Navajo Council Delegate Jonathan Hale asked Council to hear from newly crowned 2013-14 Miss Navajo Nation Natasha Hardy during the Council’s special session on Friday, Sept. 9, 2013. Photo by Marley Shebala
NAVAJO COUNCIL DEBATE OVER APPROPRIATING $550,000 TO CHAPTERS FOR BURIAL COSTS BUT MONEY WOULD GO INTO “GENERAL ACTIVITY ACCOUNT” WHICH IS BASICALLY A DISCRETIONARY FUND OR SLUSH FUND.
DELEGATE JONATHAN HALE IS THE DELEGATE THAT MADE THE AMENDMENT FOR 110 CHAPTERS TO EACH RECEIVE $5,0000 FOR A TOTAL APPROPRIATION OF $550,000.
DELEGATE ALTONG SHEPHERD
Does the Council have to use the 50-50 formula for this $550,000 to each 110 chapters?
THE 50-50 FORMULA IS FOR HOW TRIBAL FUNDS ARE APPROPRIATED TO CHAPTERS AS SUPPLEMENTAL FUNDS. LAW MANDATES THAT 50 PERCENT OF THE FUNDS ARE DIVIDED BY 110 AND 50 PERCENT IS DIVIDED BY THE CHAPTERS’ REGISTERED VOTERS.
ACTING CHIEF LEGISLATIVE COUNSEL MARIANA KAHN
money must be distributyed by 50-50 formula. Case law regarding Appropriations Act mandates that any waiver of Appropriations Act must be taken to people.
If waiver language placed in appropriation then won’t take effect until people vote.
NAVAJO DEPARTMENT OF JUSTICE GOMEZ
Chapters should be notified before Council acts on $550,000 supplemental appropriation for Chapters or use 50-50 forumula.
DELEGATE HALE
Bigger chapters hoard money with 50-50 formula. This is just $5,000. We also appropriated funds for specific chapters and for specific uses.
DELEGATE LEONARD TSOSIE
Waiver of Appropriations Act is from Navajo Nation Supreme Court and AA is in Budget Instructions Manuel and Council never approved law that mandates Council to BIM.
Waiver is just illogical way for Navajo Supreme Court to explain decision. And current Navajo law does not state that.
SPEAKER NAIZE
We use to be straying away from amendment. any recommendations from attorneys?
NDOJ ATTORNEY GOMEZ
reading 50-50 formula mandates prior notice.
DELEGATE ALTON SHEPHERD
place in Speaker’s account so don’t need 50-50 restraint.
DELEGATE HALE
Speaker’s account should reflect that funds are for burial costs and by equal distribution.
DELEGATE WALTER PHELPS
if process easier and funds can be accounted for, then support.
DELEGATE PETE
my chapters provide but individual must be voting chapter member and limit is $125.
DELEGATE LORENZO BATES
based on modified amendment and 50-50 formual: Is speaker required to honor 50-50? And is this leaning towards Discretionary Fund for Speaker?
NDOJ ATTORNEY GOMEZ
if allocation is broken down by chapter then require compliance with 50-50 but if entity that has guidelines in place.
DELEGATE HALE
even if go into Speaker’s account, it’s still subject to 50-50 formula?! The social services dept has policies but how long will it take for assistance to clear red tape. My chapters have burial assistance policy.
2013-2013 Miss Navajo Nation Natasha Hardy came into Council chamber and introduced herself. She was crowned during Navajo Nation Fair last week in Window Rock, Arz.
VOTE ON DELEGATE JONATHAN HALE’S AMENDMENT FOR 110 CHAPTERS TO EACH RECEIVE $5,000. TOTAL APPROPRIATION IS $550,0000.
12 in favor, 5 opposed
DELEGATE JONATHAN NEZ WAS AMONG 5 THAT OPPOSED APPROPRIATION
* didn’t want to waive laws. Council already waived laws regarding Council approval of prior year audit and use of pesonnel lapse fund.
NAVAJO COUNCIL DEBATING WHETHER TO APPROPRIATE $5,000 TO EACH CHAPTER FOR “CHAPTER GENERAL ACTIVITY ACCOUNT” OR “DISCRETIONARY FUND” TO HELP FAMILIES WITH BURIAL COSTS BUT SOME DELEGATES ARE CONCERNED WITH HOW CHAPTER MIGHT USE $5,000 SINCE IN DISCRETIONARY FUND WHERE CHAPTER OFFICIALS COULD USE FOR ANYTHING THEY WANT. ONE OF THE DELEGATES REMINDED COUNCIL ABOUT REPORT COUNCIL RECEIVED THAT CHAPTER ELECTED OFFICIALS & STAFF HAVE RACKED UP THOUSANDS OF DOLLARS IN TRAVEL COSTS.
AMENDMENT 34
DELEGATE ALTON SHEPHERD
NNC authorizes $555,000 for all 110 chapters for general activity fund from Personnel Lapse Fund. Some goes into accounts but restricted but as far as O1 account, it can be moved around.
Sad to say, lost one baby boy in accident and members will come for help but 01 account has zero balance.
Know 12.5 there but goes into other account.
$5,000 per chapter.
DELEGATE LEONARD TSOSIE
Concerned cuz account not specific so could use for other purposes other than assistance such as burial. Don’t like funeral homes hostage. They want all payments and Navajo families resort to pawning to come up with money. Unfortunate.
If give this then add to $70 million and mix up.
DELEGATE LEONARD PETE
One of richest place is Chinle cemetery with all turquoise and silver. We do have plan of operation. For general activity fund, help with $125. Right now working with family that lost loved one during fair.
Just make that point.
DELEGATE SHEPHERD
To make sure don’t use to replenish funds for chapter elected officials and staff, place language that not allowed for such purposes.
DELEGATE JONATHAN HALE
We’re now talking about predatory business practices regarding mortuaries.
It’s up to each delegate to talk to chapters. When discussing regional roads planning, chapters said they wanted Navajo Department of Transportation to cover cost but chapters need to understand that they also need to contribute.
DELEGATE JONATHAN NEZ
Leaning towards where designated for certain purpose. This is developing local chapter discretionary fund and chapters might start feeling that this is re-occurring fund and it will start growing for a line item without policy.
So I was going to suggest is for Resources & Development Committee develop policy but does chapter want to fund.
We got report on chapter travel spending. There was a lot of money being allocated for officials and staff. $5,000 could be good cause for chapters to approve cuz need is there.
But here, we’re just putting more money there and chapters might move money around and might even put in travel.
There is concern over travel for chapter officials and staff.
So either specify thru policy here by RDC, other I can’t support.
DELEGATE RUSSELL BEGAYE
Casket costs about $5,000 so perhaps specify limit amount.
Greetings Relatives/Frens,
I’m here at empty Navajo Council chamber waiting for Navajo Council to convene their 2014 Budget session.
The Council tabled the proposed 2014 tribal government operating budget on Friday, 9-6-13, after Delegate Jonthan Nez, who is also the Budget & Finance Committee vice chairperson, realized that the proposed 2014 budget with 30 amendments required approval by two-thirds of the 24-member Council which would be 16 “yes” votes.
BUT on Friday, there were only 16 delegates present and so 15 delegates voted yes and 1 opposed to table the budget. Delegate Nez called for the tabling motion with a directive for special Council session today at 1 pm.
The sole opposing vote on tabling the budget was Delegate Leonard Tsosie who supported Council approval of a continuing resolution of the 2013 budget.
The tribal government’s budget calendar begins on Oct. 1 and ends on Sept. 30 and so the Council needs to approve an annual budget with enough time for the president to review it and take action on it within the ten days that the president is allotted by tribal law.
I was going to write more about what the Council’s Resources & Development Committee did this morning but I got copies of some of the 30 amendments and so I need to copy really FAST cuz I have to return as soon as Council starts.
Here are links to Council committee meetings this week, including a meeting between Navajo Tribal Utility Authority and the RDC concerning energy development. NTUA is pushing for a coal gasification plant on the former Desert Rock location, which is near BHP Billiton coal mine. The proposed NTUA gasification plant is also on land that is under the jurisdiction of the Burnham Chapter.
Navajo Nation Council/Committees meeting schedule for week of 9-9-13
https://docs.google.com/file/d/0B7xhIWpNuJXiYWhFQWZvWjBDbzQ/edit?usp=sharing
Council’s proposed agenda for 9-9-13
Click to access 09SEP2013_NNC_Special_Session.pdf
Navajo Council website for pdfs of proposed Council/Committee agendas
http://www.navajonationcouncil.org/meetings.html
DELEGATE PHELPS
We need more time to develop budgets for chapters.
SPEAKER NAIZE
Assign staff to help Phelps.
DELEGATE JONATHAN NEZ
maybe compromise, since PHelps has budgets for $3 m for frmr Freeze & NPL.
B&F has amendment #3, $10 m Infrastructure Development Fund, which is for buildings/chapters so put Cameron, Chilchinbeto, Chichiltah, Tonalea there for funding.
DELEGATE LEONARD TSOSIE
Thot $10 m for administrative buildings that were closed down. Otherwise, each delegate has need for chapter. I have big list. I represent 8 chapters.
And how can you say this is in order when there’s a blank line. Instructions to Delegate Phelps is that it is out of order instead of go and fix.
That is my point of order. Rule out of order and let’s go onto next amemdment.
SPEAKER NAIZE
I believe we are in order.
DELEGATE PHELPS
We will make clean and to point. for $3 m, waiting for Chief of Staff ARbin Mitchell to sign budget forms. Delegate K. Benally and I willing to take off chapters. So focused on original intent which is $3 million for frmr Freeze & NPL.
DELEGATE
During Naa’biki’yati’ Committee, it was clarified that these amendments are Council amendments, not programs. It’s our amendments and we will own up to them.
Just because doesn’t support amendment, doesn’t mean have to go beaucratic on us.
DELEGATE LEONARD TSOSIE
Phelps needs motion to withdraw his original amendment.
AFTER DEBATE ON COUNCIL FLOOR, COUNCIL CALLS RECESS:
MOTION TO RECESS, voting at 3:14 pm
9-9, Speaker Naize opposes so Vote is 9 in favor, 10 opposed
DEBATE CONTINUES ON DELEGATE PHELPS AMENDMENT FOR $3 MILLION FOR FRMR BENETT FREEZE, NPL, AND CHAPTERS CAMERON, CHILCHINBETO, TONALEA, CHICHILTAH
PONT OF PRIVILEGE
DELEGATE DANNY SIMPSON
with this amendment, it has documents/budgets for powerlines, electrical lines, especially for chapters. and you, speaker, said this morning that budgets/documents required for amendments.
And the only budget/documents is for powerline, electical lines & powerlines but none for chapters.
SPEAKER PHELPS
We drafted best we could and to modify & correct, this is new one, which includes financial assistance for chapters. $3 million not only for Freeze, NPL but to chapters.
Honorable Begaye recommended $5 m or $7 m. My motion and seconding party, Delegate Katherine Benally, is to help chapters with at lease $500,000 for design so move project to project ready. So asking keep $3 million plus some more funding and so we are asking for a total of $7 million, which according to proposed 2014 Budget legislation Sponsor, Delegate LoRenzo Bates, and Office of Management and Budget and Office of Controller is okay. So ask to modify $3 million amount to $7 million. Only changing dollar amount.
UP AND BLOGGING FROM NAVAJO COUNCIL CHAMBER, WINDOW ROCK, ARIZ.
THE COUNCIL’S NAA’BIKI’YATI’ COMMITTEE IN SESSION TO TAKE ACTION ON DELEGATE KATHERINE BENALLY’S LEGISLATION: $220 MILLION BOND FOR CAPITAL IMPROVEMENT PROJECTS ACROSS THE REZ:
DELEGATE WALTER PHELPS HOLDING AMENDMENT FOR ADDITIONAL FUNDING FOR CIP ON FORMER BENNETT FREEEZE AREA:
DELEGATE DUANE TSINGINE
how many studies do you need/want? if this doesn’t pass, then regionalization or decentralization doesn’t pass then delegates from western agency will make amendment again. Housing is what former Bennett Freeze needs. I support this amendment.
DELEGATE DANNY SIMPSON
this $220 million bond is to get projects out to communities. The purpose of this and we use diferent terms but it’s to bring services. we hear about veterans waiting to get money and travel two time and only get $250 check and spend that trying to get check.
Accountablity! that’s what we heard during discussion of annual audit of 2011 Navajo budget. We want accountability at chapter level. And support support for frm Bennett Freeze. but need services at local level. Youth asking for jobs, scholarships. I’ll support Delegate Phelps amendment but only if it comes from Reserves or Personnel Lapse Fund.
DELEGATE RUSSELL BEGAYE
Questions and some just knowing statements, go to page 3 and stated twice on bullet point financial highlights, $12 million decrease in govt funds, fair value increase of $65.9 million. Fiduciary Fund decrease
Funds decreasing but fair value increase? Explain.
Govt analysis: govt assets exceeded liabilities by $1.8 m compared to Sept. 2010, $1.6 m.
Page 7: again similar thing, analysis of govt activities, where $10.2 m is offset by $7.5 m decrease.
Page 8: govt activities under change, $23 m decrease. Explain.
Page 9: govt funds, Sept. 30, 2011, $190 m in deferred revenue and represents advances from BIA and Indian Health that have not been spent.
Page 41: under G, pledged securities, $5.6 m pleage for Navajo Hospitalities Enterprise.
Page 47: here are tribal entities, where nation provides capital financing. NTUA $17.6 m and 39.7 m for NAPI and total $95 m pledged for enterprises.
$59.1 million?
Page 50: borrow money and after payback, pay interest first and then balloon payment. I just want to find out if common practice for Navajo Nation. Interesting practice, in terms of making interest payments first and then balloon payment.
Page 52: the nation’s 2011 contribution t othe plan, $44.6 m but required contribtion was $39.3 m so more than what received.
Page 70: Contengency Management Fund, starts with $11 m. Explain.
Question of just wanting to know, last page, talks about total private trust fund, $113 m at end of year.
GRANT
Phelps asking about $20 m deficit. Page 61 schedule of original budget and expenditures. First column, $119 m and final $258 m and difference is $139 m.
And lot of difference is supplemental appropriations and carryovers. Budget presented on current year basis and expenditures tracked on current year and any other expenditures not for current year makes budget appear over expenditures – spending more than taking in.
But spending from revenue sheet and covered by carryover and supplemental from reserves.
KPMG JOHN KENNEDY
Page 3: for 2011 and 2010, first number is $65 m increase and $12.1 million in 2011, but 2010 healthy.
Assets exceeding liabilities, page 6: wat owe is net assets, $1.8 billion in assets at that particular time.
$10.2 m increase offset, 2011 increase due to $50 m Peabody settlement and increase federal grants so increased revenues but 2010, $92 m. So better investment in 2010 then 2011, $70 m better.
Page 8: follows wat just talking about. 2011 revenues decreased by $75 m profit due to investment income line item.
Deferred Revenues: BIA has 638 grants and moment Navajo receives, immediately drawdown and deposit in bank account until spsnd money, $190 m in 2011 Sept. Each grant has specific purpose.
Page 41: pledged certificate of deposit:
INTERRUPTION BY DELEGATE WITHERSPOON
Wording misleading, shouldn’t it be that haven’t expended for that specific purpose.
KPMG agrees.
Page 41: Hospitality Enterprise borrowed money and bank asked collateral and so if Enterprise didn’t pay then bank take certificate of deposit.
Enterprises: Navajo gave seed money to start operation and what gave as informational background so Council and others aware of contributions.
DELEGATE RUSSELL BEGAYE
Says no obligation for repayment so not pay back
KPMG
Yes
$59.1 m KeyBank Loan to build jails and courts and Sales Tax money used to repay
Not unusual to borrow money in method did for Casinos.
Page 52: Retirement Plan, 2011 $44 m contributions and only needed $39 million. but did to catch up cuz underfunded plan in previous years.
Litigation: fund for potential litigation.
There are a number of Trust Funds, starting with Handicap Services to Land Acquisition.
DELEGATE WITHERSPOON
Page 43: indicates Sept. 30, 2011, receivables-Fire Rock received money from Land Acquisition and Hogback lists equity. Have chapter govt, scholarship, Navajo Hopi Rehabilitation Fund, and many show equity for Northern Edge.
How is authorization given from all these Funds to help finance gambling industry?
CONTROLLER GRANT
Each fund, when set up, has fund management plan and within plan it specifies fund invested according investment policies which specifies that fund invested into fixed income and equity instruments. When investment set up for Fire Rock or Nothern Edge, set up as equity and fixed income investments.
Each Fund is within Master Fund portfolio and investment done pro rata. Look at Permanent Trust Fund and largest and it bears largest portion of investment into each casiso. Fire Rock different cuz came entirely from Land Acquisition Trust Fund.
VOTE AT 4:24 PM
9 in favor, 4 opposed
Naabi Committee adjourns. Navajo Council begins 2014 Budget session on Sept. 3, 2013, at Council chamber in Window Rock, Ariz. The Council is scheduled to meet on the 2014 budget from Sept. 3 to 6, 2013. Meetings are open to public.
I’M TYPING AS FAST AS I CAN SO PLEASE EXCUSE TYPOS. HOPEFULLY YOU CAN UNDERSTAND. AFTER MEETING, I’LL UPDATE WITH CORRECTIONS AND CLARIFICATIONS:
DELEGATE LEONARD TSOSIE
Looking at law here and once let KPMG get away with it. This is two years old and excuse is building moldy and afraid walk in with face mask.
Grant and OMB as keeper of documents should have kept continuity of revenues. Now getting info that is useless to budget. To me this is worthless.
Wish could hold accountable. Did they increase pay?
If you look at law, Title 12, we do audit first to take latest information and consider as part of budget but yesterday, Naabi considered budget first. We reversed everything.
If do that, heading to cliff. We shouldn’t be so lax. Reasons for strictness in laws.
I don’t know when see other audits.
See investemtn found way to rob Permanent Trusyt Fund without authorization from Concil. Cahoots with investors. Heard about in New York. Give no Gomez to legal advice. Why see mingling of Land Acquisition and Gaming dollars.
Bad financial practices.
My understanding is cuz word investment in Title 2 for B&F and supposedly carte blance to do whatever with investments.
How much did we pay investment managers and how much did they make for Navajo Nation? Misleading to say investments have grown. Navajo Nation sends a check annually to these funds and now being robbed by Investment Committee thru dubious means.
We subsidize growth. Important when see reports that you outline, how much thru investment managers. Much of Funds are tied up in investments. If separate then decide if keep investment managers.
But no way know that without separating numbers. DK if this attempt to keep us in dark.
We should be seeing trends, a graph, thru the years. Ask KPMG do from here on and past on use of investments. Is it growing? Is it being depleted? Where is money going?
Can’t tell.
Give us copies of power point presentation. You make it hard for us to look at these numbers. Beginning to think it’s an attempt to keep us in the dark.
If so open, here are all numbers, power points, charts showing trends, year in and year out allow and getting worse and worse.
DK how much paying for this audit. When look at not learning anything.
Why waste committee time? Get summary especially since doing in reverse.
And save money paying KPMG and use that money for Headstart playgrounds.
WALTER PHELPS
Question on revenues. Knowing IDC/Indirect Cost beind in getting rates updated. How is that figured into audits? Are they reflected as revenues? Since IDC for 2010 and 2011 may not be updated yet, are those figures reflected in here, if any.
Cuz in general revenue projections, we project IDC amounts.
SPONSOR JONATHAN NEZ
Fault not KPMG, court action shut down admin 1 & 2 and why had to waive audit last year. Who to blame? Courts?
Agree with Tsosie on graphs especially for Permanent Trust Fund.
Before financial debacle, prior Council ready to take some of money from master trust fund, which is now $1.5 billion.
CONTROLLER MARK GRANT
There were a couple of other items that Delegate Tsosie asked: Investments of Master Trust and how allow investment into casinos? Cuz structured in a way to fit in investment policies which require PTF invest in equities and fixed income so how investments in casinos constructed.
Next item, point out that attorney Gomez not on Investment Committee, that Gomez is Investment Committee attorney.
(Delegate Tsosie says out loud that that is the same thing. B&F Committee chairperson, who sits on Investment Committee says that it’s not the same thing.
Lot of information is available at Investment Committee, including charts and just call and we can provide to you.
Delegate Phleps request for IDC: IDC rate was recently approved by NBC so Office of Controller posting IDC right now. Amount we had included IDC projection was about $15 million and only reported $2 million received year to date.
But now approved but problem expire by 9-30-13 so posting so programs can be reimbursed. Other IDC rates hopefully approved early 2014.
DELEGATE ALTON SHEPHERD motioning party/DELEGATE JONATHAN HALE second.
amended initial amendment 3 that 3 percent bonus for tribal employees with salaries of more than $30,000 and 5 percent for employees with salaries $30,000 and less.
DELEGATE KATHERINE BENALLY
good intent but bad. concerned about all, ALL. those tribal employees funded under federal contracts and grants not eligible to receive.
Aware of high paid staff for President getting bonuses twice and that is not allowed.
3 percent still too steep. Most employees get $65,000. FROM GALLERY – GROAN) What are they doing here anyway? Shouldn’t they be at work?
DELEGATE ALTON SHEPHERD
also address personnel manuel on how employee receives bonus cuz right now “all open.” But now feel navajo pple working without step increase and few with big bonuses and repeated bonus.
DELEGATE ELMER BEGAY
Know GWA much better for retirement. Bonus doens’t apply to retirement. Program managers select employees that receive bonus.
Professional Journal of Marley Shebala 