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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 

( 

(II) 

COMMITTEE ON INDIAN AFFAIRS 

BYRON L. DORGAN, North Dakota, Chairman 

LISA MURKOWSKI, Alaska, Vice Chairman 

DANIEL K. INOUYE, Hawaii 

KENT CONRAD, North Dakota 

DANIEL K. AKAKA, Hawaii 

TIM JOHNSON, South Dakota 

MARIA CANTWELL, Washington 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

JOHN MCCAIN, Arizona 

TOM COBURN, M.D., Oklahoma 

JOHN BARRASSO, Wyoming 

lllll, lllll 

lllll, lllll 

RICHARD BURR, North Carolina 

ALLISON C. BINNEY, Majority Staff Director and Chief Counsel 

DAVID A. MULLON JR., Minority Staff Director and Chief Counsel 

(III) 

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 

Page

IV 

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 

Page

V 

Supplementary information and letters submitted for the record by—Continued 

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 

(1) 

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 engiVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 S:\DOCS\46627.TXT JACK PsN: JACKF
2 

neered 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:] 


115a1.eps
3 

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 


115a2.eps
4 

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. 

5 

* The information referred to is printed on page 41. 

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. * 

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. 

6 

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. 

7 

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 opporVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00013 Fmt 6633 Sfmt 6601 S:\DOCS\46627.TXT JACK PsN: JACKF
8 

tunity 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. 

9 

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 

10 

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 vilVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00016 Fmt 6633 Sfmt 6601 S:\DOCS\46627.TXT JACK PsN: JACKF
11 

lages 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


115c1.eps
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115c2.eps
13 


115c3.eps
14 


115c4.eps
15 

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. 


115c5.eps
16 

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 

17 

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 sixtyyears 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 

18 

1Overview 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 2Parrott, 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). 4 NPR, All Things Considered, July 17, 2004 

5 Neshoba County Website, Community Development Partnership, Mississippi Band of Choctaw Indians Timeline. 

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 lowincome 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

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

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. 

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 

19 

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. 

20 

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 triballyowned 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 

21 

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 conVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00027 Fmt 6633 Sfmt 6601 S:\DOCS\46627.TXT JACK PsN: JACKF
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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. 

struction 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

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 emVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00028 Fmt 6633 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF
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2The 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. 

ployee 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

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 

24 

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). 

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

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 

25 

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 

26 

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 

27 

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. 

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. 

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-togovernment 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 

28 

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. 

29 

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 CataVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00035 Fmt 6633 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF
30 

2The CHEF is administered by IHS Headquarters and pays for high cost CHS claims. 

strophic 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). 

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. 

31 

The CHAIRMAN. Mr. Franklin, thank you. 

Finally, we will hear from Julie Kitka, who is the President of 

the Alaska Federation of Natives. 


115c6.eps
32 

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 cando 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, 

33 

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. 

34 

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 transformationtaking 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. 

35 

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 

36 

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. 

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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 


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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 

48 

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 

49 

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 locallygenerated 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 toVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00055 Fmt 6633 Sfmt 6601 S:\DOCS\46627.TXT JACK PsN: JACKF
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tally, 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 InteVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00056 Fmt 6633 Sfmt 6601 S:\DOCS\46627.TXT JACK PsN: JACKF
51 

rior 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 

52 

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 

53 

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. 

54 

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 

55 

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.] 

(57) 

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. 


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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 


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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 

95 

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 russ.crabtree@tolowa-nsn.gov or 707–487– 

9255. 


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1These 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. 

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 goodpaying 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

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. 

103 

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: 

1934–2001 (2001 Prices) 2001–Forward (2008 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. 

104 

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 fund- ed 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 longrun; (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 

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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 ‘‘preapplication 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. 

106 

PREPARED STATEMENT OF CHAD SMITH, PRINCIPAL CHIEF, CHEROKEE NATION


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PREPARED STATEMENT OF JOHN A. BARRETT, CHAIRMAN, CITIZEN POTAWATOMI

NATION


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PREPARED STATEMENT OF THE COUNCIL FOR TRIBAL EMPLOYMENT RIGHTS


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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 


115h7.eps
118 

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 twoweek 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 ResVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00124 Fmt 6601 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF
119 

ervation 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 

120 

1Data in this section derived from the National Dropout Prevention Center, the Alliance for 

Excellent Education, and the Silent Epidemic coalition website. 

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

• 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 

121 

2 Anchorage Daily News, November 16, 2008. 3Our Choices, Our Future: Analysis of the Alaska Natives Report, 2004. Alaska Native Policy 

Center. 4 Ibid. 

5 An Exploration of Experiences and Outcomes of Mt. Edgecumbe High School Graduates 

(1986–2006). Institute of Social and Economic Research, Anchorage. (Powerpoint) 6Title VII, Part C of No Child Left Behind. 

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

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. 

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

• 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

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. 

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 underVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00127 Fmt 6601 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF
122 

standing 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. 

123 

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. 

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: 

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 nonPartners 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. 

124 

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: 

125 

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. 


115h8.eps
126 

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 

127 

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. 

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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. 

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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 specificdiabetes 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 

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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 wellknown and respected corporate partners such as Anadarko Petroleum Corp., Bill 

Barrett Co., Berry Petroleum, Questar Exploration and Production, and others. The 

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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 SelfDetermination 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. 

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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 

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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 

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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. 

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PREPARED STATEMENT OF THE LUKACHUKAI COMMUNITY BOARD OF EDUCATION, INC. 


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PREPARED STATEMENT OF THE NATIVE AMERICAN CONTRACTORS ASSOCIATION


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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. 


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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. § 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. 

155 

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 

156 

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 telehealth 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. 

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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 locatVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00163 Fmt 6601 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF

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158 

ing 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. 

159 

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 

160 

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 


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161 

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 

162 

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 muchneeded 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 

163 

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 nonprofit 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. 

164 

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 

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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 fourcounty 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; 

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• 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. 

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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 inVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00173 Fmt 6601 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF
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cluded 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 curVerDate Nov 24 2008 08:33 Jun 08, 2009 Jkt 046627 PO 00000 Frm 00174 Fmt 6601 Sfmt 6621 S:\DOCS\46627.TXT JACK PsN: JACKF
169 

rent 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-ornear 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 

170 

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. Longterm 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. 

171 

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/Employment $12,000,000.00 

5 Nursing Home/Dialysis Center $8,000,000.00 

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 Energy $5,000,000.00 

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 College $1,075,000.00 

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 

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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 

173 

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, 

174 

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. 

175 

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. 

176 

PREPARED STATEMENT OF RYAN WILSON, PRESIDENT, NATIONAL ALLIANCE TO SAVE

NATIVE LANGUAGES


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