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Project to Revise Tribal Shares for the Appraisal Services Program OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIAN

Project to Revise Tribal Shares for the Appraisal Services Program OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS. Office of Appraisal Services Office of External Affairs. Background.

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Project to Revise Tribal Shares for the Appraisal Services Program OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIAN

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  1. Project to Revise Tribal Shares for the Appraisal Services ProgramOFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS Office of Appraisal ServicesOffice of External Affairs

  2. Background • In 1995 BIA developed region-by-region formulas used to allocate tribal shares for the Appraisal Program. • When the Appraisal Program was transferred from BIA to OST in 2002, BIA Awarding Officials and OST agreed to continue the region-by-region formulas to maintain continuity.

  3. OAS AREA OF SERVICE

  4. Existing Tribal Share Formulas Several different formulas across12 OAS regions: • Equal division Easy to calculate, but likely not in compliance with the statute • Land-based division No strong correlation with appraisal needs • Population-based division No strong correlation with appraisal needs • Workload-based division Appears to have strong correlation with appraisal needs • Hybrid division (weighted components) May have some correlation with appraisal needs if workload component is used

  5. Reasons for Revising • Tribal shares calculated in 1995 have not changed. • Tribal shares have not been recalculated in step with increased regional appraisal budgets. • There may be inequities between tribes that have contracted or compacted at different times.

  6. Benefits of Revising Revised formulas will ensure uniformity and collaboration in determining: • Tribal Shares, and • Funding Residual for the Inherent Federal Functions

  7. Statutes and Regulations • 25 USC §450j-1(a): “The amount of funds provided under the terms of the self-determination contracts entered into pursuant to this subchapter shall not be less than the appropriate Secretary would have otherwise provided for the operation of the program or portions thereof for the period covered by the contract...” • OST interprets this to mean: what the Secretary otherwise would have expended providing direct services to the now contracting or compacting Tribe for that program.

  8. Statutes and Regulations 25 CFR §1000.94: • “BIA residual funds are the funds necessary to carry out BIA residual functions. BIA residual functions are those functions that only BIA employees could perform if all Tribes were to assume responsibilities for all BIA programs that the Act permits.” 25 CFR §1000.95: • (a) “…Residual information will consist of residual functions performed by the BIA, brief justification why the function is not compactable, and the estimated funding level for each residual function. Each regional office and the central office will compile a single document for distribution each year that contains all the residual information of that respective office…” • Although these regulations related to residual funds reference “BIA,” the OST also is bound by these same regulatory requirements.

  9. Residual • The current residual for the Appraisal Program is 20%. • Future ?? OST will need to ensure that the residual is sufficient to fund those activities which, by law, must be carried out by federal officials [Inherent Federal Function (IFF)].

  10. Appraisal Process Submitted by BIA or 638 Tribe (Realty) Reports Prepared by OAS, 638 Tribe, Contractor or Third-Party Performed by OAS Performed by OAS

  11. Idea 1 (Workload-based) Tribal Share = (Regional Budget – Residual) × (Average Tribal Workload / Average Regional Workload) • This is a workload-based formula • The workload will be averaged over a set number of fiscal years to smooth out demand spikes • OST intends for this formula to be dynamic, i.e., adjusted every year • This is the type of formula now used in Eastern Oklahoma and Northwest Regional Offices

  12. Workload-based Formula

  13. Example of How Shares Can Change from Year-to-Year with a Dynamic Formula

  14. Idea 2 - Equal Division

  15. Idea 3: Land-based

  16. Idea 4: Population-based

  17. Idea 5: Hybrid formula(weighted components)

  18. Title IV Funding Sources • Most of the tribes now compacting the appraisal program receive base funding from OSG. • If it is determined that more funding is required under the new formula, OST will make up the difference with a supplemental transfer to OSG; this supplement is not added to the base due to dynamic nature of the formula.

  19. Consultation: Summer 2009 • Notice of consultations appeared in the Federal Register. • Consultations on the Reformulation of Tribal Shares for the Appraisal Program were held in; Oklahoma City, Portland, Rapid City, Billings, Anchorage and Albuquerque. • Written comments received. • Court reporter transcripts for all the consultations are available at www.doi.gov/ost

  20. Post-Consultation Activities • Reviewed Consultation transcripts and comments. • Analyzed metrics to evaluate actual regional residual costs. • Reassessed the validity of a workload-based tribal share formula over a five-year period.

  21. What We Have Learned • As a result of the consultations, the methodology recommended for calculating tribal shares for the appraisal program was a workload-based formula that averages tribal workload over the most recent five years. • Current regional residuals vary widely and have a direct impact on tribal shares. • There is no ideal solution, only compromise.

  22. Tribal Share Reformulation Project: Current Status (May 2010) • After reviewing consultation comments, the best course of action appears to be forming a small Tribal-Federal Workgroup to study how these competing interests can be balanced to benefit all concerned. • OAS will issue an invitation letter to Tribal Leaders requesting volunteers willing to participate on the Tribal-Federal Workgroup. • The overall goal of the Tribal-Federal Workgroup will be to recommend fair and equitable solutions.

  23. Timeframe for Tribal-Federal Workgroup Recommendations • Proposed deadline for the Workgroup’s proposed recommendations or solutions: August 1, 2010 • This will allow time for full implementation of the recommendations before the beginning of FY2011.

  24. THANK YOU • QUESTIONS? • COMMENTS? • SUGGESTIONS?

  25. Points of Contact:Comments, ideas, thoughts may be emailed to: Iris Crisman at iris_crisman@ost.doi.govTelephone: 505-816-1127Eldred F. Lesansee, Director, Office of Appraisal Services 505-816-1602Lee Frazier, Program Analyst, Office of External Affairs 202-208-7587

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