Still here at Navajo Council’s Budget and Finance Committee where B&F now getting financial report from Office of the Controller Deputy Director Robert Willie and Office of Management and Budgets Director Dominic Beyal.

Several of the Committee members are concerned about Navajo Water Department budget, which has a huge balance when people are needing direct services regarding water.

B&F COMMITTEE CHAIRPERSON LORENZO BATES
We’ll send all notices out regarding any carryovers from Navajo Area Agency on Aging.

i need to get copy of Financial Report from Controller’s Office and OMB.

B&F votes 5 in favor, 0 opposed to accept financial report from Controller’s Office & OMB.

REPORT ON PROPOSED GAMBLING DISTRIBUTION POLICY FROM OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
Five percent of gambling profit would be distributed equally to chapters that host a casino. And all the host chapters that receive a portion of the Gamblng Revenues would be required to submit quarterly reports on how they spend their share. But first, those chapters would need to submit a budget on how the chapter plans to spend it’s gambling revenues.

NOTE:
I haven’t got a copy of the Proposed Distribution Policy for Gambling Revenues/Profits but it’s directed at distributing Five Percent of those revenues among the host chapters, which would be Fire Rock/Church Rock; Twin Arrows/Leupp; Northern Edge/Nenahnezad; Flowing Water/Hogback. But like I said, I need to get a copy of the Proposed Distribution Policy and as soon as I do, I’ll scan it and post it.

DELEGATE NELSON BEGAY
I thought that revenue from Fire Rock would be for host chapter and so on. But reading this as all five would divide equally.

OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
The last legal opinion from attorney Marcellino Gomez before he left was that Navajo Nation Gambling deposits one lump sum and equally distributed to five or four host chapters.

DELEGATE NELSON BEGAY
So if Twin Arrows in red and Fire Rock in black, the distribution would still be equal?

OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
Yes.

BATES
Appropriation Act mandates distribution to chapter be 50-50 but since these are not tribal revenues, the AA does not apply?

OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
Yes

NELSON BEGAY
If not following AA, why are some of the gambling money going to Permanent Trust Fund?

OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
I will look into that issue of depositing into PTF.
Submit budgets to Office of Controller and we will review and so will OOC. Once B&F approves, we will cut checks and do lottery presentation with big 10 x 10 check.
After B&F has approved budget, and check awarded, those chapters must submit quarterly report. If no quarterly report, then those dollars will be stopped – with B&F approval. For example, give check for $50,000 and spend $20,000 first quarter but no report then hold balance of $30,000. And balances could also be put on hold if there are any concerns over how funds are being spent by chapters.

There are no revenue projections.

NELSON BEGAY
Let’s say there is a turn around in 2015 and so will those gambling dollars be part of annual projected revenues for annual Navajo Nation government budget.

OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
An entity, such as Election Office, Division of Economic Development, etc, can apply for gambling funds. If you were to go with equal distribution for No Host chapters and Host chapters then no other entities would able to share in gambling fund.

CHAIRPERSON LORENZO BATES
Let’s say NDOJ returns with Set-Asides (Trust Funds) so what happens?

OFFICE OF THE CONTROLLER INVESTMENT MANAGER MICHAEL VENEZIA
Those funds will be reimbursed asap.

VOTE ON ACCEPTING REPORT ON PROPOSED GAMBLING DISTRIBUTION POLICY AT 12:03 PM: 5 IN FAVOR, 0 OPPOSED