Council approves emergency legislation to avert government shutdown
WINDOW ROCK
It didn’t take long for the 25th Navajo Nation Council to approve an emergency legislation unanimously.
With two weeks left before the new fiscal year begins on Oct. 1, the approved continuing resolution, Legislation No. 0206-24, was introduced by Budget and Finance Committee Chair Shaandiin Parrish on Sept. 12.
The passed legislation is designed to maintain government operations for six months, with President Buu Nygren poised to sign it following a review of the certified version of the resolution. If signed, the emergency legislation will take effect on Oct. 1 and last until March 31, 2025.
Parrish’s proposal significantly alters the fiscal landscape for the tribal government, reducing the originally proposed comprehensive budget from $222,775,780 to $111,387,890. This budget will be allocated among the three branches of government, along with other essential services, including scholarships and veterans programs.
“When we use the term continuing resolution, it’s primarily focused on the central government operating costs. Yes, this continuing resolution is six months for the central government to continue so that further negotiation can be had on those operating costs,” Parrish said on Saturday in Kayenta.
During a special session on Monday, Sept. 16, Parrish, joined by Controller Sean McCabe, brought the bill before the Council following an extensive discussion on the tribal government’s audit report. Without thorough deliberation, the legislation was passed with a vote of 20-0, effectively ending the special session.
Parrish’s emergency bill outlines what funding will be received for the next six months. This measure also includes provisions for 100% of trust fund revenues designated to support essential programs like veterans-related services and scholarships for college students.
Among the funded initiatives, the Navajo Nation Veterans Administration will receive $5,793,794 from the Navajo Nation Veterans Trust Fund to support its five agencies. Additionally, the NNVA Housing Program is allocated $4,849,100, with all funds designated for use by established budgetary guidelines.
The Diné Higher Education Grant Fund will be appropriated $12.4 million, which includes $3.5 million for the Office of Navajo Nation Scholarship and Financial Assistance, $4.7 million for Diné College, and $4.2 million for Navajo Technical University. Further distributions include $338,613 for the Navajo Teacher Education program, $910,264 for the Graduate Scholarship Trust Fund, and various other scholarships. The Sales Tax Scholarship Fund will receive $8,035,968, while the Vocational Trust Fund and the Risk Management Program are set to receive $180,856 and $21,204,172, respectively.
The Budget and Finance Committee chose not to allocate the entire projected revenues for fiscal 2025, citing several critical factors. Parrish emphasized concerns about expected revenue declines in fiscal 2026 and fiscal 2027, prompting a cautious budgeting strategy. She highlighted that, despite having $20 million this fiscal year, the tribe needs to be fiscally responsible, especially considering past spending trends where only 50% of the budget was used.
“We asked the Office of Management Budget, the Office of the Controller, and the Department of Personnel Management, to present all the items that they presented to the three branch chiefs, and to give us the same items. The committee took a look at that and said, ‘OK, we also know how much they spent in fiscal year 2024 they spent only fifty percent of their budget. We also see that there’s a twenty-million-dollar decline for fiscal year 2026, and there’s a decline in fiscal year 2027,’” explained Parrish.
“We need to maintain our budget at this amount because you’ve only spent 50% of your budget anyway,” Parrish said.
She added that having $20 million this fiscal year was good but seeing a decline in coal revenues the tribe receives, the tribe needs to become more fiscally responsible.
“It’s great that we have twenty million this year, but to maintain the operations for the Navajo Nation, we need to be fiscally responsible and say, ‘OK, central government, you can maintain your budget at this amount because you’ve only spent fifty percent of your budget anyway,’” she said.
The emergency legislation passed by the Navajo Nation Council ensures full funding for certain programs, granting 100% of their requested budget for six months.
With the clock ticking down to Oct. 1, all eyes will be on the president’s signature. If he approves it, the government will continue, business as usual.
Following the approval, Nygren responded in a letter on Monday to Speaker Crystalyne Curley, stating he acknowledged the Council on ensuring the tribal government continues to operate.
“My office is now reviewing the version of the continuing resolution that is online(d) as we await the certified version,” the brief letter stated. “Once I receive a certified version, I will take appropriate action after thoroughly analyzing the certified resolution.”
Highway 264,
I-40, WB @ Winslow