which are located within the clinic's
service area. Unfortunately the number of American Indians in Prison in
South Dakota is extremely high. In 2000, American Indians represented
8.6% of the general population, but 22% of South Dakota's prisons
according to the state Department of Corrections. This project would
allow the South Dakota Urban Indian health Clinic to provide much
needed behavioral health and transition services for these released
prisoners. The Medical Director at the clinic is also the State
Penitentiary physician and planning has already begun to develop a
Community Recovery based program. The impact of this project will
result in lowering cost of incarceration (due to recidivism) and
developing productive community members to contribute to society.
Currently, the clinic has identified the space and architectural plans
complete.
______
Prepared Statement of Rodney M. Bordeaux, President, Rosebud Sioux
Tribe
Introduction
On behalf of the Rosebud Sioux Tribe (``Rosebud'') in South Dakota,
I appreciate this opportunity to bring to your attention the
overwhelming economic stimulus and infrastructure needs on the Rosebud
Sioux Tribe Reservation, which is located in south-central South Dakota
and has twenty communities that encompass a four-county area. The
877,831-acre Rosebud Reservation borders Pine Ridge at its northwest
corner and Nebraska at the south and has its tribal headquarters in
Rosebud, SD. The Rosebud Reservation is home to approximately 19,000 of
the approximately 26,000 members of the Rosebud Sioux Tribe.
Rosebud has considerable economic development and infrastructure
needs in relation to Rosebud's vast natural resources on our
Reservation and to our Tribal members. According to the Bureau of
Indian Affairs 2005 Labor Report (``Report''), Rosebud has an 83
percent unemployment rate. The Report further states that we have
approximately 14,428 tribal members available for work. Rosebud is
located in a rural, remote area of Indian Country and has one of the
most depressed economies in the nation.
We understand Congress' desire to quickly provide state and local
governments with an infusion of funds for infrastructure projects, and
we respectfully request that you work to ensure that Native American
Tribal governments are also considered as potential recipients of
funding through the proposed second economic stimulus as the bill moves
through Congress. Like state and local governments, Tribal governments
provide essential governmental services to our citizens and neighbors
and are similarly in dire need of basic infrastructure needs.
We have identified the following areas of priority for economic
stimulus needs for Rosebud:
Indian Reservation Roads--$14.2 million;
Tribal Land Enterprise--$9.2 million;
Rosebud Economic Development Corporation--$7.5 million;
Sicangu Nation Employment and Training Program--$489,000;
Rosebud Lagoon--$2.6 million;
Sewer Replacement and Infrastructure at Rosebud--$1.3
million;
Rosebud Airport--$9.6 million;
Rosebud Green Energy--$1 million;
Rosebud Home Manufacturing Facility--$2 million;
Rosebud Jail Facility Upgrades--$3 million;
St. Francis Indian School Construction--$9.84 million.
Indian Reservation Roads
At Rosebud, we have identified the following five Indian
Reservation Roads projects that the Tribe is capable of moving on as
soon as possible, and these projects are currently on the Indian
Reservation Roads Program Federal Lands Highway CSTIP Report.
Rosebud Old Town Streets--Phase I, which includes water,
sewer, and street reconstruction, with an estimated cost of
$901,500;
Rosebud Old Town Streets--Phase II, which includes water,
sewer, and street reconstruction, with an estimated cost of
$884,000;
Rosebud to 6 Mile Center, which includes reconstruction of
six miles of Bureau of Indian Affairs (BIA) which includes
widening, slope flattening and asphalt paving, with an
estimated cost of $11.9 million;
Two Strike Lighting, which includes street lighting for
safety reasons, estimated cost of $129,500; and
Swift Bear Streets, which includes upgrades and
reconstruction, with an estimated cost of $400,000.
Tribal Land Enterprise
The Indian Land Consolidation Program (ILCP) has purchased $19.3
million dollars of fractionated interests on Rosebud equivalent to
144,258.56 acres. The Tribe submitted a proposal to the BIA for the
return of these ILCP purchased tracts of land to the Tribe with the
forgiveness of the lien and the return of the lease income for Tribal
management through the Tribal Land Enterprise (TLE) program. The Tribe
through TLE could eliminate the administrative cost to the federal
government with a policy approval of the Tribe's proposal and create a
sound, cost savings business transaction for both the Tribe and the
federal government. There is currently $982,508.13 dollars of lease
income generated from these ILCP purchased lands that the ILCP program
is going to purchase more fractionated interests with and generate more
debt in the name of the Rosebud Sioux Tribe. If these funds were
available to the Tribe to target priority purchases of fractionated
interests, the successful TLE program could reduce the fractionation
problem on Rosebud with greater targeted success and management of all
the lands of our Tribe.
In addition, the Tribe has several Indian Land Consolidation Loans
with the Farm Service Agency of the U.S. Department of Agriculture. We
borrowed $8.5 million dollars to purchase fractionated interests with
eight loans. After the annual payment just made by the Tribe through
TLE, the debt is currently $2.8 million. We have been diligent in the
annual payments on this debt in that over the years of these 20 year
notes, and paid the federal government over $12 million dollars in
interest alone.
The Tribe is seeking the return of the interest paid to the federal
government, minus the $2.8 million still owed on the loans or the
forgiveness of this debt as a reward for the success as a lending
client and the management resolution that TLE has proven. The return of
the interest to the Tribe would allow us to resolve the fractionated
interest problem on Rosebud in less than the 20 years predicted by the
BIA and the ILCP program and without the estimated $22 million dollars
of federal appropriations that this would require.
Rosebud Economic Development Corporation
The Tribe is currently addressing economic development and has
secured funding for two major endeavors to bring much needed employment
opportunities for our Tribal members. However, we still lack funding
for the required infrastructure and greatly need assistance in this
area. First, the development of the infrastructure of the Turtle Creek
Crossing Grocery Store will allow for the paving, sidewalks, lighting,
water and sewer and other activities to be completed so that other
business, including small entrepreneurs, are able to develop in this
shopping center. We request $4.7 million in funding for the Turtle
Creek Crossing Grocery Store.
The second project is the Lakota Water Bottling Plant, which will
capitalize on our water resources for the Tribe to create approximately
50 job opportunities for our Tribal members. The bottling plant will be
built on our tribal lands on acreage where there is currently no
infrastructure. We request $2.8 million in funding for the Lakota Water
Bottling Plant.
Sicangu Nation Employment and Training Program (SNETP)
The Tribe requests increased funding for our SNETP's youth
employment program the purpose of which is to provide for more youth
employment opportunities. Youth suicide on the Reservation is a major
crisis and is the highest in the country. Rosebud has had 32 youth
suicide completions in the last three years. According to the Indian
Health Service the Rosebud Sioux Indian Reservation has the highest
suicide rate in the world for 10-24 year old males. This past year
SNETP received approximately 689 summer youth applications. However, we
were able to serve only approximately 200 youth during the summer.
Rosebud requests $489,000 for the SNETP's youth employment program.
Funding for this program would have a major, positive impact on our
Tribal youth, especially with the high number of suicides that our
community has experienced in the past two years, and provide for
additional resources for the youths we were unable to serve and keep
our youth occupied by providing more services in the form of
employment, incentives for accomplishments, and supportive services in
their endeavors to overcome barriers.
Rosebud Lagoon Project
The Tribe is requesting funding for our Rosebud Lagoon Project. The
total cost of the project is $4,652,180.62. Currently, we have
$2,100,000 committed ($1 million from the Indian Health Service and
$1.5 million from Indian Community Development Block Grant) towards the
project, leaving a requested funding of $2,552,180.62. This will offset
loans and other tribal commitments to fund the entire project. This
project is a priority as in order for our new airport to be completed a
current lagoon has to be closed and relocated. This lagoon will serve
the entire community of Rosebud, our tribal headquarters, as well as
our hospital.
Rosebud Sewer Replacement
The Rosebud Sewer Replacement request is $1 million to replace the
old sewer pipe. In addition, $300,000 is needed to replace the old
sewer pipes in the community of St. Francis located on the Rosebud
Reservation.
Rosebud Airport
This project is contingent upon Rosebud moving forward on the
Rosebud Lagoon. A request of $9.6 million will cover the entire cost of
construction of our new airport. The Tribe's cost-share is 3 percent of
the total project, which is approximately $290,000. The Federal
Aviation Administration (FAA) through its Airport District Offices
(ADO) has requested a list of airport projects that can start
construction within 120 days of funding becoming available. The Bismark
ADO has placed Rosebud's airport project on its list for the economic
stimulus funding.
Rosebud Green Energy
Rosebud also urges you to support provisions in the proposed
economic stimulus bill that will promote sustainable energy
technologies and create ``green jobs.'' More specifically, funding
should be targeted at the energy efficient and renewable energy
projects that can be brought online quickly, will maximize job
creation, will curb greenhouse gases and energy imports, and have the
least adverse social and environmental impacts.
At Rosebud, we have two green energy projects we are currently
working to develop. First, the Owl Feather Warbonnet Wind Farm, which
is a 30 megawatt farm near one of our communities, St. Francis, is
ready for construction. We also need to finalize the negotiations with
the Nebraska Public Power District so we can sell power to them once
the wind farm is operating. This project can be started immediately and
completed in the next two years.
In addition, the Rosebud Tribal Council approved on December 16,
2008, a Memorandum of Understanding with Citizen Enterprises
Corporation in Boston, Massachusetts, for the feasibility of developing
a 200 megawatt wind farm near Mission, South Dakota, in the next five
years.
Rosebud strongly supports ``shovel-ready'' projects that can be
developed in the very near term, preferably within 6-24 months, either
to reduce wasteful energy use or to produce renewable energy as well as
create jobs. Longer-term investments in sustainable energy research and
development merit federal support, but should be addressed in the
regular annual appropriations bills rather than in the economic
stimulus legislation. Nuclear power and fossil fuel technologies should
not be included among those supported by the proposed economic
stimulus. These technologies cannot be brought online quickly, entail
unacceptable environmental hazards, and produce far fewer jobs per
dollar invested.
The most attractive investments in terms of cost-effectiveness, job
creation, carbon-reduction, and timeframe may well be those designed to
reduce energy use in residential, commercial, public, and other
buildings. Accordingly, a high priority should be funding aimed at the
permanent weatherization of older buildings and the replacement of
energy-inefficient lighting, appliances, and HVAC systems. In addition,
investments in advanced meter and demand-response programs are
warranted.
Rosebud strongly supports the investment in renewable energy
projects that provide for a broad range of technologies, such as wind,
water, solar, geothermal, and biomass/biofuels, with funding directed
at smaller, distributed, and off-grid systems as well as larger, grid-
connected, central station projects. Investments to upgrade existing
transmission systems or create new ``intelligent'' ones to bring
renewable electricity from remote locations to urban areas may also be
justified. However, priority should be given to those projects and
technologies that can be brought online most quickly, have the lowest
environmental or social impacts, create the largest number of jobs, are
most cost-effective, and produce the most energy.
Rosebud Home Manufacturing Facility
Rosebud is developing a small business development office, the
Rosebud Housing and Workforce Development Initiative, to provide
affordable, durable housing and economic development for Tribal
members. The Rosebud Housing and Workforce Development Initiative would
strengthen Rosebud's workforce and its community through providing
affordable housing solutions while also incorporating ``green energy''
construction and energy efficient materials. The small business
development office would provide approximately 25 administrative job
opportunities and 50-75 construction/manufacturing job opportunities
for Tribal members and construct 60 quality homes annually. In
addition, the current high housing costs increases the cost of doing
business, and the initiative would provide affordable housing--also
quality and durable--to Tribal members. Rosebud seeks $2 million for
small business assistance to develop the Rosebud Housing and Workforce
Development Initiative, to provide proper training to the employees, to
operate the office and construct the housing units, and business
assistance to develop the office and provide for necessary technology
and equipment. Currently, Rosebud Sioux Tribe has a critical and urgent
need to provide housing and workforce development initiatives for our
Tribal members.
Rosebud Jail Facility Upgrades
Currently, the adult jail at Rosebud does not have adequate space
for the service population. The jail itself has consistent water leaks,
and the air conditioning system fails every summer. There is also no
space for rehabilitation services for inmates such as a library for
General Education Development (GED), or higher education services that
studies have shown to be effective ways to keep inmates out of jail
once they are released. Obtaining funding for a jail facility for
Rosebud would provide for much needed facility upgrades at the
detention center, as well as, expand the facility to provide for
adequate space for rehabilitation services. Rosebud requests $3 million
for jail facility upgrades.
St. Francis Indian School Construction
Rosebud's St. Francis Indian School located on our Reservation is
in-need of funding to address the major items that were taken off the
original construction of the high school several years ago. In February
2000, the St. Francis Indian School was given notice by the Bureau of
Indian Affairs (BIA) that the school ranked 14th on the list for
replacement school construction projects. In December 2006, the BIA
then determined that the projected replacement school construction cost
for the St. Francis Indian School would be $14.1 million. In 2006, an
additional $6.3 million was desperately needed to complete the project,
which was due to project delays (including three re-designs), other
requirements and inflation costs from the last four years have forced
the school to make major cuts. Therefore, Rosebud is requesting
$9,836,655.14 to complete the construction, which factors in the
inflationary costs (30 percent per year the past two years) that have
heavily affected moving forward on our project.
Conclusion
Indian Country would greatly benefit from the investment in
infrastructure and emphasis on job creation, as outlined for the
proposed economic stimulus. With an unemployment rate of 83 percent and
a demonstrated need for basic infrastructure, the proposed economic
stimulus provides a major opportunity for improving the current
conditions at Rosebud. It is time for federal government to invest in
Indian Country and meet its statutory and moral obligations owed to
Tribes. The United States has a trust responsibility to the Tribe, our
citizens and our trust resources. We hope that you will work to ensure
that Native American Tribal governments are included as governmental
recipients of funds, along with state and local governments, for basic
infrastructure work in the second economic stimulus.
Again, thank you for holding this very important hearing for Indian
Country and for the opportunity to express our views and concerns as
you move forward with the economic stimulus legislation.
______
Prepared Statement of the Turtle Mountain Band of Chippewa Indians
Introduction
The Turtle Mountain Band of Chippewa Indians resides on the Turtle
Mountain Indian Reservation located in north central North Dakota. The
Reservation is on a six mile by twelve-mile land base and is considered
one of the most densely populated Reservations, per square mile, in the
United States. The Tribe's enrollment is approximately 30,500 members,
of which it is estimated that 16,500 live on-or-near the Reservation.
Tribal data reports that 50 percent of the Reservation population is
under the age of 21 years, the population increased 20 percent from
over the past 10 years and there are over 600 families on the waiting
list for tribal housing, many of who have been waiting for more than 10
years.
The economic data indicate a per capita income on the
Reservation as documented in the 2000 Census is at $9,017.
Based on our BIA Labor Force Report, the unemployment rate
among the Tribe's service population is at 66 percent. With the
high unemployment rate, a high need at Turtle Mountain is
bringing in a variety of jobs that can fit its diverse labor
force.
It is the lack of employment opportunities and a dire economy that
has led to a large number of children living in poverty or near-poverty
conditions in Rolette County. As stated in 2005 Kids Count North
Dakota, 39.93 percent of Rolette County children live in single parent
families, and 39.48 percent of children in Rolette County are living in
poverty. 20.96 percent of the children in Rolette County are living in
extreme poverty. There is no question that facing the hardship of
poverty affect a child's academic performance, self-esteem, and
behavior.
Additional indicators regarding the socioeconomic conditions of
Rolette County reveal that 40.29 percent of persons under the age of 21
receive both AFDC/TANF and Medicaid, compared to the state percentage
of 6.60 percent; 60.78 percent of Rolette County children reside in
households that receive food stamps, which is more than three times the
state rate of 19.92 percent; 8.66 of students in grades 9-12 (exclusive
of the Reservation) and 38 percent of Reservation-based students have
dropped out of school, which is astronomical when compared to the state
rate of 1.96 percent. Out-of-wedlock births of teens ages 13-19 is
22.22 percent, a staggering rate when compared to almost every other
county in North Dakota and to the state rate of 6.66 percent. According
to the 2000 Census, over 40 percent of Tribal families were living
below the poverty level, and 882 households were headed by single
mothers struggling to raise some 1,392 children under the age of 18.
Rolette County has more than twice as many children under the age
of 12 pass through the juvenile court system than any other
jurisdiction of the Northeast Juvenile Courts and more than three times
as many children ages 13-18 pass through the juvenile court system.
North Dakota Attorney General's Office reveals that American Indian
children represent 7 percent of all children in North Dakota, but
represent 30 percent of the children in juvenile detention and 38
percent of the admissions to the North Dakota Youth Correctional
Center.
In 2007, Law Enforcement answered over 10,000 incidents calls.
Turtle Mountain Tribal Court heard over 4.000 cases including adults
and juveniles.
Current Economic Change
The global recession, which was helped brought about by the
mortgage crisis which, in turn, was brought about by over-inflated home
prices, and approval of questionable loans to persons, who could not
afford them, coupled now with the persistent worry of the long term
effects of a tax-payer bailout, has created an economy that has
constricted more now than in the last 26 years. There has been
unprecedented job loss, a credit crunch making borrowing difficult,
lack of consumer confidence and spending, and spiraling unemployment
numbers that has put the Nation, Region, State, County and the Turtle
Mountain Tribe and its Tribal Members at-risk. Except for minimum-wage
increases, average employee paychecks increases have not even kept up
to inflation. Last year, the prices on consumer goods seem to rise as
the gasoline prices rose making even most common groceries such as milk
and butter almost too expensive to buy. The ever-rampant greed of Wall
Street, whose whims caused the stock market to decline on speculation
on whatever was happening in the Middle East, even got into the every
day worker's retirement savings and the average diversified 401 K
portfolio lost an average of 40 percent of its worth. Americans are
losing their jobs, homes and health coverage everyday. If this scenario
looks bad for the average American, it should be seen through the eyes
of the Native American Indian, who has spend a lifetime living with
continuous recession/depression cycles of Reservation life.
Turtle Mountain Band of Chippewa Indians has long suffered from
severe poverty and accompanying social distress as measured by indices
of income, unemployment, housing conditions, family composition, and
education. These factors are aggravated by a lack of legal, financial,
and organizational infrastructure. In recent years, the local economy
has been weakened further by reduction of jobs at the two major tribal
economic engines, namely Turtle Mountain Manufacturing Company (TMMC),
and Uniband, Inc. (a data-processing company), due to the loss of 8(a)
Status from the Small Business Administration that aided the Tribal
Entities in the bidding process. The loss of 8(a) Status has culminated
in a loss of contracts for both companies. The recent credit crunch
could have an impact for the Tribe on financing for bigger projects,
joint ventures, and equipment upgrades and improvements for Tribal
Enterprises.
President Obama's Economic Stimulus/Recovery Package will have the
three-fold benefit of improving Reservation infrastructure, putting
tribal members to work as a means to stimulate the tribal economy, and
putting measures in place that buttress the economic climate such as
providing for capitalization and access to revolving loans and
alternative credit with the establishment of increased capitalization
of Community Development Financial Institutions (CDFI) funds. The Tribe
is also hopeful that there would be consideration on the creation of
tribal guaranteed bond and surety bond programs in the BIA's Loan
Guarantee Program that would truly help the Turtle Mountain Band of
Chippewa Indians in its participation of economic recovery by helping
address financial, business, and unemployment needs in our community.
Vision
The Turtle Mountain Band of Chippewa Governing Body envision the
people of the Turtle Mountain Indian Reservation having an opportunity
to contribute to their fullest potential in creating an economy that
advances their well-being and that of future generations.
All citizens, including tribal, depend upon an economy that meets
their basic needs, enables them to be self-sufficient, supports
employee commitment to family and permits choice in work opportunities.
The focus and strength of the Tribe is its people; they are their
own greatest resource. The opportunity inherent to the tribal members
lies within the Tribe's understanding and knowledge of their history,
tradition, values and language. Long-term sustainability of the Tribe
is embedded in the people's ability to articulate whom they are, where
they are from and their collective hope for the future.
Over numerous years, federal agencies have developed a variety of
inter and intra agency programs designed to increase the level of
economic development services of American Indians. The Turtle Mountain
Band of Chippewa Indians participated in those programs identifying and
building upon their assets and resources, it has a history and
commitment to planning for its future. It continues to implement the
planning and goals from its 1972 Comprehensive Economic Development
Plan, as many are relevant today.
The most significant things that can be done to improve
economic conditions on the Turtle Mountain Reservation is to
provide or create more real and permanent good-paying jobs
locally, related especially to the skills and capability of the
men (and women) who live here. These jobs should include
creation or expansion of small industries and businesses,
particularly in the manufacturing and retail trade sectors.
Local educational efforts should focus on career education.
Local attempts at economic development should be cooperative
and unified effort coordinated by the tribal government to
provide support and, if necessary, subsidy to establishment of
firms who might locate here. (1972)
Funding for Tribal Infrastructure needs will help strengthen the
development process that addresses needs and helps fulfill the
potential of local people and the communities where they live.
The Challenge: Advancing Economic and Social Parity among the
Turtle Mountain Band of Chippewa through the American Recovery and
Reinvestment Plan
Proposal:
The Turtle Mountain Band of Chippewa Indians specific proposals for
the American Recovery and Reinvestment Plan follow. Each of these
projects is critical for economic recovery of the Tribe and can be
phase-constructed in two years. The priorities and cost estimates are
provided below:
------------------------------------------------------------------------
Priority Amount
------------------------------------------------------------------------
1 Health Care $18,000,000.00
2 Housing $50,000,000.00
3 Water & Sewer $12,097,000.00
4 Economic Development/ $12,000,000.00
Employment
5 Nursing Home/Dialysis $8,000,000.00
Center
6 Airport Renovation $5,000,000.00
7 Juvenile Detention $8,756,000.00
8 CDFI Capitalization $1,000,000.00
9 Tribal Utility/Wind $5,000,000.00
Energy
10 Roads $6,200,000.00
11 Tribal Headquarters $5,000,000.00
12 Educational Scholarships $500,000.00
13 Law Enforcement $5,000,000.00
14 EPA/Solid Waste $10,000,000.00
15 Fire Hall $1,372,000.00
16 Turtle Mountain Community $1,075,000.00
College
17 Land Consolidation $1,000,000.00
Total $150,000,000.00
------------------------------------------------------------------------
Priority 1--Health Care--$18,000,000
The Quentin N. Burdick Healthcare Facility, in coordination with
Turtle Mt. Band of Chippewa Indians Comprehensive Health Care Services
Program (Public Law 93-638 as amended) collaborates to provide health
care services for the Turtle Mountain population. The Burdick Health
Care facility addresses the holistic health needs of the Band and that
service unit area inclusive of Rolette County. The facility houses an
Emergency Room, Ambulatory Clinic, Inpatient Care Unit, Dental
services, an Eye Glass Program, and Mental Health Program. There is
currently 239 staff persons, 13,500 active charts, 25,990 registered
patients and a total of 106,498 patient encounters (ambulatory visits).
The decrease in ambulatory care visits in the subsequent three years is
directly related to the loss/lack of medical providers at the facility.
Facility is operating at 68 percent of budget. Need to
increase funding by 32 percent to provide adequate healthcare.
Facility lacks medical doctors as well as a surgeon to meet
health care needs of the Tribal population.
Need dental operating funds to adequately serve the Turtle
Mountain population.
Priority 2--Housing--$50,000,000
There is a need for 1,000 new houses for the tribal membership.
Without rental subsidies from HUD, there are no rental units being
built. There is also severe overcrowding with several generations or
relatives living in the same abode. In this stimulus request, the
Turtle Mountain Tribe is requesting at least 40 units @ $125,000 per
unit, which includes water& sewer, electrical requirements, site
development and preparation and drainage field.
Priority 3--Water and Sewer--$12,097,000
The Turtle Mountain Band of Chippewa Indians continues to struggle
with meeting the water and waste water demands for an ever growing
tribal population. The state of the Tribe's infrastructure is in dire
need of funding to adequately continue those services that provide and
secure a safe and healthy environment for all. The monies requested
will be spent the following ways: Corridor 2--Highway 43 Corridor is an
area where the people and homes are not yet provided with potable
water. We have estimated a need in the amount of $9.7 million to ensure
adequate infrastructure to supply potable water to this area. The TMBCI
is in dire need of funding for waste water improvements. Currently, the
Tribe relies on two methods of treatment for waste water; conventional
septic tank systems and tertiary lagoon systems. We are finding
evidence that the conventional treatments are not working and is
jeopardizing the environment and waters that dot the landscape of out
homelands. The existing lagoon systems or cells will require additional
linings to ensure that all waste water in the cells is not susceptible
to leaking. Therefore, we are projecting $2,397,000 in funding for this
waste water and environmental problem.
Priority 4--Economic Development/Employment--$12,000,000
Job Creation: The Tribe needs assistance in bringing jobs to the
Reservation that pays a living wage. The Tribe needs outside investment
to help bolster the tribal economy and business infrastructure. The
Tribe needs access to loans for business start-ups and expansion. The
Tribe needs potential partners for joint ventures to share business
development costs to help stimulate the Reservation economy. The Tribe
needs assistance with entrepreneurial needs such as a business
incubator facility, development of business education program for
potential entrepreneurs, and more capitalization programs for Tribal
Members. The Tribe is requesting $2.0 million for a business incubator
facility; $5.0 million for contract start-up costs and equipment
upgrades for the Turtle Mountain Manufacturing Company; a $3.0 million
line of credit for Uniband, Inc., and there is a $2.0 million need to
build roads, water and sewer, and electricity to develop a new
Industrial Park.
Revitalization of Tribal Economic Engines: The Tribe needs
assistance in Pathways to Prosperity's strategy to revitalize tribal
enterprises such as Uniband, Inc and Turtle Mountain Manufacturing
Company to identify specific factors currently limiting each
enterprise's economic performance in terms of profitability and
employment trends. Analysis of each industry has to be done to see
where the flaws are and find solutions for the shortcomings. The skills
needed to turn the corner to profitability need to be determined and
training requirements have to be met. Help in marketing is greatly
needed. Heavy debt loads and cash-flow shortages prohibits expansion
and/or process improvements. The debt of these enterprises has to be
restructured to provide adequate cash-flow to meet start-up costs for
contracts, and help pay for equipment improvement and new equipment
purchase. Low-interest loans to help with all the above need to found
to make the companies, once again viable and sustained. Partners with
technical expertise, industry contacts, and investment dollars are
needed for the fulfillment of potential contracts to help make these
economic engines regain their successful past.
Priority 5--Nursing Home/Dialysis Center--$8,000,000
The Tribe is looking at the Economic Stimulus for funding support
for Nursing Home/Dialysis Center. It will be a 65-bed facility and is
shovel ready with architectural design and site selection. The current
dialysis center is a dilapidated building located in a flood zone.
There are not enough stations to provide adequate dialysis services to
the high amount of diabetic patients on the Reservation.
Priority 6--Airport Renovation--$5,000,000
The upgrade of this airport will greatly enhance the economic
opportunities of the Tribe by extending the runway and widening and
overlaying, lights and rotating beacon and GPS approach, installing a
security fence, fuel supply system, purchasing a fire truck, fuel
trucks, APU, tug, lift baggage hauling equipment, and snow removal
equipment, and construct a hanger with terminal and office space.
There is an air carrier interested in using this airport for
scheduled service to Denver, CO and also to Minneapolis, MN. The
airport will be used for fixed wing air ambulance, which will save the
Indian Health Service millions of dollars as patients are flown out by
helicopter almost daily.
The Tribe and Tribal Organizations such as the Housing Authority,
Casino, School system, College will benefit from this because they will
not have to drive two hours to get to an airport. The Rolette airport
is only 10 minutes from the Turtle Mountain Reservation. The Tribe will
also save on travel dollars by not having to pay mileage, travel time
to employees, parking fees, hotel cost for people leaving early in the
morning out of Minot, ND.
This project is in a HUD Renewal Community
Priority 7--Juvenile Detention--$8,756,000
The Tribe has received its second planning from Correction
Facilities on Tribal Land. Once we update the last application and
incorporate the design, the Tribe will be eligible to apply for a
construction grant. Given the statistics mentioned in this address, the
need is unquestionable but the Tribe is unsure that the construction
grant will be approved therefore the Tribe is requesting $8,756,000 to
construct a 48 bed @600 GSF per Occupant Juvenile Detention Center and
construction costs include Site Development, Furnishing, Equipment, A/E
Fees, TERO Fees, and a Contingency Fund.
Priority 8--CDFI Capitalization--$1,000,000
The Affordable Housing Program, Renewal Community, and Pathways to
Prosperity (P2P) have collaborated to form a CDFI program on the
Reservation to provide alternative financing that utilizes a Revolving
Loan Program for Business and another for assistance on Home Mortgages.
These two Revolving Loan Programs are in need of further capitalization
to meet the needs of business owners, potential entrepreneurs, and
future and present homeowners of the Tribe.
Priority 9--Tribal Utility/Wind Energy--$5,000,000
Renewable Energy Development: Providing clean renewable energy
development and green economies in Native Communities should be a top
priority in the new administration energy policies and decisions. This
would reverse the trend from exploitation and allow for active
participation by Tribes in utilizing their own natural resources for
their good. Federal support must be given for tribes to own and operate
renewable electricity generating infrastructure, and would provide the
dual benefits of green economic development and low carbon power where
it is need most. Efficiency programs to reduce the consumption of fuels
for heating and cooling and created local jobs weatherizing will help
tribes reduce the tremendous amount of money that leaves tribal
communities by having to import energy.
The Tribe would welcome the assistance from the new administration
for help in its own renewable energy development in such initiatives as
wind, solar, biomass, and geothermal development on the Turtle Mountain
Indian Reservation. The five million dollar request would include
$200,000 for Energy Efficiency Audits for 4,000 homes @ $50.00 per
home; $2,700,000 for home weatherization requirements; and $2,000,000
for strategic planning requirements, and studies and consultant
assistance related to wind energy development.
Priority 10--Roads--$6,200,000
According to the most recent BIA Relative Need Distribution Report,
the current construction backlog for the Indian Reservation Roads (IRR)
Program is over $42 Billion nationally. As a modest effort to address
this need and to provide economic stimulus locally, please support the
following: $4,000,000 to the Turtle Mountain IRR Program to fund a
four-mile construction-ready project. $1,000,000 to the Turtle Mountain
BIA Road Maintenance Program to pay for much needed deferred
maintenance projects to preserve the existing transportation
infrastructure. $1,200,000 to pay for planned transit projects under
the Tribal Transit Grant Program. Encourage the National Department of
Transportation to revert back to previous funding formula, the new one
is not working, as well, for Tribes.
Priority 11--Tribal Headquarters--$5,000,000
There is great need for a new tribal headquarters complex, the
present one is too small for the 400-plus tribal workforce. The Tribal
Headquarters floods every spring and is infested with hazardous mold.
In December of 2007, a main water pipe burst and tribal employees could
not work in that facility for an entire week. Will work with the USDA's
Community Facilities on this matter, and will have to look for funding
sources.
Priority 12--Educational Scholarships--$500,000
This program has experience extreme cuts and there is a need for
more scholarship/educational assistance to be provided for students
from the Turtle Mountain Reservation who attends college either locally
or away.
Priority 13--Law Enforcement--$5,000,000
The Office of Law Enforcement Services (OLES) continues to be an
expression of frustration and anxiety both on the part OLES and the
general public. Many of the complaints relate to poor response time to
an incident. Equally, Law Enforcement is continually hampered by lack
of Police Officers to respond to an incident and is compelled to
prioritize each incident. The budgets are insufficient. The Turtle
Mountain Law Enforcement budget for FY 2007 was $1,700,159 and ended
with a deficit of nearly $230,000. There is limited money for
maintenance, gasoline, uniforms, vests, service revolvers and new
vehicles. Tribal Officers, in the past, have been utilizing gasoline
and maintenance money from the BIA and there is no longer any money for
tribal officers and their vehicles. The $5,000,000 funding request will
be utilized as follows: We are requesting a new Law Enforcement
Facility with 45 units @ 450 GSF per Occupant and the cost includes
Construction, Site Development, Furnishings, Equipment, A/E Fees, TERO
Fees, and Contingency Fund at a cost of $4,617,400 and a Maintenance
and Equipment Fund in the amount of $382,600.
Priority 14--EPA/Solid Waste--$10,000,000
Tire Recycling and Clean-up--The Tribe has had an accumulation of
roughly 40,000 tons of used tires that it was going to use in the Tire
Recycling Plant but the endeavor was shelved, and due to environmental
rules and regulation, there is a need to dispose of the tires. The
anticipated costs associated with the removal and disposal is
$1,000,000. Transfer Station Program--The tribal solid waste disposal
site for community members requires daily management and transfer of
waste. Due to an accumulation of inert waste materials, there is a need
for new construction of inert waste cells. The purchase of additional
equipment and upgrades to the existing equipment is ongoing. The cost
to upgrade and enhance the solid waste program would be $3,000,000.
Recycling Program--There has been a need to establish a Reservation-
wide recycling program for various waste materials and also
transportation to a certified recycling center. The cost to establish
the program will be $2,000,000, and there is a need to have 5 employees
to maintain the program. San Haven Cleanup and Restoration--The Tribe
has been in the process of redeveloping the area formally known as San
Haven. Since the Tribe purchased the property, it has been vandalized
and destroyed by unknown individuals and is also a safety hazard to the
community. A teen has already been killed by falling down an elevator
shaft at night. The Tribal EPA has conducted Phase I and Phase II site
assessments to determine the amount of hazardous waste located in the
existing facilities. We are now in the removal and disposal phase of
the project. The project cost for cleanup and restoration is
$5,000,000.
Priority 15--Fire Hall--$1,372,000
The Tribe is requesting a new 7,500 square ft. Fire Hall, and the
request will include: Construction Costs, Site Development, Equipment,
A/E fees, TERO fees, and Contingency Fund.
Priority 16--Turtle Mountain Community College--$1,075,000
The Turtle Mountain Community College does not have housing for
their students and are in need of a dorm to accommodate the students
attending TMCC and cost is $1,000,000. Paving costs for the dorm
parking lot and additional parking is estimated at $75,000.
Priority 17--Land Consolidation--$1,000,000
The Turtle Mountain Tribe is requesting $1,000,000 to purchase
fractionated individual trust property holdings of the allottees in
order to consolidate the ownership of the allotments.
The Tribe realizes that it cannot be an isolated island, it must
not stand apart but rather partner with local, state, federal entities
in order to pool resources for the betterment of all. For example the
Tribe has the skilled and educated tribal workforce, and the State and
the surrounding communities have the where-with-all to bring projects
into the Reservation or state that neither could do on their own. It is
with that in mind and pooling of manpower, expertise and knowledge,
financial and natural resources, and ability and willingness to work
together in this global economic recession that will be the economic
beacon that will allow our nations not only to survive but also to
thrive in this the new road for the 21st century.
Community and a shared vision is exactly what is needed to survive
the collapse of global economy as we know it. It is going to take
strategic partnership to overcome the challenges ahead. Community is
taken from two words and they are Common and Unity. If we have shared
purpose, common goals, an a desire to work for the mutual benefit of
our people, our state and our nation, then we will become one
community, with all that entails, and become a united presence to
tackle the tasks of this new economic landscape and together have the
tools at hand, that will be needed to ensure the future of both of our
cultures and the Great State of North Dakota and the United States of
America, as well.
______
Prepared Statement of Cyndi J. Allen-Weddell, Vice President, Flandreau
Santee Sioux Tribe
Dear Senator Dorgan and Members of the Senate Indian Affairs
Committee:
I hope this finds you in Good Health, I would like to submit this
statement to the ``Senate Indian Affairs Committee'' concerning the
subject of it's hearing on January 15, 2009.
On the Indian Reservations there are people without Heat,
Electricity and even Food, the unemployment rates are 80-85%, the sub
standard housing are in some cases beyond repair, due to the lack of
funds to maintain them and in to many cases not enough houses for those
that have no place to call home.
In South Dakota, Gaming is not the cure all, the Tribal Casinos
have a limit of 250 machines and the Governor is unwilling to negotiate
an increase in the amount of machines, citing the percent opposed to
gaming verses the majority of 53-55% approving Gaming and limited
Gaming as a State Policy, while at the same time allowing Deadwood to
increase its machine limits and refusing the Tribes request' for an
increase in machines during their Compact Negotiations.
A look at Gaming in Indian Country shows that Gaming has helped the
Tribes in every respect and intent of the IGRA.
A solution to the Tribes Financial situations would be an increase
in the amount of machines allowed at their casinos, revenues generated
go directly to Social Services, Economic Development, (for those small
Tribes) per capitas.
An increase in machines at Tribal Casinos means more jobs, more
money into the local community, it means Heat, Electricity, Food for
the Tribal Members, but there will not be more machines for the Tribes
unless your Committee and the 111th Congress pass that legislation,
allowing the Tribes to Negotiate Directly with the Secretary of
Interior on their Gaming Compacts.
I want to Thank You for your assistance, understanding and
Government to Government relationship with the Tribes.
______
Prepared Statement of Ryan Wilson, President, National Alliance to Save
Native Languages
______