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1 NATIONAL TRIBAL CONTRACT SUPPORT COST COALITION BIA Tribal Budget Advisory Committee Meeting, March 2010 Bureau of Indian Affairs Tribal Budget Advisory.

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Presentation on theme: "1 NATIONAL TRIBAL CONTRACT SUPPORT COST COALITION BIA Tribal Budget Advisory Committee Meeting, March 2010 Bureau of Indian Affairs Tribal Budget Advisory."— Presentation transcript:

1 1 NATIONAL TRIBAL CONTRACT SUPPORT COST COALITION BIA Tribal Budget Advisory Committee Meeting, March 2010 Bureau of Indian Affairs Tribal Budget Advisory Committee Meeting March 8, 2010 Washington, D.C. C ONTRACT S UPPORT C OSTS U NDER THE I NDIAN S ELF -D ETERMINATION A CT P RESENTED B Y : L LOYD B. M ILLER, L EGAL C OUNSEL 1425 K S TREET NW, S UITE 600 W ASHINGTON, D.C. 20005 P HONE : (202) 682-0240 F ACSIMILE : (202) 682-0249

2 2 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Essential Governmental Services Under the Indian Self-Determination Act, Indian Tribes carry out essential governmental services such as health care, law enforcement, housing education, and other programs that the BIA and IHS would otherwise carry out in Indian country. BIA Tribal Budget Advisory Committee Meeting, March 2010

3 3 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT All Tribes in 35 States Every Tribe in 35 States operates one or more self-determination contracts, from substance abuse programs to entire hospitals and police forces. BIA Tribal Budget Advisory Committee Meeting, March 2010

4 4 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Impacts and Transparency Self-determination contracting has strengthened tribal institutions, increased local employment, and reduced the federal bureaucracy. It is also fully transparent through independent annual audits. BIA Tribal Budget Advisory Committee Meeting, March 2010

5 5 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Fixed Costs Contract support costs (CSCs) for ISDA contractors cover the independently-audited fixed overhead costs that an ISDA contractor must incur to operate an IHS or BIA facility or program (i.e., insurance; annual audits; payroll administration, etc.). BIA Tribal Budget Advisory Committee Meeting, March 2010

6 6 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT IDC Rates CSCs are equivalent to general and administrative costs (G&A) required by government procurement contractors. Both costs are generally set by indirect cost rates that are issued by the federal government. BIA Tribal Budget Advisory Committee Meeting, March 2010

7 7 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Lost Jobs CSC shortfalls cost jobs. Since contract support costs are fixed, tribal contractors must cover shortfalls in CSC payments by reducing funding intended for services through personnel reductions. BIA Tribal Budget Advisory Committee Meeting, March 2010

8 8 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Dollar For Dollar Reductions Every dollar in CSC shortfalls leads to reduced services and positions, and (for IHS contracts) also reduced collections from Medicare, Medicaid and private insurance (all of which fund additional services and positions). All told, every $10 million in lost CSC payments means 243 fewer health care jobs (including jobs that would be paid with third party collections), and at least 100 fewer jobs in BIA-funded government programs. BIA Tribal Budget Advisory Committee Meeting, March 2010

9 9 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT The ISDA Penalty CSC payment shortfalls penalize Tribes and their members for carrying out the Nations most successful initiative to strengthen Indian communities, by forcing program and personnel reductions. BIA Tribal Budget Advisory Committee Meeting, March 2010

10 10 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Unfairness Due to CSC shortfalls, tribally administered BIA and IHS facilities end up with less funding and fewer personnel than non-contracted BIA and IHS facilities providing the same services. BIA Tribal Budget Advisory Committee Meeting, March 2010

11 11 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Cherokee v. Leavitt In Cherokee Nation v. Leavitt the Supreme Court held the United States liable for IHSs failure to pay full CSCs in fiscal years 1994-1997. The Court reasoned that ISDA contractors have no fewer rights to be paid than do other government contractors. BIA Tribal Budget Advisory Committee Meeting, March 2010

12 12 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Immediate Obligation Appropriations for CSCs can be obligated to Tribes under existing contracts, within 10 days of apportionment to the BIA and IHS. CSCs directly fund jobs, and those jobs directly enhance services for health care, education, law enforcement and other essential governmental services across Indian country. BIA Tribal Budget Advisory Committee Meeting, March 2010

13 13 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT $64M BIA Shortfall The BIA projected shortfall for FY 2011 is $64 million (excluding the Presidents proposed increase). Absent any increases, IHS projects an FY 2011 shortfall of $150 million. BIA Tribal Budget Advisory Committee Meeting, March 2010

14 14 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Magnitude of the Shortfall The FY 2011 unpaid CSCs represent only 1.9% of the total BIA appropriation for Operation of Indian Programs. BIA Tribal Budget Advisory Committee Meeting, March 2010

15 15 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Pacing A plan should be developed to close the CSC funding gap within 2 years for the BIA and within 3 years got IHS. BIA Tribal Budget Advisory Committee Meeting, March 2010

16 16 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT CSC Impact Statements Future program increases should include CSC impact statements (currently estimated at 10.6 cents for each dollar added to Operation of Indian Programs). BIA Tribal Budget Advisory Committee Meeting, March 2010

17 17 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT Discrimination Against Indian Contractors The President and Congress should not permit Indian contracts to remain the only government contracts that go unpaid. Deliberately underpaying government contracts with Tribes raises grave constitutional issues. BIA Tribal Budget Advisory Committee Meeting, March 2010

18 18 Projections of BIA Contract Support Cost Shortfall in 2008 1. 2008 OIP appropriation $2,080,261,000 2. less 2008 CSC appropriation [$149,628,000] 3. net 2008 OIP appropriation [excluding CSC dollars] (1-2) $1,930,633,000 4. total 2008 OIP under contract (per BIA 08 SF report) $619,476,520 5. % OIP under contract to total OIP (4÷3) 32% 6. total 2008 CSC requirement (per BIA 08 SF report) $204,075,690 7. relation of CSC to OIP under contract (6÷4) 33% 8. relation of total CSC requirement to total OIP apportion [excluding CSC dollars] (6÷3) 10.6% This tells us that in FY 2008, an amount equal to 32% of the total OIP $$$ [excluding CSC dollars] was contracted to Tribes, and of that sum, an additional 33% as needed to pay full CSC. That means 33% of 32% of total OIP dollars [excluding CSC dollars] is the annual CSC requirement. Thats 10.6% of total OIP dollars [excluding CSC dollars]. BIA Tribal Budget Advisory Committee Meeting, March 2010

19 19 Projections of BIA Contract Support Cost Shortfall in 2009 BIA Tribal Budget Advisory Committee Meeting, March 2010 9. 2009 OIP appropriation$2,128,630,000 10. less 2009 CSC appropriation[$147,294,000] 11.net OIP appropriation [excluding CSC dollars] (9-10) $1,981,336,000 12. projected 2009 CSC requirement (10.6% x 11)$210,021,610 13. less 2009 CSC appropriation (10)[$147,294,000] 14. 2009 projected shortfall (12-13)$62,727,610

20 20 Projections of BIA Contract Support Cost Shortfall in 2010 BIA Tribal Budget Advisory Committee Meeting, March 2010 15. 2010 OIP appropriation$2,335,965,000 16. less 2101 CSC appropriation[$166,000,000] 17. net 2010 OIP appropriation [excluding CSC dollars] (15-16) $2,169,965,000 18. projected CWC requirement (10.6% x 17)$230,016,290 19. less CSC appropriation in 2010 (16)[$166,000,000] 20. 2010 projected shortfall (18-19)$64,016,290

21 21 Projections of BIA Contract Support Cost Shortfall in 2011 BIA Tribal Budget Advisory Committee Meeting, March 2010 21. proposed 2011 OIP appropriation$2,394,640,000 22. less proposed 2011 CSC appropriation[$187,526,000] 23.2011 OIP appropriation [excluding CSC dollars) (22-21) $2,207,114,000 24. projected CSC requirement (10.6% x 23)$233,954,000 25. less proposed CSC appropriation (22)[$187,526,000] 26. 2011 projected shortfall (24-25)$46,428,000

22 22 Projections of BIA Contract Support Cost Shortfall for 2012 BIA Tribal Budget Advisory Committee Meeting, March 2010 27. Projected 2012 OIP appropriation (2.527%)$2,455,152,553 28. less proposed 2011 CSC appropriation (22)[$187,526,000] 29. 2012 OIP appropriation [excluding CSC dollars) (28-29) $2,267,626,553 30. projected CSC requirement (10.6% x 29)$240,368,415 31. less proposed CSC appropriation (28)[$187,526,000] 32. 2012 projected shortfall (30-31)$52,842,415

23 23 Projections of BIA Contract Support Cost Shortfalls in 2008, 2009, 2010, 2011 & 2012 BIA Tribal Budget Advisory Committee Meeting, March 2010 33. 2008 CSC shortfall (reported by BIA)$57,730,229 34. 2009 CSC shortfall (projected) (14)$62,727,610 35. 2010 CSC shortfall (projected (20)$64,016,290 36. 2011 CSC shortfall (projected) (26)$46,428,000 37. 2012 projected shortfall (30-31)$52,842,415

24 24 FY 2011 Shortfall Percentages FY 2011 appropriations ÷ $187,526,000 = 92% FY 2008 requirement ÷ $204,075,690 FY 2011 appropriations ÷ $187,536,000 = 80% FY 2011 requirement ÷ $233,954,000 BIA Tribal Budget Advisory Committee Meeting, March 2010

25 25 CONTRACT SUPPORT COSTS UNDER THE INDIAN SELF-DETERMINATION ACT If you have any questions or comments, please contact: BIA Tribal Budget Advisory Committee Meeting, March 2010 National Tribal Contract Support Cost Coalition Alaska Native Tribal Health Consortium Arctic Slope Native Association, Ltd. Cherokee Nation Chippewa Cree Tribe of the Rocky Boys Reservation Choctaw Nation Confederated Salish and Kootenai Tribes Copper River Native Association Forest County Potawatomi Community Kodiak Area Native Association Little River Band of Ottawa Indians Pueblo of Zuni Riverside – San Bernardino County Indian Health Shoshone Bannock Tribes Shoshone-Paiute Tribes Spirit Lake Tribe Yukon-Kuskokwim Health Corporation Lloyd B. Miller 1425 K Street, NW, Suite 600 Washington, D.C. 20005 Phone: (202) 682-0240 Facsimile: (202) 682-0249 lloyd@sonosky.net 900 West Fifth Avenue, Suite 700 Anchorage, AK 99501 Phone: (907) 258-6377 Facsimile: (907) 272-8332 lloyd@sonosky.net


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