Trimming the fat

President Joe Shirley Jr. has used his line-item veto authority for the first time to eliminate $5.6 million from a bill that was approved by the Navajo Nation Council.

Shirley vetoed $150,000 to build a post office in Nazlini, Ariz., $500,000 in discretionary funding for the speaker's office, $2 million in discretionary housing funds at the chapter level, and $3 million for chapter Public Employment Programs.

The money would have come from the Department of Justice's Contingency Management Fund, which is reserved for liabilities and claims owed by the Navajo Nation from court cases or other legal action.

Shirley signed off on using $2 million from the fund for the chapters' Youth Employment Program, even though he said the money is already obligated to cover other expenses. Each chapter is set to receive $18,181.82 to subsidize summer youth employment.

In a June 24 letter to Speaker Lawrence T. Morgan (Iyanbito/Pinedale) and the council, Shirley said, "The exercise of the line item veto is necessary to preserve the Navajo Nation Department of Justice's Contingency Management Fund at a level essential to protect the Nation's interests."

DOJ needs the contingency fund to pay costs related to grants, judgments and any other fees for which it cannot pass along the costs, the president said.

Controller Mark Grant echoed Shirley's opinion.

"This fund is not available for general appropriation, it has a purpose," Grant said.

Grant's office must search out a way to replace the $2 million extracted to pay for summer jobs for students. The tribe's Undesignated Unreserved Fund currently is $22 million in the hole. It is required by law to hold at least $13 million that can be used to keep government operating in case of a cash crunch.

The council voted to give itself $8.8 million in discretionary funds during fiscal 2009, according to documents from the Navajo Nation's Office of Management and Budget. So far in fiscal 2010, now three-quarters over, the council has appropriated $3 million in discretionary funds, said OMB director Dominic Beyal.

As to the need for supplemental spending, that, too, is in question. On April 30, the chapters had a balance of $38 million in unspent money, including $3.1 million for public employment and $948,000 for youth employment, according to OMB.

The chapters also have $1.7 million in unspent funds for housing assistance, according to the Division of Community Development.

Shirley also objected to the post office project on grounds that it would more properly be handled by the Division of Community Development and the Capital Improvement Office, in accordance with the Appropriations Act.

The bill to fund the projects passed overwhelmingly (60-13) during a special session June 8. Its sponsor, Young Jeff Tom (Mariano Lake/Smith Lake), said he would try to have the veto override.

Voters approved the president's authority to issue a line-item veto in a special election Dec. 15, 2009.

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