Transcript FY 2014 BIA EASTERN REGION BUDGET TESTIMONY MARCH, …

FY 2014
BIA EASTERN REGION
BUDGET TESTIMONY
MARCH, 2012
SOCIO-ECONOMIC CONDITIONS
Socio-economic measures show that American Indian
and Alaskan Natives continue to significantly trail the
general U.S. population
• 35.7% of Indians and Alaska Natives are living below
the 125% poverty rate in comparison to 16.7% of
the white race
Poverty Level
40.0%
30.0%
20.0%
10.0%
0.0%
White
Am erican Indian
and Alaskan
Natives
The unemployment rate was 47% higher for Native
Americans and Alaskan Natives than whites –
at 17.9% and 9.5% respectively.
Unemployment Rate
15.0%
10.0%
5.0%
0.0%
White
American Indian
and Alaskan
Natives
• Reported median income for American Indians
and Alaska Natives was $35,062, 33.7% less than
the white race median income of $52,840.
Median Incom e
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
White
Am erican Indian
and Alaskan
Natives
In keeping with the:
Bureau of Indian Affairs’ Mission to:
“Enhance the quality of life, to promote economic
opportunity, and to carry out the responsibility to
protect and improve the trust assets of American
Indians, Indian tribes, and Alaska Natives” and
Bureau of Indian Education’s Mission to:
“Provide quality education opportunities from
early childhood through life in Indian Country”
The Eastern Region tribes have prioritized the
following programs:
Eastern Region
Tribal Program Priorities
2014
•
•
•
•
Tribal Court
Law Enforcement
Scholarships
Economic Development
ECONOMIC DEVELOPMENT
The Eastern Region tribes have identified
Economic Development as a key component to
achieving self-sufficiency and improving tribal
socioeconomic conditions. With the staggering
unemployment rates experienced throughout
Indian Country it is essential that tribes develop
economic enterprises and job opportunities
within their homelands. It has been recognized in
numerous reports that several of the critical
challenges to economic development within Indian
Country include:
Legal and Administrative Barriers: Investors
and businesses often require assurances to
federal or state courts for dispute resolution before
business with a tribe or tribal business. Often such
assurances require a limited waiver of tribal
sovereignty. Further the lack of commercial code,
zoning regulations, and tax policies presents
barriers that can deter potential investors and
business partners.
Lack of Investment Capital: Lack of capital,
either in the form of debt or equity financing,
Makes it difficult to start new businesses or to
expand existing ones.
Focus on short-term rather than long-term
results: Stakeholders, tribal members, & tribal
leaders are often pressured into steering business
development in directions that are inconsistent
with the long-term planning perspective and
investment strategies required to make a venture
successful.
Lack of Bonding: With the unique status
of American Indian’s land holding and
assets it is often difficult for tribal businesses
to attain the necessary bonding and other
required insurances.
To overcome these challenges it is paramount that
funding for Economic Development be increased.
The FY 2013 President’s budget request for
Economic Development includes only $2.4 million
which is slightly more than the FY 2012 enacted
level, but as illustrated in the following chart is
approximately 52% less than the FY 2008 level.
ECONOMIC DEVELOPMENT
Enacted Enacted Enacted
Program
Economic
Development
Enacted
Enacted
Proposed
2008
2009
2010
2011
2012
2013
$4,531
$3,493
$2,241
$2,371
$2,342
$2,366
It is essential that tribes have the financial resources to
assist them with developing long-term economic
development plans & strategies and to conduct
business feasibility studies that are essential to
business development.
Loan Guarantee:
L
The lack of investment capital
is a major barrier
to economic development within Indian Country.
Often, the BIA Loan Guarantee is the only
financing resource available to tribes.
The FY 2013 budget proposes a reduction of
$2.1 million for the Loan Guarantee Program
until the program undergoes an independent
evaluation. Considering the devastating
socioeconomic conditions of our tribal people we
cannot afford to wait until the federal
government completes yet another evaluation.
Throughout the last several years, funding for
the Loan Guarantee Program is diminishing, as
noted in the following table:
LOAN GUARANTEE
Enacted
Program
Loan
Guarantee
Enacted Enacted Enacted Enacted
Proposed
2008
2009
2010
2011
2012
2013
$5,489
$6,586
$6,586
$8,199
$7,103
$5,000
Loan Guarantee Program be restored to at least the
FY 2011enacted level of $8.2.
If the Administration does indeed go ahead with its
plans for an independent evaluation we would request
that the evaluation also entail a study on overcoming
the tribes’ inability to access surety bonding and
insurance requirements necessary for business
development.
Further, we request that appropriate resources be
Included in future budget requests that address the
bonding and insurance barriers.
TRIBAL COURTS
The Bureau of Indian Affairs’ FY 2012 enacted
budget includes only $23.4 million to operate
approximately 185 BIA funded Tribal Courts and
Courts of Federal Regulations, averaging
$126,486 per Court.
Even though the FY 2013 budget proposes a slight
funding increase of $1.2 million, it still is
significantly below the amount needed to provide
for the much needed judicial systems in Indian
Country.
As illustrated below, significant funding gains were
being made from FY 2008 until FY 2011,
unfortunately in FY 2012 a budget decline was
experienced, resulting in less funding for the
direct operations of Tribal Courts.
Program
Tribal Courts
Enacted
Enacted
Enacted
Enacted
Enacted
Proposed
2008
2009
2010
2011
2012
2013
$14,338
$14,508
$24,704
$27,088
$23,407
$24,567
• In a 2011 GAO Report entitled “Indian Criminal
Country Criminal Justice” it was substantiated
that of the 12 tribes visited 11 of tribes’ Tribal
Court Budgets were totally inadequate to carry
out Tribal Court operations. Key personnel such
as public defenders, prosecutors, and probation
officers were often non-existent due to funding
limitations.
• The need for additional Tribal Court funding is
further magnified with the passage of the Tribal
Law Order Act which increases tribes sentencing
authority and other jurisdictional rights. Many
tribes will not be able to implement the
provisions of this Act without being provided
adequate resources.
Further, as previously mentioned one of the
challenges to economic development in
Indian Country is that outside business
investors and partners are often reluctant to
invest in Indian Country since tribes do not
have the judicial systems necessary to
resolve any contract disputes and other business
matters.
Additional funding for Tribal Courts will
assist tribes in overcoming this challenge and be
a step closer to developing strong tribal
economies.
SCHOLARSHIPS
A college education is a significant factor in the
socioeconomic advancement of American Indian
communities, particularly in relation to
opportunities for jobs and increased earnings.
An individual with a bachelor’s degree or greater
has the capacity to earn at least four times the
annual income of a high school dropout and more
than twice the annual income of high school
graduate.
As illustrated in the following table, the earnings of
American Indians, age 25 and older; lag
considerably behind the U.S. population average
at all educational categories.
Average income for U.S. population and American Indians age 25 and
older by educational attainment, 2005
U.S. Population American Indians
All educational levels
$35,187
$22,856
Less than a high school diploma
$14,640
$10,534
High school graduates, no college
$24,811
$20,721
Some College, no degree
$31,726
$25,966
Bachelor's Degree or higher
$57,330
$45,214
The FY 2013 President’s Budget proposes
scholarship funding at a level of $29.9 million with
an average award of $2,700 for 8,957 students, in
relation to FY 2010 enacted funding level this is a
funding decrease of approximately $4.7 million and
decreases the number of American Indian and Alaska
Native students receiving BIA scholarship by 4%.
Program
Scholarships
Awards
Enacted
Enacted
Enacted
Enacted
Enacted
Proposed
2008
2009
2010
2011
2012
2013
$29,581
$29,663
$34,585
$34,432
$29,432
$29,858
7,780
7,838
9,315
9,284
8,830
8,957
Access by American Indians to quality
higher education is one step to moving this
segment of American society from the
lowest levels of poverty to the realization of
self-sufficiency.
We request the Scholarship funding remain
a priority and the funding level be restored to
at least the FY 2010 funding level of $34.6
million.
LAW ENFORCEMENT
The Department of Justice (DOJ) has reported
from the latest available data that crime rates
experienced by American Indians nationwide are
two and half times higher than those experienced
by the general population in the United States.
In a study conducted by BIA in 2006 it was found
that in accordance with Department of Justice
research, there are 1.3 officers per 1000 residents
in Indian Country opposed to the national average
of 2.6 officers per 1,000 in non-Indian jurisdictions.
Tribes recognize that some progress has
been achieved over the last several years
but to fulfill one of the President’s and Tribal
Leaders’ top priorities “protecting Indian
communities” much work is still required.
Enacted Enacted
Program
Law Enforcement
Enacted Enacted
Enacted
Proposed
2008
2009
2010
2011
2012
2013
$228,137
$255,077
$303,152
$305,893
$321,944
$328,444
Drug traffickers and illegal immigrants continue to
target tribal lands due to the known gaps in law
enforcement coverage in those areas.
For tribes to continue their quest for safer
communities and continue combating the “war
against drugs” - more law enforcement personnel
Is needed. Additional funding must be made
available for the hiring, retention, and training of
patrolman, investigators, drug enforcement
officers, and school resource officers.
Specific to the Eastern Region, many of our tribes
have expressed the following concerns:
Staffing/Population Ratio: Particularly, they are
concerned that this ratio is or will be used as a
factor in determining funding levels for tribes.
Tribes with small populations could not possibly
provide 24 hour day coverage. Furthermore, the
ratio does not give any consideration for the
required supportive staff, such as dispatchers
which are a vital component to law enforcement
operations.
The Eastern Region Tribes request that
consideration be given to smaller tribes and
minimal staffing needs for 24 hour a day
operations be considered.
Facilities: Eastern Region tribes have expressed
concerns regarding the lack of facility funding.
Many of our tribes operate out of dilapidated law
enforcement buildings and lack appropriate
security which not only endangers the officers and
civilians lives, but also is a prohibiting factor
in tribes operating state/federal law enforcement
databases, such as NCIC.
The Eastern tribes request additional funding to
bring tribal law enforcement facilities up to
standard conditions and, as contracting and
compacting tribes, should not be excluded from
any assessments or funding streams that are
available to federally owned or managed
facilities.