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MosesUpdate
By Harvey Moses, Jr.

Greetings:

Well, the Stampede has come and gone and we are all okay. We had some interesting meetings with the Jockeys & Owner’s Association, the City of Omak and the Stampede Board right up to the Stampede itself on a number of different issues. There were threats from animal rights group to disrupt the Suicide Race with physical harm to the riders and court actions. Nothing actually happened, thank the Creator for that. I attended the Sunday Rodeo performance for the purposes of presenting the overall winner with a saddle. I know now why I’m not a cowboy. Watching these guys get ready for their ride is quite an experience from slapping themselves, getting on and off their mounts and pacing. In addition, a good percentage of these individuals have casts or bandages from injuries apparently received from other rodeos!

The Wells’ Dam money is a topic on everyone’s mind. I’ll start off with these disclaimers: 1) the Council is not using this money to cover our travel costs. 2) The Council is not using this money to give ourselves raises. 3) The Council is not going to use this money to cover budget shortfalls. The money ($13.5 million) will be distributed in a payment to all eligible enrolled members (approximately 9,146). The problem at this point in time is that the payment could not be deposited into our treasury account. In the eyes of the federal government this payment is taxable. Approximately a month ago, a majority of the Council and our attorneys met with Ross Swimmer, Secretary of Office of Special Trust, who will make the decision on the tax issue? It appeared to all present that the meeting was successful in changing Mr. Swimmer’s mind, but we have to await his final decision, which will be made the first or second week of September 05. The payment that was initially to be paid out the first week of October, this time frame will have to be adjusted to sometime in October 05.

The Nespelem District had a very good District meeting on 9/7/05. The agenda was open, the topics were: CTEC, CBC travel, Wells Dam money, IHS problems, Housing problems, Drug & Alcohol problems, Drug testing, Mining and Enrollment. The CTEC issues ranged from how long are we going to continue to lose money at CIPV and gaming, to how long are we going to allow CTEC to lose our money? CBC travel: it’s believed that if the CBC stayed home we’d have a balanced budget with cash to spare. This item will be discussed at another time. What’s happening with the Wells Dam money: this subject was discussed above. IHS problems: no service to the membership, issued PO’s but no payment of same users to be sent to collections, inability to get appointments, call backs from IHS staff non-existent. Housing issues: not enough affordable housing, housing regulations not being consistent, drug and alcohol abuse in units. Substance abuse is rampant on the reservation, what are we (CBC) doing about it? No tolerance in Office of Reservation Attorney for review; CBC looking at banishment of abusers? Drug testing: CBC needs to take the lead, all tribal staff needs to be tested, and we need to build treatment centers on the reservation, after care centers on the reservation. Mining is not for the reservation and people; need to redo the EIS on Tolman. Enrollment: we need to look at only enrolling minors, not more adoptions of adults.

A lot of blame was passed around at the meeting. I think our problems are all of our faults. I stated at the meeting that the “vote” is what gets the attention of our federal and state legislatures. We as a people need to VOTE to get things turned around; if we all voted, we would not be paying over $3 for a gallon of gas. If we voted we would not be sending our youth to a foreign land to be in harm’s way; if we voted we could control Okanogan and Ferry County’s easily; if we voted we could get control of the local REA/NVEC power rates. I believe we could even get some tribal members into the state legislature; now that would be a real asset to our situation. And think about it – to vote, we only have to pay the price of a stamp.

Harvey Moses, Jr.

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FinleyREPORT
By Terry Finley

I apologize for not thanking each and everyone for their support in the last election. I hope you can forgive me and I am sure it makes my job that much easier when I have to make some tough decisions. And I am sure there will be plenty more in the near future with the budget shortfalls and per-capita distribution’s.

As I have stated in my campaign letters we are going to have to diversify and go into new projects, which will probably, include mining. Which is a good thing but also bad. It could mean the survival of the reservation and the hopes and dreams of our children and their children.

Hope this short note finds you all well and in good health. If you need to contact me my numbers are: Home - 509-722-5404, Wrk - 509-634-2205, Cell - 509-631-0483.

Thank you,
Terrence L. Finley
Inchelium Councilman

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HutchinsonUpdate
By Margie Hutchinson

Dear Tribal Members:
Boy do we ever miss the snow packs, all the creeks are drying up, and the fish in the Omak Creek are struggling. The Fish and Wildlife department is monitoring the ponds to be sure the fish are being moved upstream.

Sorry I missed last month’s article, so I’ll have to give a double report.

Senator John McCain introduced Bill S-1439, in July, to settle the Cobell litigation, and Trust Reform. “To provide for Indian trust asset management reform and resolution of historical accounting claims, and for other purposes”.

We met and discussed what approach we would take on this new legislation. Unfortunately under this administration they have offered to appoint a special master to apply a formula to distribute funding to some of those in the Cobell class action suit. And they are allowed to use 11% of that funding for the distribution to those individuals whose funds were mismanaged. Secondly, create a Deputy assistant secretary, and eliminate the Office of Special Trustee in 2008, which is the end of President Bush’s term. The Bill also establishes a demonstration Project for Tribes. This project would allow tribes to enter into agreements with the department of Interior to manage their own resources. NCAI, ITMA, and Cobell, all felt the bill didn’t address their main issue of historically accounting for the mismanagement of resources. The bill removes the court and allows the current OST people to continue to march forward with their reorganization efforts.

Fast-forward, we had hearings in Washington D.C, and Ernie Stensgar, gave testimony on behalf of the 54 affiliated tribes of the northwest, and it was well received. In our most recent meetings, we have decided that the Affiliated Tribes of Northwest Indians need to continue to take the lead with this legislation. We have formed groups to address and tweak the bill and have our comments ready for the Senators who introduced the bill. The Senators sense that the NW Tribes are serious about their bill.

Then, United States’ Supreme Court justice, Sandra Day O’Connor, announced her retirement after 24 years on the federal bench. Justices O’Connor, and Bryer attended a National Indian court Justices meeting in Spokane, and were quite impressed with the Colville and Spokane tribal court proceedings. I hope the next Supreme Court appointee will be fair and respectful to Indian law. O’Connor’s track record on Indian Issues was superb, and one we can be extremely grateful for.

The Colville Business Council met with the State on an addendum to the agreement we have on the Lake Roosevelt component of the Columbia River Initiative. “The State developed the Columbia river initiative to increase the water supply in the mainstream Columbia River to improve stream flows for out migrating juvenile anadromous fish and to improve water for new consumptive uses”. Then at a follow up meeting in Richland, I gave testimony on behalf of the tribe to the House and Senate committee members on how to balance fish needs and management of Lake Roosevelt. We were quite fortunate to get this agreement in place, prior to Governor Lock’s last term. Now governor Gregoire, would like to reaffirm this agreement with the Tribe.

The Planning Department, scheduled a meeting in Nespelem, with the Washington State Department of Transportation, The Washington State Patrol, and several key staff from the Olympia office. The statistical data reported for the Colville Confederated Tribes, was 2.5% higher than neighboring communities, and this is only with partial information. The intent of the meeting was to work more closely with the various agencies to identify why we have more accidents and deaths, than the surrounding communities. Some of the issues identified were unsafe roads, driver behavior, Speeding, seatbelts. The WSP would like to work more closely with our programs to conduct safety checks before the vehicles (trucks) enter the roads. A strong statement made by the WSP to the group, was that if we wanted immediate results, we should “buckle up”.

We met at the Twin Lakes youth camp to work on the 2006 budgets. The financial picture is a bleak one, with the revenues down at CTEC; we are unable to receive funding from the enterprises to run some of the programs. There will be some major cuts in some of the programs, and I believe the administration is addressing these shortfalls in a positive manner.

Thank you,
Margie Hutchinson

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IndianCOUNTRY
By Michael E. Marchand

September 15, 2005
Trust Reform: Next week we will be meeting with the major groups dealing with trust reform and the parties to the Cobell case at the ATNI conference in Coeur d’Alene. At our urging, Senator McCain has introduced legislation to deal with the problems of BIA trust management systems and also with the ongoing litigation with Cobell. We have been working hard to get the attention of the Senate Committee on Indian Affairs and work closely with key staff. We received a lot of complements from them, they said that the NW leaders have consistently had the most useful comments and analysis compared to the rest of the nation. We will be asking Congress to pay dollars out so that tribes can buy out undivided interests in land. We will also be asking that Congress intervene and settle the Cobell case, which is swallowing up the resources of the BIA. The government has made admissions that it is incompetent, that it has mismanaged funds, and that the system it has created is dysfunctional. Thousands of account holders have been hostage to the US mismanagement of its trust resources. It is time for the US to settle, pay what is due, and move on with the business of government. Millions of dollars are cut out of BIA services in order to reorganize the Office of Special Trustee, which handles BIA accounts, and to fight the Cobell case and protect the government’s mismanagement. New school construction dollars were cut by two-thirds. The tribe’s total operating budgets for the government and enterprises amount to $100 million annually. Small percentages one way or the other in how the federal government budgets translate into a lot of dollars down to our agency. Virtually everything that I report on in my articles concern key issues that affect the tribe and almost all of these take place off the reservation. Someone asked me where I go on Council travel, so I said that I report on it every month; this person was surprised and said that she never did see a travel report. Trust reform meetings take place all over the country from Washington DC and through most of the states that have Indians. If you want to take part in the decision making, you have to go where the decisions are being made. Sticking your head in the sand will result in the loss of tribal sovereignty and tribal budget dollars.

BIA Roads: One of the bigger agency budgets is the roads budget from the BIA. This is used for transportation programs and the bulk of these dollars also goes into CTEC construction income. For the last few years, I have been working on getting this budget through the Congress. In a time when budgets are getting slashed everywhere, we have been successful in getting increases. Congress has finally approved the new bill and the President has grudgingly signed off. This will benefit our tribe with millions in new road dollars in the coming decade. These dollars come down to our tribe through a formula, based on our inventories and costs, and population. Even determining the formula methodologies are a big battle, because shifts in how formulas get developed can mean losing a lot of money. It is important to have Council representation on these national policy programs. After years of work, I was honored to be selected on the national roads coordinating committee; this is the highest Indian roads policy group in the country.

The tribe’s budgets are complicated and are affected by many different factors, ranging from national federal budget policies, the state, and regional economic conditions. Tribal budgets include dollars from many different sources ranging from government and private grants, contracts, and dollars from business and resources. Every source of non-tribal money has different strings attached. When the tribe takes on a federal or state program to administer, the tribe negotiates for dollars to deliver the services that the program is supposed to accomplish. Then providing this service also has an associated overhead cost that costs the tribe to administer. This is usually called indirect costs and this is negotiated also. Generally speaking, if we can get a higher indirect cost rate this results in the tribe being able to get more dollars for its programs. However, things are never simple and like always there are exceptions and sometimes these costs are not recoverable. The tribe tries to leverage its dollars as much as possible. This stretches dollars out, which is good, but when budgets have to be cut, say there is a reduction in revenues, then it makes cutting back more complicated, because we do not want to unnecessarily cut back our indirect cost rates.

Back in the mid-1980’s, the tribe did an across the board cutback, programs went to four day workweeks. This had tremendously bad impacts on the indirect cost rates. It took the tribe years to overcome the cutbacks due to the decrease in indirect cost rates. So actually, the four day work week cost the tribe more dollars in the long run then it saved in the short run. For example, certain functions in the tribe’s administration increase the indirect cost rate and actually generate dollars for the tribe. An example is Council expenses, which generate indirect revenues. So if there is a need to cut back, there are many things to consider, like how important is the program to the tribe and also what is the impact on indirect cost rate formulas and how does this impact the tribe’s ability to get maximum leverage out of its dollars. This is big business, because the tribe’s agency programs and the business enterprises budgets, (now this is not profit), are in the hundred million dollar range.

Decisions made by the tribe have far reaching impacts and also affect future years. One of the big impacts is performance by the tribal businesses. In 1997, the tribe had maximum CTEC revenues. Markets were strong and things were going good, CTEC generated over $20 million to the tribe. Since 1997, this has been in decline and we are at the point now where CTEC is anticipating a drop down to $2.5 million. There are many reasons for this and I won’t go into all of them at this time, but suffice it to say that this decline in CTEC revenues is the biggest single factor in the health of the tribe’s budget. CTEC has supplied millions of dollars to the tribe over the years, there is no question that is has been a valuable asset over time. But in recent years, the enterprises have been having a struggle. To make matters worse, the low interest rates and building boom have been helping a lot, but how long can this be sustained is the question. We have a revenue drop in the optimum markets, so what will happen when the market declines. This summer has seen some of the declines already, hopefully the bottom will not last too long and things will get better again. There has been a big turnover in CTEC management. The tribe is currently advertising for a new Board of Directors. The big factors in CTEC are the energy markets, the timber markets, and statewide gaming competition. These all have big impacts on us, they need to be overcome if we are to grow as a tribe. Obviously, we need to diversify business. In order to diversify, the tribe needs to find a way to save and invest. This is straight forward economics and common sense. If we never invest in business, they will never grow and the decline will continue.

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