Indian Affairs Budget Update

1. Indian Affairs Budget Update Briefing to Self-Governance Conference April 30, 2008 Mary Jane Miller Director, Office of Budget Management Indian Affairs

2. Overview • FY 2009 Budget Status • Tribal Participation in the Budget Process • Tribal Budget Advisory Committee • Tribal Budget Subcommittee – input • FY 2010 Process • Explanation of Pay Costs Increases

3. FY 2009 President’s Budget FY 09 President’s Budget: $2,191M 4.4% below FY 08 enacted level ($100M) Maintains funding for two Initiatives Improving Indian Education ($26.6M) Safe Indian Communities ($25.5M) Maintains initiatives at FY08 enacted level Funds fixed costs at ~83%: $28.9M Returns most programs to FY 2008 President’s Budget levels

4. FY 2009 Budget Update • Feb 4: Budget Roll-out • Feb 11: Senate Indian Affairs staff briefing • Feb 20: House Appropriations staff briefing • Feb 27: Senate Appropriations staff briefing • March: Various specific briefings on law enforcement, education, construction, etc • April 3: ASIA testified before House Approps • House mark-up: mid-May?? Senate: mid-June?

5. CONGRESSIONAL PROCESS President’s Budget DOI / IA Hearings, briefings, questions DOI / IA Hearings, briefings, questions Congress Authorizers Appropriators Senate Indian Affairs Commitee House Natural Resources Committee HAC, Subcommittee on Interior, Environ-ment, & Related Agencies SAC, Subcommittee on Interior, Environ-ment, & Related Agencies Conference Conference Bill President signs Bill President signs CR Enacted Budget PL JR Omnibus

6. FY 2008 Congressional Action Congressional Action Varies from the President’s Budget And Committee by Committee before The budget is finally Enacted. $2,291

7. Federal Appropriations Process as it Impacts Tribes FY ‘08 We are here FY ‘09 FY ‘10 FY ‘11 1 2 3 4__ O N D J F M A M J J A S 1 2 3 4 1 2 3 4 1 2 3 4 FY ‘11 Budget Targets Set FY ’10 Budget Targets Set BIA & Tribes BIA & Tribes Executive Branch FY ’10 Budget Deliberations BIA Tribes DOI BIA OMB DOI BIA Dialogue Pre-embargo Cong Action on 09 Budget Cong Action on 10 Budget Only if CR Strategy efforts FY ’09 2nd yr Exec. /Close out FY ’10 2nd yr Exec. /Close out Tribal Opportunities FY ’11 Budget Execution FY ’09 Budget Execution FY ’10 Budget Execution

8. Indian Affairs/Tribal Budget Advisory Council (TBAC) • Forum & process for Tribes & Department to develop budgets • Tribal representatives advise on priority needs of Indian Country • Cooperative participation in budget formulation, justification & information efforts of Department • Educational forum

9. Indian Affairs/Tribal Budget Advisory Council (TBAC) • TBAC meetings quarterly • 3 in DC area to facilitate strategy efforts • 1 in field – usually hosted by a tribe • Various subgroups • Budget subcommittee • Actively participates with IA in budget development – usually 3 times a year • Meets with OMB • Participates in creation of TBAC agendas

10. Indian Affairs/Tribal Budget Advisory Council (TBAC) • Membership • Assistant Secretary-Indian Affairs • His senior management team • Special Trustee for American Indians • His senior management/budget team • Tribal Representatives • Two elected or appointed Tribal officials from each of the 12 regions (Total: 24) • Two tribal co-chairs • AS-IA federal co-chair (PDASIA – alternate)

11. FY 2010 Process • IA received input from tribal members at the TBAC during March meeting. • IA consolidated tribal input with central and regional office input. • Indian Affairs’ senior managers met over 3 days to develop budget at DOI target levels (Apr 10/11/14). • Tribal budget subcommittee met April 15/16 to be briefed on budget & present their input to ASIA. • April 16 – ASIA & TBAC subcommittee negotiated final FY2010 proposed budget: HOWEVER

12. FY 2010 Process It is the Administration’s Budget. The Tribes feel it is drastically underfunded. The Tribes do NOT concur in any reductions!

13. FY 2010 Process • Expect few changes for the initial submission of the FY 2010 budget. • Transition papers and new strategies for a new administration. • Turnover in administrations will delay final budget.

14. Pay Costs Explanation: Step 1 • Determine the Basis for the Calculations • Federal: Actual salaries for 1st quarter of current year; Estimate of salaries for quarters 2 through 4. • Tribal: Actual base salary costs for previous fiscal year (via regions) – for 638 & Self-Governance

15. Pay Costs ExplanationDepartment’s Calculation: Step 2 • ¼ of the previous years’ pay raise is determined and applied against base. • ¾’s of the estimated budget year pay raise is determined and applied against base. EXAMPLE: • 2.5% of prior year x 25% = .625 • 3.0% of budget year estimate x 75% = 2.25% • Merged/Combined percentage = 2.875%

16. Pay Cost Increase – Step 3The formulation process • Pay amounts in the budget can change. EXAMPLE: Budget & Appropriation Process Budget development (3% pay raise est.): 2.875% OMB decision (75%): 2.156% Congressional ATB (-1.56%): 2.123% Authorization Process Congress authorizes: 3.5% SHORTFALL absorbed: 1.377% Difference Is the Shortfall

17. Pay Cost Increase DistributionFinal Step • Straight pro-ration based on $ received in the budget for pay cost increases. • Federal: • Distributed Based on budgeted & approved FTE • Tribal: • Distributed Based on reported salary costs

18. $$$$Any Questions????