Copyright 1999 Federal News Service, Inc. 
  
Federal News Service 
FEBRUARY 24, 1999, WEDNESDAY 
SECTION: IN THE NEWS 
LENGTH: 
23424 words 
HEADLINE: PREPARED STATEMENT BY 
W. RON 
ALLEN 
PRESIDENT, NATIONAL CONGRESS OF AMERICAN INDIANS 
BEFORE THE 
SENATE INDIAN AFFAIRS COMMITTEE 
SUBJECT - FY 2000 
PRESIDENT'S BUDGET 
REQUEST FOR FEDERAL INDIAN PROGRAMS 
BODY: 
I. Introduction 
Good morning Chairman 
Campbell, Vice-Chairman Inouye and distinguished members of the Indian Affairs 
Committee. Thank you for the opportunity to present testimony regarding the 
President's Budget Request for Fiscal Year (FY) 2000 Indian programs and 
services. My name is W. Ron Allen. I am President of the National Congress of 
American Indians (NCAI) and Chairman of the Jamestown S'Klallam Tribe located in 
Washington State. 
NCAI views the FY2000 federal budget process as an 
opportunity to begin to set a better course for federal Indian policymaking in 
the next century. Tribal governments have found themselves in an increasingly 
defensive posture in the development of federal Indian policy over the last four 
years, and budget cuts and budget riders have been the point of attack on tribal 
self-determination. Leaders from Indian Nations across the U.S. gathered on the 
first days of the 106th Congress on January 5th to 7th, 1999 to define a course 
of action for themselves, and the FY2000 budget is an important part of their 
planning. Tribal governments have developed an Agenda for Progressive Federal 
Indian Policies in the 106th Congress (attached) to renew their historic 
relationship with the federal government, affirm and educate on the justice of 
tribal sovereignty, and create a climate of positive relationships for the 
benefit of Indian people and the entire United States. 
First, tribal leaders 
have set as an important goal that the tribal budget must become a higher 
priority within the appropriations process. The federal government has treaty 
and trust obligations to support Indian tribes that it is simply not meeting. 
Also, tribal citizens pay federal taxes but receive little support from federal 
funds that go to states. Programs serving the American Indian and Alaska Native 
population have rarely received the federal funding required to fulfill even the 
most basic needs and funding for Indian programs has lagged far behind the 
funding of non-Indian programs. Compared to all other sectors of the American 
populace, American Indians and Alaska Natives most often rank at or near the 
bottom or top of most social and economic indicators, whichever is worse. Of the 
558 federally-recognized Indian tribes, a great majority of their populations 
are characterized by the most severe unemployment, poverty rates, ill-health, 
poor nutrition and sub-standard housing in the U.S. In an era of federal budget 
surpluses, there are no excuses for failing to meet the federal obligation to 
remedy the human tragedy behind the statistics. 
Second, the solution for the 
poor conditions in Indian Country must be a reinvigorated approach to economic 
development. The federal budget for FY2000 can do much to build the necessary 
infrastructure of roads, schools, housing, child and elder care, hospitals, 
clinics, technology, law enforcement, courts and other critical elements of any 
functioning economy in the United States. The United States has an obligation to 
help rebuild the shattered infrastructures of Indian Nations and create the 
opportunity for economic prosperity that will benefit not only Indian people, 
but the entire American economy. It should also be noted that the conversion of 
welfare entitlement funds into state discretionary funding has added to the 
urgency felt throughout Indian Country to boost economic development. 
Third, 
the use of appropriations riders to ambush tribal self- government has become 
more and more frequent. Tribal self-government is recognized in the United 
States Constitution and hundreds of treaties, federal statutes and Supreme Court 
cases and is deserving of serious consideration by the Congress. At the very 
least, if the federal government is going to contemplate legislation affecting 
tribal self-government, the legislation should be considered in the authorizing 
committees, given opportunity for consultation with the affected tribes, and 
taken up as stand-alone legislation where Members of Congress can know and 
understand what they are voting on. We have been made aware of the introduction 
of Senate Resolution 8 by Senators Ted Stevens and Robert Byrd. S. Res. 8 would 
amend the Senate rules to reinstate a former rule which prohibited legislative 
riders on appropriations bills and which would require a three-fifths vote to 
waive a point of order under the rule. NCAI would urge the members of the Senate 
Committee on Indian Affairs to support S. Res. 8. 
As Congress begins to 
shape the FY2000 budget, the NCAI urges an increased investment in Indian 
programs and tribal government infrastructure. We believe that the President's 
FY2000 budget request has taken a positive step in that direction. The following 
testimony is an overview of the recently released President's FY2000 budget 
request that provides NCAI's viewpoint on sections of the budget that are most 
critical to tribal governments. NCAI would like to express its appreciation for 
information and funding recommendations from regional and national Indian 
organization, including the National Indian Education Association, the National 
Indian Health Board, the National American Indian Housing Council, the National 
Indian Council on Aging, the National Tribal Environmental Council, the Native 
American Rights Fund, the Northwest Portland Area Indian Health Board, the 
California Indian Manpower Consortium, the Indian and Native American Employment 
and Training Coalition, and the Inter-Tribal Agriculture Council. 
II. 
Background Information 
When comparing trends between FY1975 - FY1999 for the 
total BIA budget and the federal non-defense budget as a whole, federal spending 
as a whole increased at a rate of $41 billion a year, with an average level of 
$669.8 billion, while when corrected for inflation, the BIA budget actually 
declined by $10 million a year, on an average spending level of $1.7 billion. 
Throughout the entire FY1975-FY1999 period, per capita spending on the U.S. 
population as a whole consistently increased, whereas per capita spending on 
Indians through major Indian-related programs began to fall after FY1979. 
Furthermore, in FY1996, federal funding for Indian programs fell short 13 
percent or $581 million from the President's budget request for that fiscal 
year. This was mostly seen in dramatic cuts in funding for the BIA ($322 million 
less), Department of Housing and Urban Development (HUD) New Indian Housing 
($134 million less), and the Indian Health Service (IHS) ($80 million less). In 
FY1997, funding for these programs fell short 4.1 percent or $175 million below 
the President's request. And in FY1998, there was a 1.2 percent or $52 million 
shortfall from what the President requested. In FY1999, this unfortunate trend 
continued with a $100 million shortfall.1 Mr. Chairman, in a year when the U.S. 
economy is booming and the federal government is expecting over seventy billion 
dollars in surplus funds, the federal government should not be cutting funds to 
American Indians, this nation's poorest people. 
As you are well aware, in 
recent years tribes have faced extraordinary challenges throughout the 
appropriations process. Unprecedented reductions in federal Indian program 
funding left many tribes facing extreme circumstances. Non-funding "riders" 
attached to Interior Appropriations bills reached well past the scope of the 
appropriations process and were interpreted by Indian Country as an attempt to 
diminish tribal sovereignty and change the basic fabric of the federal-tribal 
relationship. 
While we appreciate the commitment to balance the federal 
budget and reform the welfare system, we maintain that such laudable initiatives 
do not and should not preclude the federal government from fulfilling its trust 
responsibilities to Indian tribes throughout this great nation. In short Mr. 
Chairman, extraordinary budget reductions in federal Indian programs have 
created a state of emergency for many tribal governments. 
NCAI is 
encouraged, however, with the Administration's FY2000 commitment to begin 
addressing some areas of priority concern to Indian Country. The Administration 
should be commended for its renewed commitment to Indian education. Reports 
indicate the Indian schools are in worst shape than any other system in the 
country, with a backlog of repairs exceeding $800 million. The President's 
FY2000 budget request includes a school construction and repair request of $75.9 
million to replace two schools, as well as complete urgently needed repair work 
at existing facilities. The budget also proposes a School Modernization 
initiative that would provide $400 million in bond issuance authority for tribal 
governments over two years, as well as increases to school operations of $27.5 
million over FY1999 for a total investment of $503.6 million. 
As this 
Committee is well aware, Indian Country has faced a sharp rise in criminal 
activities and most tribes have severely inadequate basic law enforcement 
protections and services to address this problem. The proposed allocation of an 
additional $20 million in the BIA as part of the multi-year law enforcement 
initiative in Indian Country will help support law enforcement in Indian 
communities through FY2000. NCAI is also encouraged by the Administrations 
request of $100 million for the Office of Special Trustee, as well as the $1 
million request for a "Bring Back the Bison" program within the BIA. 
As 
Congress begins the appropriations process for FY2000, NCAI aggressively seeks 
support from the Committee in reversing the decline in funding for federal 
Indian programs that we have experienced since FY1996. In general, we feel the 
President's FY2000 budget moves Indian Country in this direction. We are 
concerned, however, that even the Administration's request for certain essential 
tribal programs and services provided through the BIA and IHS remain seriously 
inadequate. Accordingly, tribal budgets are insufficient to meet the most basic 
needs of tribal populations. 
The following testimony is an overview of the 
recently released President's FY2000 budget request that provides NCAI's 
viewpoint on sections of the budget that are most critical to tribal 
governments. As more specific information is released from the Administration 
regarding the details of the budget request, NCAI will provide further 
information to the Senate Committee on Indian Affairs and the relevant 
appropriations subcommittees regarding the priorities of the tribal government 
members of NCAI. 
III. The President's FY2000 Budget Request 
A. 
DEPARTMENT OF INTERIOR 
1. Bureau of Indian Affairs 
The President's 
FY2000 budget calls for $1.9 billion to be allocated to the BIA, an increase of 
$155.6 million over the FY1999 enacted level. The budget contains a request of 
$1.7 billion for the Operation of Indian Programs (OIP), a modest increase of 
$110 million over the FY1999 enacted level. Another component was the request of 
$716 million for Tribal Priority Allocations (TPA), a $1 7 million increase over 
FY1999. However, as important as these increases are to tribes, and despite the 
apparent commitment to tribal self-sufficiency, self- determination and 
self-governance shown by the Administration in its budget request, this increase 
still falls short of providing adequate funding for critically needed tribal 
programs. 
Although the Administration's budget request for FY2000 includes a 
$17 million increase in TPA over FY1999, this increase is inadequate to meet the 
vital needs of tribal governments. TPA budget activity includes the majority of 
funds used to support on-going services at the local tribal level, including 
such programs as: housing, law enforcement, child welfare,education, natural 
resources management and other tribal government services. TPA gives tribes the 
flexibility to prioritize funds among these programs according to their unique 
needs and circumstances. 
Over the past two decades, very little funding has 
been added to TPA to allow exercise of self-determination and self-governance. 
Further, in FY1995, TPA was drastically cut and critical tribal programs and 
services were severely impacted. Since then, tribal governments have 
increasingly fallen behind in their ability to provide services in their 
communities. These budget reductions clearly are contrary to and undermine the 
successes tribal governments have achieved. 
Funding levels to TPA have yet 
to be restored to the FY1995 level. The small increases to TPA over the past few 
years have not been adequate to keep pace with inflation. The failure of the 
Administration to include a significant increase in overall TPA for FY2000 
continues to hinder tribal governments' ability to provide for the essential 
needs of their communities. 
Mr. Chairman, at the very least, the President's 
requested TPA increase must be supported by Congress. The enormous tribal 
program responsibilities associated with this budgetary category include the 
direct tribal operation of programs. Although the President's requested funding 
level for this budgetary category will help tribes address these needs, Congress 
is urged to increase the TPA budget category well beyond its current enacted 
level. 
Also of concern within the BIA is the issue of contract support 
costs. The moratorium imposed by Congress in FY1999 on any new or expanded 
contracts, compacts or grants under Pub. L. 93-638 hampered many tribes' ability 
to continue their move towards self-determination. The President's FY2000 budget 
request for contract support costs includes a very modest increase of $6.4 
million to address the Bureau's continuing contract support cost shortfall, plus 
$5 million for the Indian Self-Determination Fund to address the contract 
support cost needs of tribes taking on new BIA programs. These sums are woefully 
inadequate to make any meaningful inroad into a shortfall that continues to 
penalize tribes which elect to operate BIA programs under the Self-Determination 
Policy. They are also insufficient to cover the contract support costs 
associated with the new FY1999 tribal law enforcement initiatives to be 
transferred to Tribes in FY 2000. 
Per NCAI Resolution #MRB-98-036 
(attached), Congress and the Administration are respectfully urged to reconsider 
these sums in FY2000 to finally close the gap in contract support cost funding. 
Although Congress is encouraged to support the President's increase, at a 
minimum, it is still just a small step in moving tribes back into the position 
of operating, on their own, the important programs which serve their 
communities. 
Another major area of concern is BIA construction funding. The 
$1 74 million request called for in the President's budget must be supported by 
Congress. As we reported to Congress last year, our schools, health facilities, 
courts, police and fire departments all have facilities that are in desperate 
need of repair and/or replacement. Included in this request is an increase of 
$30 million for school construction. This will allow tribal communities the 
ability to address the vital needs of their children and improve the 
environments in which they learn. NCAI also supports the President's budget 
request for continued new funding for Public Safety and Justice construction. 
Further, many tribal communities are still awaiting much needed new 
construction project funding to rehabilitate or replace a variety of facilities, 
including high cost projects such as dams, power plants and other infrastructure 
renovations. The President's budget requests $22 million for the repair of high 
hazard dams on Indian lands. As reported by the BIA, these dams pose significant 
threat of loss of life, and at minimum, significant economic damage, both on and 
off Indian reservations. The Federal government is responsible for the 
maintenance of these structures and is ultimately liable for any damage which 
may occur as a result of their hazardous condition. 
Each year, BIA 
facilities face increased safety hazards which must be addressed through proper 
maintenance and re-engineering projects that all require adequate levels of 
funding. The President's request of $174 million for BIA construction projects 
is a laudable first step. 
As reported to Congress last year, the management 
of Indian trust lands is in dire need of reform. The BIA manages over 55 million 
acres of land, 170,000 individual tracts of land, 100,000 active leases, 350,000 
land owners, and 2 million owner interests. 
According to the BIA, the 
allocation of new resources is designed to "close the books on Indian trust 
management problems as we enter the next century by completing the replacement 
of core trust management systems, including the complete cleanup of all trust 
records in the Trust Asset and Accounting Management System CTAAMS)." NCAI 
supports the FY2000 budget request of $100 million for the Office of Special 
Trustee, which will provide $65.3 million for continued implementation of the 
Trust Management Improvement Project. 
The Administration and Congress' 
attempts to empower tribal governments to assume more management 
responsibilities over tribal program and service operations, create tribal jobs 
and develop sustainable economies that lead Indian Country into greater self- 
sufficiency are very commendable goals, and ones that are clearly shared by 
tribal governments. However, without adequate federal appropriations these 
objectives will not be achieved. Increased funding for programs and services 
under the BIA budget must be provided to ensure that the basic needs of this 
nation's first citizens are adequately met and our collective goals for a 
stronger economic base in Indian Country are fully realized. 
a. Economic 
Development 
Under the Indian Financing Act of 1974, as amended, guaranteed 
loans, direct loans, and grants were established for economic development in 
Indian Country. Unfortunately, since 1996 the grant programs and the direct loan 
programs have not been funded. As a result, the only program remaining under 
this Act is the guaranteed loan program. 
Economic development conditions on 
reservations are dire. With welfare reform in full force, sustainable economic 
development is even more essential. Tribes need to develop economic development 
plans to reduce the severe impacts on tribal members and tribal governments. 
However, raising capital to start businesses on reservations is very difficult. 
Under the Indian Financing Act (IFA), grant money was used for technical 
assistance, but more importantly grant money was used as leverage for other 
federal programs. For example, the Department of Agriculture has a loan program 
that guarantees from 70 percent to 90 percent of the loan. Even though a 
majority of the loan is guaranteed, many Indian individuals and tribes still 
have difficulty raising the 10 to 30 percent equity needed to secure the loans. 
If the IFA grant program was still in existence, it could be combined with other 
federal loan programs allowing greater participation by individual Indians and 
tribes. Therefore, through NCAI Resolution #GB-98-004 (attached), NCAI requests 
at least $20 million be appropriated to reestablish the IFA grant program. 
Through NCAI Resolution #MRB-98-080 (attached), NCAI also requests that 
Congress appropriate $10 million specifically for funding the BIA Office of 
Economic Development for the purpose of providing training and technical 
assistance for the development and expansion of reservation business. 
b. 
Indian Education 
NCAI commends the Administration for its continual 
investment in Indian education. President Clinton has proposed a total 
investment of $503.6 million for BIA school operations, an increase of $27.5 
million over FY1999. This increase in school operations allows the BIA to 
educate approximately 12 percent of the American Indian K-12 population and will 
cover additional costs for teachers, transportation, and operations resulting 
from the growing student population in Indian Country. Of the $1.4 billion 
request for the hiring of 100,000 new teachers, the President proposes to spend 
$6 million to recruit, hire and train BIA teachers in order to reduce class size 
in the early grades. The FY2000 school operations budget supports the 
President's Executive Order 13096 on American Indian and Alaska Native Education 
which commits to improving the academic performance and reducing the dropout 
rate of Indian students. 
The recent Indian Education Executive Order also 
cites the need for creating strong and safe environments for Indian students. To 
help meet this goal, and in accordance with the President's call for 
modernization of our schools, the Administration has requested $108.4 million 
for BIA education construction, a significant increase of $48 million over 
FY1999. This increase will assist in the replacement and repair of some of the 
185 BIA-funded schools on reservations where 53,000 Indian students are 
currently learning in facilities that present serious health and safety threats. 
According to the Inspector General's office, Indian schools were in 
significantly worse shape than even inner city schools. Included in this 
increase is a new $30 million Indian School Construction Bonding Initiative 
which will provide critically needed funds for addressing the growing backlog of 
health and safety deficiencies, which currently exceeds $800 million, at 
BIA-funded elementary and secondary schools. Although NCAI urges Congressional 
support for S. 7, the Public Schools Excellence Act, as it would allow tribes to 
utilize the funding to issue qualified school construction bonds or other 
taxable bonds to replace or repair BIA- funded schools, this measure and other 
various school bonding proposals continue to lack bipartisan support. Therefore, 
NCAI recommends that the federal government, which is responsible for the 
education of American Indian and Alaska Native students attending BIA- funded 
schools, authorize and appropriate sufficient funds to complete all Indian 
education construction requests. 
The remaining $78 million in school 
construction funds will assist in replacing older, unsafe, and dilapidated 
schools, including the replacement construction of Fond du Lac Ojibway School in 
Minnesota and Seba Dalkai School in Arizona. NCAI fully endorses the notable 
funding increase request for school construction; however, with two- thirds of 
the education facilities over 30 years old, and more than one-quarter over 50 
years old, the backlog continues to grow. Therefore, by NCAI Resolution 
#MRB-98-084 (attached), NCAI calls upon the Congress to support a 5-year 
construction plan of the Department of Interior to eliminate the deferred 
maintenance backlog of need by increasing education facilities construction, 
repair, and maintenance budgets for FY2000 to FY2004 and to fully fund 
BIA-funded school construction within the next five years. 
The following are 
NCAI's FY2000 budget recommendations for the following BIA Indian education 
programs. 
Tribal Priority Allocations (TPA): 
1. Adult Education. This 
program continues to be one of the most underfunded Indian education areas by 
the federal government. For FY2000, the Administration proposes $2.6 million for 
Adult Education; however, the need is $5 million to adequately fund 
tribally-based adult education programs. The BIA estimates that approximately 
20,000 Indian adults who did not finish high school participate in the program 
in order to obtain their General Educational Development (GED) degree. 
2. 
Johnson-O'Malley (JOM) Program. The FY2000 request is $18 million, the same as 
FY1999. The funding need for this program should not be less than $25 million in 
order to provide supplemental educational services for 272,000 American Indian 
students in 23 states. 
3. Scholarships. The FY2000 request of $29 million 
for undergraduate scholarships for American Indians has increased only $2 
million since 1996 and does not allow for the increase in the number of Indian 
students wishing to enter college or the increase in tuition costs which are out 
pacing inflation. The needs of Indian students pursuing post-secondary education 
are often neglected, especially when critically-needed programs are cut or 
eliminated such as the Department of Education's Office of Indian Education 
Fellowship Program. 
Generally, the needs of American Indians tribal higher 
education programs have not been funded at stable and/or adequate levels, and 
inadequacy of funding is becoming more problematic under the TPA system. 
Therefore, per NCAI Resolution #MRB-98-075 (attached), NCAI calls for the 
increase in TPA allocation nationally for higher education. 
Other Programs: 
1. Indian School Equalization Program (ISEP) Formula. The President's FY2000 
request is $312 million for this program, which provides formula-based funding 
for 185 BIA-operated, grant, and contract elementary and secondary schools. The 
requested amount would provide $3,199 per Weighted Student Unit (WSU) compared 
to $3,125 per WSU in school year 1997-98. NCAI supports a funding level of 
$3,500 per WSU and request an funding increase to meet this level. 
2. 
Student Transportation. The FY2000 request for student transportation is $38.8 
million, a $4 million increase over FY1999. In FY1997-98 the BIA-funded 
transportation cost was $1.98 per mile with 15,197 miles (School Year 1996-1997) 
driven for day and boarding schools. According to the latest School Bus Fleet 
information, the national average for student transportation costs in school 
year 1993- 94 was $2.94 per mile for public schools. Therefore, the BIA-funded 
schools, which are located primarily in rural, isolated areas, are at least $.96 
below the national per mile average. 
3. Tribal Departments of Education. 
The FY2000 budget request, as in years past, does not include funding to assist 
tribes in planning and developing their own centralized tribal administrative 
entities as authorized by Pub. L. 103-382, the Improving America's Schools Act. 
Per NCAI Resolution #MRB-98-003 (attached), NCAI recommends at least $3 million 
for tribal departments of education to accomplish the original intent of the 
1994 Act. This would be appropriate given the recent trend to convert more and 
more schools from BIA to tribal control. 
4. Tribal Colleges/Post Secondary 
Schools. The President's FY2000 request for Tribally-Controlled Community 
Colleges is $38.4 million, a $3 million increase over 1999. NCAI supports $40 
million which would provide for an additional $7 million for TCCC Operating 
Grants. 
5. Post Secondary Schools. The FY2000 request is $14.3 million and 
is an increase over FY1999 of $2.5 million. The request includes funding for 
Southwestern Indian Polytechnic Institute (SIPI) and Haskell Indian Nations 
University. No longer in the post secondary schools category is the United 
Tribes Technical College (UTTC). NCAI requests that the amount for Haskell be 
increased to $10 million since it is the only national institution dedicated 
solely to the post secondary needs of Indian students. 
c. Public Safety and 
Justice 
Of critical importance in the FY2000 BIA budget request is public 
safety on reservations. As this Committee is well aware, tribal governments are 
in desperate need of resources to combat crime within their communities. Last 
year, Congress provided $20 million to the BIA to begin addressing the law 
enforcement needs of Indian Country. This year, the Administration is requesting 
another $20 million increase for the continuation of this "multi-year" 
Presidential Initiative. Along with the increase in BIA funding for Indian 
Country law enforcement comes a requested $124 million in the Department of 
Justice for law enforcement on reservations. NCAI also supports the President's 
proposed increase of $2.6 million for tribal courts. Adequate funding for tribal 
courts is critical to ensuring the quality of Indian Country law enforcement 
efforts through a strengthened tribal judicial system. d. Trust Funds Management 
The President's FY2000 budget request includes $100 million for the Office 
of the Special Trustee for American Indians (OSTAI), a significant increase of 
$60.5 million over the current enacted level. Over $88 million of this proposal 
targets OSTAI program operations, with $65.3 million of that figure directed at 
further implementing the Trust Management Improvement Project. According to the 
BIA, this project includes a complete overhaul of the Trust Asset and Accounting 
Management System (TAAMS) currently used to manage trust asset accounts. 
Other proposals include a $10 million continuance fund for the Indian Land 
Consolidation project and a reclassification of over $2 billion in tribal trust 
funds to the "non-budgetary" status, similar that of Individual Indian Monies 
(11M) accounts. This reclassification serves to specifically acknowledge tribal 
ownership over these trust fund accounts, while affecting no change to the 
Secretary's obligations to service them. 
We recommend the President's budget 
increase to help the OSTAI improve the Secretary's management of these accounts 
and to meet his goal of correcting a 70-year-old Indian trust fund mismanagement 
problem. However, the recent turn of events surrounding the Special Trustee's 
resigning under protest over the Secretary's decision to rearrange 
administrative authority over trust funds management is of major concern to 
tribes. The Secretary's actions seem to usurp Congress' intent to provide the 
Special Trustee with more independent authority over trust fund management 
activities. Proper management of Indian Trust Funds continues to elude the 
federal government, even though Congress and the Administration have attempted 
to correct this dysfunction. 
Total reform of the current trust fund 
management system may be the only formidable solution at this point. However, 
legislation introduced in the 105th Congress as H.R. 2732, the Tribal Trust Fund 
Settlement Act of 1998, failed to propose adequate solutions to the 
mismanagement of outstanding trust accounts. This prompted the NCAI General 
Assembly to adopt NCAI Resolution #GRB-98-054 (attached), which opposes H.R. 
2732 and urges Congress and the Administration to meet further with tribes to 
formulate legislation that will fairly and fully compensate tribes for the 
damages they have suffered due to the federal government's mismanagement 
practices over outstanding trust fund accounts. 
NCAI strongly encourages the 
Congress and the Trustee to work more collectively with tribes to find an end to 
these mismanagement practices and begin reconciling outstanding accounts. The 
longer we wait, the more assured it is that the overwhelming amount of 
mismanaged and unidentified trust fund accounts will never be reconciled. 
Therefore, it is in the best interest of all parties that the reconciliation of 
IIM and trust land asset accounts are resolved immediately. NCAI urges Congress 
and the Administration to stay committed, as tribes are, to achieving these 
goals. 
e. Indian Reservation Roads 
Funding for the Indian Reservation 
Road (IRR) program, which funds the construction and maintenance of public roads 
that provide access to and within Indian reservations, Indian trust lands, 
restricted Indian land and Alaska Native villages, is of critical importance to 
Indian Country. On average, only $500 per mile and in some cases as little as 
$80 per mile is available for Indian roads maintenance. In comparison, an 
average of $2,200 is spent on maintaining other federal roads, and an average of 
between $2,500 and $4,00 per mile is spent by states. The BIA has only been 
appropriated $25 million a year for maintenance of all reservation roads in the 
United States. As a result of insufficient funding, many roads in Indian 
communities are not sufficiently maintained and have to be shut down during the 
winter or become impassable other times throughout the year. The deteriorating 
road systems negatively affect the health and economic viability of all tribal 
communities. 
Mr. Chairman, the Congress should fund the IRR program at an 
absolute minimum of $300 million annually, as has been recommended by both the 
tribes and the BIA. This would begin the process of addressing the backlog of 
road construction projects. NCAI also urges Congress to provide $15 to $20 
million annually for Indian reservation bridge construction and repair programs. 
These funds should come from the national bridge repair program and not from the 
IRR allocation. Finally, as a matter of policy, tribes should be provided direct 
access to the various federal discretionary programs, such as scenic by-way 
funding, highway safety, mass transit, and other programs. 
f. Agriculture 
In 1986, the BIA and the Department of Interior were directed to submit to 
the Congress a report on the effectiveness of Federal and tribal agriculture and 
range programs on the national level. This report was developed through direct 
consultation with tribes and was submitted to Congress in September of 1986. The 
"Indian Agriculture Working Group" was established by the BIA consisting of 
tribal representatives with experience in agriculture and ranching. After a 
review of all the national agriculture polices was conducted and hearings were 
concluded, thirty-two recommendations were submitted to the BIA. Subsequently, 
nearly all of these recommendations were included in H.R. 1425, the American 
Indian Agricultural Resource Management Act (AIARMA), which was enacted into law 
as Pub. L. 103- 177. 
The purpose of AIARMA is to require the Secretary of 
the Interior to provide for improved management of Indian agricultural lands by 
working with Indian tribes to carry out numerous programs. AIARMA required that 
an independent assessment of Indian agriculture land management practices be 
conducted as well as final regulations be enacted within 18 months of the law 
being passed; to-date, neither have been completed. Other articles include: a 
preference to Indian operations for issuance and renewal of agricultural leases, 
the establishment of an Indian and Alaska Native agricultural education 
assistance program, and the development of a ten-year agriculture resource 
management plan for each tribe's land. 
The primary purpose of Pub. L. 
103-177 was to establish a policy for the BIA for management of Indian trust 
lands. As a basis for that policy, a need assessment to determine necessary 
budgeting and staffing targets was required. To this date, no assessment has 
been completed. Until this is done, Congress and the Departments will not have a 
clear direction in their responses to the Indian demand of rectifying this 
problem. 
In 1994, the appropriated budget for this Act was $1 million 
dollars, ultimately increasing to $16 million by 1998. To this date, no funds 
have been appropriated for this act. The need for agricultural assistance in 
Indian Country is immense and a land management plan is imperative. Therefore, 
NCAI urges Congress to provide the funds to fully support Pub. L. 103-177. 
In 1996, another essential act was passed. The Food Agriculture Improvement 
Reform Act (Pub. L. 104-127), set forward an opportunity for an Indian borrower 
who is facing foreclosure, to transfer the loan to either the BIA or the 
borrower's respective tribe. Such transfers are not available under the present 
BIA policy. At this time, approximately 60,000 acres of Indian trust lands are 
in danger of being moved out of trust status through foreclosure. To prevent 
this, the regulations under Pub. L. 104-127 must be promulgated immediately. 
NCAI therefore requests that the appropriate actions be taken. 
g. BIA 
General Assistance Program 
The 1996 Interior Appropriations Bill included 
language which capped BIA General Assistance (GA) program expenditures. Such 
inadequate and limited appropriations have forced BIA and tribal social service 
programs to cut caseloads, leaving many potential recipients unserved. The 
enactment of recent welfare reform legislation (Pub. U 104-193) places 
increasing strain on this program. As tribal members exhaust benefit time limits 
in Temporary Assistance for Needy Families (TANF) programs, many urban families 
will return home to their reservation and their family support network. They 
will also apply for GA, as they are no longer eligible to receive TANF. Without 
increased funding, GA cannot serve currently eligible tribal members in 
desperate need of support, let alone accommodate newly eligible recipients. 
For the last several years, the BIA has been in the process of revising 25 
CFR Part 20, "Financial Assistance and Social Service Program," which regulates, 
among other programs, the General Assistance program. In June 1998, the BIA made 
available a working draft of the regulations and met with tribes in Green Bay, 
Wisconsin, for a day and a half to introduce the draft to tribes and to hear 
initial comments. In this forum, tribal leaders and social service directors 
voiced concerns about the dramatic impact the proposed revisions would have on 
tribal communities. Participants strongly objected to the lack of tribal input 
into the draft, the late release of the draft, and the lack of advanced notice 
for the introductory meeting. By far, the most substantial compliant was the 
lack of tribal consultation for regulations which propose to dramatically reduce 
the safety net program, General Assistance, which serves Indian people. 
To 
date, no consultation plans have been released. Tribal communities are greatly 
concerned that the lack of adequate consultation on the part of the BIA will 
lead to a lack of understanding of tribal needs. Tribes anticipate that the 
administration will propose draft regulations that reduce the ability of tribal 
communities to sustain tribal members who are in need. For example, draft 
proposals that would make the General Assistance program unavailable to persons 
who have been sanctioned or terminated from an applicable TANF (Temporary 
Assistance for Needy Families) program for any reason, including an inability to 
find employment, are strongly objected by tribes. 
Tribal communities already 
manage scarce resources and stretch those as far as possible. Further reductions 
in program funding and proposed program restrictions in a recently released 
draft of the revised 25 CFR Part 20 serve to undermine the Congress' intent of 
the General Assistance program and seriously threaten the quality of life in 
tribal communities. NCAI Resolution #GRB-98-003 (attached), calls upon the BIA 
to increase consultation and negotiations with tribal leaders over any proposed 
changes to 25 CFR Part 20, prior to any proposed social service regulations 
being forwarded to the Office of Management and Budget for clearance on 
publication in the Federal Register as a Notice of Proposed Rule Making. 
2. 
Indian Health Service 
a. FY2000 Funding 
After last year's unacceptable 
$2.1 billion budget request for the IHS- a mere 1.9 percent increase - the 
President's FY2000 budget request of $2.8 billion is a step in the right 
direction in supporting tribal health care needs. However, this total includes 
an estimated $39 million in Medicare, Medicaid, and private health insurance 
collections, making the adjusted Administration's request somewhere in the area 
of only $2.412 billion. This adjusted total falls short of the requested minimum 
of $2.62 billion tribal governments advised the Administration and Congress to 
enact, minus any estimated health insurance collections, per NCAI Resolution 
#MRB-98-097 (attached). 
A brief analysis of the President's budget request 
quickly identifies additional funding needs. The IHS reports that currently 
enacted funding levels only serve 36 percent of the projected need for Indian 
health care. Moreover, IHS statistics show a current inflationary rate that will 
require an additional $30 million to compensate for current inflation alone. The 
$400 million in increases to the FY2000 IHS budget listed below will help to 
significantly address outstanding funding needs in areas such as Contract 
Support, medical inflation rates, and program funding shortfalls. NCAI urges 
Congress to increase the President's FY2000 IHS budget in the following 
categories: 
Hospitals and Clinics $76 million 
Contract Health Services 
$33 million 
Contract Health Representatives- $5 million 
Contract Support 
Costs $100 million 
Other Health Service Programs $100 million (including 
Urban, Dental, $100 million Mental Health, Alcohol/Substance Abuse Prevention, 
etc.) 
Facilities $100 million (including Construction, Sanitation and 
Maintenance & Improvement) 
What these requested funding increases mean, 
in real terms, is that thousands of American Indian and Alaska Native people 
will have access to better and more increased health care services including 
hospital admissions, outpatient visits, dental services, mental health and 
social health services, public health nursing home visits, and community health 
representative visits. 
b. Contract Support Costs 
The President's budget 
request includes a $35 million increase in contract support costs associated 
with IHS programs under tribal operation. Based on current levels of 
contracting, such an increase would certainly boost the levels of contract 
support payments to many tribes. But even if inflation is disregarded, it would 
still leave scores of the least funded tribes underfunded in the range of 
between 10 percent and 20 percent, depending upon which of several possible 
methodologies is used to distribute such an increase. (Possible methodologies 
include helping all underfunded tribes cover varying shares of their shortfall, 
as well as methodologies directing all such new funds only to the most severely 
underfunded tribes.) 
At this time, it is unknown whether Congress will lift 
the Section 328 moratorium, in whole or in part. For its part, IHS is now 
actively exploring with Indian Country possible alternatives, including 
approaches which view FY 2000 as a second "transition" or "correction" year in 
which the vast majority of any effort continues to go toward addressing the 
ongoing contract support crisis faced by existing tribal programs. These and 
other reform issues are being actively explored as part of IHS's initiative to 
revise the agency's contract support cost circular for FY 2000 by April 1999. 
As with the BIA shortfall and per NCAI Resolution #MRB-98-036 (attached), 
the NCAI Workgroup on Contract Support Costs has strongly urged Congress to 
fully close the gap in the current IHS shortfall for FY 2000, estimated by IHS 
to be $93.4 million plus unfunded pre-1999 inflation. As part of this effort 
Congress should restore the Indian Self-Determination Fund to at least $12.5 
million in FY 2000, and IHS should immediately begin canvassing Indian Country 
to secure an assessment of new contracting requirements needed for FY 2000 and 
FY 2001. 
c. 
c. 
Contract Health Services 
Contract health is 
an important component of Indian health programs, particularly in areas without 
IHS hospitals, where there is rapid business development, and where there are 
smaller tribes that tend to be contract health services dependent due to a lack 
of clinical services. To highlight the impacts of continued contract health 
funding shortages, the Great Lakes Intertribal Council conducted a Wisconsin 
tribes' study that identified sizable cost shifts to tribes, averaging around 
$400,000 per tribe, per year for contract health services. These shifts equate 
to an approximate 70 percent shortage of federal funding for tribal contract 
health programs. The Wisconsin study also identified $2.6 million in tribal 
contributions per year to cover these cost shifts, an amount equal to the 
funding levels Wisconsin tribes received from the IHS. This snapshot of contract 
health funding shortages in Wisconsin is a good example of the contract health 
funding shortages experienced by tribes in most other areas of Indian Country. 
Vice Chairman Inouye alluded to the concerns over cost shifting contract 
health costs to tribes in his statement on Indian health care issues before this 
Committee on May 21, 1998. Moreover, NCAI Resolution #GRB-98-039 (attached) 
requests that Congress end the impacts of cost shifts to tribes by increasing 
funding for contract health by 70 percent, the amount identified by the FY2000 
Indian Health Service Budget Tribal/IHS Task Force, and encourages further study 
of the issue of cost shifting, particularly for contract health services, by 
Congress and the IHS. 
d. Urban Indian Health 
With nearly half of the 
nation's Indian population living off- reservation in the urban areas of this 
country, the funding needs of urban health clinics continue to grow. The 
President's $3 million increase in Urban Health services is a welcomed 
improvement. Tribal governments continue to share in the duties and 
responsibilities of providing health care for urban Indian individuals in 
conjunction with the federal government. For these reasons it is critical that 
clinical services, whether they are provided by the IHS, tribal governments, or 
urban Indian clinics, continue to receive increased funding to keep pace with 
the ever-increasing needs of service area populations. e. Indian Health Care 
Improvement Fund / Comprehensive Health Emergency Fund 
Under the President's 
$12 million budget proposal for the Indian Health Care Improvement Fund, $4.9 
million will be lost in Special Pay Funding (physician compensation). NCAI 
requests an additional $13 million allocation to this important program, 
allowing IHS hospitals to compete with the private sector in attracting top 
quality physicians. In addition, NCAI Resolution #MRB-98-116 (attached), calls 
upon Congress to increase the regular IHS scholarship appropriation from $9.6 
million to $20.9 million, providing the necessary funding to accommodate an 
additional 432 health professional students in FY2000. NCAI also requests an 
additional $8 million added to the President's $12 million request for the 
Comprehensive Health Emergency Fund, bringing that fund's total up to the level 
requested by tribes to meet the projected need in Indian Country. 
f. IHS 
Medicaid Per Capita Expenditures 
As reported to Congress last year, a 
growing disparity exists between Indian and non-Indian citizens in per capita 
expenditures for Medicaid patients. Current IHS Medicaid statistics reflect a 
$3,300 per capita expense for non-Indians, compared with a $1,400 per capita 
expenditure for Indian patients, a disparity of nearly $2000 less expended on 
Indian Medicaid patients. Per NCAI Resolution #MRB-98-111 (attached), Congress 
is urged to allocate funding levels necessary to close the enormous disparity in 
the per capita amount of health care costs associated with IHS hospital 
facilities throughout the nation, a move that will help balance out the 
inequities between Indian and non- Indian per capita Medicaid expenditures. 
g. IHS Facilities Funding 
Tribes have reported to NCAI that recent 
fiscal year decreases in overall federal funding for IHS Facilities maintenance 
and construction have left facilities struggling to keep pace with the needs of 
their service areas. Old facilities continue to experience the need for major 
improvements, and some service areas have grown to the point of requiring the 
construction of new facilities. NCAI has two resolutions that address IHS 
Facilities funding needs. The first, NCAI Resolution #MRB-98-099 (attached), 
calls upon Congress to funding for the construction, maintenance and 
improvements of health care facilities. The second, NCAI Resolution #MRB-98-015 
(attached), seeks an additional $1.5 million in operating funds for the Lawton 
Hospital in Oklahoma. This funding is necessary to better staff and operate the 
only accessible hospital for several tribes in western Oklahoma. 
Most IHS 
facilities throughout Indian Country require specific, quantified levels of 
funding to operate effectively and efficiently for the patients they serve. Many 
of these facilities, like Lawton, are the only upper-level health care facility 
in close proximity to remote tribal communities. Congress must continue to 
address the growth of tribal health service populations and the health care 
facility funding needs associated with that growth. To abandon this commitment 
will create turmoil and confusion within the regions that tribal, IHS and urban 
health care facilities serve. NCAI urges Congress to support the need for 
increased health care facilities in Indian Country by increasing the President's 
FY2000 budget request for IHS Facilities funding by $100 million. 
Sanitation 
facility needs continue to grow in the more remote parts of Indian Country, and 
especially in Alaska Native villages. With over $1.687 billion in sanitation 
deficiencies identified by the IHS as of FY1998, the President's requested 
increase of $3 million falls short of any realistic commitment to improve tribal 
sanitation services. NCAI urges Congress to appropriate an additional $10 
million in IHS sanitation facilities funding, with $5 million earmarked for the 
Alaska honey-pot eradication project. 
h. Y2K Initiative 
The integrity of 
IHS/Tribal/Urban Indian (ITU) health care information systems are compromised by 
the Year 2000 (Y2K) computer problem. Congress approved funding for FY1999 to 
begin addressing the magnitude of problems surrounding Y2K. NCAI Resolution 
#MRB-98-038 (attached) urges Congress to continue Y2K funding in FY2000, 
allocate a portion of those funds to the Indian Health Service to adequately 
address the number and diversity of ITU health information systems, and direct 
the IHS area offices to conduct full consultation with ITU's over the 
distribution of such funding. 
i. IHS 638 Moratorium 
In FY1998, a 
one-year moratorium on Pub. L. 93-638 contracting and compacting of IHS programs 
was enacted as part of the FY1998 IHS appropriations (Section 326). This 
moratorium was extended through FY1999 as part of last year's IHS appropriations 
law (Section 341). NCAI went on record both years opposing such moratoriums. 
NCAI Resolution #MRB-98-046 (attached) also opposes Section 341 of the FY1999 
IHS Appropriations law as a direct assault on tribal sovereignty by eliminating 
the rights of Alaska tribal governments to contract or compact. This resolution 
also considers the moratorium an impediment to Congress' intent of expanding 
self-determination in Indian Country, and contrary to the 
government-to-government relationship between tribes and the federal government. 
NCAI urges Congress to repeal the IHS "638" moratorium and oppose any 
legislative initiatives that would weaken any tribal authority to contract or 
compact. 
j. Tobacco Settlement 
Tobacco Settlement legislation was a 
major legislative initiative in the 105th Congress which provided significant 
concerns for tribal governments. IHS statistics show that Indian people suffer 
from tobacco related illnesses in far greater numbers, per capita, than any 
other population sector in the United States. Because of this, NCAI's member 
tribes adopted NCAI Resolution #GRB-98-011 (attached) that supports provisions 
which would allocate a fair share of any new taxes or funds resulting from a 
tobacco settlement to the IHS budget. This resolution also calls upon the IHS to 
develop a tribal consultation process for the distribution of funds resulting 
from increase tobacco taxes or tobacco settlement monies, and, in the event that 
funding is directed to state governments only, states would then be required to 
fund tribes at an equitable level for tobacco related illnesses. 
k. 
k. 
IHS Self-Governance Program 
NCAI commends the work of the 
U.S. House of Representatives in last year's passage of H.R. 1833, which would 
establish permanent authorization of the IHS self-governance program. Such 
legislation was developed by tribal self-governance and non-self-governance 
leaders, the IHS and the DHHS policy staff. NCAI Resolution #GRB-98-014 
(attached) formally calls upon the Congress to consider and approve the passage 
of permanent authorization for the IHS self-governance program as quickly as 
possible. 
l. Elevation of the IHS Director 
NCAI Resolution #GRB-98-010 
(attached) also urges Congress to elevate the IHS Director position to that of 
Assistant Secretary within the DHHS. Currently, the Director of the IHS, the top 
administrative official charged with carrying out the federal responsibility for 
Indian health, does not report directly to the DHHS Secretary. NCAI, along with 
tribal leaders and tribal health care professionals feel that in order for the 
IHS to operate efficiently and effectively and have its needs best served by the 
DHHS, that the head of the IHS must be elevated to the level of Assistant 
Secretary. NCAI urges Congress to pass such legislation at the outset of the 
106th Congress. 
m. Tribal Participation in IHS Fiscal Year Budget 
Development 
Along with the $2.62 billion IHS FY2000 funding level request 
mentioned above, NCAI Resolution #MRB-98-097 (attached) charges the NCAI to urge 
Congress to direct the IHS to work collectively with NCAI, tribal governments, 
the National Indian Health Board, the IHS Tribal Self-Governance Advisory Board, 
the National Council on Urban Indian Health, and regional Indian health boards 
to develop an IHS budget that adequately addresses the significant needs in 
health care throughout Indian Country. Quality health care continues to be one 
of Indian Country's top priorities. It is common knowledge that the IHS has been 
historically and grossly under-funded, leading to inadequate medical services, 
facilities and treatment programs within many reservations and urban Indian 
communities. Because of this, Indian people continue to suffer the highest 
levels of chronic diseases, infant mortality, teen suicide and substance abuse 
than any other population sector in the nation. Over 1.5 million American 
Indians and Alaska Natives receive health care services from the IHS. In many 
remote areas of Indian Country, IHS services are the only health care services 
available. As unacceptable as Indian health care statistics were during times of 
enormous federal deficit, such statistics are absolutely unconscionable in times 
when the federal government enjoys a sizable budgetary surplus. Congress is 
urged to substantially increase the IHS budget as a way of improving the status 
of Indian health and meeting the critical rise in projected health care needs 
throughout Indian Country. 
3. National Park Service 
The Native American 
Graves Protection and Repatriation Act (NAGPRA) (Pub. L. 101-601) was signed 
into law to ensure that Native American human remains and sacred objects 
retained by federal, state, and local governments, universities, and the museum 
community, are returned to the appropriate tribes and/or descendants. The law 
also ensures that burial sites on tribal and federal lands are properly 
protected. Since the passage of this law, activities have intensified in a 
number of areas, including the completion of summaries and inventories, as well 
as a variety of successful repatriations. While the process is moving forward, 
many tribes still finding themselves in very tough positions, with very little 
resources and limited staff available to complete the work necessary to properly 
fulfill the mandates of the law. In many cases, government agencies, museums, 
and universities have resources and staff persons available to implement the 
requirements of the law, while tribes must locate qualified staff and develop 
new programs. 
Despite a continual tribal request for NAGPRA related grants 
of $10 million from FY1994 through FY1999, to date, the Administration has 
requested and Congress has appropriated only a fraction of that amount, $2.4 
million. This funding level is far below the projected amount necessary to 
successfully comply with the provisions of the Act and well below the $10 
million level. The protection and return of our ancestors and their sacred 
objects is of vital concern to our member tribes and in order to be equal 
partners in the NAGPRA process, tribal governments must be provided with 
sufficient funding. 
Another law on which many tribes rely for the protection 
of cultural and historic resources is the National Historic Preservation Act 
(NHPA) (Pub. L. 89-665). The National Historic Preservation Act provides one of 
the few legal options available for tribes to protect sites of historic and 
cultural significance. In 1992, NHPA was amended to authorize tribal governments 
to assume the responsibilities of State Historic Preservation Offices (SHPO's). 
The 1992 amendments also include important provisions that apply to federal 
actions that would affect cultural and sacred sites outside reservation 
boundaries. Not only does this language underscore current policy, including the 
President's Executive Order on Sacred Sites (No. 13007), but more importantly, 
the 1992 amendments added a requirement that the federal agencies notify tribal 
governments and invite them to participate in Section 106 consultation if a 
proposed federal action might affect a National Register site that has cultural 
or historic importance to the tribe. 
Currently, there are 17 tribes which 
have signed agreements with the National Park Service regarding assumption of 
SHPO duties since the drafting of agreements began three years ago. This has 
eased the burden on many federal and state agencies, and has also opened the 
door for many tribes to have direct control over the protection and preservation 
of sites that are important to the community. According to the Administration, 
in this year alone, it is expected that at least six more tribes will assume 
SHPO responsibilities. The President's FY2000 request of $2.5 million for 
historic preservation is a positive step. However, the Keepers of the Treasures 
recently reported to the Administration and Congress that the needs of tribal 
governments exceed $10 million. In order to preserve the vast history and 
cultural traditions of our people, NCAI calls upon Congress to fulfill its 
duties to Indian people and appropriate the additional funding requested, which 
is necessary to protect these invaluable cultural resources. 
4. Institute of 
American Indian Art 
The Institute of American Indian Art (IAIA) is a 
national fine arts college devoted solely to the teachings and preservation of 
American Indian and Alaska Native arts and culture. Since its inception in 1962, 
the Institute of American Indian Art (IAIA) has educated over 4,000 American 
Indian and Alaska Native students. NCAI is cognizant of the positive impact the 
IAIA has on the recognition of American Indian and Alaska Native cultures via 
the arts, and is strongly committed to the continuance, preservation and 
enrichment of the IAIA. 
The President's FY2000 budget request calls for 
$4.25 million for the IAIA, a $50,000 reduction from the current enacted level 
of $4.3 million. Concerns continue to mount over what seems to be a decrease in 
Administrative support for the IAIA. Tribal leaders have voiced opposition to 
any efforts which may seek to further reduce federal funding for the IAIA, a 
move that would truly hurt Indian Country's efforts to preserve a significant 
part of its cultural identity. As directed by NCAI Resolution #SFE-97-049 
(attached), NCAI strongly opposes any IAIA funding decrease and encourages 
Congress to continue its support for the IAIA by considering the current enacted 
funding level as an appropriation minimum for FY2000. 
B. DEPARTMENT OF 
HOUSING AND URBAN DEVELOPMENT 
The Department of Housing and Urban 
Development (HU D) FY2000 budget request for the Indian Housing Block Grant 
Program remains at the FY1999 enacted level of $620 million. The National 
American Indian Housing Council (NAIHC) has determined that the base funding 
required to begin to address the housing shortage in American Indian communities 
is $972 million. 
The National Rule Making Committee under the Native 
American Housing Assistance and Self-Determination Act (NAHASDA) (Pub L. 
104-330) has estimated a funding projection of $620 million; a request of this 
amount simply perpetuates the funding inadequacies affecting American Indians 
today. Currently, 40 percent of Indian reservation housing is considered 
substandard; this is in stark contrast to the national substandard housing rate 
of 5.9 percent. This disparity translates to an inadequate housing ratio of over 
6:1. Despite Secretary Cuomo's recent comments on the state of Indian housing 
and HUD's overall proposed budget increase of $2.5 million, no additional money 
for new Indian housing was considered. 
There is an estimated 200,000 
homes that are considered of inadequate and/or substandard condition on Indian 
reservations. For this reason, NCAI requests an additional $352 million to meet 
the total need of $972 million, including $32 million to be set aside for Title 
VI, a program which establishes Loan Guaranteed Subsidies to offer alternative 
financing and opportunities for Indian Tribes. This enables tribes to establish 
partnerships with the private sector and other financial institutions. An 
additional $6 million is requested for the Section 184 Loan Guarantee Program to 
be set aside for individual mortgage guarantees. 
C. DEPARTMENT OF JUSTICE 
There is a sharp contrast in public safety on Indian reservations verses the 
rest of the United States. According to a recent report completed by the Justice 
Department, American Indians are victims of violent crimes at nearly twice the 
rate of the all Americans.2 From 1992 through 1996 the average annual rate of 
violent victimizations among Indians 12 years and older was 124 per 1,000 
residents, compared with 61 for African Americans, 49 for whites, and 29 for 
Asians. This disparity in the rates of violence affecting American Indians 
occurs across age groups, housing locations, income groups, and sexes. American 
Indians are also more likely than people of other races to experience violence 
at the hands of someone of a different race, and the criminal victimizer is more 
likely to have consumed alcohol preceding the offense. 
Unfortunately, many 
of these violent crimes remain not only unsolved, but not even investigated, due 
to a lack of law enforcement resources. For most Native Americans, the level of 
law enforcement services that many Americans take for granted rarely exists on 
or near Indian lands. According to the FBI's Uniform Crime Report, there are 2.9 
police officers per 1,000 citizens in non-Indian communities, while on Indian 
reservations there are 1.3 officers per 1,000 citizens. Only 1,600 BIA and 
tribal uniformed officers are available to serve an estimated 1.4 million 
Indians living on or near Indian reservations. There are only 70 jails located 
within Indian reservations and only 10 are suitable for juveniles. Most of these 
facilities are in deplorable and unsafe conditions. 
Pursuant to the federal 
trust responsibility, the United States has an obligation to maintain public 
safety and criminal justice in Indian Country by supporting tribal law 
enforcement and justice systems. With the current public safety crisis in Indian 
Country, President Clinton has directed the Attorney General and the Secretary 
of the Interior to consult with Indian tribes in developing mechanisms to better 
enable the United States to accomplish its responsibility. During this 
consultation process, tribal leaders and law enforcement officials unanimously 
identified inadequate funding as a primary cause of the increase in violent 
crime in Indian Country. 
NCAI fully supports the President's $144 million 
request to fund this "multi-year" joint Department of Justice (DOJ) and 
Department of Interior (DOI) initiative to fight crime and bolster judicial 
systems in Indian Country. The $124 million in new and redirected DOJ funding 
and the $20 million in additional DOI law enforcement funding will go far in 
addressing the current public safety crisis on tribal lands. NCAI fully endorses 
the Administration's commitment to increasing the number of police officers and 
improving the quality of detention facilities in Indian Country through 
anti-crime grants to Indian governments and supports the following requests: 
1. In the U.S. Attorneys Office, $3.2 million and 26 positions in additional 
resources will support an initiative to augment current investigative and 
prosecutorial efforts in Indian Country. 
2. In the Office of Justice 
Programs, NCAI also welcomes the $10 million in Drug Testing and Intervention 
Program funds for grants to tribal governments. This funding will help tribes 
develop and implement comprehensive systems to combat alcohol and substance 
abuse in Indian Country. 
3. $5 million in Tribal Courts Program funds will 
help to assist tribal governments in the development, enhancement, and 
continuing operation of tribal juvenile justice systems. 
4. $20 million in 
Title V Grants for Local Delinquency Prevention will serve Indian youth by 
developing, enhancing, and supporting tribal juvenile justice systems. 
5. 
$34 million in State Correctional Facilities Grant Program funds will help to 
construct or expand adult and juvenile correctional facilities and jails in 
Indian Country. 
6. $2 million will provide for important tribal criminal 
statistics collection. 
7. $5 million in Police Corps Program funding will 
provide advanced educational opportunities for police in Indian Country. 
8. 
In the Community Oriented Policing Service (COPS), $45 million in COPS Public 
Safety and Community Policing Grants Program funding will be for additional law 
enforcement officers, equipment, and training. Mr. Chairman, the Office of 
Tribal Justice and the Office of Justice Programs both serve Indian Country in 
many ways, most notably, through the multitude of grant programs that have 
recently been extended to tribal governments. These grant programs cover areas 
such as Corrections Programs, Drug Courts, Violence Against Women, Domestic 
Violence, Child Victimization Enforcement, and Juvenile Justice and Delinquency 
Prevention, just to name a few. Although some discretionary grant programs 
provide funding for tribal needs, such as the STOP Violence Against Women 
Discretionary Grant Program's four percent set-aside for tribes and tribal 
organizations, there are many other programs that do not. We urge Congress to 
consider similar direct funding initiatives for all programs that have a 
significant impact on tribal governments. Further, we ask that at a minimum that 
the President's budget request for OTJ and related programs be maintained. 
D. DEPARTMENT OF EDUCATION 
For FY2000, the Department of Education has 
requested $77 million of Indian education. This request will allow the 
Department's Office of Indian Education (OIE) to fund formula grants to Local 
Education Agencies (LEAs), restore certain discretionary funding for OIE and 
national research activities through the Department's National Center for 
Education Statistics (NCES). NCAI fully supports this funding for OIE as it 
promotes the President's education initiatives. The following are NCAI's 
recommendations regarding OIE funding by category: 
1. Formula Grants to 
LEAs. For FY2000, $62 million is requested OIE's formula grant program to public 
schools. The Department estimates that this funding assists 461,000 Indian 
students attending public schools and over 5,000 students attending BIA schools 
for a total of 466,000. 
2. Special Programs for Indian Children. NCIA fully 
endorses the Department's effort to restore discretionary funding for certain 
OIE programs. The $13.3 million request includes $3.3 million for the Special 
Programs for Indian Children and $10 million for a new American Indian Teacher 
Corps which would focus on the need to increase the number of qualified Indian 
teacher in the field. NCAI fully supports President Clinton's new centerpiece to 
recruit and train 1,000 new Indian teachers over a five year period who will 
then teach in schools with high concentrations of Indian students. Of the 
Nation's more than two million elementary and secondary teachers, less than one 
percent are American Indian or Alaska Native. The lack of role models has 
contributed to the disproportionately high drop out rates and low academic 
achievement rates of Indian students. Overall, the Special Programs account, if 
funded, would continue the following two initiatives: 1) demonstration grants 
for early childhood and preschool education; and 2) preparation of Indians to 
take positions in teaching and school administration. 
3. Special Programs 
for Indian Adults. Since 1996, this program has received no funding. NCAI 
requests that $5 million be appropriated for this discretionary program devoted 
to increasing the educational skills of Indian adults. 
4. National 
Activities. NCAI supports the Administration requests of $1.7 million to augment 
the Year 2000 National Center for Education Statistics (NCES) Schools and 
Staffing Survey (SASS) and other research initiatives. The data collection 
effort would ensure that American Indian students are included in upcoming NCES 
surveys that will yield additional information on American Indian learners. 
5. Tribal College Executive Order. 
At the release of the 
Department's budget, no numbers were available for funding recommendations for 
the Tribal Colleges Executive Order which was funded in FY1998 at $200,000. NCAI 
has been informed by the Department that other agencies will have their 
resources combined for the order's implementation. 
6. The National Advisory 
Council on Indian Education (NACIE). Over the past two years, NACIE has be 
funded at $50,000 to carry out its congressionally mandated role as a 
Departmental advisor for Indian Education. Although this funding allows for the 
two required meetings per year, the fifteen-member presidentially-appointed 
board has no permanent office and must rely on OIE staff to carry out minimal 
functions. NCAI is concerned that the Administration's request would neglect the 
inclusion of one of its own commissions, particularly in its obvious concern for 
Indian education. Therefore, NCAI request that $500,000 be appropriated for 
NACIE in light of their increased advisory role in the implementation of the 
Indian Education Executive Order signed by President Clinton in August, 1998. 
7. OIE Fellowship Program. This program was last funded in FY1996 and 
represented a broad, non-targeted approach to ensuring Indian students 
participated in post-secondary education. At its peak, the program allowed 
approximately 150 Indian students annually to attend higher education 
institutions in fields as diverse as education to medical school. Although there 
has been increases in education funding, the American Indian higher education 
community has not been as fortunate. Complicating the situation is the fact that 
funding for higher education scholarships, at both the undergraduate and 
graduate levels through the Bureau of Indian Affairs and the Indian Health 
Service, have been cut over 50 percent since 1996. NCAI recommends that the 
fellowship program be funded at $5 million. 
E. DEPARTMENT OF HEALTH AND 
HUMAN SERVICES 
1. Administration for Native Americans 
a. ANA Program 
Overview 
ANA administers its basic grant program in four distinct 
categories, including: 1) the Social and Economic Development Strategies program 
(SEDS); 2) an Alaska specific SEDS program primarily geared to governance; 3) an 
environmental regulatory enhancement program focused on tribal capacity 
building; and, 4) the native language program to preserve and revitalize native 
languages. The SEDS program includes a wide range of governance projects 
allowing for tribal constitution revisions and codes/ordinance development, 
social projects that are based on maintaining and fostering cultural traditions, 
and economic development projects covering a wide range of areas. 
ANA 
economic development projects include not only the development of new 
enterprises but also the expansion of existing successful businesses. The 
majority of economic development projects are planning grants for architectural 
and engineering costs or grants that provide for economic development 
infrastructure (i.e. codes/ordinances development and creation of enterprise 
boards). 
b. New ANA Initiatives 
In FY1999, ANA began requiring a 401-(k) 
retirement plan for approved applicants funded by ANA. As a part of the fringe 
benefits package provided by the tribe to employees under the ANA project, ANA 
will fund at least five percent of the employer's share. This initiative will 
assist in creating a positive and viable retirement system in Indian Country and 
has received support from a sampling of tribes. 
ANA has also leveraged an 
additional $1 million in ANA funding along with $1 million from the state of 
Hawaii for a total of $2 million awarded in grants under the Native Hawaiian 
SEDS specific program. This program will assist Native Hawaiian communities in 
meeting their unique social and economic development goals. 
c. Impediments 
to ANA Program Grant Expansion 
ANA has been at level funding at 35 million 
dollars since 1995. In real terms this means that ANA has lost 20 percent of 
program dollars due to the inability of the budget to keep pace with inflation. 
Under current budgetary conditions, the ANA can fund only about 25 percent of 
the grant applications submitted for each program. ANA could, however, fund many 
more grants if funding were available. In FY 1998, for example, ANA received 549 
applications but was only able to award 188 new starts. 
Since 1994, ANA has 
also lost 50 percent of its staffing. Of this total, one third has taken place 
in the current fiscal year. ANA has gone from 33.5 FTE to 16 FTE since 1994. In 
keeping with Native American preference in hiring, ANA planned on hiring Native 
Americans in those vacancies that were lost. However, budgetary reductions have 
stymied that goal. Staff cuts have also negatively impacted the ANA workload 
both in terms of customer service and necessary monitoring and analytical work 
on grant awards. FTE reductions have also impacted the mission of the 
Intra-Departmental Council on Native American Affairs, chaired by the ANA 
Commissioner. 
Through its Native American program assistance, the ANA has 
moved many tribal and Native programs from dependency on federal services, or 
operating federally-mandated programs, to developing and implementing their own 
discrete projects. ANA continues to serve a large and diverse base of Native 
American communities and organizations, many of which have little in the way of 
resources and lack sustainable economic development opportunities. NCAI urges 
Congress to increase the President's FY2000 budget request of $35 million for 
this agency to allow for increased grant awards and additional ANA staff. In 
doing so, Congress will show its support for the tribal self-sufficiency goals 
promoted by the ANA. 
2. Administration for Children and Families 
Within 
the Administration for Children and Families lies a host of Agencies, Bureaus 
and Divisions that regulate social service programs which are critically needed 
in Indian Country. Unfortunately, access to these programs and services is 
extremely limited, with tribal resources and consultation measuring only a 
fraction of what is provided to states and other non-tribal government entities. 
Agencies established for the purpose of serving tribal governments suffer the 
same dilemmas as tribes- i.e., the Division of Tribal Services (DTS), 
established under the DHHS/ACF to fulfill the requirements of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA, Pub. L. 
104-193). 
The President's FY2000 budget request again fails to provide the 
Division of Tribal Services (DTS) its own discretionary program authorization 
and budgetary line-item. Because of this, the DTS continues to be forced to 
borrow scarce resources from other agency programs in order to provide services 
to tribal governments in the areas of Temporary Services for Needy Families 
(TANF) and Native Employment Works (NEW) programs. The ACF has tried to provide 
necessary funding to carry-out these duties, but it has become more and more 
obvious that without line-item funding authorization for the DTS, the 
ever-increasing needs of Indian tribes surrounding these social support programs 
will not be met. 
NCAI again urges Congress to immediately authorize for 
FY2000, an initial $10 million budgetary line-item for the DTS. As part of this 
authorization, NCAI again asks Congress to expand the DTS responsibilities 
beyond just TANF and NEW, to include social support related tribal services 
under the ACF including child care, child support and enforcement, and child 
protection services. Creating a more streamlined approach to serving tribal 
government social support program needs will benefit all parties involved in 
providing, obtaining and accounting for these services. NCAI also calls upon 
Congress to hold oversight hearing on welfare reform's impacts on Indian 
country. In this way, tribal leaders can report directly to Congress on their 
needs, goals and objectives surrounding the conversion of tribal cash assistance 
populations into tribal workforce populations.Tribal governments have passed a 
series of NCAI resolutions pertaining to the lack of direct programs, services, 
and funding authority within the ACF. Most are tribal TANF specific, but others 
cover children's issues, disabilities, etc. The following is a brief description 
of these resolutions. When welfare reform was enacted, provisions in the law 
called for state and tribal TANF grant funding levels to be based on FY1994 AFDC 
enrollment figures of those state and tribal populations. It was quickly 
apparent that accurate data from state AFDC programs did not identify Indian 
AFDC recipients from non-Indian recipients. Additionally, many tribes who chose 
to operate tribal TANF programs soon realized that their TANF caseloads were far 
exceeding the estimated FY1994 caseload numbers. 
To formally address 
this issue, NCAI Resolution GRB-98-021, calls upon Congress to amend the PRWORA 
to allow tribes the option of basing their TANF grant funding level formula 
either upon: (1) FY1994 AFDC enrollment levels, (2) the level of actual 
enrollments based on a tribe's experience in the first year of operating its 
TANF program, or (3) the current level of actual enrollment. In this way, tribes 
will be assured that they will receive appropriate funding levels to effectively 
administer their TANF programs. 
Many tribal communities are located in 
remote areas, with little in the way of public transportation services, creating 
very limited access to welfare-related support services and programs not 
directly administered by a TANF agent. Such programs may include Medicaid 
services, the Food Stamp program and others. To help consolidate these program 
and service deliveries, NCAI Resolution GRB-98-046 calls upon Congress to create 
a one-stop shop option for tribal TANF offices wishing to provide other support 
services not directly related to TANF for their eligible members and service 
area populations. This one-stop shop concept would allow Indian people to 
receive such services as Food Stamps from their TANF office, along with having 
their eligibility determined for programs such as Medicaid. 
Consultation 
with tribal governments over federal Indian program regulations have always been 
minimal outside of the traditional BIA/IHS regulatory arena. Such lack of 
consultation has been the experience of tribes with the promulgation of tribal 
TANF regulations. This runs counter to the President's Executive Order No. 
13084, which calls for increased direct consultation between tribal governments 
and the federal government over issues such as regulatory development. Because 
of this lack of consultation with tribes over the tribal TANF Notice of Proposed 
Rule Making (NPRM), NCAI Resolution MRB-98-057 calls upon the Administration to 
suspend the promulgation process until tribes have been consulted with in a 
manner mutually agreed upon by tribes and the NCAI. NCAI Resolution MRB-98059, 
also highlights specific changes to the current tribal TANF NPRM requested by 
tribes. We ask Congress to support these tribal positions by directing the 
Administration to seek further consultation with tribes over any further tribal 
TANF regulatory process as well as any other federal regulatory processes that 
directly impacts tribal programs and services. 
In regard to the development 
of tribal Child Support and Enforcement programs, the PRWORA authorizes tribal 
government to apply for direct funding over an entire tribally-operated Office 
of Child Support and Enforcement (OCSE) program, or direct funding for OCSE 
program functions carried out by the tribe as part of a cooperative agreement 
with the state over child support enforcement activities. However, the OCSE has 
stated to tribes that they would not authorize any direct tribal OCSE funding 
until after regulations over such tribal program functions are promulgated. NCAI 
Resolution MRB-98-067 requests the OCSE provide funding prior to a final rule 
being promulgated so that tribes can immediately begin building the 
infrastructure and technological base to operate such a complex program. NCAI 
urges Congress to direct the OCSE to adhere to the request of tribal governments 
under this resolution. 
Our disabled Native American population continues to 
suffer from a lack of attention by the Congress and the Administration. 
Disability cases in Indian country far exceed those in other population sectors 
on a per capita basis, with many being disabled veterans. NCAI wishes to 
highlight three resolutions that speak to the needs of our disabled people. 
First, NCAI Resolution GRB-98-042, calls upon Congress to work with the 
Administration, and specifically, the National Institute on Disability 
Rehabilitative Research (NIDRR), the U.S. Department of Justice (DOJ), the 
Rehabilitation Services Administration (RSA) and the Administration on Children 
and Families (ACF) to establish and fund an American Indian Americans with 
Disabilities Act (ADA) Technical Assistance Center to serve American Indians and 
Alaska Natives, respectful of tribal sovereignty and cultural diversity. 
Second, NCAI Resolution GRB-980-043, urges the NIDRR to meet tribal needs 
for assistance with persons with disabilities by funding no less than three 
Research and Training Centers (RTC's) to work with tribal people and their 
governments, both on and off the reservation, in health, rehabilitation, and 
employment issues. NCAI urges Congress to direct the NIDRR to comply with the 
requests identified in this resolution. 
Finally, NCAI Resolution GRB-98-050, 
calls for the support of a National Wheelchair Recycling Project, similar to a 
model project in Wisconsin. This project takes used wheelchairs destined for 
scrap and refurbishes them for additional use. In addition, this project 
provides a collective benefit for environmental protection, community services, 
assistance for disabled persons, and a venue for volunteer accomplishments. NCAI 
urges the Congress to support such noble concepts which provide mobility with 
dignity to temporary or permanently disabled Native Americans throughout Indian 
Country. 
Many tribal communities continue to suffer from a lack of adequate 
infrastructure, economic development and other community improvement factors 
necessary to properly administer their own welfare reform programs. In order to 
achieve these community development goals, tribes must have adequate funding for 
economic development, technical assistance, data collection, construction, job 
training, children and family support services, housing, transportation, alcohol 
and substance abuse programs and tribal enforcement plans. If federal support is 
not offered to help tribes create jobs, sustainable economies and community well 
being, welfare reform may lead to forced relocation, or even starvation, for 
many Native American families. 
3. Administration on Aging 
Three 
provisions under the purview of the Administration on Aging, authorized in the 
Older Americans Act (Pub. L. 89-73, as amended), are of special importance to 
Native American elders. The first is aging grants for Native Americans 
authorized in Title VI of the Older Americans Act. The purpose of this program 
is to promote the delivery of supportive services, including nutrition services, 
to older American Indians, Alaska Natives, and Native Hawaiians. NCAI requests 
that the full $30 million authorized for Title VI be appropriated in FY2000. 
Funding of this program provides key "front-line" services for 229 programs 
serving reservation elders, including congregate and home-delivered meals, 
transportation, and a wide variety of other services. 
The second provision 
is Aging Research and Training, also authorized in Title IV. Activities 
supported under this program have helped organizations such as the National 
Indian Council On Aging (NICOA) gather knowledge about the problems and needs of 
Indian elders, and design and test innovative approaches to meet the needs of 
this rapidly-increasing population. Additionally, funds from this program have 
historically provided training funds for Title VI program directors. For FY2000, 
NCAI requests an appropriation of $630,000 with at least $130,000 earmarked for 
a continuing grant to NICOA to gather information on Indian elders and to 
quantify their needs. The remaining $500,000 should be directed to grants for 
training Title VI service providers to better serve Indian elders. 
The third 
provision is Ombudsman/elder abuse prevention authorized in Title VII: 
Allotments for Vulnerable Elder Rights Protection Activities, Subtitle B: Native 
American Organization Provisions. Subtitle B was intended to assist in 
prioritizing elder rights issues and carrying out elder rights protection 
activities in Indian Country. With deteriorating economic and social conditions 
in many Indian communities, elder abuse is on the rise. Prevention programs for 
tribes are desperately needed-yet no funds have ever been provided for Subtitle 
B, despite an authorization level of $5 million. State programs currently 
receive $4.5 million for ombudsman services and $4.7 million for prevention of 
elder abuse programs. However, these programs seldom, if ever, reach Indian 
Country. Mr. Chairman, we request that the full $5 million be appropriated in 
FY2000 specifically for tribal programs as authorized in Subtitle B of Title 
VII. 
During the coming year, Congress is expected to take action on a number 
of policy issues that will greatly impact Indian elders. Three of the more 
critical issues to be debated include reauthorization of the Older Americans Act 
(OAA) and the Indian Health Care Improvement Act; as well as the 
Administration's proposal to establish a National Family Caregiving Support 
Program, which has been included in Senator Daschle's bill, S. 10, to 
reauthorize the OAA. NCAI takes the following positions on these three issues. 
First, the Older Americans Act was last reauthorized in 1992, with 
reauthorization long overdue. While appropriations for OAA programs can and do 
occur without reauthorization, programs serving Indian elders are at risk as the 
supply of discretionary funds dwindle. For this reason, reauthorization without 
major changes to existing targeting language is critical. 
Second, 
numerous provisions in the Indian Health Care Improvement Act will require 
significant modification to better serve Indian elders. When hearings are 
scheduled for this purpose, the NCAI would like to voice its suggestions for 
amendments. 
Third, the Administration's proposal for assistance to family 
care givers directs a large majority of the resources directly to states through 
the OAA. Unfortunately, as proposed, it does not direct any portion of these 
funds to Indian Country through the existing OAA mechanism-the Title VI program- 
or directly to tribes. When these issues are heard, the NCAI would welcome the 
opportunity to suggest ways to ensure that Indian care givers can also receive 
adequate support. 
Without exception, our tribal cultures teach us to honor 
and respect Indian elders so that our elders-the living expression of our 
heritage and highest values-can be teachers to us and to our children. We urge 
Congress to honor this mandate by providing adequate funding for those programs 
that impact Indian elders, to reauthorize the Older Americans and Indian Health 
Care Improvement Acts, and to ensure that Indian care givers are adequately 
recognized in any care giving assistance legislation. 
4. Health Care 
Financing Administration 
Indian Country has become increasingly aware of the 
impacts that major entitlement programs such as Medicaid, Medicare and the 
Children's Health Insurance Program (CHIP) have on their communities. Because of 
this, NCAI urges Congress to consider establishing direct tribal programs under 
the Health Care Financing Administration (HCFA), improve tribal access to 
existing HCFA programs, and mandate a significant increase in consultation 
between tribes and the HCFA over such program and service entitlements. 
As 
highlighted above in our discussion on the IHS budget, a growing disparity 
exists between Indian and non-Indian citizens in per capita expenditures for 
Medicaid patients. We believe similar funding disparities exist for Medicare and 
are starting to emerge for the new CHIP program. In spite of these recent 
trends, recent statistics from the California Rural Indian Health Board and the 
Oneida Tribe of Wisconsin show a very low enrollment of American Indian and 
Alaska Native children in the CHIP program. The Balanced Budget Act of 1997, 
which created the CHIP program, and current HCFA consultation on the 
implementation of CHIP require state child health plans to prescribe procedures 
for the delivery of health care services to Indian children. As stated in NCAI 
Resolution #MRB-98093 (attached), we must find ways to appropriately address the 
underlying reasons for these funding disparities and ensure that Indian people 
who are eligible for these programs can benefit from them. Moreover; Congress 
must focus on creating equitable funding streams from these important third 
party resources to the IHS/Tribal/Urban Indian (ITU's) health care entities that 
serve CHIP eligible Indian children. 
There are a number of reasons that may 
help explain why these disparities exist and provide clues to how we might begin 
to overcome them. Many Indian people who would meet the eligibility criteria for 
these programs don't complete the application process, despite efforts by ITU's 
to encourage them to do so. For many, lack of transportation to distant 
eligibility offices, confusion about complex applications and documentation 
requirements, and inhospitable or culturally insensitive treatment by 
eligibility workers are barriers. These barriers could be overcome by providing 
funds for transportation and assistance with application and documentation 
processes and/or hiring and training more tribal members to serve as 
out-stationed eligibility workers in their own communities. These approaches 
would increase outreach, provide explanations of program requirements and 
benefits to tribal members, and assist applicants in navigating the eligibility 
determination process. 
Certain financial requirements present more difficult 
barriers for Indian people in accessing these programs. Medicare requires 
payment of monthly premiums and certain deductibles and co-payments. While 
standard Medicaid programs do not require premiums, a number of Statewide 
Medicaid demonstration programs do impose premiums for some people; both 
standard and demonstration programs in some States impose co-payments for 
certain services. A number of State CHIP programs also impose premium and cost 
sharing requirements. Indian people receive IHS-funded services without such 
requirements in recognition of the Federal trust responsibility for the health, 
safety, and welfare of Indian people. To charge premiums or establish cost 
sharing mandates on the delivery of health care to Indian people is offensive 
and inconsistent with their belief that health care is a prepaid treaty right. 
Section 404 of the Indian Health Care Improvement Act (IHCIA) already offers 
a means to address most of these problems by authorizing grants and contracts 
with tribal organizations. While an earlier version of the law authorized 
several million dollars between FY1981 through FY1984, funds were never 
appropriated and the specific funding authorization amounts were later struck 
rather than continued. NCAI urges Congress to re-establish funding streams under 
the IHCIA as a cost-effective way to maximize third party coverage and 
collections. 
Funding disparities arise not only from the difficulties ITU's 
face in enrolling Indian people in Medicare, Medicaid, and CHIP, but from other 
causes, including outdated limits for Medicare reimbursements for I HS and 
tribal health facilities. Other Medicare-covered services, such as those 
provided by freestanding clinics or by physicians and other practitioners have 
become increasingly important in Indian health, as in other health care systems, 
where there is increased emphasis on more cost-effective outpatient care. 
However, such services non- reimbursable to IHS clinics and physicians - a 
situation that Congress could easily be corrected this year in the 
reauthorization of the IHCIA.The growing prevalence of managed care in the U.S. 
health care system generally, and in Medicare, Medicaid, and CHIP, present 
special challenges for Indian people and the ITU's that serve them. Long before 
the term became popular in its current usage, Indian health programs were 
managing care. Due to widespread serious health conditions and limited funds, 
ITU's have long recognized and practiced early intervention, preventive care, 
case management, and pre-authorization of selective referrals for specialty care 
- all hallmarks of managed health care. 
Despite their expertise in managing 
health care services and costs, ITU's find it difficult to fit into the emerging 
managed care networks that are becoming increasingly common in Medicare, 
Medicaid, CHIP, and the private health insurance industry. Such networks may be 
unfamiliar with, or unreceptive to, the special characteristics and needs of the 
Indian health system. Some managed care systems recruit and enroll Indian people 
but refuse to reimburse ITU's for covered services if the Indian person went 
directly to the ITU provider they have used for years, without going through the 
new managed care gatekeeper first. Case management is often done by a managed 
care organization, unfamiliar with Indian beneficiaries' medical history and 
cultural context. Reimbursement to ITU's, when is provided at all, is often 
inadequate to cover the cost of care. 
The historic Balanced Budget Act of 
1997 recognized some of these difficulties by exempting Indian people from the 
requirement that they be enrolled in the new Medicaid managed care State plan 
process unless there were an ITU participating in the process. However, the same 
protection was not extended to Medicaid managed care under the existing waiver 
processes, nor to managed care under Medicare or CHIP. Managed care is clearly 
the wave of the future. Exempting Indian people and health care providers may 
provide some short term relief, but in the long run, such an approach may simply 
produce the unintended result of leaving the Indian health system without the 
means to effectively participate and receive compensation from many public and 
private third party billing and collection systems. 
We must look for 
innovative ways to build on the strengths of Indian health providers in managing 
culturally appropriate health care in ways that fit into emerging managed care 
networks. For example, Congress may examine the possibility of managed care 
organizations contracting with ITU's to perform gatekeeper and case management 
functions for Indian beneficiaries. Another option might be to explore the use 
of risk-adjusted reimbursement rates for ITU's as a way to cope with costly 
health care conditions connected with many of the beneficiaries they serve. In 
this way, cost overruns created from insufficient reimbursement rates developed 
on an average beneficiaries health care profile, a formula that does not account 
for extensive health care conditions, could be absorbed more easily. 
Congressional funding for research and demonstration projects like those eluded 
to above would be an appropriate way to begin addressing the concerns over 
health care delivery funding disparities in Indian Country. 
Another primary 
reason for funding disparities may be the lack of long term care services in 
Indian Country. Long term care accounts for a large and growing part of Medicaid 
expenditures. 
There is a growing need for such services by Indian 
people; Indian elders are finally living long enough to need such care. However, 
providing needed long-term care to the elderly is growing increasingly complex. 
Relatives are increasingly unavailable to care for elders because they must work 
outside the home. IHS funding can only provide limited home health care through 
nurses and contract health representatives with no funding available for nursing 
homes or assisted living services, and tribally or privately operated nursing 
homes and assisted living facilities are scarce and costly to build and operate. 
We are pleased that the President has chosen to focus more attention on long 
term care issues in recent years. However, proposals to date, such as the tax 
credit and long term care insurance, are likely to provide little help to meet 
the needs of the predominantly lower income population in Indian Country. We 
must have a comprehensive examination of the unmet needs and caregiving 
circumstances in order to develop appropriate, cost-effective solutions. The 
National Indian Council on Aging (NICOA) is beginning to develop such a study on 
long- term care in Indian Country. NCAI urges Congress to support such endeavors 
and use the knowledge gained from these studies to justify increased funding in 
the area of long-term health care programs for Indian people. 
In order to 
reduce the disparities in health care spending we must address the barriers 
noted above and others yet to be identified. NCAI cannot do so alone. For that 
reason, we were encouraged to hear the DHHS Secretary and the HCFA 
Administrator, address the NCAI 1999 Executive Council Winter Session and pledge 
greater consultation with Indian Country as well as a commitment to act upon 
what they hear. We also look forward to the Secretary's invitation for tribal 
leaders to join in developing future DHHS budgets, beginning this Spring with 
the FY2001 budget process. We have participated in the development of recent IHS 
budgets and welcome the opportunity to extend this process to the rest of the 
Department. NCAI encourages Congress to direct all cabinet-level departments and 
their agencies within the federal government to increase tribal access to the 
development of future administrative budgets. 
It is important to 
institutionalize mechanisms to make the government to government relationship 
real and enduring in meaningful ways. State and local governments and their 
representative organizations have long enjoyed recognition and procedures to 
facilitate their regular input into the policies, operations, and proposals of 
the Executive Branch. We request that DHHS address our current resolutions, 
including NCAI Resolution #MRB-98037 (attached), which calls for Tribal 
consultation on proposed Medicare reforms; NCAI Resolution #MRB-98-093 
(attached), which calls for use of a portion of national CHIP outreach funds to 
be used for Indian populations and having States provide copies of CHIP plans to 
tribes; NCAI Resolution #MRB-98-062A (attached), which opposes any Congressional 
reduction in Medicaid appropriations as part of any fiscal year budget 
resolution, and NCAI Resolution #GRB-98-046 (attached), which, among other 
things, calls for the DHHS to develop, with tribes, a plan that allows tribes to 
determine Medicaid eligibility for tribal member Medicaid beneficiaries. 
We 
appreciate the DHHS issuing a consultation plan and DHHS staff efforts to begin 
consultation discussions. We are also encouraged by the HCFA regional office 
efforts on consultation with tribes in their states and in their willingness to 
facilitate some Tribal/State dialogues. In conjunction with NCAI Resolution 
#MRB-98-093 (attached), we are especially pleased with DHHS' plans to consult 
with tribes on the implementation of state CHIP plans and the state mandate to 
describe CHIP accessibility to eligible Indian children through HCFA regional 
office consultation this spring. We also need to extend consultation beyond 
regional tribal matters to develop a mechanism to address national policy 
concerns in a regular and timely way. 
We also appreciate the Administrator's 
recognition that it is important not just to listen but to do, to act on what is 
heard. In this regard, we are aware that HCFA provides resources to support 
regular national meetings with state Medicaid directors, as a whole, a smaller 
executive group, and through ongoing HCFA/State technical assistance groups that 
work on various issues. We would like to explore with HCFA how NCAI might 
jointly design a similar process for regular HCFA interaction with tribal 
governments to address the disparity issues noted above, as well as other 
emerging national policy issues of mutual concern. 
Mr. Chairman, as 
previously stated to this Committee on May 21, 1998, during an oversight hearing 
on the unmet health care needs in Indian Country, NCAI urges Congress to fulfill 
its fiduciary duty to American Indians and Alaska Natives and to uphold the 
trust responsibility as well as preserve the government-to-government 
relationship, which includes the fulfillment of health care needs of all Indian 
tribes in the United States. This responsibility should never be compromised or 
diminished because of any Congressional agenda or party platform. Tribes 
throughout the nation relinquished their lands as well as their rights to 
liberty and property in exchange for these on-going services as well as this 
trust responsibility. Allowing tribal governments and their citizens a voice in 
determining the priority of meeting unmet health care needs in Indian Country is 
a positive step towards acknowledging the fulfillment of health care owed to all 
Indian tribes. 
F. DEPARTMENT OF AGRICULTURE 
Within the 54.4 million 
acres of Indian homelands remaining in the contiguous United States, nearly 47 
million acres are used for production of crops, livestock or both. As such, 
commercial agriculture in Indian Country parallels off reservation agriculture 
in kind, but not in sale. Even though many farming tribes have abundant natural 
resources to work with, individual operators and farming tribes are in need of 
capital, more efficient administration of existing federal programs, and 
technical assistance. 
Since 1990, the Extension Indian Reservation Program, 
authorized under the Food, Agriculture, Conservation and Trade Act, has been 
servicing Indian Country on a myriad of issues ranging from crop and animal 
production practices to farm business management. Each year of its existence, 
funding has decreased, reducing the number of extension agents servicing Indian 
Country. Currently, this program is barely surviving with 28 agents. The 
President's requested budget of $5 million will cover the current applications, 
but it will not enable the program to grow and furnish additional needed 
extension agents. NCAI supports the requested increased amount of $5 million for 
FY2000 and hopes that the Administration continues to see the value in this 
program and increase funding for FY2001 so that additional agents may be 
obtained. 
As stated previously, Indian lands represent approximately 55 
million acres, with 47 million acres made up of range and crop land. Despite 
such large land holdings, many reservations are checkerboarded or fractionated, 
often preventing productive use of the lands. Under the Indian Land Acquisition 
Loans program, Indian tribes may obtain a loan to purchase privately held lands 
that lie within the reservation. Under this statute $8,000,000 was authorized 
for this program. Unfortunately, only $1,003,000 was allocated in 1999 and only 
$1,028,000 has been requested for FY2000. The amount requested for FY2000 is not 
sufficient to correct the fractionated land problem. Therefore, NCAI requests 
that the full $8,000,000 authorized be allocated to this desperately needed 
program. 
In 1940, an inter-agency agreement was reached between the 
Department of Interior (BIA) and the United States Department of Agriculture 
(USDA) which required the BIA extend the same programs to Indians that are 
furnished to every land owner in the U.S. by the USDA. In that agreement, the 
BIA requested "assistance for services required in the performance of its 
overall trust management responsibility." Eleven years later the BIA and USDA 
entered into a memorandum of understanding to "work in partnership to improve 
the delivery of programs and services to better meet the needs of American 
Indians." 
Both funding and staffing reductions within the BIA have resulted 
in a severe decline in the condition of Indian agriculture. Per the 1940 
inter-agency agreement and the memorandum of understanding, the USDA has an 
obligation to assist the BIA in its overall trust management responsibilities. A 
USDA full time presence on farming reservations will assist in making up for the 
BIA shortfalls and bring adequate assistance from the Farm Service Agency, the 
Natural Resource Conservation Service and the Farm Service Agency, Farm Lending, 
back into Indian Country. 
Finally, through NCAI Resolution #MRB-98-034 
(attached), NCAI requests that the United States Congress take action to 
establish a tribal presence at USDA by passing legislation to create an American 
Indian and Alaska Native Office with sufficient financial and human resources at 
the Federal level through which tribes and tribal governments may directly 
access USDA services and programs. 
G. 
G. 
DEPARTMENT OF COMMERCE 
1. Minority Business Development Agency 
For nearly thirty years, Indian 
tribes have operated business development centers throughout Indian Country. And 
yet it is only recently that the Department of Commerce, through the Minority 
Business Development Agency's (MBDA) - American Indian Program, has attempted to 
support these tribal initiatives. 
Due to the fact that a majority of tribal 
communities are located in rural and remote areas of this nation, which accounts 
for the significant lack of economic opportunities available to them, Native 
American Business Development Centers (NABDC's) are usually the only type of 
business development centers that have direct contact with tribes and tribal 
communities. The MBDA has established nine minority business development centers 
on tribal lands, focusing primarily on providing technical assistance for the 
growth of Indian-owned and operated business enterprises. The MBDA has also 
established the Native American Program (NAP) mentioned above, to address the 
special needs of Indian tribes, firms and individuals interested in entering, 
maintaining or expanding their efforts in the competitive marketplace. 
In 
FY1999, NCAI encouraged the Department of Commerce through the Minority Business 
Development Agency to establish additional tribal business centers to serve and 
improve resources and services to American Indian and Alaskan Native 
communities. Although additional funds were requested for the FY2000 budget 
totaling $27.6 million, $600,000 more than the agency's appropriations for 
FY1999, the creation of new business centers was not included in the budget. 
Instead of additional NABDCs, the MBDA is expanding its digitally- based 
business development services. As such, it has introduced four electronic tools 
that are available to minority businesses to increase their access to markets. 
The first is the Phoenix Opportunity System which electronically matches 
businesses with contracting and other opportunities and automatically e-mails 
the business when a match is found. The second is the Resource Locator, an 
internet-based tool to locate business development resources. The third is the 
Market Analyst which provides sophisticated market research to small businesses. 
Finally, the fourth is the Virtual Business Centers which allows entrepreneurs 
to find information on the internet about different growth markets. 
NCAI 
believes the majority of Native American entrepreneurs and small businesses in 
Indian Country will not benefit from such computer services. Many of the Native 
American business located on reservations are in the infancy stages, needing 
assistance with business plans and start up capital. Therefore, many do not have 
access to computers, the internet or even have the need for the more 
sophisticated services that the MBDA is offering to provide. 
Indian Country 
in particular, with its geographic isolation, is at the forefront of need for 
technology. However, without technical assistance from agencies like the 
Department of Commerce to enable Native American business to get up to 
technological speed, Indian County will always lag behind and ultimately never 
be able to benefit from the MBDA digitally-based business development services. 
The MBDA is one of the only federal agencies attempting to help tribal 
governments comply with Congress' intent to create a more self- sufficient 
Indian Country through the creation of economic development opportunities, 
tribal jobs and sustainable economies on tribal lands. Therefore, if the MBDC 
continues with this trend of increasing it digitally-based business development 
services, without providing the basic technical assistance that Native American 
businesses require, Native American businesses will ultimately be left behind. 
NCAI will continue to request additional funding for the Minority Business 
Development Agency (MBDA), and its Native American Program (NAP) which has been 
made to operate at the same level of funding since 1987, despite an increase and 
growing need for tribal business assistance. In the last four fiscal years, 
congressional appropriations for the MBDA have been significantly reduced and 
threatened with total defunding. 
Congress must not forget the unique 
relationship Indian tribes and Indian people have with the United States 
government and, by descent, with every federal agency. By its own commitment 
through treaties with the various sovereign Indian nations, the federal 
government is in a "trust" position with regard to resources and the economic 
future of Indian people. This relationship is different from the government's 
relationship with other minority groups, and because of this, business technical 
assistance to the tribes and Indian business-owners should not to be approached 
or reviewed the same as other minority programs. Particularly at this time in 
history, when Native Americans are just beginning to gain some opportunities to 
participate in a very real way in the U.S. economy, there is a need to continue 
to support and encourage self-sufficiency and self-determination in Indian 
Country. Therefore, NCAI again requests Congress to increase funding for the 
MBDA's NAP, an agency program that has proven it's importance in helping scores 
of under served tribal communities in this country. 
2. Small Business 
Administration 
The Small Business Administration (SBA) has not always been 
well accepted or a successful program within Indian Country. A major problem is 
the aversion by the traditional SBA approved lending institutions to lend to 
Native Americans due to the mythical risk of dealing with tribal sovereignty and 
tribal courts. As a result, Native Americans have generally gone to the Bureau 
of Indian Affairs to access funding under their guaranteed loan programs. 
However, the President's FY2000 budget for the SBA may initiate a change in how 
Indian Country perceives and works with the SBA. 
Sustainable economic 
development on Indian reservations is desperately needed, with unemployment 
rates on many western reservations as high as 70 percent. The President's FY2000 
budget is a positive step in assisting Native Americans in accessing more forms 
of lending, technical assistance and equity capital. 
The majority of loans 
that Native American businesses seek falls directly within the microloan realm. 
Therefore, NCAI supports the requested $16 million in loan guarantees under the 
Microloan program and the two-fold expansion of the number of microlenders. 
NCAI also supports the appropriation request of $40.9 million for the Small 
Business Investment Company (SBIC) program and the New Market Venture Capital 
Companies. Included within the requested SBIC funding is the "Low and Moderate 
Income" initiative which provides incentives for venture capital investing by 
SBIC's in distressed communities. NCAI believes that within these programs the 
Tribal Business Investment Companies (TBIC) should be specifically identified as 
the vehicle to provide the incentives for venture capital on Indian 
reservations. Indian reservations are largely located in rural areas that are 
some of the most depressed areas in the country. As such, tribes are 
encountering great difficulty in obtaining venture capital. TBIC's work solely 
with Native American businesses and have the expertise to know the intricacies 
of Native American business obstacles and needs. NCAI believes that a portion of 
the $2.4 billion allocated to BIC's should be directed to TBIC to serve tribal 
venture capital needs. 
NCAI supports the $4 million request for the complete 
implementation of the HUB Zones legislation to enhance government contracting 
opportunities to small business located in and employing residents of Indian 
reservations. This would allow Native American businesses increased 
opportunities to receive federal contracts and awards. 
The President's 
FY2000 budget includes a New Market Tax Credit incentive that would generate $6 
billion in private sector investment for business growth in low and moderate 
income rural and urban communities. Investors would receive a tax credit worth 
25 percent of the amount invested. NCAI supports this tax credit since it gives 
tribes additional avenues to obtain capital for economic development in Indian 
Country. NCAI additionally supports the $5 million requested to increase 
technical assistance and executive development of 8(a) program participants, 
which includes Indian reservations. This request would nearly double the funding 
level provided in FY1999. 
Finally, NCAI requests an increase to the $1 
million request for intensive assistance and outreach through Tribal Business 
Information Centers. 
NCAI believes that additional TBICs are needed to 
adequately serve reservations. Currently, there are 17 TBIC to serve the 557 
federally recognized tribes and Alaskan Native villages. Presumably, one TBIC 
will provide technical assistance to 32 different tribes. The 17 TBIC are 
concentrated in 5 states, however, there are 33 states that have a federally 
recognized tribes in it. As a result, the majority of tribes are not being 
serviced by a TBIC and additional TBICs are greatly needed. 
3. National 
Telecommunications and Information Administration 
As the development of 
economic opportunities in Indian Country moves forward, the National 
Telecommunications and Information Administration (NTIA) is playing a 
significant role in the establishment of the information superhighway in tribal 
communities. Leading the efforts to help tribes achieve this goal is the NTIA's 
Telecommunications and Information Infrastructure Assistance Program (TIIAP), 
which provides matching grants on a competitive, peer review basis for projects 
that enable communities to develop their telecommunications infrastructure. 
The TIIAP has been essential in promoting the development of tribal 
community networks throughout Indian Country. Congress has also shown some 
support for these initiatives by the introduction of H.R. 555, the Native 
American Telecommunications Act of 1997, which states that "(t)he NTIA shall be 
responsible for designing and proposing policy initiatives to encourage 
investment in, and the deployment of, telecommunications systems on Indian 
lands." 
An example of programs recent funding has been able to establish is 
the Alaska Pacific University Rural Alaskan Native Adult program that uses the 
internet to provide training and undergraduate degrees to the underserved adult 
learner. 
To help ensure that this important work continues, NCAI supports 
the President's FY2000 request of $20,102 million to promote tribal 
telecommunications and economic development opportunities throughout this 
nation's rural and disadvantaged tribal communities. 
NCAI also supports the 
President's request for an increase in funding by $14,055 million to $35,005 
million for Public Telecommunications Facilities, Planning and Construction. 
These monies will be used by the NTIA for modernizing existing communication 
systems located on Indian reservations. 
H. DEPARTMENT OF LABOR 
With the 
enactment of the Workforce Investment Act (WIA), the enduring Job Training 
Partnership Act (JTPA) has been repealed; most of its various job training 
programs were redesigned and incorporated into the new WIA programs. WIA 
includes tribally specific programs with guaranteed funding levels for such 
programs. However, the President's FY2000 budget request provides no increase 
for tribal WIA programs. In fact, the President's FY2000 budget request would 
allocate less funding for summer youth programs than the current level funding 
provided under JTPA. NCAI urges Congress to increase funding for FY2000 tribal 
WIA programs which is urgently needed for job training and related employment 
programs in Indian Country. 
NCAI also requests the Congress to reauthorize 
the Welfare-to-Work (W- t-W) program for tribes an additional two years and to 
increase the funding level for this program by an additional $30 million. Well 
over 65 W-t-W plans for tribal programs have been submitted to the Division of 
Indian and Native American Programs, with slightly over 100 tribes, intertribal 
consortia and Alaska Native villages covered under these plans. Extension of 
this program is critical, along with a much-needed funding increase, in order to 
provide employment services for long- term welfare recipients into the next 
millennium. 
The Senior Community Service Employment Program (SCSEP), 
authorized in Title V of the Older Americans Act (Pub. L. 89-73, as amended), 
provides important services for Indian elders. The SCSEP funds ten national 
sponsors, including the National Indian Council on Aging (NICOA), to train low 
income elders through community service agencies. NCAI requests an appropriation 
of $484 million, a 10 percent increase, for Title V programs in FY2000, and 
maintenance of the provision for a guaranteed minimum allocated to the program 
serving Indian elders. The Title V program is especially important for Indian 
Country due to the significant need for many Indian elders to acquire job skills 
and supplement their very limited incomes, the high rates of unemployment found 
in Indian Country, and the great need for the community services these trainees 
provide. 
I. DEPARTMENTS OF DEFENSE 
The NCAI assisted the Department of 
Defense (DOD) in a coordinated effort through a year of collaboration and 
consultation with Indian Country in the development of the DOD American Indian 
and Alaska Native Policy. The Policy was released at the NCAI Annual Convention 
in October 1998. We look forward to a successful implementation of the DOD 
Indian Policy. Meaningful implementation will result in the continued funding of 
several DOD programs interacting with tribal governments and Indian businesses, 
some of which are tribally-owned and operated. 
The NCAI supports the DOD 
request under Section 8050 of not less than $8 million to work with tribal 
governments on the mitigation of environmental impacts, including training and 
technical assistance; related administrative support; gathering of information; 
documenting of environmental damage; and, the development of a system for 
prioritization of mitigation and cost to complete estimates for mitigation on 
Indian lands resulting from DOD activities. In regard to Environmental 
Restoration, Formerly Used Defense Sites (FUDS), we support the Department of 
Army Corps of Engineers request for $225 million for remedial activities on 
Indian lands. These funds are used for environmental restoration, reduction and 
recycling of hazardous waste, and, removal of unsafe buildings and debris. 
Last year, the DOD Office of Small and Disadvantaged Business Utilization 
funding streamlined access to the "5 percent Indian Incentive for Prime 
Contractors" program which provides up to $8 million to prime contractors who 
utilize Indian-owned companies. This incentive program was made retroactive to 
FY1997. To ensure that Office of Small and Disadvantage Business Utilization 
continues to reach out to Indian Country to work with tribal and individual 
Indian entrepreneurs who seeking to work with DOD contractors, NCAI supports 
approval of the $8 million funding request. 
J. DEPARTMENT OF ENERGY 
The 
Department of Energy (DOE) manages programs to mitigate and remediate Indian 
lands including ceded and former Indian lands contaminated by the Cold War 
legacy. Inadequate funding is detrimental to programs that institute: tribal 
involvement in decisionmaking processes; shipping of high and low level 
radioactive waste through Indian Country (whose jurisdictions do not have 
adequate emergency response programs in place to protect people, lands and 
resources); and, the siting of permanent repositories for spent nuclear waste on 
former traditional lands (under an arbitrary policy which inequitably supports 
non-Indian state and county governments for oversight activities, but does not 
involve tribes in geographical proximity and indigenous to the area). 
The 
Nevada Test Site is within the traditional homelands of the Shoshone and Paiute 
peoples whose culture, environment, and health has been already impacted by 
federal government-sponsored atomic testing and other activities. The DOE Office 
of Civilian Radioactive Waste Management (OCRWM) has performed scientific and 
technical studies at Yucca Mountain on the Nevada Test Site for 
a proposed high-level spent nuclear fuel and radioactive waste permanent 
repository. The 16-year compilation of the Yucca Mountain 
study, the Yucca Mountain Viability Assessment, was released in 
December 1998. However, the Indian nations indigenous to the area do not have 
the technical staff to analyze the massive data. 
Last year's DOE-OCRWM 
budget did not provide funding for oversight activities for the tribes 
indigenous to this area. However, $16 million was given to the state of Nevada, 
nine Nevada counties, and one California county (designated local units of 
government under the Nuclear Waste Policy Act of 1987, as amended) for oversight 
activities at Yucca Mountain. This year, $10.2 million has been 
requested for non-Indian governments. NCAI asks that this Committee end the 
disparate treatment of tribal governments by earmarking $5 million for tribal 
involvement in the Yucca Mountain area. By funding the impacted 
tribes, Congress will transform the DOE-OCRWM's arbitrary policy of ignoring the 
tribes who remain in their homelands but are left out of the oversight process 
at Yucca Mountain. 
The NCAI Nuclear Waste Program, funded 
through a DOE-OCRWM cooperative agreement, is a national information 
dissemination effort to provide tribal governments with updates on the 
implementation of the Nuclear Waste Policy Act of 1982, as amended. 
The 
long-range issues and impacts to Indian Country are significant and national in 
scope, but tribes do not have adequate staff or resources to track this program. 
The current NCAI Nuclear Waste Program year is the second under a renewed 
five-year cooperative agreement period. The Program budget is at its lowest 
funding level since its inception in 1982, and DOE-OCRWM did not request funding 
to continue this highly successful program and important link to Indian Country. 
In order to sustain a viable program to provide tribal leaders with relevant and 
current information and assist in the interactive DOE process, the NCAI requests 
the Congress to direct the DOE-OCRWM to provide annual funding to the NCAI 
cooperative agreement in the amount of $300,000 as part of its trust 
responsibility toward keeping tribes informed on programmatic impacts and 
maintaining open dialogue with impacted tribal communities. 
The NCAI is 
making an effort to inform tribes located near nuclear utilities that the DOE 
Office of Nuclear Energy, Science and Technology budget has $31 million in two 
programs. The Nuclear Energy Plant Optimization program, and the Nuclear Energy 
Research Initiative, will conduct research and development to advance nuclear 
energy, and to refurbish and upgrade those nuclear utilities whose licenses will 
soon expire and will have to apply to the Nuclear Regulatory Commission for 
relicensing. Several tribal communities are located within the 10-mile Emergency 
Planning Zone and the 50-mile Ingestion Pathway which are part of emergency 
preparedness plans for nuclear utilities. A community's readiness to respond to 
a radiological emergency event should be a critical is part of the overall 
evaluation of a nuclear plant's license renewal. Many tribes are currently left 
unprotected and at risk in radiological accident scenarios. To better protect 
tribal communities in these critical geographical areas, we request the DOE 
direct a portion of this funding to be shared with tribes within the 10-mile 
Emergency Planning Zone and the 50-mile Ingestion Pathway Zone around commercial 
nuclear reactors. 
The DOE Federal Preservation Officer (FPO) is funded 
through DOE Office of Environment, Safety and Health (ES&H), and oversees 
National Environmental Policy Act activities. The current FPO has worked with 
tribal environmental program managers and the NCAI on cultural resources 
protection and management issues. We are concerned that the FPO's 
responsibilities have been relegated to minimal outreach and programmatic 
functions. In light of the DOE Indian Policy, this office should be expanding 
its capacity to work with tribes instead of becoming less visible. Indian 
country has had a positive interaction with the FPO and we now urge the Congress 
to provide funding to this office for tribal outreach activities. We request the 
Congress to fund this office in the amount of $500,000. 
Under the DOE Office 
of Environmental Management Office of Public Accountability (EM22), ten tribes 
have cooperative agreements to participate in site cleanup and waste management 
oversight activities. The DOE-EM program FY2000 budget request does not provide 
an increase for critical tribal program continuity. Adequate tribal program 
funding always has been a problem, despite the fact many federal sites slated 
for cleanup are former tribal lands or ceded territory and contain significant 
cultural sites. DOE-EM officials have suggested they are working to avoid 
negative impacts on tribal budgets, however their budget does not reflect this 
assertation. We request the Congress provide increased tribal funding for a 
total of $6 million for the cooperative agreements so as not to undermine tribal 
cleanup programs, and to provide funding for Indian outreach by organizations 
including NCAI. 
Funding for the Waste Isolation Pilot Project comes 
primarily through DOE-EM. We are aware that DOE-EM has lowered funding 
allocation for emergency preparedness, public information, and accident 
prevention activities in the FY 2000 budget. The tribes on the WIPP 
transportation corridor in the designated corridors do not have adequate 
emergency response capability in the event of a radiological transportation 
accident. Emergency response organizations require several years to develop. In 
the interest of protecting tribal communities, NCAI requests that the DOE-EM's 
WIPP emergency preparedness funding be increased to $1 million. 
NCAI also 
supports funding for the following tribal programs: (1) Energy Efficiency & 
Renewable Energy - provides grants and technical assistance to tribes for 
weatherization, wind energy systems, hydropower, photovoltaic, and renewable 
energy technologies, $5 million; (2) Fossil Energy - supports oil exploration 
and drilling research which is beneficial to tribes, $540,000; (3) Defense 
Programs - educational and scientific outreach by national laboratories, 
$750,000; (4) Economic Impact & Diversity - support for small business and 
educational grants $200,000; and, (5) Bonneville Power Administration - cultural 
resources for Pacific Northwest Tribes, $5 million. 
Non-Indian organizations 
are being provided funding to conduct forums and policy analysis about tribal 
government participation and impacts. Tribal businesses and Indian organizations 
are capable of doing this work, probably at a more reasonable cost. We reject 
the notion that outside consulting and convenor groups like Aspen and Keystone 
are receiving funding to delve into American Indian and Alaska Native issues 
while they remain largely ignorant of tribal sovereignty and cultural matters. 
We believe such funding should be made available to tribes and Indian 
organizations, such as NCAI. A tribal organization will also protect tribal 
integrity, maintain confidentiality, and prevent breaches of protocol. NCAI 
respectfully requests this Committee recommend to the DOE the need change this 
outdated and unproductive practice of non-Indian intrusion. 
K. DEPARTMENT OF 
VETERANS AFFAIRS 
Adequate funding for Veterans programs is another critical 
concern of Indian communities. You know first hand, Mr. Chairman, that Native 
American veterans have served the United States with honor and distinction since 
this nation was founded. Compared with other segments of the population, Indian 
people have the highest percentage of veterans. According to the Veterans 
Administration, over 160,000 American Indians have served in the Armed Forces. 
Even during the Persian Gulf War, about one in three Marines who served were of 
Americ descent. Our warriors also carry the proud distinction of being the most 
decorated group in this country's history. Today, Native veterans have many 
pressing needs such as housing, health care, benefits, and other concerns that 
include issues unique to Indian country, such as the availability of service 
providers to geographically remote reservations. 
We are encouraged by the 
Administration's continued support for the Native American Veterans Housing Loan 
Program, and NCAI supports the $520,000 request within the President's budget. 
The Native American Veterans Housing Loan Program provides direct loans to 
veterans living on trust land. These loans are available to purchase, construct 
or improve veterans' homes. The principle amount of the loan under this 
authority is generally limited to $80,000, except in areas where housing costs 
are significantly higher than costs nationwide. This pilot program began in 1993 
and is authorized through December 31, 2001. Mr. Chairman, to date, there have 
been no defaults on any loans under this program. 
As you know, the United 
States has an responsibility to Indian tribes and Indian people that supports 
its obligations to our veterans. In Congress and the Administration's attempts 
to meet the needs of Indian people, it is our hope that Native veterans programs 
will continue to meet the rising needs of this nation's first warriors. 
L. 
ENVIRONMENTAL PROTECTION AGENCY 
In 1984, the Environmental Protection Agency 
(EPA) became the first agency to implement an American Indian and Alaska Native 
Policy. Since that time, tribes have made progress toward regulating 
environmental quality standards within their jurisdictions and in a few areas 
where significant pollution has impacted the cultural integrity of their 
communities. As part of its trust responsibility to Indian nations, the EPA has 
slowly increased tribal program funding for tribal governments. The EPA did not 
request an increase in tribal program budgets in its FY 2000 budget proposal. 
NCAI respectfully requests the Congress to provide the EPA with an additional 
$47.3 million above the EPA tribal programs request for FY 2000. This increase 
will greatly assist tribal governments in tribal environmental quality 
enhancement and mitigation. 
As we point to specific EPA activities in need 
of increased funding, NCAI wants to inform this Committee that it is our concern 
that in the immediate two years following FY2000, tribal funding will stall at 
current year levels. We ask this Committee to make an inquiry on our behalf to 
the EPA to ensure that future EPA budget requests do not preclude tribal 
specific funding increases if the need exists. The following four programs are 
part of EPA's Operating Programs, but are funded in the State and Tribal 
Assistance Grants appropriation account: the Indian General Assistance Program; 
Section 106 Source Clean and Safe Water Program Water Quality Management 
Planning; Clean Water Act Section 319 Non-point Source Pollution; and, Hazardous 
Waste Financial Assistance. 
The EPA did not increase funding for the 
Indian General Assistance Program (GAP) under the Multimedia section of State 
and Tribal Assistance Grants. Tribal environmental program managers view GAP 
activities as the highest priority. NCAI is supportive of an increase from the 
current EPA request of $42.5 million to $52.5 million for the Indian General 
Assistance Program. By FY2000, we anticipate more tribes will be participating 
in developing water quality management activities under Section 106 of Clean and 
Safe Water Programs. Existing tribal participants are in need of expansion of 
their current funding levels. NCAI requests an increase of $7.6 million for 
tribal programs for a total of $25 million for Clean and Safe Water programs. 
In its FY2000 budget, the EPA proposes to eliminate the statutory one- third 
of 1 percent cap on Clean Water Act Section 319 Non-point Source Pollution grant 
funds that may be awarded to Tribes. We support the EPA's effort to remove this 
arbitrarily-derived cap. NCAI also requests $9.75 million for tribes to 
implement the President's Clean Water Action Plan initiative. Inherent tribal 
regulatory authority gives rise to tribal governmental responsibility for 
illegal dumping and hazardous waste disposal and management problems. In order 
to comply with the Resource Conservation and Recovery Act, NCAI requests $6.25 
million to develop tribal programs to implement RCRA and hazardous waste 
management programs. 
Tribal governments are responsible for protecting the 
health and welfare of their citizenry. Emergency preparedness and planning are 
requisites for ensuring protection of tribal communities. The Superfund 
Amendments and Reauthorization Act of 1986 (SARA Title III), presents tribes 
with an unfunded mandate of compliance for emergency planning, and ability to 
respond to chemical emergencies. NCAI urges Congress to provide $13.7 million to 
establish Tribal Emergency Response Commissions (TERC) and Local Emergency 
Planning Committees (LEPC), as required under SARA Title III. 
M. FEDERAL 
EMERGENCY MANAGEMENT AGENCY 
The Federal Emergency Management Agency (FEMA) 
released its American Indian and Alaska Native Policy at the end of 1998. We 
applaud FEMA for embracing the NCAI's longstanding recommendation for the agency 
to adopt an Indian policy. However, FEMA is one of the few remaining agencies 
requiring significant policy and regulatory changes to firmly establish tribal 
programs on a government-to-government level. Indian Country is looking forward 
to a successful partnership with FEMA. In establishing a solid relationship and 
implementing tribal outreach and service delivery, FEMA will need to make every 
effort to remove all programmatic barriers. 
Indian Country inhabitants 
remain at risk without adequate emergency preparedness and response mechanisms 
in place to protect them. When disaster declarations are made, tribal 
decision-makers are left out of the loop. Indian Country has always been at an 
economic disadvantage to repair community infrastructure following natural and 
manmade disasters. 
Currently most FEMA money is disbursed to states with the 
intent that the states will share with tribes. In the absence of FEMA oversight, 
state money often does not reach tribal programs. Even if funds were provided to 
tribes through state agencies, such a procedure violates a 
government-to-government relationship with tribes. Although FEMA will reimburse 
tribes following a disaster declaration, most tribes believe the best strategy 
is a proactive approach utilizing funding for prevention and preparedness. The 
best way for tribes to achieve funding parity with state governments and to 
participate in programs is to implement set-aside programs. For these reasons, 
NCAI requests a tribal set-aside of not less than $5 million for emergency 
prevention and preparedness for tribal governments. 
Under the Policy and 
Regional Operations activity, FEMA has requested $1.5 million for strategic 
planning, regional policy coordination, and intergovernmental affairs. As a step 
toward tribal readiness, it is our understanding FEMA will utilize $500,000 for 
tribal pilot programs. Five tribes will be selected for this program at an 
average of $100,000 per year. Although we support the pilot program initiative, 
we believe the amount requested will not allow tribal governments to effectively 
improve emergency management in tribal communities within a one year time frame. 
NCAI urges the Congress to increase the Policy and Regional Operations activity 
budget by $1 million and direct FEMA to operate the five tribal pilot programs 
for two years and at the same funding level each year. 
NCAI also plans to 
approach the Congress in the near future regarding assistance to tribal leaders 
in resolving the matter of disparity in declaration of emergencies in Indian 
Country. The Stafford Act is an inequitable law that usurps the sovereignty of 
tribal governments in protecting tribal communities during disaster situations. 
FEMA has interpreted the absence of tribal-specific language as a preclusion to 
emergency preparedness funding for tribes. Because of the nature of disasters 
and unmet needs in Indian Country, tribes should be equitable partners regarding 
disaster declaration issues. 
IV. Conclusion 
Mr. Chairman, we urge the 
Congress to fulfill its fiduciary duty to American Indians and Alaska Native 
people and to uphold the trust responsibility as well as preserve the 
Government-to-Government relationship, which includes the fulfillment of health, 
education and welfare needs of all Indian tribes in the United States. This 
responsibility should never be compromised or diminished because of any 
Congressional agenda or party platform. Tribes throughout the nation 
relinquished their lands as well as their rights to liberty and property in 
exchange for this trust responsibility. The President's FY2000 budget request 
acknowledges the fiduciary duty owed to tribes. We ask that the Congress to 
maintain the federal trust responsibility to Indian Country and continue to aid 
tribes on our journey toward self-sufficiency. This concludes my statement. 
Thank you for allowing me to present for the record, on behalf of our member 
tribes, the National Congress of American Indians' initial comments regarding 
the President's FY2000 Budget. I will be happy to answer any questions you may 
have at this time. 
(NOTE: ATTACHMENTS NOT TRANSMITTABLE) 
*****FOOTNOTES***** 
1 See generally "Indian-Related Federal Spending 
Trends, FY1975-1999", Congressional Research Service (CRS), February 1998. 
2 
American Indians and Crime, Bureau of Justice Statistics, February 1999. 
END 
LOAD-DATE: February 26, 1999