Branch chiefs agree on budget allocation

By John Christian Hopkins
Diné Bureau

WINDOW ROCK — The three branch chiefs of Navajo government have agreed on how to allocate the base budget for Fiscal Year 2008.

Sort of.

Last week the three branch chiefs President Joe Shirley Jr., Speaker Lawrence T. Morgan and Chief Justice Herb Yazzie met and ironed out an agreement on how to divvy up the projected $137 million in revenues expected by the Nation, said Marty Ashley of the controller's office.

Fly in the ointment
The fly in the ointment came Monday when the revenue projection was adjusted, adding another $5 million to bring the total projection to $142 million.

Vice President Ben Shelly, representing the executive branch, said Shirley believed the extra $5 million should be divided according to the same percentages the chiefs have already agreed to.

But that would give the executive branch more than 70 percent of that extra wedge of pie and the legislative and judicial branches wanted their own bite.

"The committee is seriously considering raising the revenue projection," said Budget & Finance Chairman LoRenzo C. Bates. "We'll be looking into putting some of that increased revenue projection into unfunded mandates."

The Nation puts together a base budget annually, based on revenue projections and those projections tend to be about $20 million below actual revenues, Bates explained. With that in mind, B & F is considering increasing the revenue projection by about $7 million, he added.

$12 million
That would bring the new revenue projection to a total increase of $12 million, Bates said.

Bates wanted to know if the branch chiefs were willing to keep the agreement they made based on the $137 million figure, and let B & F apply the additional revenue to unfunded mandates.

The judicial branch had a lot of unmet needs and could determine on its own how best to address them, Yazzie said.

He said he agreed to $11.4 million 8.3 percent of the projected 2008 revenues because he didn't want to see the branch lose any more funding. But even with $11.4 million, there will be many unmet needs including the ability to pay probation officers the mileage necessary to adequately keep tabs on their subjects, and keep new courts in Dilkon and Aneth staffed and operating, Yazzie said.

"Right now we do not have adequate funding for all of that," Yazzie said.

The executive branch which agreed to $99.3 million, or 72.5 percent still has unmet needs, too, Shelly said. He said money was needed for economic development, including gaming.

Unmet needs
Though the legislative branch is content with the agreement already reached, it wanted to reserve the right to submit unmet needs, said Dr. James Davis, representing the speaker.

The legislative branch agreed to accept $13.1 million, or 9.6 percent of the projected revenues.

"I can see we'll have a problem," Bates said. "The legislative branch says 'fine', executive wants more and judicial hasn't decided."

The branches are capable of deciding how to use the extra money to met their own needs, Shelly suggested.

"What we're trying to avoid here, is total disagreement between the three branch chiefs," Bates said.

He urged the branch representatives to maintain the agreement reached last week, and to submit lists of unmet needs to B & F so the committee can prioritize how to use the additional funds.

"We will stick to the agreement," Davis said.

Judicial is willing to stick to the deal, with the understanding it can submit a list of unmet needs, Yazzie said.

"We will adhere to (the agreement)," Shelly agreed.

Combining
The branches are combining unfunded mandates and unmet needs, said committee member Hoskie Kee. The two things are separate and should be on separate lists, Kee said.

"We should have a ceiling, so we don't get your wish list for the world," said Vice Chairman Leonard Chee.

The branches can submit a wish list for $50 million but that doesn't mean they'll get it, Bates said.

The extra money will not be allocated based on the percentages already agreed upon, but B & F will examine all the unfunded mandates and unmet needs and determine whether to increase the revenue projection and where the additional money should go, Bates said.

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