Tribal Interior Budget Council 2018 Budget Formulation Washington,

Tribal Interior Budget Council 2018 Budget Formulation Washington, D.C. March 22-23, 2016

Road Maintenance Program Issue: Separate Road Maintenance from the Tribal Government budget activity. Recommendation: Justification: Create a new budget activity called “Highways and Streets” and retain the 26 million allocation and increase funding levels by 25% to address maintenance and repair backlogs and safety standard issues. Historical Budget Reductions, MAJOR Impacts, View of State of South Dakota budget versus BIA’s budget structure, Unable to address SAFETY Standard Issues, Integrate Department of Transportation Performance Management Principles into BIA Road Maintenance Budget, Benefits of a Performance Budget, and Impact to Tribal Transportation Program Funding

Unique Event, Common Practice or a Perception The actual Road Maintenance percentage is not a true and accurate reflection of Road Maintenance funding due to the supplemental of the Tribal Transportation Program funding; the Deferred Maintenance Report will provide justification. The Tribal Transportation Program is already an underfunded construction program that is supplementing an underfunded Road Maintenance facility/program.

Road Maintenance Goals and Performance Measures Separate Road Maintenance from the Tribal Government budget activity. State and Federal Government identify “Transportation” as Departments, separate from other activities in their budgets. Create a new budget activity called “Highways and Streets” and place Road Maintenance as a sub-activity under it. This will give the program greater visibility and cushion it from potential cuts from other budget activities. Road Maintenance does not fit in the Tribal Government activity or the Community & Economic Development activity where is previously resided. State governments do not group transportation with other activities in their budgets.

Example of a Proposed Reduction Harmful to Road Maintenance Attached is an example of a competing program within the Tribal Government activity that hurt Road Maintenance in the 2013 Indian Affairs Budget Request Greenbook.

MAJOR Impacts to Road Maintenance Program Funding for the Road Maintenance Program for BIA roads and bridges is 26,206,773 Previous budget reductions created MAJOR impacts to the Road Maintenance Program: Less funding for maintenance and repair. Shortfalls. Backlog. Equipment needs. Outdated equipment. Staff needed. Despair between Northern and Southern hemisphere tribes (harsh weather). No start up funds when tribes first contract the program from BIA. No start up funds for new tribes.

Example of the State of South Dakota Budget As you can see, the State of South Dakota, their transportation department/budget is a stand alone. BIA’s Road Maintenance budget is a sub-activity within the Tribal Government Activity.

Example of BIA’s Budget Activity Structure Where do you see Road Maintenance or references to Transportation? Where does it fit?

Current Proposed and Proposed BudgetBudget Restructure Restructure Current Proposed (appropriately positioned in the budget structure)

SAFETY Standard Issues of Road Maintenance Program School bus routes (non-BIA routes) Outdated equipment needs Retro-reflective signs Anti-skid surfaces (chip seals) Road surfaces should be stripped annually Vegetation control (removal, mowing) Pedestrian crosswalks, stripped bi-annually (should be done annually) Escalated materials costs (rural tribes) Most funds are depleted at the beginning of the 3rd quarter in the current fiscal year

Why Integrate the DOT Performance Management Principles into BIA Road Maintenance Budget? A performance driven budget proposal establishes goals and measures that support achievements or objectives. A good Performance Management budget supports that the “NEED” is there. Require Tribes to report progress. The Deferred Maintenance Report should be considered a measure of accountability of spending (service level index %). If States could be penalized if they fail to report or meet targets then so should Tribes. Performance Management is a continual improvement process.

Benefits of a Performance Budget Presenting the facts and statistics gives greater credibility to what you are asking for. Greater credibility increases the chances of sustained funding and potential budget increases (how does it benefit the public and taxpayer?) More bang-for-the-buck results due to specific targets or measures.

Impact to Tribal Transportation Program Funding If “Road Maintenance” was designated within a stand alone activity (Highways and Streets) AND incorporating DOT performance budgeting principles, a well presented budget would benefit TTP. Construction projects are underfunded and delayed when TTP funds are utilized to supplement the Road Maintenance Program. TTP funds are not recovered. Winter equipment needs. Safety issues. TTP funding could be reserved only for it’s intended purpose which is construction. Currently all tribes in the Great Plains Region and nationally take some and up to the 25% share for Road Maintenance. The FAST Act now requires supplemented TTP funds to be reported on to the Secretary of Transportation annually.

Tribal Transportation Supplement to Road Maintenance Tribes that programmed TTP construction funds for Road Maintenance in FY15 CHEYENNE RIVER FLANDREAU SANTEE THREE AFFILIATED TRIBES SPIRIT LAKE NATION ROSEBUD PINE RIDGE YANKTON PONCA SISSETON STANDING ROCK TURTLE MOUNTAIN OMAHA WINNEBAGO SANTEE CROW CREEK LOWER BRULE Programed Amount 575,000 5,000 200,000 235,550 911,000 150,000 205,000 190,000 164,091 500,000 100,000 65,000 35,000 1,500 1,000 163,134 3,501,275 Percentage of annual allocation 25% 3% 13% 25% 25% 3% 19% 6% 5% 22% 5% 10% 11% 1% 0% 25%

Road Maintenance Per Mile Funding Analysis After Administrative and Overhead expenses at 2 BIA agencies/reservations, the true funding per mile is approximately 650, without the TTP Supplement. This must cover gravel material, asphalt patching, oil and diesel fuel, repair work, signage, culvert replacements, blading operations, mowing, snow removal, salt and sand costs. One major snow storm can consume an entire year’s budget.

Challenges to Creating a Separate “Highways and Streets” Activity within the BIA Budget A consensus of all tribes/regions for starters. Acceptance of the idea from BIA, the Department, OMB and Congress.

Examples of Road Deterioration, Cheyenne River Reservation

Fort Berthold Reservation

Spirit Lake Reservation

Flooded Road Water Rescue, Pine Ridge Reservation, BIA 41 (Play Audio Clip)

Flooded Road Water Rescue, Pine Ridge Reservation, BIA 41

Flooded Road Water Rescue, Pine Ridge Reservation, BIA 41

BIA 27 (X U Hill) – Emergency /Urgent, Pine Ridge Reservation

Sundance Road (Community Road), Pine Ridge Reservation

Lone Elk Road (Individual residential), Pine Ridge Reservation

Lake Traverse Reservation of the SissetonWahpeton Oyate