Office of Tribal Services' Proposed Funding Distribution Methodologies

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

Office of Tribal Services' Proposed Funding Distribution

Methodologies

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of Proposed Transfer of Funds to Tribal Priority

Allocations.

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SUMMARY: In compliance with House Report Language 103-551, notice is

hereby given that in Fiscal Year (FY) 1997, the Bureau of Indian

Affairs (BIA), Office of Tribal Services, proposes to permanently

transfer Contract Support Funds, Housing Improvement Program Funds, and

Social Services Welfare Assistance Funds to each eligible Indian

tribe's Tribal Priority Allocations (TPA) budget based on the

methodology selected for each program. Currently, funds are allotted

annually to and

[[Page 46661]]

distributed by the twelve BIA area offices and the Office of Self-

Governance (OSG) for further distribution to tribes and BIA agencies

based on the level of current year appropriations using the procedures

and guidelines established by the BIA for payment of these funds. Under

the new proposal, an initial amount of funds will be identified for

each eligible tribe, including Self-Governance Tribes, which will recur

annually.

DATES: Written comments regarding the above proposed actions must be

received by Close of Business in the Office of Tribal Services on or

before October 21, 1996 in order to be considered in the final

decisions on the distribution methodologies for the above programs.

Tribal leaders will be notified by letter of the methodology selected

for all three programs.

FOR FURTHER INFORMATION CONTACT: The Office of Tribal Services, Bureau

of Indian Affairs, MS-4603-MIB, 1849 C Street, N.W., Washington, D.C.

20240, telephone number (202) 208-3463.

SUPPLEMENTARY INFORMATION: The purpose of this notice is to provide

Indian tribes an opportunity to submit written comments on the above

proposed actions.

Based on information received from the Congress and through tribal

consultation, the Bureau is seeking input from Indian Country on

proposed distribution methodologies for all three programs. Two

alternative proposals for each of these programs are listed for

consideration and all tribes are encouraged to comment on the

methodologies as described and identify which alternative they prefer

for each program within 45 days from the date this notice is published

in the Federal Register. In order for the BIA to select the most fair

and equitable methodology that would best serve all tribes under all

three programs, broad-based tribal support from the majority of areas

will be required. Widespread support in one or two areas for one

alternative could constitute a national majority of tribes; however,

that alternative will not automatically be implemented unless it also

receives majority support in other areas as well. The following methods

are being considered by the BIA for determining each tribe's share of

the Contract Support, Housing Improvement Program, and Social Services

Welfare Assistance program funds for allocation to the TPA budget

category.

1. The BIA's Division of Social Services proposes to transfer

welfare assistance funds to each Indian tribe currently benefitting

from a welfare assistance program or eligible to participate in a

welfare assistance program.

Alternative No. 1

The Division of Social Services proposes to use an average of the

most recent funding history covering the period of 1993-1995. Those

tribes without a three-year funding history must be eligible for

operation of a BIA social services program and use 25 CFR 20 as their

standard in order to determine funding needs for their programs. They

must submit verifiable data of actual expenditures and projected

expenditures for an entire year to the Area Director by September 15,

1996 for the Area Director's certification. If the data is not

submitted, the Area Director will formulate an average yearly funding

for that tribe based upon caseload and funding projections and certify

the results. The data certified by the Area Director will be included

in the nationwide totals for welfare assistance.

Alternative No. 2

The Division of Social Services proposes to allocate to each

eligible tribe a base amount of $20,000 plus a percentage of the

remaining funds based on the total population within the BIA Total

Category in the 1993 Bureau of Indian Affairs' Indian Service

Population and Labor Force Estimates Report. A tribe's percentage share

would represent a comparison of the tribe's data to the national

totals. For example, tribe X receives a total of $1,302,617 for its

share of welfare assistance funds. This consists of a $20,000 base and

$1,282,617 in additional funds, based on the following formula:

[GRAPHIC] [TIFF OMITTED] TN04SE96.002

which translates into: 75,894,501 (total funds after $20,000 deducted

per tribe) multiplied by .0169=$1,282,617 in additional funds which

results in:

$20,000.... (base amount for tribe X) plus

$1,282,617. (additional funding)

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$1,302,617. total funding for tribe X

If any eligible tribe, including an OSG tribe, was not included in the

1993 BIA Labor Force Report and chooses to obtain additional funding

beyond the $20,000 tribal base, it must submit verifiable data that

tribal members in the BIA Total Category exist in its service

population to the Area Director by September 15, 1996 for

certification. If the data is not submitted, the Area Director will

formulate an average yearly funding for that tribe based upon caseload

and funding projections and certify the results. The data certified by

the Area Director will be included in the nationwide totals for welfare

assistance. If the 1995 BIA Indian Service Population and Labor Force

Estimate Report is published in final form, this document will be used

to calculate the appropriate tribal share.

2. The BIA's Division of Self-Determination Services proposes to

transfer Contract Support Funds (CSF) to the TPA budget system in FY

1997. This proposal concerns the payment of CSF for tribes and tribal

organizations contracting under the Indian Self-Determination and

Education Assistance Act (Pub. L. 93-638), as amended, and is limited

to ongoing or continuing contracts and would not affect the Indian

Self-Determination Fund which will continue to be maintained at the

Central Office and distributed to meet indirect cost needs for new

contracts. Under each of the alternatives explained below, the BIA will

provide a pro rata distribution of the available funds to the eligible

tribes.

Alternative No. 1

In determining the amount of the one-time transfer of CSF to the

tribal base, the Division of Self-Determination Services proposes to

use each tribe's most current indirect cost rate in effect during the

period between 1994-1996, as negotiated with the Office of the

Inspector General.

Alternative No. 2

The Division proposes to use an average of the most recent three-

year indirect cost rates, as negotiated with the Office of the

Inspector General.

It is proposed that tribes contracting under the Act without

indirect cost rates would also have CSF added to their recurring TPA

base at the time the transfer is executed. The BIA will add a standard

percentage (approximately 20 percent) based on the national average

indirect cost rate. The amount derived from this percentage will be

added to the program amount being contracted.

3. The BIA's Division of Housing Services proposes to transfer

Housing Improvement Program (HIP) funds to the TPA budget of each

federally recognized Indian tribe. The HIP is not intended to meet the

overall housing needs in Indian Country but is meant to provide

standard housing opportunities through repairs of existing homes and,

in a limited number of cases, replacement homes for eligible

applicants.

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Alternative No. 1

The Division of Housing Services proposes to allocate to each

eligible tribe a base amount of $20,000 plus a percentage of the

remaining funds based on the total populations within the following

four categories in the 1993 Bureau of Indian Affairs' Indian Service

Population and Labor Force Estimates Report: (1) Over 65 years of age,

(2) Unable to Work, (3) Total Not Employed of the Potential Labor

Force, and (4) Total number of Labor Force earning $7,000 or less per

year. A tribe's percentage share would represent a comparison of the

tribe's data to the national totals. For example, tribe X receives a

total of $25,000 for its share of housing funds. This consists of a

$20,000 base and $5,000 additional funds based on the following

formula:

[GRAPHIC] [TIFF OMITTED] TN04SE96.003

which translates into: 5,000,000 (total funds after $20,000 deducted

per tribe) multiplied by .001 = $5,000 in additional funds, which

results in: $20,000 (base amount for tribe X) plus $5,000 (additional

funding) $25,000 total funding for tribe X

If any eligible tribe, including an OSG tribe, was not included in the

1993 BIA Labor Force Report and chooses to obtain additional funding

beyond the $20,000 tribal base, it must submit verifiable data that

tribal members in the four categories exist in its service population

to the Area Director by September 15, 1996 for certification. If the

data is not submitted, the Area Director will formulate a total for the

four categories based upon Service Population estimates and certify the

results. The data certified by the Area Director will be included in

the nationwide totals for HIP. If the 1995 BIA Indian Service

Population and Labor Force Estimate Report is published in final form,

this document will be used to calculate the appropriate share.

Alternative No. 2

The Division proposes to use the same methodology as the first

alternative, but allocate a base of $10,000 rather than $20,000. If the

1995 BIA Indian Service Population and Labor Force Estimate Report is

published in final form, this document will be used to calculate the

appropriate share.

Dated: August 23, 1996.

Ada E. Deer,

Assistant Secretary--Indian Affairs.

[FR Doc. 96-22481 Filed 9-03-96; 8:45 am]

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