COMMITTEEON INDIAN AFFAIRS

Encouraging State-Tribal Cooperation: The 1997- 1998 Activities of the Committee on Indian Affairs

MEMBERSHIP

COMMITTEE STAFF

Connie Erickson, Legislative Research Analyst
Eddye McClure, Attorney
Lois A. O'Connor, Secretary

Published by:

Montana Legislative Council
Representative Larry Hal Grinde, Presiding Officer
Montana Legislative Services Division
Robert B. Person, Executive Director
David D. Bohyer, Director, Office of Research and Policy Analysis
Gregory J. Petesch, Director, Legal Services

PREFACE
ORIGIN AND RESPONSIBILITIES OF THE COMMITTEE
COMMITTEE MEMBERSHIP
COMMITTEE ACTIVITIES
COMMITTEE RECOMMENDATIONS

CHAPTER ONE: WELFARE REFORM AND INDIAN TRIBES
INTRODUCTION
TRIBAL TANF PLAN
  Tribal TANF Funding
  State-Tribal Intergovernmental Agreement
  Status of Tribal TANF Plans
THE MONTANA EXPERIENCE
  FAIM and Indian Tribes
  Tribal Transition to TANF
CONCLUSION

CHAPTER TWO: ECONOMIC DEVELOPMENT AND INDIAN TRIBES
INTRODUCTION
“WHAT CAN TRIBES DO?”
TRIBAL INITIATIVES
  “Building Partnerships Summit”
  Tribal Business Information Centers
STATE INITIATIVES
  Small Business Development Center
  Microbusiness Finance Program
  “MONTANA JOBS: Putting People First”
CONCLUSION

CHAPTER THREE: NORTHERN CHEYENNE INDIAN RESERVATION
BACKGROUND
DIALOGUE WITH THE NORTHERN CHEYENNE TRIBE
  Economic Development
  Tribal Sovereignty
  Law Enforcement
  Welfare Reform
  Boys and Girls Club
  Education
  Comments from the Tribal President
SUMMARY

CHAPTER FOUR: COMMITTEE RECOMMENDATIONS
INTRODUCTION
WELFARE REFORM
  Tribal Transitional Assistance
  Tribal TANF Plans
EDUCATION
  Nonbeneficiary Students
  Article X, Section 1, Subsection (2)
APPENDIX A
APPENDIX B

PREFACE

ORIGINAND RESPONSIBILITIES OF THE COMMITTEE

TheCommittee on Indian Affairs was created in 1977 as the Committee on IndianLegal Jurisdiction. The purpose for creating the Committee was to meetwith the various Indian tribes to identify common bonds between Indiansand non-Indians and to propose legislation for the mutual benefit of bothgroups. The Committee's major recommendation to the 1979 Legislature wasthe creation of a select Committee on Indian Affairs. The Committee furtherrecommended that the 1981 Legislature create a permanent Indian Affairscommittee if the select committee proved valuable in improving Indian/non-Indianrelations.

The 1979 Legislature accepted the recommendation and created the SelectCommittee on Indian Affairs. However, while subsequent Legislatures recognizedthe importance of the Committee in acting as a liaison between Indian peopleand the Legislature, there was a reluctance to create a permanent IndianAffairs committee. As a result, from 1979 to 1989, a Committee on IndianAffairs was created each legislative session. Finally, in 1989, the Committeeon Indian Affairs (Committee) was established as a permanent, statutorycommittee.

The Committee has the following statutory responsibilities:
 . to seek opinions of and information from Indian tribes, Indian tribal organizations,state agencies, local governments, non-Indians living on or near Indianreservations, and other interested persons and agencies in order to gaininsight into Indian/non- Indian relations; 

 . to hold hearings both on and off reservations to promote better understandingbetween tribes and public agencies and to improve both the Indian people'sknowledge of the structure of state agencies and the legislative processand the non-Indian people's knowledge of tribal government and institutions; 
 . to encourage and foster participation of Indian people at its meetings; 

 . to act as a liaison between the Indian people and the Legislature; 

 . to encourage tribal-state and tribal-local government cooperation and otherwisepromote amicable Indian/non-Indian relations; and 

 . to cooperate with the Commissioner of Higher Education in a study of Indianstudents in Montana schools. 

COMMITTEE MEMBERSHIP 

The Committee is composed of eight members: four senators and four representativesappointed on a bipartisan basis. The Committee is appointed by the endof each legislative session and serves until the next Committee is appointed.

COMMITTEE ACTIVITIES 

The Committee met five times between July 1997 and September 1998. TheCommittee held one meeting devoted to welfare reform and one meeting devotedto economic development. In addition, the Committee traveled to the NorthernCheyenne Indian Reservation in October of 1997.

COMMITTEE RECOMMENDATIONS 

On August 28, 1998, the Committee held its final meeting of the 1997-98interim and formulated its final recommendations. The Committee voted to:
  . send a letter to Governor Marc Racicot, supporting the continuation offunding for assisting Indian tribes with the transition to the federalTemporary Assistance to Needy Families program (Appendix A); 

  . support legislation authorizing the state to provide state funding to Indiantribes that choose to operate their own Temporary Assistance to Needy Familiesprogram; 

  . request legislation ensuring that the Board of Regents will provide financialassistance to nonbeneficiary students attending tribally controlled communitycolleges (Appendix B); and 

  . work with the Montana Advisory Council on Indian Education and the MontanaIndian Education Association on legislation strengthening Montana's constitutionalcommitment to the preservation of Indian cultural heritage. 

CHAPTERONE:WELFARE REFORM AND INDIAN TRIBES
 INTRODUCTION 

“...to provide assistance to needy families so that children maybe cared for in their own homes...”
   P.L. 104-193 The Personal Responsibility and Work Opportunities ReconciliationAct of 1996 (PRWORA) (Public Law 104-193) fundamentally altered the waypublic assistance is funded and administered in this country. PRWORA amendedthe Social Security Act by eliminating open-ended funding for and a guaranteedindividual entitlement to public assistance and substituting a block grantprogram, Temporary Assistance to Needy Families (TANF), that gave statesincreased flexibility in the design of welfare programs that promote workand responsibility and that, hopefully, strengthen families.TRIBALTANF PLAN 

Under the provisions of the Social Security Act, as amended by P.L.104-193, federally recognized Indian tribes are eligible to apply for fundingto administer and operate their own TANF programs. Eligible tribes mustsubmit a 3-year tribal TANF plan to the Secretary of the Department ofHealth and Human Services (Secretary) for review and approval. Authorityto apply for the funding continues through fiscal year 2002.

The contents of a tribal TANF plan must:
  (1)  outline the tribe's approachto providing welfare-related services;

  (2)  specify whether the welfare-relatedservices will be provided directly by the tribe or through agreements,contracts, or compacts with intertribal consortia, the state, or otherentities;
  (3)  identify the population andarea to be served;
  (4)  provide that families receivingassistance under the tribal plan may not receive duplicate assistance froma state or other tribe;
  (5)  identify the employment opportunitiesin or near the service area and the manner in which the tribe will cooperateand enhance such opportunities for recipients consistent with any applicablestate standards; and
  (6)  apply the fiscal accountabilityprovisions of the Indian Self-Determination Act, relating to the submissionof a single-state agency audit report. ¹

The Secretary, in turn, must establish for each tribe, consistent withthe economic conditions and resources available to each tribe and withthe purposes of the law, the minimum work participation requirements, appropriatetime limits for the receipt of welfare-related services, and penaltiesagainst individuals. However, a tribal program, for purposes of determiningthe number of months an adult has received assistance under the 5-yeartime limitation, must "disregard any month during which the adult livedin Indian country or an Alaskan Native village if the most reliable dataavailable with respect to the month (or a period including the month) indicatethat at least 50% of the adults living in Indian country or in the villagewere not employed". ²Of the seven reservations in Montana, according to Bureau of IndianAffairs labor statistics, five currently fall under this disregard provisionbecause of an unemployment rate exceeding 50%. This "disregard" also appliesto state TANF programs.

There is no closing date by which a tribe must initiate a tribal TANFplan. However, a tribe must submit its plan to the Secretary for approvalat least 120 days prior to the proposed effective date. A tribal TANF plancan be effective the first day of any calendar quarter. The 120-day periodallows time for the review, negotiation, and approval process. It alsosatisfies the requirement in PRWORA that a state be notified of any reductionin its TANF grant because of a tribal TANF grant at least 3 months priorto the issuance of the state's quarterly grant installment. A state maywaive all or part of this 90-day notification requirement.

TribalTANF Funding 
For each fiscal year 1997-2002, an Indian tribe that has an approvedTANF plan will receive an amount equal to the federal share of all expenditures(other than child care) by the state under the Aid to Families with DependentChildren (AFDC) program and the Job Opportunities and Basic Skills Training(JOBS) program for fiscal year 1994 for Indian families residing in theservice area identified in the tribal TANF plan. The data used to determinethe amount of the tribal TANF grant must be submitted by the state. Ifthe tribe agrees with the state data, the tribe must certify its agreement.If the tribe disagrees with the state data, the tribe may submit additionalinformation to the Secretary and request that the tribal information bereviewed before a final determination is made.

The new welfare law requires states to maintain their own spending onwelfare at at least 80% of FY 1994 levels. The formula used to determinetribal TANF funding includes only federal payments; the state match ofthose federal dollars would not be guaranteed but would be determined legislatively.This means that a tribe operating its own TANF program may have less moneyto help its members than if the tribe remained on the state TANF program.

Once a tribe has an approved TANF plan, the state's TANF grant willbe reduced, and the state's maintenance of effort (MOE) will also be reduced.The state will no longer be obligated to expend state funds on behalf ofeligible families served by a tribal TANF program. However, states cancontribute state funds to a tribe with an approved TANF plan, and thatcontribution will count toward a state's required MOE under certain circumstances.However, the funds can only be used for certain allowable activities andmust be expended on behalf of families that meet the state's TANF incomeand resource standards.

State MOE expenditures can be made to a tribe with an approved TANFplan either as part of the state's TANF program or in a separate stateprogram. If the state wishes to make the expenditures as part of the state'sTANF program, there are three additional requirements that apply to familiesthat receive assistance from funds that are part of a state TANF program.A family must:
  (1)  assign its child support rightsto the state;
  (2)  cooperate with the state inchild support enforcement; and

  (3)  be subject to the same workrequirements specified in the federal legislation. ³

Alternatively, the state's expenditures may be made under a separate,non-TANF state program without meeting the three additional requirements.A state's contribution to an Indian tribe for use in the tribe's TANF program,if not statutorily established, should be spelled out in a negotiated agreementbetween the state and the tribe.

State-TribalIntergovernmental Agreement 
In order for a tribe to operate a TANF program, there should be anintergovernmental agreement between the tribe and the state, outliningthe duties and responsibilities of each entity. Issues such as the statefinancial contribution, reporting requirements, information exchange, confidentiality,recognition of child support orders, technical support, and retrocessionof the tribal TANF program back to the state should be addressed in theagreement.

Statusof Tribal TANF Plans 
There are currently 10 Indian tribes or tribal groups across the nationthat are operating their own TANF programs. They are, with their implementationdates:
 . Forest County Potawatomi - Wisconsin (7/1/97) 
 . Klamath Tribes - Oregon (7/1/97) 
 . Confederated Tribes of Siletz Indians - Oregon (10/1/97) 
 . Red Cliff Band of Lake Superior Chippewa Indians - Wisconsin (10/1/97) 
 . Sisseton-Wahpeton Sioux Tribe - South Dakota (10/1/97) 
 . Sokaogon Chippewa Community - Wisconsin (10/1/97) 
 . Stockbridge-Munsee Band of Mohican Indians - Wisconsin (10/1/97) 
 . Pascoa Yaqui Tribe - Arizona (11/1/97) 
 . White Mountain Apache - Arizona (11/1/97) 
 . Southern California Tribal Chairmen's Association - California (3/1/98) 

The Osage Nation of Oklahoma and the Citizen Potawatomi Nation of Oklahomahave submitted plans but have requested that the plans be put on hold forthe time being. The Navajo Nation in Arizona, New Mexico, and Utah hassubmitted a draft plan and the Zuni Pueblo in New Mexico has submitteda letter of intent to submit a plan.THEMONTANA EXPERIENCE 

On July 23, 1993, Governor Marc Racicot issued Executive Order No. 12-93,directing a welfare advisory council to “develop a comprehensive welfarereform proposal that will meet the basic needs of recipients and providethe resources necessary to maximize each recipient's opportunity to achieveindependence of the welfare system”. ⁴Over the next 8 months, this 23-member advisory council, representinga bipartisan cross-section of Montanans interested in welfare reform, met,heard testimony, received recommendations, analyzed data, reviewed similarinitiatives in other states, synthesized all of the information received,and produced a final report for gubernatorial approval in February 1994.The final report recommended a comprehensive welfare reform initiativeto replace the AFDC program. This initiative was called Families AchievingIndependence in Montana or FAIM.

FAIM identified four major strategies to achieve its goal of welfarereform:
 . establishing a job supplement program to divert as many individuals andfamilies as possible from AFDC; 
 . making AFDC transitional by implementing time limits; 
 . requiring community service work for adults; and 
 . changing the culture of the welfare office from one that emphasizes benefitissuance to one that values the attainment of participant self-sufficiency. ⁵ 

Because the FAIM program was changing the focus of AFDC from an entitlementprogram to a program of temporary assistance, Montana had to request waiversfrom the federal government before implementation could occur. The formalrequest was made in April 1994. In addition, implementation required statutorychanges that had to be made by the Legislature in 1995. On April 15, 1995,Governor Racicot signed the Montana Welfare Reform Act into law. A fewdays later, the necessary federal waivers were approved by the Departmentof Health and Human Services. FAIM implementation began on February 1,1996.

FAIMand Indian Tribes 
Under the federal waivers, Indian tribes that were operating theirown JOBS programs were given the choice of continuing to operate publicassistance programs under the then existent guidelines or becoming involvedin FAIM. The Fort Belknap Tribe was not given the option because the tribedid not operate its own JOBS program. The six remaining tribes did operateJOBS programs, and all choose not to participate in FAIM.

When PRWORA was passed and signed into law in August of 1996, all tribes,whether or not they operated a JOBS program, were required to either filetheir own tribal family assistance plan or participate in the state's TANFprogram. All of a sudden, tribes were faced with a decision for which theywere ill-prepared. A complete lack of the necessary demographic informationcoupled with the presumed unavailability of state matching funds made itextremely difficult, if not impossible, for tribes to even consider developingtheir own family assistance plans. At the same time, PRWORA required thestate to submit its TANF plan by November 1, 1996, only 2 1/2 months afterthe passage of PRWORA. Although briefings were held around the state toinform people on the state TANF plan (FAIM-modified to meet federal requirements),the eligibility rules and methods of operation were complex and not easilygrasped, especially by tribes who had not participated in FAIM prior tothe enactment of PRWORA. The result was a state TANF plan that had little,if any, tribal input. There was no acknowledgment in the plan of tribalculture, tribal recipient educational level, or the extreme dearth of tribalresources needed to assist people in moving from welfare to self-sufficiency.As a result, when the TANF plan was implemented in February of 1997, manyrecipients on reservations did not understand how the program worked andwere subsequently sanctioned for noncompliance.

Indian reservations present unique challenges to the successful implementationof welfare reforms. In Montana, double-digit unemployment rates on reservationsare not unusual. These high rates reflect the lack of employment opportunitiesthat exists on reservations as well as many of the other problems thatare endemic to an economically disadvantaged population. Reservations alsolack the resources to provide the education and training necessary to moveTANF participants into jobs. Tribal colleges have taken the lead in manyinstances in providing educational and training opportunities, but theirresources are limited, making them unable to serve all those in need. Thelack of work experience sites and employment opportunities on reservationsis a problem that must be addressed if welfare reform is to work.

When Congress exempted Indian reservations with an unemployment rateof 50% or more from the 5-year time limit on TANF benefits, the purposewas to acknowledge the economic conditions that exist on reservations allacross the country and not punish TANF participants who reside on thosereservations. However, an unforseen consequence of Congress's action maybe a reluctance on the part of states to expend additional TANF employmentand training funds on reservations. In addition, the possibility existsthat Indian TANF participants residing off-reservation and experiencingdifficulties in finding work or job training may move home to the reservationto escape the time limit. This would mean additional pressure on othersocial service systems that serve children and families as well as additionalpressures on law enforcement and schools.

The old tribal JOBS Program has been replaced by the tribal Native EmploymentWorks (NEW) Program under PRWORA. Unfortunately, the tribal NEW Programis underfunded, so tribes can only serve a limited number of participants.Nonserved tribal members are forced to seek assistance from county officesthat also lack adequate resources. For example, on the Fort Peck Reservationthere are approximately 650 tribal FAIM participants. The tribal NEW Program'sfunding can adequately serve only about 60 participants. Roosevelt Countyhas resources to serve another 40 participants. That leaves about 550 participantsin a sort of limbo. ⁶Tribal colleges are being looked to as major players in providing thenecessary job training. Unfortunately, tribal colleges do not have thefacilities and instructors in those areas (e.g. adult basic education)that would most benefit welfare recipients.

In addition to sanctions for noncompliance (e.g., failure to make interviewwith case manager), sanctions are also occurring for failure to complywith child support enforcement, but most tribes do not have child supportenforcement agreements with the state. Tribes have child support enforcementregulations that are enforced by tribal courts. Unfortunately, withouta formal agreement, there is no mechanism by which a tribe can share informationwith the state. Indian participants are sanctioned for not cooperatingwith child support enforcement, but very often support of which the stateis unaware is being received through the tribal court system.

TribalTransition to TANF 
The Department of Public Health and Human Services (DPHHS) became increasinglyalarmed as it viewed the difficulties faced by Indian TANF recipients asa result of the lack of understanding of how the program worked. The DPHHSwent to the 1997 Legislature to request funding to assist tribes in transitioningto the new federal provisions. Once the funds were granted, the DPHHS thenwent to the tribes to ask what the best expenditure of the transitionalfunds would be. The tribes responded that they wanted their own tribalwelfare reform transitional specialists who could assist tribal participantsin understanding the program and who could assist the state in addressingtribal concerns.

The DPHHS and the tribal transitional specialists identified a numberof activities for which the transitional funds would be used. Those activitiesincluded:
 . demographic surveys of FAIM participants on each reservation so that programscan be designed to address their needs; 
 . creation of community advisory councils on each reservation, similar tothe advisory councils at the county level; and 
 . development of tribal community operating plans that are unique to eachreservation. These plans would then either become an amendment to the stateTANF plan or could form the basis for a separate tribal family assistanceplan. ⁷ 

The tribal transitional specialists and the tribal welfare reform taskforces have also been actively involved in finding workable child carearrangements; arranging for transportation for clients; understanding thesanctioning process and educating clients about it; improving cooperationamong the tribes, the county offices, and the Work Readiness Component(WoRC) providers; improving child support enforcement; developing workexperience sites; and arranging classes in areas such as parenting, nutrition,job seeking, native culture and language, goal setting, and self-esteem.

In addition to the transitional dollars appropriated by the Legislature,many other organizations have dedicated resources to assist tribes in thetransition to TANF. Cherish Our Indian Children (COIC), a nonprofit organizationlocated in Kalispell, has initiated the “Assisting Tribes with the Transitionto Welfare Reform and the Adjustment to Devolution Project” with a 3-yeargrant from the W.K. Kellogg Foundation. The grant will allow COIC to assisttribes in providing information to TANF participants and assessing theability of tribes to develop their own family assistance plans. Other organizationsthat have offered their assistance to tribes include the “Coping With BlockGrants” project, funded by the Northwest Area Foundation, Montana People'sAction, the Local Government Center at Montana State University-Bozeman,and the Indian Law Resource Center.

In late 1997, the Confederated Salish and Kootenai Tribes notified theDPHHS of the tribes' intent to file their own TANF plan. Since that time,the tribes and DPHHS have been in negotiations over how best to effectthe transfer. It is the intent of the tribes to begin operating their ownTANF program in January of 1999.

In the meantime, while all of these transitional activities are takingplace, tribal participants must still conform to the TANF requirements.This means that suitable work activities and work sites must be found andresources developed for providing education and training as well as forproviding support services such as child care and transportation. Countypublic assistance offices on or near reservations are working with thetribal NEW programs and the state WoRC providers to develop the necessaryresources to prepare Indian participants for the transition from welfareto self-sufficiency. The tribes themselves are working on economic developmentprojects that could bring needed jobs and job training opportunities toreservations. On many reservations, the economic development director andthe tribal social services director work hand-in-hand because without successfuleconomic development, welfare dependence will continue.

CONCLUSION 

State and tribal governments are actively working to break the cycleof welfare dependency that has kept families from achieving self-sufficiencyand has damaged the self-esteem of countless children and adults. Breakingthis cycle is the goal of PRWORA, but breaking the cycle will not occurunless states and tribes work together. This means consulting with tribesbefore initiating changes to programs that affect them. It means avoidingthe impulse to design a “one size fits all” approach to welfare on reservations.It also means the state and tribes working together to negotiate childsupport enforcement agreements and to educate Indian recipients as to theirresponsibilities.

Six of the seven tribes in Montana have been part of FAIM for less than2 years. The tribal transition plan initiated by the state has been inplace less than 1 year. The Confederated Salish and Kootenai Tribes willimplement their tribal TANF plan in January 1999. It is still too soonto discern the success or failure of welfare reform on Montana's Indianpeople. However, it is imperative that the state continue to monitor theirprogress as they move from dependency to self- sufficiency.CHAPTERTWO:ECONOMIC DEVELOPMENT ANDINDIAN TRIBES 

INTRODUCTION 

“Among the most formidable challenges facing native peoples todayare those rooted in economic conditions. American Indians living on thenation's nearly 300 reservations are among the poorest people in the UnitedStates.”
   Stephen Cornell and
   Joseph Kalt Economic development on Indian reservations has been an ongoingconcern of the Committee on Indian Affairs. The Committee understands thatthe key to solving many of the problems that plague reservations -- highrates of unemployment and poverty, low incomes, drug and alcohol addiction,violent crime -- is the development of good-paying, long-term jobs. Howto bring these jobs to Indian country is a major challenge that both thestate and the tribes face. While the state can support and assist tribes,it is the tribes themselves that must devise their own economic developmentstrategies. Some tribes have been very successful in this endeavor, whileother tribes still struggle.“WHATCAN TRIBES DO?” 

Stephen Cornell, a professor at the University of California in SanDiego, has studied economic development on a number of Indian reservationsacross the country in an attempt to quantify those factors that separatesuccessful tribes from those still struggling to provide economic self-sufficiencyfor their people. In his work, What Can Tribes Do? Strategies and Institutionsin American Indian Economic Development, Professor Cornell identifiedtwo factors that distinguished the successful tribes from the unsuccessfultribes: de facto sovereignty and effective institutions of self-governance. ¹By de facto sovereignty, Professor Cornell means the genuinedecisionmaking control over the running of tribal affairs and the use oftribal resources. Sovereignty alone, however, is not sufficient. Tribesneed to be able to effectively exercise that sovereignty through institutionsthat can effectively solve problems and that fit the culture and traditionsof the tribal community. Once a tribe is able to effectively exercise itssovereignty, it can then begin to develop an economic development strategythat addresses both market realities and tribal assets yet pays attentionto the cultural norms and preferences of the community.

Once a tribe has its effective institutions of self-governance in place,it is time for the tribe to make those decisions that will constitute itseconomic development policy and establish its basic economic system. Basically,there are four models of economic systems from which tribes can choose:federal control, tribal enterprise, private enterprise with tribal memberownership, and private enterprise with nontribal member control.

Each model has its advantages and disadvantages. The federal controlmodel is the most common but the least productive in economic terms. Theother three models are much more appropriate, given the tribal goals ofpolitical and social sovereignty. However, in order for any of the threeremaining models to work, certain conditions must be present:
  a.  formalized rules and proceduresfor making decisions;
  b.  professional, financial, andpersonnel records systems;
  c.  separation and limitation ofpowers; and
  d.  separation of electoral politicsfrom the day-to-day management of business enterprises. ²

A tribe's economic system may be a combination of two or more of thesemodels although one or another is typically dominant. Whatever economicsystem a tribe chooses, it must match the tribe's culture and the resourcesand opportunities that exist on the reservation. It is important for atribe to get a good fit among its economic system, its governing institutions,and its cultural standards. Economic success does not mean solely jobsand income; success must also be measured in political and cultural terms.

In his work, Professor Cornell studied many tribal governments thathave made significant progress over the last 20 years in bringing sustainable,productive economic activity to their reservations. One of the more successfultribes is the Confederated Salish and Kootenai of the Flathead Reservation.According to Professor Cornell, the Salish and Kootenai's success is duein large part to the effective exercise of their tribal sovereignty througha constitutional parliamentary system with a strong legislature (tribalcouncil) and a relatively weak chief executive. The tribe also has a professionaland legislatively protected judiciary. ³The result is a system of formal separations of powers complete withchecks and balances. Other tribes in Montana are beginning to realize theneed for more effective governing institutions, especially independentcourt systems. The Northern Cheyenne, for example, recently revised theirtribal constitution and established an independent judiciary.TRIBALINITIATIVES 

The Indian tribes in Montana have taken a proactive approach to economicdevelopment. A central tenet to this approach is, “We are responsible forour own economic development.” The tribes have begun to recognize thatthe future is in their hands, and they have to decide what form economicdevelopment will take on their reservations: what resources do they have,what is the level of training of their workforce, what development willfit culturally, etc. Each tribe needs to answer these questions for themselves;“one size fits all” is no longer a viable option for tribes. There alsoseems to be a movement away from large-scale tribal enterprises and towardsindividually owned Indian businesses.

“BuildingPartnerships Summit” 
In July of 1997, the Montana-Wyoming Tribal Leaders Council sponsoredan economic development conference in Billings called “Building PartnershipsSummit: Economic Tools for the 21st Century”. For 3 days, tribal leaders,federal and state officials, and Indian business persons met and discussedways to promote economic development in Indian country. The topics discussedincluded business development from a tribal leader's view and from a businessperson's point of view, business regulation on Indian reservations, effectiveuse of tribal planning departments, federal and state procurement policies,and welfare reform. Guest speakers included Professor Stephen Cornell,Congressman Rick Hill, Terry Knapton of the Colville Tribal EnterpriseCorporation, and Ray Apodaca from the federal Department of Health andHuman Services.

A major theme that developed throughout the conference was that thekey to economic success is individually-owned Indian businesses. Tribal,state, and federal governments should gear their policies towards the goalof assisting individual Indian entrepreneurs. Some of the needs that wereidentified included:
 . independent, professional tribal court systems; 
 . good law enforcement on reservations; 
 . improvement of postal service on reservations; 
 . support services such as child care; 
 . technology training at tribal colleges; 
 . tribal trade shows; 
 . tribal promotion of and support for Indian-owned businesses; 
 . development of work ethic among Indian workers; and 
 . office space and tribal job services. 

Another issue that the tribes addressed was business regulation onreservations. Banks have been reluctant to lend money to Indians residingon reservations because of the perceived lack of a legal infrastructurefor dealing with commercial activities. To address this issue, the IndianLaw Clinic at the University of Montana has been working to develop a modeluniform commercial code for use by tribes. The Model Tribal Code for SecuredTransactions is available for each tribe to adopt in part or in full. Manytribes already have civil procedures for dealing with commercial activitieson their reservations, but tribal judges have been reluctant to use them;they want to protect tribal members from foreclosures and repossessions.However, if banks and other lenders cannot be assured that these remediesare available and will be used, they will not do business on a reservation.Some tribal leaders want the business codes to be kept to a bare minimum,just enough to satisfy the banking establishment. While they recognizethe need to have access to capital, they also want to protect tribal membersfrom losing their property. It remains to be seen how many tribes willadopt the model uniform commercial code.

At the end of the summit, the participants drew up a list of recommendationsthat they felt would facilitate and enhance economic development on reservations.The recommendations included:
  1.  strong, independent tribaljudicial systems with trained attorneys;
  2.  resolution calling for an intertribaltrade agreement;
  3.  tribal use of tax-exempt bonds;
  4.  expansion of markets beyondreservation and state borders;
  5.  creation of microbusiness loanprogram;
  6.  development of a database ofIndian-owned businesses;
  7.  support for tribal- and Indian-ownedbusinesses;
  8.  Montana-Wyoming Tribal LeadersCouncil creation of corporation to own and operate large-scale businesses;
  9.  voter registration drive; and
  10.  lobbying the state Legislature.

TribalBusiness Information Centers 
As a way to assist small businesses to get going on reservations, theSmall Business Administration (SBA) developed a pilot program in Oregonin 1995 to establish reservation-based business information centers. Thepilot program proved so successful that SBA, in conjunction with the Bureauof Indian Affairs (BIA), implemented an expanded program. The BIA transferredfunding to the SBA for equipment, site preparation, and technical assistancegrants. SBA funded the program development and implementation phase andinstallation of a Tribal Business Information Center (TBIC) on each reservation.Once in place, the tribes and tribal colleges provided the staffing forthe TBICs. In Montana, there are seven TBICs, one on each reservation.The main objectives of the TBICs are to provide:
  1.  the necessary business developmentresources and technical assistance services required to make informed businessdecisions;
  2.  individual entrepreneurs withlong-term business support, training, and employment opportunities; and
  3.  a community-based businesssupport network that allows people to help themselves. ⁴

Most reservations lack a business community, and that forces the reservationresidents to go off the reservation to buy goods and services. This supportsthe off-reservation businesses but does nothing to help the reservationeconomy. Even as they spend their money in these off-reservation businesses,many Indians still feel the sting of prejudice and discrimination. Whatthe TBICs are trying to do is to help Indians start their own businesseson the reservations so people will stay home to shop. This is no differentthan what many small, rural communities in Montana are trying to do. TheTBICs offer a number of services: classes in areas such as business accounting,marketing, financing and investments, contracting, working with state andfederal agencies, and business responsibilities and obligations; assistancein developing a business plan and packaging a loan; counseling; libraryresources; equipment; computer training; etc. TBICs also assist Indian-ownedbusinesses already established in the community but that wish to expandor that are having problems. The TBICs are run by Indians who understandthe culture of the community and with whom the clients are more comfortableworking. TBICs are familiar with the business needs of the community andwhat businesses will fit culturally on a reservation, so that an Indianentrepreneur will not be overwhelmed by competition or will not encounteropposition from community members to a business that is not culturallyappropriate.

Many of the Indian-owned businesses that are developed are home-baseddue to a lack of building space on reservations and the difficulty in securingcommercial loans for building. Many TBICs would like to see tribes buildmini-malls where space could be rented to individual Indian-owned businesses.TBICs are also working with the banking industry and with tribal governmentsto develop commercial banking on reservations so that Indian entrepreneurscan access the necessary capital and banks can feel comfortable doing businesson a reservation. Many TBIC directors have found that once a lending institutionbegins working with Indian people and with the TBICs, they are more comfortableand more willing to do business with them.

In lieu of seeking funding through conventional banks, revolving loanfunds on reservations are also being pursued by the TBICs. These loan fundsare often more attractive to Indian entrepreneurs because they can be tailoredto their needs and not necessarily just the needs of the lending institution.Plus, there is a greater incentive to pay back the loan because the proceedscan then be lent to another Indian entrepreneur. Some tribes have alreadydeveloped such loan funds with the help of private foundations. However,more funds and more funding are needed.
 STATEINITIATIVES 

The Montana Department of Commerce (MDOC) is required by law to “serveas the state's official liaison between persons interested in locatingnew economic enterprises in Montana and ... Indian tribal governments seekingnew enterprises; and . . . Indian tribal governments interested in obtainingnew business or expanding existing business” (90-1-105, MCA). While MDOCdoes not offer programs specifically targeted to tribal economic development,tribal governments and individual Indian entrepreneurs have access to theeconomic development programs offered by MDOC. In addition, over the pastfew years, tribal governments have been written into many of the localgovernment economic development statutes.

SmallBusiness Development Center 
The Small Business Development Center (SBDC) is a program designedto help potential and existing businesses develop, survive, and prosperby providing training, counseling, and information to small Montana firms,thus creating jobs for Montana workers. The program is jointly funded bythe SBA, the MDOC, and local organizations. The major goals of the programare to:
 . provide quality assistance to all clients; 
 . continually develop the quality of the counseling and training network; 
 . find workable solutions for clients; 
 . help small businesses expand their markets; 
 . help small businesses obtain capital; and 
 . facilitate coordination among the various technical assistance providersin the state. 

The program provides its services through a network of SBDC servicecenters in Billings, Bozeman, Butte, Great Falls, Havre, Helena, Kalispell,Missoula, Wolf Point, and Colstrip.

The SBDC also offers in-depth training courses for entrepreneurs andbusiness owners called NxLevel Entrepreneurial Training Programs. “NxLevelfor Start- ups” is a 10-session course designed for people to test theirbusiness idea by developing a plan that focuses on determining the economicfeasibility of the business concept. “NxLevel for Entrepreneurs” is a 12-sessioncourse designed to produce a business plan in addition to helping businessesreach the next level of success. From January 1, 1996, through June 30,1998, 14 NxLevel Training Programs were held on 6 of the 7 Indian reservationsin Montana: 10 start-up programs and 4 entrepreneur programs. Almost 150people participated in the training programs. Some of the business ideas/venturesproposed by participants included a bed and breakfast, a nail and tanningsalon, a catering service, a coffee house, a day care, an armored car service,a lawn care service, a windshield repair service, a steam cleaning service,an office supply business, an arts and crafts business, a computer business,a real estate agency, a construction company, a guest ranch, a laundromat,and a secretarial service. ⁵

MicrobusinessFinance Program 
A “microbusiness” employs fewer that 10 full-time employees and hasannual gross revenues under $500,000. The Microbusiness Finance Programoffers loans of up to $35,000 to microbusinesses with economically soundbusiness plans but that are unable to obtain commercial financing. Thebusinesses generally have very little or no business track record, andso the purpose of the loan program is to assist these businesses developtrack records and meet the financing and lending criteria of private bankinginstitutions. The loans come from a network of regional revolving loanfunds. The Microbusiness Finance Program operates through regional MicrobusinessDevelopment Centers (MBDCs) that contract with the MDOC. The MBDCs establishtheir own loan review committees, administer their own loan portfolios,and assist clients in obtaining the financial and technical assistanceneeded to operate their businesses successfully.

Since the inception of the program in 1992, $327,647 has been loanedto 31 Indian entrepreneurs. ⁶In addition to the loans, the MBDCs offer technical assistance to Indiansin such areas as business planning, financial statements, marketing, andloan packaging. On at least three reservations, the MBDCs work with theTBICs by providing counseling to TBIC clients and speaking to classes sponsoredby the TBIC. In return, the TBICs assist the MBDCs with loan applicationsfrom TBIC clients.

“MONTANAJOBS: Putting People First” 

TheMDOC, with the support of the Governor, has embarked on an economic developmentinitiative designed to:
 . produce high-paying quality employment that is sustainable; 
 . produce employment in industries that are environmentally acceptable; and 
 . distribute this employment throughout the state. 

Over this past year, the MDOC conducted focus group meetings all acrossthe state, to which they invited a cross-section of Montanans interestedin the state's economic future, to discuss how best to achieve the proposedeconomic goals. As a result of the focus group findings, the MDOC has identified14 objectives for achieving the goals:
 . assist in the research and development of value-adding opportunities inMontana; 
 . provide assistance to Montana's small business community on cost effectivestrategies and activities that help develop their markets, increase theirsales, and improve their profitability; 
 . increase the technical and management skills of Montana's current and futureentrepreneurs and business owners by providing quality training opportunitiesand technical assistance; 
 . improve the access to debt capital and equity capital for Montana smallbusinesses that add value to Montana products and resources; 
 . maintain and improve the workplace skills of Montana employees to keepthem competitive as a workforce and to keep businesses competitive; 
 . encourage and promote all activities that assist in marketing Montana andMontana-produced products; 
 . improve the perception of Montana's business climate by marketing Montanaas an attractive location to do business; 
 . maintain and improve our existing infrastructure; 
 . maintain and improve our existing transportation assets and implement newtransportation projects; 
 . establish a world-class telecommunications network that is accessible andaffordable to businesses; 
 . create a tax structure that fairly balances the ability of our citizensand businesses to pay; 

 . ensure that all regulations imposed on citizens and businesses are reasonableand necessary and implemented in a manner that encourages and enables businessdevelopment; 
 . ensure that state-sponsored education meets the needs of the students,our citizens, and the business community that relies upon system graduates;and 
 . empower local efforts by providing the tools and resources necessary toget the job done. 

To implement these objectives, the focus groups also identified potentialstrategies, some of which will involve legislation and additional statefunding. The MDOC will work to refine this economic development plan beforethe 1999 Legislature convenes.

The economic development plan does not specifically address economicdevelopment on Indian reservations where unemployment rates are the highestin the state and where economic development opportunities are severelylimited. However, the Department believes that the overall plan will bebeneficial to Indian people because it addresses the problems that afflictreservations and will offer programs that tribes and individual Indianscan access and utilize.CONCLUSION 

Economicdevelopment on reservations has been and continues to be a major challengefor tribal and state policy makers. Afflicted with high rates of unemploymentand a disproportionate number of welfare cases, tribal governments mustfind ways to bring jobs to their reservations, jobs that will provide aliving wage and a measure of dignity for their people. It is the role ofthe state to assist tribal governments in whatever manner it can withoutviolating tribal sovereignty. Where barriers exist, state and tribal officialsmust work to surmount those barriers or at least lower them so that theyare not so difficult to climb. It is in the best interests of both thestate and tribes to cooperate so that all Montanans, Indiansand non-Indians alike, can enjoy that quality of life that attracts somany people to Montana.CHAPTERTHREE:NORTHERN CHEYENNEINDIAN RESERVATION

BACKGROUND 

“We had a leader named 'Morning Star' or Dull Knife. He lead ourpeople back on the long walk from Oklahoma to Montana...those that survivedthat long march and the cold and starvation and fighting finally were givena little piece of Montana to call home. And, this is where we Cheyennesare living today.”

   John Wooden Legs The Northern Cheyenne Indian Reservation is located in southeasternMontana within the counties of Big Horn and Rosebud. The reservation isbounded on the east by the Tongue River and on the west by the Crow Reservation.The terrain varies from low, grass- covered hills to high, steep outcroppingsand narrow valleys covered with ponderosa pine. Elevations range from 3,000to 5,000 feet. The reservation covers about 450,000 acres, making it oneof the smallest reservations in Montana. Over recent years, the NorthernCheyenne Tribe has successfully pursued a program to consolidate allottedholdings, purchase non- Indian holdings, and transfer non-Indian-held leasesto tribal members. As a result, the tribe controls approximately 97% ofthe reservation.

The Northern Cheyenne Reservation was established by a presidentialexecutive order in November 1884. The original boundaries encompassed about271,000 acres. In 1900, President William McKinley moved the eastern boundaryof the reservation to the Tongue River, expanding the reservation to itscurrent size.

The Northern Cheyenne Indians call themselves the “Morning Star People”in honor of Chief Dull Knife who was also known as Morning Star. Thereare approximately 6,500 enrolled members of the Northern Cheyenne Tribe.Of that number, about 62%, or 4,000, live on or near the reservation. Thepopulation is very young, with 63% of the enrolled members being 18 yearsof age or younger.
 

The Northern Cheyenne Reservation is rich in natural resources, especiallycoal and timber. There are approximately 23 billion tons of minable coalon the reservation, making it one of the largest tribal coal reserves inthe country. The Northern Cheyenne Tribe, however, has strongly resistedmajor coal development for many reasons. One of the reasons is the culturaland religious belief that all things in the environment are alive. ¹Another reason is the Northern Cheyenne's historical resistance tolarge influxes of non-Indians onto their reservation. ²Large-scale coal development could result in such an influx. Majorcoal development will probably not take place until the Northern CheyenneTribe can ensure that such development is appropriately managed to protecttribal rights and address other social and environmental concerns.

Timber, mainly ponderosa pine, covers about 147,000 acres of the reservation.Of this amount, about 103,000 acres are classified as commercial. However,large forest fires swept through the reservation in the late 1980s andagain in 1994, resulting in the destruction of 60,000 acres of timber.As a result, much of the timber being cut today is salvage. However, thereis a very active effort on the reservation to restock these damaged acresby planting between 60,000 and 100,000 new trees annually.

The Northern Cheyenne Tribe was organized in 1936 under the Indian ReorganizationAct. The governing body of the tribe is the Tribal Council that is composedof 11 members. One seat is held by the vice-president of the tribe. Theremaining 10 members are elected from the five districts on the reservationin accordance with the percentage of the tribal membership in each district.The tribal officers are a president, vice-president, sergeant-at-arms,secretary, and treasurer. The president, vice-president and council membersare elected every 4 years. The sergeant-at-arms is elected by the TribalCouncil from within its own membership. The secretary and treasurer areappointed by the Tribal Council from outside its membership. The secretaryand treasurer have no vote.

Economic development on the Northern Cheyenne Reservation is primarilyconfined to small businesses (e.g., construction, automotive, retail, foodservice), the majority of them Indian-owned. There are many small, home-basedbusinesses as well. Agricultural activity is primarily under the controlof individual Indians, and the tribe has no plans to become involved inagriculture. One of the major sources of income for the Northern CheyenneTribe is the timber resources. However, the recent forest fires have reducedthe commercial timber base, and it may be at least 10 years before thetimber can be successfully harvested again. The current agricultural economyis based primarily on livestock. Only about 5% of the land is currentlyunder cultivation; most of this is in hay.

As with all Indian tribes in Montana, education is very important tothe Northern Cheyenne Tribe. The reservation is served by both privateand public schools. St. Labre Indian School is a private, Catholic institutionlocated in Ashland. St. Labre serves both elementary and secondary students.The school at Busby is a Bureau of Indian Affairs contract school thatencompasses grades kindergarten through twelve. During the 1980s, the BusbySchool underwent severe financial difficulties that forced the temporaryclosure of the high school in 1983-84. However, the high school has sincereopened on a better financial footing.

There are four public school districts that serve Northern Cheyennechildren: Lame Deer, Ashland, Colstrip, and Hardin. Until 1994, there wasno public high school on the Northern Cheyenne Reservation. High schoolstudents were bussed off the reservation to high schools in Colstrip, Hardin,and St. Labre. Some students attended the contract school at Busby, butits precarious financial situation in the mid-80s led many Indian parentsto withdraw their children and send them elsewhere. Many high school studentsfaced a 158-mile round trip to school each day. After much persistenceand determination on the part of the Northern Cheyenne people and muchopposition from the affected public school districts, Superintendent ofPublic Instruction Nancy Keenan approved the petition to establish a newhigh school district on the Northern Cheyenne Reservation in 1993. ³The new high school opened in temporary quarters 1 year later. A sitefor a permanent building has been selected and construction will beginsoon.

There is a very active Head Start program that serves 149 children onthe Northern Cheyenne Reservation. There are 7 centers: 5 in Lame Deer,1 in Ashland, and 1 in Busby. In addition to serving low-income children,Head Start is also working with the parents who are on welfare by helpingthem find housing. There is one day-care center on the reservation, butit is not licensed by the state because the Tribe felt that state licensurewas a surrender of jurisdiction. The tribe monitors the center to ensurethat the children are in a safe environment and are well cared for.

Dull Knife Memorial College was chartered in 1975 as an Indian Actionprogram funded by the Bureau of Indian Affairs. Its original purpose wasto train students for jobs in the developing mining enterprises in communitiesnear the reservation. Eventually, tribal leaders recognized the need toprovide additional vocational programs and an academic program. The Collegeconsequently grew from a limited vocational training program to a broadervocational and postsecondary educational institution. Dull Knife now offersan Associate of Arts degree in academic disciplines, an Associate of AppliedScience in the vocational areas, and Vocational Certificates in variousskill areas. The college has one main building that houses administrationand faculty offices, cafeteria, bookstore, various laboratory facilities,and classrooms for 300 students. A second smaller building holds the library,a day-care center, a construction trades shop, and the adult educationprogram. Athletic activities are held in the community center, communityplaying fields, and the Lame Deer School gymnasium. Classes are also offeredoff campus in classrooms in Colstrip, St. Labre, Busby, and Lame Deer.

In May of 1996, a fire completely destroyed the Indian Health Service(IHS) Clinic in Lame Deer. This proved a devastating blow to the NorthernCheyenne people who relied on the clinic for their basic health care needs.The IHS decided to rebuild a bigger clinic with more extensive facilitiesthan the old one. Construction began in July of 1997 and is scheduled forcompletion in early 1999. The new clinic will cover 62,000 square feetupon completion. Outpatient, emergency, and mental health services willbe provided. In the meantime, the clinic is housed in trailers in LameDeer. Northern Cheyenne who require more extensive treatment or hospitalizationuse the IHS hospital at Crow Agency.

DIALOGUE WITH THE NORTHERN CHEYENNE TRIBE 

The Committee on Indian Affairs visited the Northern Cheyenne IndianReservation on October 7 and 8, 1997. On October 7, the Committee touredthe Head Start centers, the Lame Deer public schools, the constructionsite of the new Northern Cheyenne Community Health Center, the Busby School,Dull Knife Memorial College, and the soon-to-be-completed Little Wolf CapitolBuilding that will house tribal offices and programs.

On October 8, the Committee met with tribal officials to discuss issuesof interest and concern to both the state and the Northern Cheyenne Tribe.In the morning of October 8, the Committee met at the Northern CheyenneChamber of Commerce to discuss economic development. In the afternoon,the Committee moved to Dull Knife Memorial College where the major topicof discussion was welfare reform.

EconomicDevelopment 
Suzanne Trusler, Chamber of Commerce; Gail Small, Native Action; andJudith Davis, Dull Knife Memorial College, briefed the Committee on someof the challenges to and opportunities for economic development on theNorthern Cheyenne Reservation. The Chamber of Commerce and the Tribal BusinessInformation Center at the college have been working to assist tribal memberswho want to start their own businesses. Some of the services offered includementoring by chamber members with business experience, assistance in writingrealistic business plans, financial management, market research, and inventorycontrol. Many of the businesses that have been developed are cottage industries,such as leather works, beadwork, and beauty shops. One of the major problemsfacing businesses that sell a product is finding a market. People willnot travel to Lame Deer just to buy Northern Cheyenne beadwork.

Agriculture has been the backbone of the Northern Cheyenne economy formany years. The tribe or tribal members own about 97% of the land withinthe reservation. However, with the Indian ranchers advancing in age, thetribe wants to encourage young people to stay in agriculture. The questionis, can they make a living at it? If young Indian people are not attractedto agriculture, the tribe fears it will lose control of its land base.Much of the cattle on the reservation is organically raised and that shouldbe attractive to certain buyers. Ms. Small said that she would like tosee Northern Cheyenne ranchers included in the state trade delegationsthat travel internationally promoting Montana beef.

Manufacturing is nonexistent on the Northern Cheyenne Reservation. Attemptsthat have been made in the past to attract manufacturing firms to the areahave been unsuccessful. Part of the problem is a lack of infrastructureon the reservation. A large manufacturing firm that would attract workersand their families would want good schools, social activities, good healthcare, paved roads, and good water and sewer systems. Ms. Small stated thaton the Northern Cheyenne Reservation there are dirt roads and outdoor toilets,even though the residents pay county taxes and the reservation is locatedwithin two of the richest counties in the state. The tribe even had tofight tooth-and-nail with its off- reservation neighbors just to get ahigh school.

The Northern Cheyenne Reservation has historically had a high unemploymentrate and a high dropout rate among its students. The lack of a local highschool has contributed significantly to both of these problems. The eighthgrade dropout rate has been about 23% due to the fact that once NorthernCheyenne children reach high school age, they have been forced to leavethe reservation to further their educations. When these students reachage 20, they lack a high school education and significant job skills. DullKnife Memorial College offers a few vocational training programs, but thereis a need for many more. However, funding is always a problem and studentsmust have a high school diploma or a GED to enter. Family problems, suchas lack of day care and transportation, and low reading levels also contributeto the difficulty in seeking an education or job training.

First Interstate Bank of Colstrip opened a small branch in Lame Deerin June of 1998. The bank currently does business on the reservation, buta banking facility will be a real asset to the community. The branch bankwill employ Northern Cheyenne people and will train them in the bankingbusiness. In addition, the bank will assist tribal members in how to managea checking or savings account and how to apply for a loan. There are fivereservations in First Interstate Bank System's market area in Montana andWyoming. The bank is committed to finding a way to work with reservationresidents because, historically, reservations have been difficult marketsdue to their poor economies. The branch bank in Lame Deer is a test casefor First Interstate. Because it is uncertain about the profitability ofa branch bank in this area, First Interstate plans on making this a communitydevelopment bank with an emphasis on economic development.

Timber harvest sales are one of the major income sources for the NorthernCheyenne Tribe. Terry Spang of the Tribal Forestry program explained tothe Committee some of the challenges that the program currently faces.About one- third of the Northern Cheyenne Reservation is forested land.Of that amount, roughly 30% is commercial timber. From 1984 to 1994, thereservation suffered severe forest fires that reduced the commercial timberbase by about 60,000 acres. The BIA provides only enough funding to reseedabout 300 acres a year. Historically, the tribe has had timber harvestagreements that called for 100 million board feet of timber over 10 years.However, because of the reduction in the commercial timber base, the tribemay only be able to grow timber and not harvest it over the next 10 years.This means a reduction in tribal revenues because the tribe depends heavilyon the timber harvest sales. It also means a loss of jobs for tribal memberswho are employed in lumber mills and who are independent timber cutters.Currently, there are 105 such independent cutters, but only 15 are active.In addition to the lack of commercial timber, the inability to purchasethe necessary equipment is also a barrier. Without the timber revenue,the tribe may also be forced to lay off workers. The suggestion was madethat the Forestry Program work with the Rosebud Office of Public Assistanceto provide welfare recipients as labor to replant the lost timber. It couldalso serve as an excellent training opportunity for welfare recipients.

Thetribe is responding to the high unemployment and the lack of job opportunitieson the reservation. Education is a high priority, and the tribe has finallysucceeded in getting a public high school on the reservation. The NorthernCheyenne people have restructured tribal government by creating a separationof powers, especially in the judicial area. For the first time, tribalcourt judges will be elected and appeals court judges will be appointed.The tribe is looking at adopting Uniform Commercial Codes, making it easierfor non-Indians to do business on the reservation. The tribe has also enteredinto discussions with the MDOC and the Montana Department of Transportationto examine the potential effects of tourism on the reservation. There arelarge coal reserves on the Northern Cheyenne Reservation, but the tribeis opposed to strip mining for cultural reasons and will not look at coalmining for economic development.

The Northern Cheyenne Tribe is hoping to access some funding throughthe federal Department of Transportation that is earmarked for communityservice. The tribe would like to establish a public works program on thereservation. A public works program would go a long way in helping thetribe rebuild the infrastructure that is so badly needed on the reservation.Welfare recipients could be hired and trained by the program. A good infrastructureis vital if the tribe wants to attract business onto the reservation.
 

The meeting concluded with a summation of some ideas for the Committeeto follow up on in order to assist tribes in their economic developmentplans:
 . establish steering committee to pursue state-tribal economic developmentissues; 
 . identify businesses willing to relocate on Indian reservations; 
 . possibly reintroduce Indian studies requirement for teachers; 
 . review lack of appointment of Indians to state boards and policy positions; 
 . hold a conference on tribal sovereignty to educate non-Indians on issueof sovereignty; 
 . dialogue with state Attorney General over lack of recognition of tribalcourts; 
 . review state hiring practices to determine why so few Indians are hired,especially Indian attorneys; and 
 . include Indian ranchers on state trade delegations. ⁴ 

TribalSovereignty 
Carrie Braine of the Northern Cheyenne Tribal Council led off the afternoonsession with a discussion of the importance of tribal sovereignty to theNorthern Cheyenne Tribe. She stated that it was important for the Committeeto understand that there are differences between state and tribal governmentsand that tribal governments are not subordinate. If policymakers believein government and the structures of government, they must also believein treaty rights and responsibilities. The state must try to understandthe Northern Cheyenne people and the losses they have suffered becauseof oppression and attempts to strip them of their culture and sense ofself.

LawEnforcement 
Crime and drug-related violence are on the rise on the Northern CheyenneReservation, according to Anthony Ten Fingers who works with many communitygroups on the reservation in trying to implement a traditional NorthernCheyenne approach to these problems. The lack of jobs and the lack of culturalpride that exists, especially among young people, has led to an overdependenceon drugs and alcohol. This has led to the increase in crime because peopleneed money to support their drug habits. The community is trying to instillpride and self-respect through a return to tradition and the developmentof a society that protects its youth.

Lack of law enforcement is a problem, but the tribe does not want non-Indianlaw enforcement coming onto the reservation. The tribe itself does nothave a police force but depends on the Bureau of Indian Affairs. The tribedoes not have any cooperative agreements with law enforcement agenciesfrom surrounding counties. The tribe's history with county law enforcementhas not been very good. In addition, because the vast majority of the reservationis tribal land, non-Indians who commit crimes on the reservation fall underfederal, not state, jurisdiction. One of the tribe's traditional remediesfor dealing with people who violate the law is social exclusion. Althoughit has not been used in many years, it is slowly gaining more acceptance.People who are formally excluded by the Tribal Council are banished fromthe reservation and are not allowed within the reservation's boundaries.

Law enforcement on reservations is a national problem. President WilliamWalksalong of the Northern Cheyenne Tribe has been appointed to a nationalsteering committee to look at the issue and come up with some options foraddressing the problems. Currently, law enforcement is split among numerousfederal agencies. One of the options is to move all reservation law enforcementservices into the Department of Justice. This would streamline the processwhile still maintaining the federal trust responsibility and the government-to-governmentrelationship.

WelfareReform 
The Northern Cheyenne Reservation was one of the reservations thatoriginally choose not to participate in FAIM when that program was implementedwith federal waivers in 1996. However, the passage of PRWORA forced thosereservations into the state program unless they decided to operate theirown welfare program. Implementation of the new welfare program has beenvery difficult on the Northern Cheyenne Reservation. The tribe operatesits own tribal NEW program for about 300 cases. Unfortunately, the programis underfunded and understaffed. Workers spend most of their time doingpaperwork, which leaves little time for interaction with clients. Lackof job sites and training opportunities, as well as lack of money for daycare and transportation, makes meeting work requirements very difficult.

Sanctioning for failure to comply with FAIM requirements has also beenvery problematic for tribal members. The FAIM program is very complex,and clients have a difficult time comprehending all of the requirements.Language barriers exist for those tribal members who are Northern Cheyenne-speakingor who are illiterate. Hostility and tension between FAIM workers and clientsinhibit effective communication and affect the delivery of services. BothRosebud and Big Horn counties are working with the Northern Cheyenne Tribeto address some of these problems. Both counties send workers to the reservationon a regular basis to meet with clients and take applications. Both countypublic assistance directors acknowledged that sanctioning has occurredbut that sanctions generally last only for a month and benefits are cutfor adults in the family only. A sanction serves as a “wake-up” call forclients who may not take the program requirements seriously.

The Northern Cheyenne Tribe has its own social services program thatprovides a monthly cash benefit to eligible tribal members. The programalso administers the Alternative Work Experience Program (AWEP) the goalof which is to enhance the self-determination of general assistance clients.AWEP requires clients to work at least 30 hours a month in order to receivecash assistance. The program has identified work sites on the reservation,but without private or public transportation, clients are unable to getto the sites, so many sites go unused.

Although the 5 year limit on participation in the TANF program doesnot apply on the Northern Cheyenne Reservation because of the high unemploymentrate, the Northern Cheyenne Tribe wants to break the cycle of dependencyon welfare that has prevented its members from reaching economic self-sufficiency.However, in order for welfare reform to work, jobs are needed on the NorthernCheyenne Reservation and more money is needed to provide services suchas child care and transportation

Boysand Girls Club 
Rick Robinson, director of the Northern Cheyenne Boys and Girls Club,spoke of the work of the club. The club is an after school and weekendyouth development program. The membership currently numbers about 1,000youth. In addition to recreational opportunities, the club provides programsin drug and alcohol prevention and Northern Cheyenne culture as well asafter school tutoring and summer learning programs. The club has also establisheda food bank on the reservation and helps other communities establish foodbanks. The club also provides two full-time chemical dependency counselorsin four schools on the reservation. The club is actively involved withthe juvenile court system in creating alternatives to incarceration.

As far as welfare reform is concerned, the club is becoming a child-carefacility for people who need someone to watch their children so they cango to work. This is especially true during the summer months.

The club receives funding from a number of private and public sources,including the Board of Crime Control. However, the Board of Crime Controlgrants require a match that is often difficult to for the club to find.Mr. Robinson asked the Committee to review the possibility of exemptingBoys' and Girls' Clubs from the match requirement.

Education 
Dr. Alonzo Spang, president of Dull Knife Memorial College, expressedconcern over the 1997 Legislature's failure to provide funding for nonbeneficiarystudents (generally non-Indian) attending tribal colleges. Previously,the Legislature had provided about $1,500 per full-time student. This allowedthe tribal colleges to serve these students, many of whom were unable toattend a public college, without jeopardizing the college's mission ofproviding higher educational opportunities to tribal members. He askedthe Committee to support funding for these students in the next legislativesession.

Dr. Spang also spoke about the importance of the new Class VII certificationrecently approved by the Board of Public Education. This new certificationis for teachers of Indian language and culture. This will allow schooldistricts to hire these specialists, even though they are not certifiedteachers. The Class VII certificate recognizes the tribal differences thatexist in Montana. Each tribe will develop its own program to reflect itsown culture. Dull Knife Memorial College has been selected by the TribalCouncil to develop the program for the Northern Cheyenne Reservation. Thecollege has developed a curriculum, a testing program, and a certificationprocedure. There are currently five Class VII specialists working in theschools on the Northern Cheyenne Reservation. Dr. Spang had high praisefor the program and urged the Committee to continue to support it.

Commentsfrom the Tribal President 

President William Walksalong of the Northern Cheyenne Tribe was thefinal person to address the Committee. He began by challenging the Legislatureto write a proclamation similar to Governor Racicot's proclamation on Indianaffairs. In that proclamation, Governor Racicot recognized the government-to-governmentrelationship between the state and the Indian nations in Montana. Thatrelationship was to form the basis for all negotiations between the stateand the tribes. A legislative proclamation would put the Legislature onrecord as wanting to work with the tribes to resolve areas of conflictand as recognizing that Indian tribes are sovereign nations and shouldbe treated with respect and equality. It is upsetting to the Northern CheyenneTribe when off-reservation people try to interfere with or dictate to tribalgovernments. The tribe's recent experience with building a high schoolon the reservation is an excellent example of such interference.

The Northern Cheyenne Tribe suffers from high unemployment, high infantmortality, lower life expectancy, less money spent on education and healthcare, violent crime, and crumbling infrastructure. The tribe faces a tremendoustask in addressing these problems; it must protect what it has and leaveits children a higher ground to defend. However, the one thing that hassustained the Northern Cheyenne as a people in times of adversity is theirspiritual way of life. It is at the core of the Northern Cheyenne governmentand its families.

SUMMARY 

The Northern Cheyenne Tribe is fiercely protective of its sovereignty.As such, there was skepticism on the part of some tribal officials as tothe purpose for the Committee's visit. The Committee stated that its purposein coming was not to dictate to the tribe but to learn about the NorthernCheyenne people. The Legislature does make decisions that affect the NorthernCheyenne, and by understanding the history and cultural differences, thosedecisions can be based on mutual understanding and respect. If nothingelse, the visit impressed upon the Committee the strength of the NorthernCheyenne people and their commitment to preserving their tribal sovereigntyand their true sense of self.

CHAPTER FOUR: COMMITTEE RECOMMENDATIONS 

INTRODUCTION 

“The committee shall . . . report its activities, findings, recommendations,and any proposed legislation to the legislature.”

    5-19-108,MCA OnAugust 28, 1998, the Committee on Indian Affairs held its final meetingof the 1997-1998 interim. The purpose of the meeting was to consider recommendationsthat the Committee would make as a result of its deliberations over theinterim. Although the focus of the Committee at the beginning of the interimwas on how to encourage economic development on reservations, the Committeequickly became concerned with the problems facing welfare recipients onreservations as that appeared to be a more immediate need. Additionally,the Committee looked at its work last interim on Indian educational issuesand decided to continue some of that work.

WELFARE REFORM

TribalTANF Plans

EDUCATION

NonbeneficiaryStudents 
In1995, the Committee on Indian Affairs successfully sponsored a bill appropriating$1.4 million to the Board of Regents to provide financial assistance totribally controlled community colleges for enrolled nonbeneficiary students.Nonbeneficiary students are students, generally non-Indian, who attendtribal colleges but do not qualify for financial support through the Bureauof Indian Affairs or under the Tribally Controlled Community Colleges AssistanceAct of 1978. The appropriation was for two years. In 1997, the PostsecondaryEducation Policy and Budget Committee requested legislation (Senate BillNo. 84) that would require the Board of Regents to provide financial assistanceto nonbeneficiary students, subject to a line item appropriation. SB 84passed, but no accompanying appropriation was made by the Legislature.The Committee strongly supports funding for nonbeneficiary students attribal colleges. The Committee voted to request legislation that wouldensure that the funding for nonbeneficiary students would be forthcoming.

ArticleX, Section 1, Subsection (2) 
Duringthe 1995-96 interim, the Committee conducted an extensive study on thestate's compliance with Article X, section 1, subsection (2) of the MontanaConstitution, calling for the recognition and preservation of the culturalheritage of American Indians. Although the only successful piece of legislationto come out of the study was the designation of American Indian HeritageDay, the Montana Advisory Council on Indian Education (MACIE), in conjunctionwith the Montana Indian Education Association (MIEA), has been workingon legislation to strengthen Montana's constitutional commitment to Indianpeople. The Committee on Indian Affairs voted to work with MACIE and MIEAin developing the legislation for the 1999 Legislature.

L55 8299ceia.  

APPENDIX A

APPENDIX B

Footnote:1  ¹ Departmentof Health and Human Services, Administration for Children and Families,Tribal Guidance for the Temporary Assistance for Needy Families Program(Washington, D.C.: February 1997), p. 3. Footnote:2  ² 42§ 608 (a)(7)(D) U.S.C.A. Footnote:3  ³ Departmentof Health and Human Services, Administration for Children and Families,Policy Announcement 97-2, Temporary Assistance for Needy Families Program(Washington, D.C.: June 1997), p. 2. Footnote:4  ⁴ GovernorMarc Racicot, Executive Order No. 12-93 Creating the Governor's WelfareReform Advisory Council, 23 July 1993. Footnote:5  ⁵ Governor'sWelfare Reform Advisory Council, Achieving Independence for Montanans(AIM) (Helena, Montana: 1994), p. 4. Footnote:6  ⁶ JamesShanley, “Welfare Reform Will Create More Misery,” Tribal College Journalof American Indian Higher Education, 9, no. 3 (Winter 1997-98): 20. Footnote:7  ⁷ Testimonyof Jon Meredith before the Committee on Indian Affairs, 6 November 1997,Montana Legislative Services Division. Footnote:8  ¹ StephenCornell and Joseph P. Kalt, “Reloading the Dice: Improving the Chancesfor Economic Development on American Indian Reservations,” What CanTribes Do? Strategies and Institutions in American Indian Economic Development,ed. Stephen Cornell and Joseph P. Kalt (Los Angeles: University of California,1992), p. 14. Footnote:9  ² Ibid.,part III passim. Footnote:10  ³ Ibid.,p. 27. Footnote:11  ⁴ Testimonyof Andrea Main before the Committee on Indian Affairs, 15 January 1998,Montana Legislative Services Division. Footnote:12  ⁵ Exhibit2, Committee on Indian Affairs, Minutes of 28 August 1998, Montana LegislativeServices Division. Footnote:13  ⁶ Ibid. Footnote:14  ¹ WilliamL. Bryan, Jr., Montana's Indians, Yesterday and Today, 2 ed. (Helena,Montana: American & World Geographic Publishing, 1996), p. 108. Footnote:15  ² Ibid. Footnote:16  ³ Ibid.,p. 114. Footnote:17  ⁴ Committeeon Indian Affairs, Minutes of 8 October 1997, Montana Legislative ServicesDivision.

Provided by Montana Legislative Services