$15.6 million short
Selective hiring freeze could be used to combat Navajo money woes

Copyright © 2009
Gallup Independent
By Kathy Helms
Diné Bureau

WINDOW ROCK — A selective hiring freeze, in which new hires are done on a case-by-case basis, could net approximately $18 million if imposed now, and could be one way the Navajo Nation deals with a projected $15.6 million budget shortfall.

But just in case the shortfall grows, the Nation might look at a $20 million shortfall to provide a cushion. Representatives of the three-branch government all were agreeable to a selective hiring freeze Wednesday when they met to discuss the shortfall with the Budget and Finance Committee.

Chief Justice Herb Yazzie, as the head of the Judicial Branch, was the only leader able to attend the work session, leading committee member Nelson Begaye to question whether the branch chiefs were taking the matter seriously.

President Shirley was unable to attend but sent a letter which was read to the committee by Chief of Staff Patrick Sandoval.

“Regardless of the exact budget shortfall amount, I believe that it is important to begin to identify ways to address this situation,” the president said, adding that each of the branches must bear the burden for the shortfall.

“For this reason, I recommend that once the exact budget shortfall amount is identified, each branch must be responsible for reducing costs based upon a proportionate percentage of the general fund budget,” he said. “I’ve stated before that I am opposed to tampering with our trust funds, especially those for educational purposes and the veterans. And if at all possible, I want to avoid layoffs across the board.

Chief Justice Yazzie said the shortfall is a very serious situation for the Nation’s government and the people. “The decision on how we address this shortfall is also based on the premise that we’ve got to do it immediately because we have to comply with a basic law of the government that we cannot operate on a deficit,” he said.

He agreed that layoffs ought to be a last resort and said what his branch could do immediately, without Council action, is address training, travel, meetings, and contractual services.

“There is an awful lot of money appropriated by the Council under the concept of discretionary fees,” he said, adding, “There’s no accounting for that money. The flip side of being careful about what you spend your money on is that you be able to account for it. But if you can’t account for it, then it’s really questionable whether you are acting in a fiduciary fashion.”

Dominic Beyal of the Office of Management and Budget said depending on whether the president vetoes legislation approved last week by Council to provide $11.7 million in supplemental appropriations from the $13 million in the Personnel Lapse Fund, that also could be a source of revenue.

Council dipped into the personnel fund after previously draining the Undesignated, Unreserved Fund Balance and spending all but $325,000 of the Minimum Fund Balance.

Yazzie said if the president vetoes the appropriations, then there could be an effort made to divert the Personnel money into the Undesignated fund and give the controller some authority over expenditure of those funds and compliance with the law.

Dr. James Davis, representing the Office of the Speaker, told the committee, “What I think we would benefit from beyond this bantering of recommendations is a more concrete idea as to what the stages are. We need to phase in changes over time.” He recommended the controller develop that type of listing for the committee.

“We do recognize that we do have a potential crisis on our hands; we have to do something about it currently, but we have to do so methodically, not just spontaneously. It has to be well thought through.”

The three branch chiefs will prepare recommendations for the committee by Feb. 13, when there will know whether there is likely to be an additional $2 million coming in from the tax office as well as $5 million from the Minerals Department through coal royalties.