Confusion reigns over chapter money

By John Christian Hopkins
Diné Bureau

WINDOW ROCK — An old saying notes that money is the root of all evil, but on the Navajo Nation, money is apparently the root of confusion.

In October, delegates approved giving $180,000 to each of the 110 chapters, but so far nary a penny of it has been dispersed. That will change by June 1.

Clarification
"We weren't sure what the intent of this legislation was," explained Arbin Mitchell, division director of the Community Development Department. CDC met with the controller and Office of Management and Budget to reach some conclusion on what the council intended the money to be used for.

They determined the money was to be used for capital outlay and capital improvement projects, Mitchell said. However, many of the chapters submitted budgets requesting the money for house wiring and bathroom additions — which do not meet the requirement, he explained.

That's when Delegate Danny Simpson requested a clarification, Mitchell said. A legal opinion was sought from the Office of Legislative Counsel. Attorney Frank Seanez said the council did not specify any particular use for the money, so it could be used by the chapters for anything, Mitchell said.

That's when OMB asked for a second opinion — this time from the Department of Justice. DOJ reaffirmed OMB's original position that the council did intend to limit the funds for capital outlay and capital improvement projects — but Mitchell was still at odds with OMB and the controller's office. He said that opinion prohibited use of the money for house wiring and bathroom additions.

It's been six months; the money should have gone to the chapters long ago, Budget & Finance Committee Member Hoskie Kee said.

No budging on budgets
The chapters should submit complete budgets requesting the money, said OMB Executive Director Domenic Beyal. Those budgets should go through the Local Governance Support centers for each of the five agencies, he added.

However — "For whatever reason" — the chapters don't want to go through LGSC and, instead, submitted budgets directly to OMB, Beyal explained.

OMB can't take action if the proper procedures are not followed, Beyal said.

Delegate Lorenzo Curley said his three chapters — Lupton, Houck and Nahata Dziil — have submitted budgets that included requests for wiring and bathroom additions. If OMB tosses those requests out the window, each of his chapters would have to start at square one, Curley said.

Under the Nation's laws and regulations, house wiring and bathroom additions are not considered capital outlay projects, Beyal said.

"That's the law," Beyal said. "I don't have the authority to say otherwise."

In all, 64 of the 110 chapters have submitted some type of budget to OMB; of those, eight were approved and money handed over, Beyal said. Still, 46 chapters have submitted nothing, he added.

Failure to communicate
Communication seems to be a major roadblock, Curley suggested. He said council approved this money six months ago, and not only has it not been paid — but delegates are just learning about OMB's position, Curley said.

"If there's going to be equity, it has to fall on the side of the chapters," Curley insisted.

Many chapters already made plans for the money that they were promised, Curley said. Any questions OMB had should have come up in October — when council first approved this funding, Curley said.

"If you were going to say no, say no right there, when the council is about to act," Curley said. Instead, OMB has taken it upon itself to nullify the council's action, he said. "You've erased what council did, and that doesn't sit well."

Beyal said under council floor rules, he cannot voice objections to the council's actions unless he is called upon, or is acting as an agent for the legislation.

B & F can issue a directive to have the funds released, but should do so with caution, Chairman LoRenzo C. Bates said.

"It's my belief that the council intended the money for a wide spectrum of projects," Bates said.

However some chapters are stretching the definition of such projects, he added.

"You have chapters submitting budgets for paper clips, pencils and things that obviously don't fit," Bates said. "If you just approve it, these paper clip chapters will get their money without complying."

Council is too quick to waive the Nation's laws, said Delegate Nelson Begaye. B & F should support OMB in this instance, he said. All delegates should understand the law — and the Appropriations Act, Begaye added.

"It's about time we understood the law — not just B & F, but all 88 council delegates should know the law," Begaye said.

Blindly waiving the law sends the wrong message to the Nation, Begaye said.

Twists and turns
In October — a week before the Nation's elections — the council approved $180,000 per chapter. That legislation was vetoed by President Joe Shirley Jr., in part, because there seemed to be no stipulations on using the money.

However, council mustered the votes to override Shirley's veto.

In January, OMB was told to disperse the money, but that led to the question of what the funds could be sued — for and if house wiring and bathroom additions qualified as legitimate uses.

The issue became muddled because when it did not like Seanez's opinion, OMB ran to DOJ, explained Chief Legislative Counsel Ray Etsitty.

"The controller seems willing to work with you and get something done, but does OMB want to do this or throw another wrench into it?" Etsitty asked.

Controller Mark Grant suggested giving the money to the chapters as a grant — that would allow the chapters to use the money however it saw fit.

"I want the money released," Kee insisted.

Etsitty did agree with OMB in one area though — the need for some type of budget.

"Otherwise, down the road, we'll be auditing these chapters," Etsitty said.

Handing over the money without requiring budgets first will lead to more problems, Beyal warned.

Last summer, the council approved $100,000 per chapter. That money was paid out, with the understanding that the chapters would submit a budget as soon as possible, Beyal said. So far, few chapters have bothered submitting any type of budget.

"They already had the money, so they figured 'Why bother?'," he said.

Delegate Pete Ken Atcitty suggested releasing half of the money — $90,000 — to the chapters immediately, with the other half to be released contingent on a submitted budget.

That could violate council's intent, Etsitty warned. What if a chapter never submitted a budget, then it would never get the money and that would be at odds with what the council intended, he said.

D-Day
Kee wanted to make June 1 "D-Day" — disbursement day. The $180,000 would be handed over to each chapter that submitted a budget, Kee said. He further directed that LGSC provide assistance to any chapter needing help to formulate a budget.

Curley wondered if the committee is on firm footing in doing this.

As long as the money is given as a grant, B & F should have no problem, Grant said.

"Because there are so many varying opinions, it puts (B & F) in the driver's seat," Etsitty said. "The committee can pick whichever opinion it wants to follow."

John Christian Hopkins can be reached at hopkins1960@hotmail.com or by calling 505-371-5443