Osage students and parents attend a Osage congressional education meeting Wednesday. From left to right, Executive Branch attorney Tosha Ballard, Education director Robert Hyatt, Rogers State University student Mary Wildcat, Mary Bighorse and Dana Daylight. Photo by Shannon Shaw/Osage News
By Shannon Shaw
Osage News
Osage students across the country are getting a shock as their Osage Nation Higher Education Scholarships are not being paid in full, leaving some with no money left for room and board.
“If I don’t have that money I don’t have enough money to live anywhere and I’ll have to drop out,” said Mary Wildcat, a junior at Rogers State University in Bartlesville, and the mother of two young children. “I need that money now.”
Wildcat, along with hundreds of other Osage students who attend lower-cost institutions, aren’t receiving the promised amount of $3,500 because, according to a prepared release from the Executive Branch issued this morning, the Executive Branch and education department is doing exactly what the congressional education committee told them to do, which was to restructure the department and address “how funds are distributed, and what systems are in place to promote accountability in the expenditure of those funds.” In short, to make sure students are spending the excess money for room and board and not spending it irresponsibly.
Letters of intent were sent to all the student’s schools that were awarded the scholarship promising those institutions that the student would be getting $3,500. Wildcat was informed by RSU staff that her letter of intent expires next week.
A letter is being sent out Today to all parents and students receiving financial aid from the Nation, explaining how to access the additional funds that will be available under the full array of scholarship programs, said Hepsi Barnett, Osage Nation Chief of Staff. The application to receive the full amount of the scholarship to those students with remaining money is being mailed out next week.
Congress calls emergency meeting
At an emergency congressional education committee meeting Wednesday in front of angry students and parents, Tosha Ballard, staff attorney for the Executive Branch, said that it was a matter of protecting students and the tribe from possible tax implications that they discovered while restructuring the department.
Ballard said the Executive Branch was waiting for a call back from the Internal Revenue Service and would have an update at the next education committee meeting Sept. 9.
The possible tax liability came from an IRS publication from the 1990’s that said money given to students that was used for college room and board was subject to tax. Congress members William “Kugee” Supernaw and Doug Revard disagreed saying that the law wasn’t new, that students don’t make enough money to be taxed and that even if the students were taxed it would be the responsibility of the individual to pay that tax, not the Nation. Supernaw said that he was sure that the students would rather have the money and worry about the tax later than not have the money at all.
“Last year I received $2,500 in scholarship money to attend RSU,” Wildcat said. “That money paid for my tuition, books, rent and with the remainder I bought food, and paid for daycare so I could attend classes . . . I didn’t have any taxes to pay.”
Hyatt said the money will eventually be paid in full but they just don’t know when. Hyatt said he is waiting for approval from the Executive Branch before sending the rest of the money. But according to a source in the Chief’s office, that asked not to be named, the Executive Branch never told the education department that they couldn’t send the remainder of the money.
As to helping students pay any late fees or other additional fees acquired in relation to housing costs to their universities, Hyatt said that he couldn’t answer that Wednesday. Hyatt did not return calls from the Osage News by press time.
Supernaw asked Hyatt, “Are you confident that no one is going to get hurt between now and next week?” Hyatt replied, “I would hate to say yes to that.” He also said that the department was trying to get the money out as fast as possible.
“We have 717 applications for scholarships and out of that 717 we have 407 applications that are completed,” Hyatt said. The 310 that are not completed are either missing a CDIB, verification of enrollment, or something else making the application incomplete, he said.
Out of the 407 completed about 200 have received the full amount of $3,500 because those students attend larger universities where tuition and books cost more than $3,500, leaving nothing left over.
Congress appropriated approximately $4.3 million to the education department for the scholarships.
Executive Branch says “scholarships never in doubt”
What prompted the release is a story that ran in the Tulsa World Thursday titled, “Osage College Grants in Doubt.” The Executive Branch said the story, “grossly misrepresented the facts,” and that students and parents should ignore “the misstatements and inaccurate details reported in the Tulsa World.”
“This whole incident could have been avoided if those members of Congress who called the meeting just had the respect to call me or my Office to obtain the facts, their preference to sensationalize this by discrediting the Nation and misleading the public is truly disappointing,” said Osage Nation Principal Chief Jim Gray in the statement.
The Executive Branch contends that they are doing exactly what the education committee told them to do, which was to restructure the department and address “how funds are distributed, and what systems are in place to promote accountability in the expenditure of those funds.”
Chief Gray even went so far as to say that the Nation is striving to pay the full cost of college for all students in the future.
“In fact, we are striving toward 100 percent of tuition, fees and books to be covered for every Osage regardless of where they choose to attend college as this kind of incentive encourages Osages to do their best,” Gray said. “I can reassure parents that we will work individually with each student to ensure they receive as much financial assistance as is available from the Osage Nation.”
The next education committee meeting is scheduled for 1 p.m. Sept. 9, in the congressional chambers on the Osage campus in Pawhuska.
To view the Executive Branch press release, click below:
September 4th, 2009 at 3:19 pm
What did Hepsi have to say about all of this?
September 4th, 2009 at 3:41 pm
Why limit the funds to only books, school fees, and tuition? Many students are non traditional and they have bills such as daycare, housing, and food. People make many sacrifices when going to school, they should use the money how they see fit, in the way that best helps their education.
As for the tax issue, students have always had to pay taxes, isn’t it better to get the money in full, use it how each student best sees fit and pay taxes, then the tribe trying to limit the money and try to figure out how each students spends their money?
The phrase “not spending money irresponsibly” really bothers me. What is the tribe trying to do, are they the moral authority and can decide what you should spent money on and what you cant’? If their thinking “well, the students that go to cheap colleges will just spend their excess money partying.” Well, if they did that, they would flunk out, and not get the money!! Duh! This thing will work itself out.
It sounds like to me somebody just doesn’t want to pay out any money, and are trying to use this tax issue as an excuse for the real reason they don’t want to pay out.
September 4th, 2009 at 3:50 pm
The timing is horrible as well, why bring up an issue, a very important one according to Executive, right before the monies are supposed to be handed out? Couldn’t this just wait till next year? Students need the money immediately, they can’t wait another day, hand out all monies then investigate. This makes more sense.
September 4th, 2009 at 4:33 pm
it’s a shame our children have to suffer they are our future…i was there a few months ago, looking forward to seeing the prarie, it’s so beautiful and i love to just look at it, but then i drove through a housing area where trailers had roofs held on by tires…people had old cars in the yard, when I tell people on the internet i’m osage they act like we’re arabs with money or something, well, if we are, our people are not seeing it in housing and education i’m tired of reading how well the cherokee are doing for their people..if someone could start some type of fund to replace these patheic roofs and clean these yards, i’ll be glad to contribute. we need to take care of each other..
September 4th, 2009 at 6:59 pm
It seems to me that no one is willing to take the responsibility for this whole situation. The executive branch says its only doing what the education committee said to do. The education department is saying it only withheld the money because the executive branch told them to. And it seems the executive branch wasn’t even going to address it until the Tulsa World article came out. Even then, the release was not the Chief offering a quick resolution to a problem that that his office created, but an attempt to put the entire blame in the hands of Congress. And the only ones hurt because of it are the students who are taking responsibility for the future of this tribe by getting an education. What does that say about the priorities of the Osage government?
September 5th, 2009 at 1:21 am
I am posting a copy of Congressman Supernaw’s analysis of the current situation. The link to the discussion is below.
http://www.osageshareholders.org/_disc51/00000010.htm
….we in Congress have been getting conflicting stories about the scholarships. Yesterday Doug Revard was told that there was no need to worry, the amounts promised would be delivered. Today some students were told by the education department they were being cut back and they would receive only tuition, books and fees; nothing would be given for room and board. >>>>>>>>>>>>>>>>>Here’s some of what they are using to justify the cuts: room and board , travel, etc. would be subject to income tax and the Executive Branch is afraid that those payments would be considered a “ per cap payment.” >>>>>>>>>>>>>>>>>>>Here’s what you need to know about their arguments: The tax laws have not changed. You have to look at the details, but generally, scholarships are treated as tax-free amounts if all the following conditions are met: 1. You are a candidate for a degree at an educational institution. 2. Amounts you receive as a scholarship are used for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction. 3. The amounts received are not a payment for your services unless required by the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program.; Assistance that is taxable is room and board, travel, research, clerical help or equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. ; That’s always been taxable and that is not new. You have to consider that many students don’t have enough income to actually owe any tax and even if some do, the tax rate is only a percentage—anyway, we can’t do anything about the federal tax laws, but to withhold assistance by using that excuse is just silly. The “per cap” excuse is even worse; an approved tribal use of gaming proceeds is to fund tribal programs and educational scholarships and assistance is one of the best tribal programs we have. It is no more a “per cap” than health benefits, meals for the elderly or the language program.>>>>>>>>>>>>>>>>>>>>>>A meeting of the Educational Committee is scheduled for Sept. 8, but we need to get this settled before then. I have emailed and left phone messages for Doug Revard requesting an emergency meeting tomorrow (today now) Sept. 2. I think Doug is out of town, but he will return tomorrow. The Speaker has already approved the meeting. >>>>>>>>>>>>>>>There was a bill sponsored by a Congresswoman that would have eliminated the grade incentive award, but that was soundly defeated in Congress. At this time, I don’t believe any member would hesitate to do all they can to see that we meet our commitments to our Osage students. There’s something damn cockeyed about an administration that can fund trips to inaugurals, Hawaii, France, Alaska and buy Sugarloaf Mounds and then cut educational assistance. There is no shortage of money, if the administration is short of anything, it’s just good judgment.”……
September 5th, 2009 at 1:24 am
This is another episode in a very long line of questionable decisions of the Executive Branch. I think the time has come to recall Chief Jim Gray, and to have the acting Chief John Red Eagle fire his chief of staff Hepsi Barnett.
September 9th, 2009 at 1:49 am
The best program for the Osage Tribe when I was the CFO was the scholarships provided to the students. With the money available from the gaming facilities all scholarships should be paid at 100%. In addition a stiffen should be paid on a monthly basis to offset basic living expenses.
Franklin M. Harrison
Retired, Chief Financial Officer
September 23rd, 2009 at 4:26 am
The whole thing is a power game, where the executive branch staff seem to do what they want. And Hepsi and the lawyer needs to go. lets see how they like it if they don’t get their pay check? Its all about too many princess and not enought braves. Give the money that was promise to the students and let them work on their studies. The only requirement that the student needs to have is that they are a citizen of this nation and hold aleast a 2.0 gpa. make it simple. Don’t we want our children to get an education, instead of who can swing the bigger stick in osage politics.