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Fiscal year 1996 budget : hearing before the Committee on Indian Affairs, United States Senate, One Hundred Fourth Congress, first session, on oversight hearings on the President FY 1996 budget request for programs and services provided for the benefit of American Indians, Alaska natives, and native online

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Online LibraryUnited States. Congress. Senate. Committee on IndiFiscal year 1996 budget : hearing before the Committee on Indian Affairs, United States Senate, One Hundred Fourth Congress, first session, on oversight hearings on the President FY 1996 budget request for programs and services provided for the benefit of American Indians, Alaska natives, and native → online text (page 1 of 36)
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S. Hrg. 104-22

nSCAL YEAR 1996 BUDGET



Y 4. IN 2/1 1:S. HRG. 104-22



Fiscal Year 1996 Budget, S.Hrg. lOA...

HEARING

BEFORE THE

COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE

ONE HUNDRED FOURTH CONGRESS

FIRST SESSION
ON

OVERSIGHT HEARINGS ON THE PRESIDENT FY 1996 BUDGET REQUEST
FOR PROGRAMS AND SERVICES PROVIDED FOR THE BENEFIT OF
AMERICAN INDIANS, ALASKA NATIVES, AND NATIVE HAWAHANS



FEBRUARY 14, 16, 1995
WASHINGTON, DC




M 1 8 mb



S. Hrg. 104-22

nSCAL YEAR 1996 BUDGET



HEARING

BEFORE THE

COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE

ONE HUNDRED FOURTH CONGRESS

FIRST SESSION
ON

OVERSIGHT HEARINGS ON THE PRESIDENT FY 1996 BUDGET REQUEST
FOR PROGRAMS AND SERVICES PROVIDED FOR THE BENEFIT OF
AMERICAN INDIANS, ALASKA NATIVES. AND NATIVE HAWAHANS



FEBRUARY 14, 16, 1995
WASHINGTON, DC




U.S. GOVERNfMENT PRINTING OFFICE
WASHINGTON : 1995



For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office. Washington, DC 20402
ISBN 0-16-047114-1



COMMnTx.E ON INDIAN AFFAIRS

JOHN McCAlN, Arizona, Chairman
DANIEL K. INOUYE, Hawaii, Vice Chairman
FRANK MURKOWSKI, Alaska KENT CONRAD, North Dakota

SLADE GORTON. Washington HARRY REID, Nevada

PETE V. DOMENICI, New Mexico PAUL SIMON, Illinois

NANCY LANDON KASSEBAUM, Kansas DANIEL K. AKAKA, Hawaii

DON NICKLES, Oklahoma PAUL WELLSTONE, Minnesota

CRAIG THOMAS, Wyoming BYRON L. DORGAN, North Dakota

ORRIN G. HATCH, Utah BEN NIGHTHORSE CAMPBELL, Colorado

AUL COVERDELL, Georgia

Steven J.W. Heeley Majority Staff Director /C/def Counsel
Patricia M. Zell, Minority Staff Director/ Chief Counsel

(II)



CONTENTS



Page

Statements:

Anderson, Michael, Acting Deputy Assistant Secretary for Indian Affairs . 15

Black, Douglas, associate director. Office of Tribal Activities 18

Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado 9

Ceccucci, Gary, chief. Division of Program Development and Implementa-
tion, BIA 15

Cisneros, Henry G., Secretary, Department of Housing and Urban Devel-
opment, Washington, DC 3

Davis, Julia, representative-chairperson. National Indian Health Board,

Denver, CO 43

Deer, Ada, Assistant Secretary for Indian Affairs, Department of the

Interior, Washington, DC 15

DeVoe, Dennis, deputy director, American Indian Environmental Office ... 39

Dominici, Hon. Pete v., U.S. Senator from New Mexico 8

Edmo, Lorraine P., executive director. National Indian Education Associa-
tion, Alexandria, VA 63

Erwin, Donna, acting director. Office of Trust Funds Management, BIA ... 15
Gaiashkibos, president. National Congress of American Indians, chair-
man, Lac Courte Oreilles Tribe, Wisconsin 57

Guinn, Vihna, special assistant to the commissioner 37

Hartz, Gary, acting associate director, Office of Environmental Health

and Engineering 18

Howard, Reuben T., acting director. Office of Self-Governance 18

Johnson, Jacqueline L., chairperson. National American Indian Housing

Council, Washington, DC 47

Kimble, Gary Niles, commissioner. Administration for Native Americans,

Department of Health and Human Services 37

Lester, David, executive director, Council of Energy Resource Tribes,

Denver, CO 53

Lincoln, Michel E., deputy director 18

Manuel, Hilda, deputy commissioner of Indian Affairs, BIA 15

Mastrapasqua, Dominic, deputy commissioner 37

McCain, Hon. John, U.S. Senator from Arizona, chairman, Committee

on Indian Affairs 1

McCully, Sharon, acting director. East and West Division 37

' Mueller, Oscar, director. Office of Construction Management 15

Nessi, Dom, director, OfTice of Native American Prog-ams 3

Pardilla, Jerry, executive director. National Tribal Environmental Coun-
cil, Albuquerque, NM 49

Reyes, Luana L., acting director, Headtjuarters Operations 18

Sebastian-Morris, acting director. Office of Trust Services, BIA 15

Shuldiner, Joe, Assistant Secretary, Public and Indian Housing 3

Smith, Phillip L., associate director. Office of Health Programs 18

Tippeconnic, John, director. Office of Indian Education Programs, BIA 15

TrujiUo, Dr. Michael H., director, EHS, Department of Health and Human

Services, RockvUle, MD 18

Wellstone, Paul, U.S. Senator from Minnesota 8

Williams, Terry, director, American Indian Environmental Office, Envi-
ronmental Protection Agency 39



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IV

Page

Appendix

Prepared statements:

Affiliated Tribes of Northwest Indians 302

Bad Moccasin, Richard, executive director, Mni Sose Intertribal Water

Rights Coalition 311

Bearshield-Bordeaux, Wilma, chairperson, Rosebud Sioux Tribe, Law and

Order Commission (with attachment) 315

Becker, Herbert, director. Office of Tribal Justice 169

Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado 73

Cheek, John W., acting director, National Advisory Council on Indian

Education (with attachment) 319

Cisneros, Henry G. (with attachments) 130

Davis, Julia 240

Deer, Ada (with attachments) 144

Echohawk, John E., executive director. Native American Rights Fund 331

Edmo, Lorraine (with attachments) 280

Gaiashkibos (with attachments) 268

Halbritter, Ray, nation representative, Oneida Indian Nation 340

Intertribal Agriculture Council (with attachment) 350

Johnson, Jacqueline L 244

Kimble, Gary Wiles (with attachments) 224

Knight-Frank, Judy, chairman, Ute Mountain Ute Indiem Tribe (with

attachment) 370

Lester, David 258

Markishtum, Hubert, chairman, Makah Indian Nation 379

Monteau, Harold A., chairman, National Gaming Conmaission 153

Nash, Bob, Under Secretary, for Rural Econormc and Community Devel-
opment 183

National Urban Indian Policy Coalition 384

O'Leary, Hazel R., Secretary, Department of Energy 161

Pardilla, Jerry 250

Perciasepe, Robert, Assistant Administrator for Water, EPA 387

Reid, Hon. Harry, U.S. Senator from Nevada 73

Sabattis, Clair, chief, Houlton Band of Maliseet Indians 395

Seyler, Warren, chairman, Spokane Tribe of Indians 400

Smith, Norine, executive director, Indian Health Board, Minneapolis,

MN 403

Tafoya, Edwin, (Jovemor, Pueblo of Santa Clara, NM 407

TrujiUo, Dr. Michael H 73

Additional material submitted for the record:

American Dental Association (letter) 190

Bear Don't Walk, Marjorie, president, American Indian Health Care As-
sociation, (position paper) 409

Deoartment of Transportation's report to the Committee on Indian Af-
fairs 192

Dore, Cliv, Governor, Pleasant Point, Passamaquoddy Tribe, Perry, ME

(letter) 412

Edmo, Lorraine, (letter with pictures) 292

George, Keller, president. United South and Eastern Tribes, Inc. (letter) .. 416

Payzant, Thomas (questions with responses) 210

Questions submitteed by the committee 194

Walke, Roger, analyst, American Indian Policy CJovemment Division,
Congressional Research Service, Indian-Related Federal Spending

Trends, fiscal year 1975-96 76

NOTE — Other material submitted for the record will be retained in
the committee files.



BUDGET REQUEST FOR FISCAL YEAR 1996
FOR INDIAN PROGRAMS



TUESDAY, FEBRUARY 14, 1995

U.S. Senate,
Committee on Indian Affairs,

Washington, DC.
The committee met, pursuant to notice, at 9:30 a.m. in room 485,
Russell Senate Office Building, Hon. John McCain (chairman of the
committee) presiding.

Present: Senators McCain, Inouye, Conrad, Reid, Wellstone,
Campbell, and Domenici.

STATEMENT OF HON. JOHN McCAIN, U.S. SENATOR FROM
ARIZONA, CHAIRMAN, COMMITTEE ON INDIAN AFFAIRS

The Chairman. This hearing will come to order.

I want to thank all of you for coming this morning and I want
to thank all of our witnesses. I apologize for the delay in beginning
the hearing. Other members of the committee will be coming along.
We have a vote in progress, so I expect other members coming.
Since we have a very full schedule this morning, I thought I would
go ahead and begin the hearing. If other Senators come in who
wish to make a statement, then we will pause for that purpose.

The purpose of today's hearing is to receive testimony from ad-
ministration witnesses regarding the President's budget request for
Indian programs for the 1996 fiscal year. This is the first of two
hearings we will hold on this subject. On February 16 we will re-
ceive testimony from witnesses who represent Indian tribes and
tribal organizations.

In addition to witnesses who are appearing before the committee
today, we have requested written testimony from the National In-
dian Gaming Commission and the Departments of Justice, Trans-
portation, Agriculture, and Energy.

The Committee on the Budget nas notified us that the views and
estimates of this committee are due no later than March 1. In
order to accommodate that deadline, we will take final action on
the budget views and estimates of this committee on the first of
March. Accordingly, the record of this hearing as well as the hear-
ing on February 16 will close on February 24,

Our witnesses for today's hearing include the Secretary of the
Department of Housing and Urban Development, Henry Cisneros.
I might point out that Secretary Cisneros is here at his request, in-
dicative of his long-time commitment and concern about Indian is-
sues in general, and Indian housing in particular. We are espe-
cially pleased, Mr. Secretary, that you would take the time from

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your busy schedule and express your deep and abiding concern on
these issues and appear with us today. We will also hear from the
Assistant Secretary for Indian Affairs of the Department of the In-
terior, Ada Deer; the Director of Indian Health Service, Dr. Michael
Trujillo; and the Assistant Secretary for Elementary and Secondary
Education in the Department of Education, Thomas Payzant; the
Assistant Administrator for Water in the Environmental Protection
Agency, Robert Perciasepe, who is accompanied by Terry Williams,
Director of the American Indian Environmental Office; and the
Commissioner of the Administration for Native Americans, Gary
Kimble. I want to thank each of these witnesses for being with us
today.

Before we proceed, I would like to make a few general comments.
Historically, Indian programs in the Federal budget have been the
first to be cut and the last to be funded. In addition, the Federal
agencies that administer Indian programs have tended to be
overfunded while the tribal governments have been underfunded.
For the most part, these generalities are perpetuated in the Presi-
dent's 1996 budget request. Most Indian programs have been slated
for modest increases in absolute dollars and a slightly larger per-
cent of the total funds requested would be spent at the local level.
At the same time, the funds which have been requested in the fis-
cal year 1996 budget reflect a net loss for Indian programs and
services as stated in 1993 constant dollars.

As you can see, we have several charts around the room today.
In real terms, funding for the Indian programs under the Presi-
dent's budget request will remain flat or decline slightly. In addi-
tion, the disparity in per capita Federal expenditures between Indi-
ans and non-Indians, which first became negative for Indians in
1985 and which has steadily worsened since then, will continue to
deteriorate in the 1996 fiscal year. I want to express my gratitude
to Roger Walke of the Library of Congress for his assistance in de-
veloping these ».harts. Without objection, Mr. Walke's narrative
analysis of the President's 1996 budget request for Indian pro-
grams, along with all of the accompanying charts, will be made a
part of the record of this hearing. I understand that we will not
have the final work product from Mr. Walke until later this week.

[Material to be provided appears in appendix.]

The Chairman. Finally, regardless of who has been in control of
the Congress or the White House during the past 12 years, I have
vigorously protested the lack of support for essential programs and
services for Indian and native people. I will continue along this
path in the coming months and years because it is the course
which makes sense and it is the only course which is consistent
with the legal and moral obligations of the United States.

We would like to welcome Secretary Cisneros, Secretary of the
Department of Housing and Urban Development. He is accom-
panied by Joe Shuldiner, Assistant Secretary for Public and Indian
Housing; and Dom Nessi, Director, OflTice of Native American Pro-
grams. Welcome, Mr. Secretary. Please proceed however you feel
most appropriate.



STATEMENT OF HENRY G. CISNEROS, SECRETARY, DEPART-
MENT OF HOUSmC AND URBAN DEVELOPMENT, WASHING-
TON, DC, ACCOMPANIED BY JOE SHULDINER, ASSISTANT
SECRETARY, PUBLIC AND INDIAN HOUSING; AND DOM
NESSI, DIRECTOR, OFFICE OF NATIVE AMERICAN PRO-
GRAMS

Mr. CiSNEROS. Thank you very much. Mr. Chairman and mem-
bers of the committee, thank you first and foremost for holding this
hearing todav. We especially want to thank you, Mr. Chairman, for
your leadership as a strong advocate for Native Americans, Alas-
kan Natives, and Native Hawaiians. We especially appreciate your
efforts in recent years to preserve funding for HUD's Native Amer-
ican programs in the face of proposed cutbacks. People who care
about the quality of life for Native Americans are well served by
your chairmanship and the country needs to know about your spe-
cial advocacy in this area.

We have been very pleased to be able to work closely with you
and your staff and tne members of this committee on these issues.
I am delighted to be here today to discuss housing and community
development issues and how the Department's ongoing study of
these needs as well as the proposed budget for Native American
programs will work in the next years.

As you said, sir, I am accompanied today by Joe Shuldiner, the
Assistant Secretary at HUD who has responsibility for that portion
of the Department that is called Public and Indian Housing. He
has been a good advocate for Native American programs. One of
his first initiatives was to reorganize the Native American pro-
grams that were disparate across the Department into a single ef-
fective office headed by Dom Nessi, who sits to my left. Dom is well
regarded out across the country and has himself visited about 150
Native American communities. I am very, very impressed and
proud of his work. With Dom's guidance, I have had the good for-
tune to visit a number of Native American communities myself in
my tenure. Last summer, we visited in Alaska Kotzebue and the
Native American villages of Selowick and Kiana. In South Dakota,
we travelled to the Eagle Butte site where we participated with
Habitat for Humanity in building 30 homes and visited with the
leaders at Standing Rock. Also, we participated in the Albuquerque
Listening Conference where housing issues were highlighted. AJid
this month I will spend Friday, Saturday, Sunday combination at
the Crow, Northern Cheyenne, Salish, and Kootenai Reservations
in Montana. So we're making a sincere effort to be in places not
just in good times, but also when conditions are the toughest in the
winter to try to understand the housing conditions that the commu-
nities face.

I would like to give you some of the details of our budget, but
I also want to share with you our approach to Native American
programs because it provides an overview of what we're attempting
to do in budget terms. The Department's focus on Native American
programs over the course of the last year was called "Consultation
1994". Twenty-seven meetings held around the country brought to-
gether Indian and Alaskan Native tribal representatives, Indian
housing authorities, and national Indian organizations to discuss
with HUD changes that would improve the delivery of our pro-



gn'ams. As a result of this consultation process, we have stream-
lined procedures and reduced regulations related to Native Amer-
ican programs by 50 percent.

Consultation 1994 reinforced something the Department knew
but always needs to understand better; and that is the strong need
and desire for homeownership in Native American communities.
While the HOME program, and the Mutual Help Homeownership
Opportunity program to a limited extent, have brought home own-
ership to Indian country, it has been limited to low- and moderate-
income families. In fiscal year 1994, the Department implemented
the Indian Loan Guarantee Program as authorized in the Housing
and Community Development Act of 1992, bringing opportunity for
true homeownership to a newly emerging middle class of Native
Americans who desire to continue living on reservations.

Because homeownership is a relatively new concept in Indian
country, the Office of Native American Programs has developed a
followup consultation to our 1994 effort to be called "Native Amer-
ican Homeownership: The First Generation" in fiscal year 1995. We
are focused on bringing HUD together with the Departments of Ag-
riculture and Interior and Veterans' Affairs, as well as other Fed-
eral agencies involved in housing, to develop a comprehensive pres-
entation to tribal governments, Indian housing officials, and Native
American housing associations.

In fiscal year 1996, the Department will help bring Indian coun-
try even closer to the reality of home ownership and choice in hous-
ing. The Department's reinvention blueprint will allow tribal gov-
ernments the greatest opportunity ever to plan for the future while
meeting current housing needs in the most appropriate way for
their reservation. Many tribes have needed flexibility and funding
to create the infrastructure of their environment before meeting
even basic housing needs. We are creating in HUD's reinvention a
Community Opportunity Fund, which used to be CDBG, and an Af-
fordable Housing Fund, which used to be our HOME Program, to
make that flexibility possible. There are also tribes who have had
the resources to help individual tribe members move forward to
homeownership and we will provide them the additional opportu-
nities through tnat Indian Loan Guarantee Program.

No matter what a tribe's current level of need, the Department's
reinvention blueprint for Native American programs will provide
the opportunity for moving into the next generation. Through the
creation of several funds which will be administered as block
grants, nations are afforded greater flexibility in creating fiscal as
well as administrative infrastructure to meet the housing needs of
their members.

The next point I would like to make, Mr. Chairman, Senator, is
one of which I am exceedingly proud. It is the next logical step in
expanding the concept of homeownership in Indian country, to cre-
ate a financial infrastructure not only for lending but for economic
development and commercial financing. This administration has
created the Native American Financial Services Organization,
NAFSO, which will be introduced in legislation in 1995. It will fa-
cilitate secondary market activity for residential mortgages located
in Indian nations and increase the liquidity of such mortgage in-
vestments.



Mr. Chairman, I know that you have had a long time interest in
this, the creation of a secondary market such as Fannie Mae that
operates in the country at large to buy mortgages from lenders,
thereby giving lenders the liquidity to make loans for mortgages.
It operates wonderfully across the country. We negotiated with
Fannie Mae but it proved to be impossible for them to take their
present system and have it work on reservations because of issues
of title of land and ownership, and whether or not they could have
sufficient collateral and so forth. So failing to do it through the
standard approach, we, the Office of Management and Budget with
direction from the President, have created this Native American Fi-
nancial Services Organization. It was the first priority of a Native
American Housing Commission that reported last year that a sec-
ondary mortgage device or mechanism be created.

Under a cooperative agreement with the CDFI, Community De-
velopment Financial Institutions Fund, the Native American Fi-
nancial Services Organization will provide technical assistance and
other services to Native American financial institutions which will
be created and strengthened pursuant to the provisions of the com-
munity development initiative. This Native American Financial
Service Organization will neither conflict nor duplicate the func-
tions of community development banks or any otner Government
sponsored enterprises. It is intended to supplement the efforts of
existing organizations, existing systems, and enhance the viability
of financial services to Native Americans.

One other area of work I will touch on lightly has been that how
often we have heard from Native American residents the need for
housing construction methodologies, architecture and designs that
are relevant to their lifestyles and reflect their traditions and cul-
tures. For many years, there has been a misconception that Indian
housing authorities were not permitted to develop housing that was
culturally relevant. Over the last few years, HUD has taken a
number of steps to dispel the myth that it was impossible to build
a home which was culturally relevant using HUD guidelines for
Native American residents. A number of regulatory revisions have
been made which stress that the Indian housing authorities can
use their own designs and construction devices and involve citizen
participation. In 1994 we established a departmental Cultural De-
sign Award to be presented each year. The first awards will be pre-
sented this spring. The award formally recognizes excellence in in-
cluding cultural relevancy in the design of homes and facilities for
Native Americans. In presenting awards, we will be doing more
than merely honoring recipients, we hope to be setting standards
and promoting cultural flexibility in design and infrastructure.

It has long been felt that there was no accurate data regarding
the housing needs of Native Americans and Alaska Natives. There-
fore, in January 1993, the Department initiated what has been
called an "assessment" of American Indian housing needs and pro-
grams. The purposes were to evaluate housing problems and needs,
assess the effectiveness of our existing programs, and compare new
ways of doing things.

I want to share with you today briefly, Mr. Chairman, the find-
ings of the study. First, the housing problems of American Indians
and Alaskan Natives remain considerably more severe than those



6

of non-Indians in virtually every part of America. But the character
of the problems varies importantly in different types of environ-
ments. Second, HUD programs have made a substantial contribu-
tion toward improving housing conditions in Native American
areas and appear to be relatively well managed. However, we do
lack the flexibility to allow them maximum authority over those re-
sources. Third, reform of Federal housing assistance should con-
centrate on consolidating existing programs in a manner that gives
tribes and their housing authorities broad latitude in planning and
implementation to address local housing needs as they see fit. As
I mentioned earlier, an important part of this assessment has been
the acknowledgement of a need for a financing capability, a second-
ary mortgage capability to increase private financial liquidity in in-
vestment in Native American settings.

While many of the larger tribes take advantage of HUD's pro-
grams, the vast majority of tribal communities are smaller and
overwhelmed by our programs. The nature, timing, and adminis-
tration of many of these programs inhibits true planning. Because
most of HUD's programs are competitive, the smaller tribes with
no guarantee of funding, little administrative structure, inability to
compete frequently find that they are simply ineligible. These
changes that we're making, the creation of new funds, allow for
consolidation and formula assistance so that instead of the nations
having to apply as they have had to, they will be entitled to for-
mula assistance. It is our intent to increase the amount of funding
under these programs so that they don't receive amounts that are
so small that they can't work with but funds that are sufficient to
work with.

Which leads me then to the 1996 budget proposal. Fiscal year
1996 will be a very exciting year for those of us at HUD who work
with Native American programs. The new program configuration
that I've just described will give tribes the flexibility they have
lacked in the past to address housing on reservations and provide
funding to develop comprehensive plans of their own. In addition



Online LibraryUnited States. Congress. Senate. Committee on IndiFiscal year 1996 budget : hearing before the Committee on Indian Affairs, United States Senate, One Hundred Fourth Congress, first session, on oversight hearings on the President FY 1996 budget request for programs and services provided for the benefit of American Indians, Alaska natives, and native → online text (page 1 of 36)