Council renews fiscal 2027 budget push amid layoff concerns

WINDOW ROCK

The Navajo Nation Council returned Thursday with a new emergency bill to approve a fiscal 2027 budget, two days after a delegate warned that thousands of Navajo Nation employees could face layoff notices as the government approached Oct. 1 without a spending plan.

Legislation 0207-26, sponsored by Delegate Shaandiin Parrish, the chair of the Budget and Finance Committee, would approve the Navajo Nation’s comprehensive budget for fiscal 2027. The Office of Legislative Services posted seven proposed amendments Wednesday before the Council’s Thursday and Friday budget session.

Delegate Danny Simpson introduced a new continuing resolution Wednesday, but the Office of Legislative Services later listed Legislation 0208-26 as withdrawn. The measure would have funded government operations from Oct. 1 through Dec. 31 if a comprehensive budget were not approved.

Parrish’s Legislation 0207-26 remained before the Council late Thursday. The budget session is scheduled to continue Friday.

The Council’s previous $524.8 million comprehensive budget, Legislation 0192-26, failed 9-10 Sept. 9. It needed 16 votes.

On Tuesday, delegates met in special session to consider Simpson’s earlier continuing resolution, which would have kept the government running at reduced levels. Instead, much of the day was spent debating whether tribal employees should already be receiving layoff letters.

Delegate Amber Crotty said the Navajo Nation Personnel Policies Manual requires employees facing layoff to receive 15 calendar days’ written notice. The fiscal year ends Sept. 30. She said she believed 3,000 to 4,000 or more employees would receive layoff notices that day. General fund employees were already contacting her about their rights and whether they could file grievances, she said.

Crotty moved to add a report to the agenda from the Division of Human Services and the Department of Personnel Management. She asked what guidance general fund employees were receiving and whether a layoff memo was being drafted. She later expanded the request to include the Judicial Branch’s human resources office.

Delegate George Tolth asked colleagues to reject the request and spend the day on the budget.

Crotty responded that the manual allows shorter notice only when a work stoppage is beyond the Nation’s control.

“On Thursday, there was no action from the Council,” Crotty said. “On Friday, there was no action from the Council. Saturday, no action from the Council. Sunday, no action from the Council. Monday, no action from the Council. One, two, three, four, five. That’s five full days.”

Delegate Vince James, the chair of the Health, Education and Human Services Committee, said the Council would face the same problem even if it had passed the budget. The president has 10 days to sign it, which runs past the 15-day window, he said. He added that no provision addresses layoff notices during the president’s review.

Parrish backed Crotty’s request. She said she had seen no memo from any of the three branches telling employees what to expect. She noted that President Buu Nygren’s administration sent a layoff notice dated Sept. 10, 2025, while a continuing resolution was under discussion last year. She said that move pressured the Council.

“I’ve had all three of my chapters text me this morning asking if they’re going to receive funding on Oct. 1,” Parrish said.

Simpson, who voted against the budget Sept. 9, said he would withdraw his continuing resolution if the Council agreed to make another attempt at passing a comprehensive budget.

“I’m not very supportive of a continuing resolution, but this is the last alternative,” he said.

He moved to remove the bill from the agenda and asked Speaker Crystalyne Curley, the BFC and leaders of the standing committees to negotiate a compromise. Delegate Herman Daniels seconded the motion.

Curley said she did not support a continuing resolution for any branch, even a partial one, because many employees would be affected. She later recessed the session for one hour and convened a leadership caucus on the Council floor.

Delegate Brenda Jesus, the chair of the Resources and Development Committee, also voted against the budget and apologized “for the disappointment that I caused.” She said she did not oppose the budget itself.

“I don’t want our kids and our relatives to be out of a job,” Jesus said.

Simpson said more meetings were needed before another budget session.

“I don’t think we have 16 votes today,” he said.

When the Council reconvened after its caucus, Simpson stood by his motion. The Council voted without opposition to remove the continuing resolution, then approved the amended agenda 13-2, with Crotty and Parrish opposed.

Curley said 14 voting delegates remained after Daniels left, short of the 16 needed for a budget. She canceled committee travel and said she would meet with the Department of Personnel Management after the session about Legislative Branch employees.

No layoff report was presented before adjournment.

Crotty asked for a timeline so employees would at least know whether they would receive a paycheck. She also asked who among the delegates who rejected the budget would lead a new plan.

James suggested taking up a personnel-only budget first.

“Just personnel, no unmet needs, no other project,” he said. “That way, we don’t have to encounter layoff notice and so forth that is stated in the personnel policy manual.”

The Council adjourned on Claw’s motion.

Get instant access to this story by purchasing one of our many e-edition subscriptions HERE at our Navajo Times Store.

---