Congress at work. Osage News file photo/Chalene Toehay

By Shannon Shaw
Osage News

A bill sponsored by Congressman Mark Freeman that would trim the Osage budgets down to $23.9 million was discussed by Congress Monday, as well as putting all employee salaries back to 2009 levels allowing a 3 percent step increase and halting all new hires.

Freeman expressed that he did not like the bill but he felt it was necessary to introduce a bill that would be a compromise with those members of Congress that want the budget below $25 million.

“If there is some way we can get a clear concise bill out, it would be wonderful for our Osage people that work for us and that are workin’ hard,” Freeman said. “It would be wonderful for the Osage Nation and [that way we won’t] mess it up worse than we already have.”

According to Congressman William “Kugee” Supernaw, in his Dec. 14 and Dec. 23 e-mail newsletters, the reason for certain members of Congress’ persistence in lowering the Osage budgets to below $25 million is due to the accounting debacle at the Nation’s casino and “the fact that the Nation has not received a cash distribution from the gaming operation since the check for May 2009.”

“The lack of income distributed to the Nation is a major part of the budget problems the government is facing and it has only been mentioned in the Notes to the Nation,” Supernaw wrote Dec. 14. “Yet it is affecting all of us.”

Gaming Enterprise Board chair, Elizabeth Homer, said in a phone interview Monday that there has been a “terrible, terrible unfortunate misunderstanding . . . we, the Nation’s gaming enterprise, did not stop making money – actually, ’09 was a good year.”

Homer, who replaced Tom Slamans as gaming board chair Nov. 24, said that it’s true there was not a gaming distribution for the months of July and August but it wasn’t due to lack of money. According to end-of-year financial records, the Nation’s gaming enterprise paid the Nation approximately $1 million more than projected for 2009 fiscal year.

“That’s why the payments trailed off at the end of the last year,” Homer said. “A distribution for the first two months of this year, which began Oct. 1, was made in early December totaling $5 million for October and November. From this point forward, the enterprise will be making distributions of $2.5 million monthly, which will spread the distributions out over the course of the entire year, providing, we hope, less confusion and a greater sense of certainty.”

The enterprise will conduct quarterly reconciliations, a process that compares two sets of records to usually balance two accounts to make sure they’re in agreement, between revenues and distributions as well as an annual reconciliation at the end of the fiscal year. The reconciliation at the end of the year could entail an adjustment, but according to Homer, based on current projections the board anticipates a final payment for the 2010 fiscal year of at least $1 million to bring the total distribution for 2010 to the $31 million projection.

Gaming board chair says accounting in good shape

Congressman Supernaw maintains in his e-mail newsletters that the “accounting mess” is unresolved and that any projections received from the gaming enterprise board in the immediate future are unreliable.

Homer said she has nothing but good news about the accounting process at the Nation’s gaming enterprise.

“Part of the problem we’ve experienced is attributable to the transition from an outsourced accounting function to an in-house accounting department that took place in the middle of Fiscal Year 2008,” Homer said. “Hindsight being what it is, it’s easy to look back and see that things could have and should have been done differently – the timing was off, more staff support and training was needed, and the transition was too abrupt.”

Casino staff struggled with the new, advanced system and Homer said that the staff probably should have run the two systems concurrently, at least until the accounting department was adequately staffed and trained and the new accounting system was in place.

“Bottom line, that’s why the annual financial audit for the 2008 fiscal year turned out so poorly,” Homer said. “It was never that the casino lost money: it was that the accounting function was in such poor shape.”

“The good news is that by bringing in accounting professionals, beefing up the staff, getting the staff trained, and implementing the right systems, all of which has taken place over the past year, we’ve made serious progress toward both overcoming and eliminating these problems,” Homer said.

The gaming board hired certified public accountants from the accounting firm of Joseph Eve, a nationally known CPA firm that specializes in accounting and business solutions for tribes and casinos. Joseph Eve CPA’s came in and trained casino staff in the new accounting system and the staff has benefited so much from Joseph Eve that the accounting department should be fully independent by the end of the 2010 fiscal year, Homer said.

Re-audit comes back positive

The Osage Nation Gaming Commission hired an independent auditing firm, REDW out of Albuquerque, N.M., “a firm with significant experience in tribal casino auditing,” according to Homer. The firm performed a re-audit of the enterprise’s 2008 fiscal year balance sheet. The re-audit was completed in November and the result was an unqualified opinion. “What this means is that we have a good, reliable beginning balance for FY 2009.”

An unqualified opinion, according to allbusiness.com, is the auditor’s judgment that he or she has no reservation as to the fairness of presentation of a company’s financial statements and their conformity with Generally Accepted Accounting Principles (GAAP). In the auditor’s opinion, the company has presented fairly its financial position, results of operations and changes in cash flows.

In addition to the new gaming enterprise accounting system, the enterprise has recently completed installation of another new system, the Konami Casino Management System (KCMS), which will provide accountability in relation to both the enterprise’s operational and accounting functions, Homer said.

“The installation of these two systems represents major progress toward achieving the highest degree of accountability and profitability of Osage gaming,” Homer said. “It is distressing that these [accounting] problems have spilled over into the Nation’s budgetary process and that it has obviously shaken the confidence of many in relation to the gaming enterprise.”

“On behalf of the board, I can state unequivocally that restoring that confidence is our highest priority,” she said.

Congress convenes till 10 a.m. Thursday

Before Congress adjourned Monday Congressman Doug Revard made a motion for Kelly Corbin, the Office of Fiscal and Performance Review’s accountant, to tally the savings the Nation would receive by halting all raises and new positions.

“I’m going to venture to say it would be in the interest of $150,000,” Corbin said. That’s if the bill gives all employees 2009 level salaries, plus the 3 percent increase, which Corbin said was reflected in 90 percent of the budgets in Freeman’s bill.

Congressman Supernaw brought up the fact that Congress’ budget was passed in September, with some of their staff receiving more than 3 percent increases to their salaries.

“If I’m wrong, my understanding is the employees will still get the step increase, I still understood we were going to revisit our own budget and cut out $300,000 from expenses and even adjust the wages back,” Supernaw said. “I don’t think it’s fair to cut everybody else and not ourselves.”

Osage Nation Congress in session Nov. 16. Photo by Chalene Toehay/Osage News

Osage News

In the ongoing debate involving the Osage Nation employee Christmas bonuses, Congressman William “Kugee” Supernaw said the next move is up to Principal Chief Jim Gray.

“The best I could find out is Congress has done everything they could possibly do – short of filing a lawsuit,” Supernaw said during Friday’s Congressional Special Session. He made the announcement one day after meeting with attorneys for lunch, which he said was at “no charge to the Nation.”

“Their advice was due to the court system, even if we did that (file a lawsuit against Gray’s office for the bonuses), it would be after Christmas before that was settled,” Supernaw said. “It’s in his court now. We’ve done just about everything Congress can do.”

Congress and Chief Gray are at odds over whether emergency appropriation legislation has passed authorizing the Christmas bonuses to be issued to the employees while the two sides work on passing the Nation’s 2010 fiscal year budget.

An emergency appropriation bill approved and signed Monday is extended until Jan. 30 but Gray told the Osage News “the continuing resolution [ONCA 10-17] doesn’t allow the Christmas bonus to go out. I cannot spend money that hasn’t been appropriated.”

Congressional Speaker, Archie Mason, sent a letter to Osage Nation Treasurer, John Jech, on Dec. 1 asking that he “Please pay the Christmas bonuses immediately.” The letter maintains that a prior continuing resolution, ONCA 10-15, is still alive and that ONCA 10-15 exempted the one-twelfth spending restriction which would allow the Christmas bonuses to be given out. Chief Gray is maintaining that he pocket vetoed ONCA 10-15 and that the Nation is operating on the resolution passed and made into law Monday.

Congressman Doug Revard asked Mason during Friday’s session if he received a response to the letter. Mason said “I have a written response from the chief – yes… and it is basically an acknowledgement of my letter sent to him.”

The next Special Session of Congress has been scheduled for 10 a.m. Wednesday.

The Congressional Commerce and Economic Development Committee meets at 10:30 a.m. and the Government Operations Committee meets at 1 p.m. on Tuesday.

Osage Nation Principal Chief Jim Gray speaks during the 22nd Special Session of Congress on Nov. 30. Photo by Chalene Toehay/Osage News

By Benny Polacca
Osage News

The Osage Nation Congress has passed another emergency appropriation bill to keep the Nation’s government operating until Jan. 30 or if a 2010 fiscal year budget is decided before then. It’s a bill Principal Chief Jim Gray said Monday he intends to sign, amid its one-twelfth monthly spending restriction which he says has affected some government operations.

“The Executive Branch cannot function properly and provide government services until you fulfill your constitutional duty to pass an annual appropriation of operating funds,” Gray told Congress when it reconvened for its 22nd Special Session on Monday morning. “Continuing to function at 2009 funding levels is not sufficient for programs such as Social Services, WIC or for the scholarship program,” he added.

“We’re going to have to make a decision – a decision that will have a bearing on our people, our family members… all of those who work here at the Osage Nation that provide services,” Speaker Archie Mason told his congressional colleagues during Monday’s session. “They are your day-to-day employees. This is Christmas, this is December and I know each and every one of you, like me, do not want them to be in a position of doubt, regards to their job, security, those kinds of things that affect you.”

Congress passed ONCA 10-17, sponsored by Mason, with a unanimous 11-0 vote following discussion, debate and an amendment to the bill’s deadline on Monday afternoon. It will act as another “Band-aid” or “temporary solution” – as several government officials have called it – to keep the Executive Branch and its tribal departments operating as Gray and Mason’s branches focus on reaching a solution to the FY 2010 budget impasse before the Jan. 30 deadline.

Two congressional Special Sessions have passed since the 2009 Tzi-Zho Session in which congressional members set the next fiscal year’s budget. But the executive and legislative branches have been at odds over several concerns such as late-arriving budget items; requests for more information on selected budget lines; and the Nation’s projected 2010 revenue which impacts the amount Congress appropriates for budgetary spending.

In a Nov. 23 online statement, Gray said he pocket vetoed two “flawed” emergency appropriation bills passed by Congress before the 21st Special Session ended Nov. 17. At issue in these prior emergency appropriation bills is the restriction mandating tribal departments to continue operating with a monthly one-twelfth spending cap.

Although Mason’s bill calls for emergency appropriations to continue with the one-twelfth spending restriction until Jan. 30, Gray said he would sign it amid his concerns with it hampering some government operations with expenditures surpassing the one-twelfth limit.

“When that continuing resolution comes over here, I will sign it because right now that needs to happen,” Gray said during an all-employees meeting held after Congress approved Mason’s bill. “I’m still going to be out there publicly demanding that they come back to work and finish their job because the continuing resolution is only a Band-aid.”

Congressman Raymond Red Corn noted construction/ maintenance spending as an example of one item impacted by the one-twelfth spending restriction in a November electronic newsletter.

“Any construction contracts, such as those improving Senior Housing, will be put on hold unless the contract equals one-twelfth of the line item for that improvement,” Red Corn wrote. In the proposed 2010 budget, the housing department is requesting a total of $87,500 to replace carpeting and tubs/showers in the Senior Housing units.

Congressman Doug Revard, who supports the one-twelfth spending restriction, has said it is being used to keep the Executive Branch in contact with Congress to continue reaching a solution to the budget debate.

Also at issue in the budget impasse is the Nation’s projected revenue which is $27 million – an amount that is $6 million higher than the previous budget which has been reduced from $33 million. According to the Osage Nation Constitution, the Congress cannot appropriate more than the next year’s projected revenue.

Gray and Executive Branch officials have trimmed $3 million from the budget, so it now sits at $30 million and is up for consideration next week. “I am confident that by working together we can resolve any outstanding differences and get the budget passed in the timeframe allowed for this Special Session,” Gray said.

The Congressional Education Committee meets immediately following the Dec. 7 Congressional session and the Government Operations Committee meets at 1 p.m. Dec. 8 with the budgets on both meeting agendas.

Congressman Mark Simms and Congressman William Kugee Supernaw look over documents during the 22nd Special Session of Congress on Nov. 30. Photo by Chalene Toehay/Osage News

Osage Nation government employess attend a Nov. 30th meeting and listen to Principal Chief Jim Gray speak. Photo by Chalene Toehay/Osage News

Osage Nation Congress on the last day of the 21st Special Session. Photo by Shannon Shaw/Osage News

By Benny Polacca
Osage News

With forty-eight days passed since the Osage Nation’s 2010 fiscal year started without a finalized government operations budget, the Osage Nation Congress voted Tuesday to continue funding Executive Branch operations – with spending restrictions – by extending the life of an emergency appropriations bill while the budget-setting process continues.

Congressional members voted 8-4 in passing ONCA 10-16, sponsored by Faren Revard Anderson, which amends an earlier emergency appropriations bill she sponsored, allowing governmental operations to continue with a one-twelfth spending restriction on each line item listed in the Nation’s FY 2009 budget until April 15, 2010 or if a 2010 budget is set before then. This bill exempts employee Christmas bonuses, payroll salaries and wages and several education-related expenses including higher education scholarships from the one-twelfth spending restriction.

Several congressional members have described the emergency appropriations bill as a “Band-Aid” and “temporary fix” to keep funding the government while congressional and Executive Branch officials work toward an agreement on the 2010 budget. But some officials from both government branches are concerned the one-twelfth spending restriction will still hurt the Nation’s operations if certain programs and projects are hampered because they cost more than the restricted monthly spending amount.

“I know there are people out there today who do not like (ONCA 10-16 and three similar emergency appropriation bills considered), but at some point we have to come together to identify that at the end of the month, if we do not pass something then the departments do not have a budget,” Anderson said during Tuesday’s session.

Congressman Raymond Red Corn sponsored ONCA 10-14 which is also an emergency appropriations bill without the one-twelfth restriction on spending. He withdrew the bill Tuesday after Anderson proposed amendments to his bill so it would mirror hers which was later passed in the session.

“It guts the entire purpose of the bill,” Red Corn said objecting to Anderson’s amendments to his bill which included the one-twelfth spending restriction. “I believe that all programs that benefit Osages throughout the Osage Nation should be allowed to function normally while Congress and the Executive Branch work out their budgetary differences.”

Congress members Mark Simms, Doug Revard, William “Kugee” Supernaw and Anderson all gave testimonies during the session in favor of an emergency appropriations bill with restricted spending saying that the temporary fix was only because Chief Gray would not work with them to lower the budget amounts in his budget and the Executive Branch budgets.

“My thinking is of course we’re just trying to put a Band-Aid on the situation and that we’ve been trying to work out between the executive and legislature (branches) for going on three to four months now,” Revard said. “If we do not put this amendment in here, then there is no incentive whatsoever for the executive (branch) to continue to work to find an answer to this situation and narrow the budget,” he said of the one-twelfth spending restriction.

In addition to the employee Christmas bonuses and wages and salaries, ONCA 10-16 exempts the following education-related expenses from the one-twelfth spending restriction: higher education scholarships; tuition, fees, and room and board; adult training tuition fees; Summer Youth Employment Program”; Summer Youth Intern Program; and Grade Incentive/ Chief Leadership Awards.

Congressional members approved Anderson’s ONCA 10-16 on the last day of its second consecutive Special Session held in an effort to set the FY 2010 budget, which was not completed during the Tzi-Zho Session. Voting against Anderson’s bill were Red Corn, Congresswomen Shannon Edwards and Debbie Atterberry and Congressman Mark Freeman.

Chief Gray trims Executive Branch budgets

In a Nov. 16 letter to Congress Speaker Archie Mason, Gray said he has instructed all Executive Branch directors “to thoroughly examine their department’s budgets and make cuts where possible with the caveat that cuts should not be made which result in diminished services to our people.” Gray also made assurances that no employee positions or salaries under his branch be cut.

“I believe strongly that our employees must be protected against any unjust or unwarranted cuts… I remain more than willing to meet with members of Congress to discuss this matter and my actions as principal chief in detail and am committed to seeking a reasonable resolution to the current impasse.”

Health benefit card program not affected by ONCA 10-11, Congress auditor says

One forthcoming program that will not be impacted by this amended emergency appropriations bill is the Nation’s health benefit card program – which is not part of the government operations funding, said Kelly Corbin, senior internal auditor for the Congressional Office of Fiscal and Performance Review. The program is slated to begin in January.

Congress passed the $5.1 million health benefit plan during the 2008 Tzi-Zho session. Those who apply will receive a coded debit card that allows payment for all items that the Internal Revenue Service considers tax-deductible medical expenses.

The $5.1 million reserved for the program has been placed into a special-use revolving fund in which “the money is reserved for that specific use and the balance is carried over from year to year until it is supplemented by more funds,” Corbin said. With this type of fund, it can be replenished with more money “to meet the needs of more people” when needed, he said.

Mutual Assurance Administrators, Inc. of Oklahoma City has been selected as the third-party administrator for the health benefit plan. The company will be responsible for handling the claims from medical vendors.

Red Corn identifies operations which could be affected by ONCA 10-16

In his Nov. 14 “Update” electronic newsletter, Red Corn listed some operations and projects which would be affected by a one-twelfth spending restriction.

“Any construction contracts, such as those improving Senior Housing, will be put on hold unless the contract equals one-twelfth of the line item for that improvement,” Red Corn wrote. In the proposed 2010 budget, the housing department is requesting a total of $87,500 to replace carpeting and tubs/showers in the Senior Housing units.

The Health and Social Services committee wants to match last year’s $200,000 appropriation to pay the backlog of health claims from the FY 2009 pilot program, Red Corn wrote. With a one-twelfth spending restriction, that means payments will be made at a rate of $16,600 per month or about two applications per work day.

Red Corn also questioned the effectiveness of the majority in Congress and its Speaker, Archie Mason.

“The Osage Nation Congress has complete control over the unfinished budgets,” wrote Red Corn in the Nov. 14 update. “The majority’s spokespersons claim there is $6.1 million in identified “fluff”, yet none of the majority that hold committee chairmanships (Anderson, Appropriations; Revard, Education; Branstetter, Government Operations; Anderson, Cultural; Simms, Commerce) have called meetings to propose reductions.”

Osage Nation Congress in session Nov. 16. Photo by Chalene Toehay/Osage News

By Shannon Shaw
Osage News

Osage Nation Congress members Doug Revard, William “Kugee” Supernaw and Jerri Jean Branstetter announced in three committee meetings today that the controversial meeting that took place on Oct. 26 behind locked doors in the congressional chambers was not a violation of the Open Meetings Law.

“I move to ratify and approve the unintended and alleged special meeting,” said Congressman Revard in a cultural committee meeting that lasted three minutes. “I would inform the committee that I have made that motion for the purpose of knowing that we did not feel that we were ever in any meeting; we were working as individuals together, as to things that were on the floor, nothing that was in committee.”

Revard then said that by ratifying the meeting it would put a stop to “wasting the Osage People’s money” because there were too many frivolous lawsuits already pending made by the chief.

Osage Nation Principal Chief Jim Gray filed suit Nov. 6 against Congress members Revard, Supernaw, Branstetter, Anthony Shackelford, Faren Anderson and Eddy Red Eagle for discussing behind closed-doors ONCA 09-66, Government Operations Departments and Programs Appropriations Act and ONCA 09-63, the Office of the Chiefs Appropriation Act.

The Osage News reported later that Congressman Anthony Shackelford was not in the chambers at the time of the meeting.

The suit alleges that the six members of Congress met illegally when they formed quorums for five committees and barred any member of the public and the Osage News from listening and making a record of the discussion that resulted in 90 floor amendments in the form of cuts from the two budgets that totaled a little more than $3 million.

In the Open Meetings Law it states that a public body “may ratify an action taken in violation of this law at a public meeting” as long as it’s done within 30 days of the violation, making the meeting legal. The law also states that the meeting in question has to have been unintended in order for it to be ratified by the Open Meetings Law.

After Revard announced he wanted to ratify the Oct. 26 meeting, Congressman Supernaw and Congresswoman Branstetter did the same in an Education Committee meeting and an Appropriations Committee meeting today that both lasted under 4 minutes. Congresswoman Debbie Atterberry voted not to ratify the meeting and Congressman Raymond Red Corn abstained from voting for the ratification.

A prepared release from the Osage Nation Congress said that bills ONCA 09-66 and ONCA 09-63 were not the property of a committee or in its control so that if quorums for four committees (Appropriations, Cultural, Congressional Affairs and Rules and Ethics) were established it did not matter. “Both pieces of legislation were on General Order, which means they were the property of the entire body of Congress, not an individual committee.”

Now that the six members of Congress claim the Oct. 26 meeting has been made legal, the Osage News asked a congressional staff member if it could have the minutes of the meeting. The staff member replied that the congressional legal counsel, Loyed Gill, had advised her not to answer due to pending litigation. According to the Open Meetings Law, minutes from public meetings have to be approved within three days of the meeting, ready or not.

To view the congressional prepared release, click here:

congressional-release-11-16-09

To view the prepared release from Osage Nation Principal Chief, click here:

Osage Nation Principal Chief prepared release

Congress meets during a congressional session. Osage News file photo/Chalene Toehay

By Shannon Shaw
Osage News

Osage Nation Principal Chief Jim Gray filed two lawsuits against the Osage Nation Congress Friday. The first suit asks for the maximum fine for six members of Congress in which the suit claims they violated the Open Meetings Law. The second suit asks for an injunction barring Congress from taking any action on ONCR 09-15 and for the courts to declare the veto override that took place Nov. 3 unconstitutional.

Phone calls were not returned by Gray’s legal counsel, Gary S. Pitchlynn of Norman-based Pitchlynn & Williams, by the time this story was published.

Congressional members Doug Revard, William “Kugee” Supernaw, Eddy Red Eagle, Anthony Shackelford, Faren Anderson and Jerri Jean Branstetter are all named in the first suit as having violated the Nation’s Open Meetings law – which Anderson sponsored. The suit seeks a declaratory judgment against all six members as well as the maximum fine for violating the law in the amount of $500.

The Osage News reported Thursday that Congressman Anthony Shackelford was not in the closed-door meeting that took place in the Congressional chambers Oct. 26 when five members of Congress dead-bolted the doors to the chambers and refused the Osage News access to the meeting where they discussed budgetary cuts they proposed the next day.

According to the suit, “Defendant’s actions in attempting to meet and conduct official business in secret deprived the Nation’s citizens of (a) information necessary to assess whether Defendants adequately fulfilled their duties as representatives of the Nation’s citizens in the lawmaking process; and (b) the opportunity to attend, speak, and participate as constituents of Defendants.”

The second suit seeks a declaratory judgment against Speaker Archie Mason for certifying the override of a veto that the suit claims was unconstitutional. The suit claims the veto override that took place Nov. 3 violates Article VI, section 10 of the Osage Nation Constitution as well as Article VI, section 13. The suit asks for a judgment that would make the veto override of ONCR 09-15, a resolution in support of the gaming enterprise board’s 2010 plan of operation, null and void. The suit also asks that the judgment be given to make “any congressional rules permitting carry-over of a vetoed bill from a prior session of Congress are unconstitutional and invalid.”

“Article VI, [section] 10 states that Congress ‘may only meet in the interim, the period of time between two sessions, by Interim Committee(s) to study a particular subject or subjects in order to make recommendations to the next regular session of the legislature,’” according to the suit. “Thus, the Constitution plainly bars Congress from voting to override a veto in an interim period between two sessions.”

The suit also asks for an injunction on members of Congress from taking “any action” on ONCR 09-15. However, a resolution sponsored by Congressman Eddy Red Eagle to set the Nation’s spending at $26.8 million was just passed by Congress and vetoed by Chief Gray.

Phone calls were not returned by Legislative Counsel Loyed Gill by the time this story was published.

Osage Nation Congressman Anthony Shackelford Nov. 5. Photo by Chalene Toehay/Osage News

By Shannon Shaw
Osage News

Osage Nation Congressman Anthony Shackelford said he did not attend the Oct. 26 meeting in which the legality of the meeting has been questioned by the Osage News.

“I went into the common area of the congressional offices and saw them sitting down at the conference table and thought I’d sit down and see what they were up to,” Shackelford said. “They were [discussing] the Chief’s budget and they were talking about dollar amounts . . . I maybe sat there for three minutes and got up to get something to drink.”

“When I came back I looked at them and said, ‘Okay guys, I’m out of here,’ and went to go play golf,” Shackelford said.

Shackelford said at that moment he grabbed his keys and left the building.

An e-mail sent by Congresswoman Shannon Edwards to Principal Chief Jim Gray and Assistant Principal Chief John Red Eagle named Shackelford, along with five other members of Congress, in violation of the Open Meetings Law and congressional rules. Edwards said that when the six members of Congress met in the common area in the congressional offices to discuss budgetary cuts they were in violation of the Open Meetings Law. The e-mail does not stipulate how long each member of Congress was in the common area.

Edwards said she stands by her e-mail and her recollection of the nature and attendance in the non-public morning meeting.

The Osage News received an anonymous tip around 3 p.m. Oct. 26 that an illegal meeting was taking place in the Osage Nation Congressional Chambers. The doors were dead-bolted and the Osage News was not allowed inside.

That would leave Osage Nation Congress members Doug Revard, Eddy Red Eagle, William “Kugee” Supernaw, Jerri Jean Branstetter and Faren Anderson inside the chambers. Those five members make up quorums for the Congressional Affairs committee, Rules and Ethics committee, Appropriations committee and the Cultural committee.

The next day during the congressional session 96 amendments were made to cut more than $3 million to the Nation’s spending. The cuts included the eradication of 10 positions (vacant, proposed or filled), salary cuts and other cuts to 15 departments, with Chief Gray’s office receiving more than $830,000 in cuts.

During the Nov. 2 congressional session Congress decided not to vote on the amendments and instead sent the budgets back to their jurisdictional committees to allow the directors of the programs to help the Congress make decisions on what cuts were to be made.

Congresswoman Debra Atterberry called out Congressman Doug Revard for the closed-door meeting during the Nov. 3 congressional session, prompting replies from both Revard and Congressman Red Eagle that they did nothing wrong Oct. 26 and that they were just doing their jobs. Neither congressman commented on why the doors were dead-bolted or why they did not allow the Osage News access to the meeting.

The Osage News is the only entity that has raised issue with the closed-door meeting.

Congressmen Eddy Red Eagle, Doug Revard, Raymond Red Corn and Anthony Shackelford during a congressional session. Osage News file photo/Chalene Toehay

[Editor's Note: This story was originally published Nov. 3 and was modified on Nov. 18 for the purpose of clarification.]

By Shannon Shaw
Osage News

The plan to cut more than $3 million by last-minute floor amendments from Osage Nation programs didn’t happen Monday as members of the Osage Nation Congress instead voted to send all budgets back to committee for another special session, this time to cut $6 million.

The majority view of Congress is that ONCA 09-63 the Office of the Chief Appropriation Act, ONCA 09-65 the Boards and Commissions Appropriation Act and ONCA 09-66 the Government Operations Departments and Programs Appropriations Act must be cut down from $33 million to $27 million, the FY 2010 projected revenue from the Nation’s gaming enterprise.

The Osage Nation Constitution states the Congress cannot appropriate more than the projected revenue.

Osage Nation Principal Chief Jim Gray vetoed the resolution ONCR 09-15 that approved the gaming plan of operation Oct. 28 in the 20th Special Session of Congress, citing a letter from the chairman of the Gaming Enterprise Board, Tom Slamans, which said he did not foresee the budgeting “implications” to the Nation by setting the projected revenue at $27 million.

“We respectfully request that we be allowed to adjust our plan of operations so that it fits more appropriately with the needs of the Osage people,” wrote Slamans in the letter. Slamans sent the letter Oct. 16.

The gaming enterprise board never turned in an adjusted budget and Congress overrode Gray’s veto Monday.

According to Congressman Mark Simms, Slamans spoke with Simms personally and told Simms that the only reason why the gaming board was going to adjust their gaming plan of operation was because Chief Gray “had a problem with it.”

Not true, Gray said.

“The reason why [Tom Slamans] wanted to request a revision was based on his unexpected realization that Congress was going to take their [plan of operation] and subtract it from their projected revenues and use that to establish a cap on spending for the rest of the Nation,” Gray said. “When [Slamans] realized that was the case he wanted to redesign his plan because he didn’t want the tribe to suffer.”

Gaming Enterprise Board Chair Tom Slamans did not return phone calls before this story was published. Chief Gray did not return phone calls before this story was published.

“It is not any of our jobs to interfere with our business entity,” Simms said. He said the reason why the projected revenue amount is lower than last year’s was because the Nation’s gaming enterprise budgeted for a major project in 2010. The Osage News could not verify Simms’ comment because the gaming plan of operation is confidential. Simms also said that the Nation was appropriated $25 million last year and only spent $19 million. Last year’s projected revenue from the gaming enterprise board was around $47 million.

Constitutional override?

Three members of Congress argued the constitutionality of the override made to ONCR 09-15 Monday, due to the fact that the veto was made in a prior session. Congress members Raymond Red Corn, Shannon Edwards and Debbie Atterberry abstained from voting for the override, the only three that didn’t vote for it.

“There’s nothing that says we can’t,” Congressman Mark Simms said. Legislative council Trey Gill referenced Article VI, section 13 of the Constitution that addresses veto overrides and said he did not see a time limit for a congressional override and the Constitution did not stipulate if an override has to take place during the same session the veto was made.

Edwards argued what would stop Congress from going back to all the bills vetoed by Chief Gray and overriding them as well? Gill said that he was sure a time stipulation would be in effect to prevent Congress from doing that. The Osage News could not find a time limit on veto overrides in the Constitution.

Gill had no comment for this story.

Congressman Raymond Red Corn said there was an easier way of getting the resolution passed than taking the chance of getting involved in a lawsuit with the Chief. He said Congress could have let the override stand and then reintroduced a similar bill during the 21st Special Session, got it passed and if vetoed, overrode the veto during the same session.

“The majority in Congress has unnecessarily put us at risk of yet another lawsuit by the Executive Branch,” Red Corn wrote in his e-mail newsletter. “These lawsuits cost tens of thousands of dollars to prosecute and defend in the Osage courts.”

Congressmen defend violation of Open Meetings Law and Congressional Rules

Congressmen Doug Revard and Eddy Red Eagle defended the closed door meeting held Oct. 27 when Congresswoman Debbie Atterberry responded to Congressman Doug Revard’s statement during Monday’s session that the Nation needs to operate openly, with transparency and that the Congress needed to be provided with more information about each program in order for Congress to safeguard “the People’s money .”

“You [Revard] talk about transparency, but you’re having closed door meetings . . . and if you want transparency why don’t you have it across the board,” Atterberry said. “We’re here to appropriate, not to budget.”

Congressman Revard fired back, “I don’t think I’ve ever been criticized for doing so much work!” Congressman Red Eagle said that the entire situation should be viewed as the Congress was just doing their job.

Osage Nation Congresswoman Faren Anderson, Congressmen Doug Revard and Anthony Shackelford work in the Osage Nation congressional chambers. Photo by Chalene Toehay/Osage News

[Editor's Note: This story was originally published Oct. 30 and was modified on Nov. 18 for clarification on this issue.]

By Benny Polacca
Osage News

The Osage Nation Congress will consider 96 proposed amendments to the 2010 fiscal year budgets Monday, the majority of which are proposed cuts to the tribe’s government operations and Principal Chief Jim Gray’s office. The cuts include more than $3 million in spending.

Congress ended its 20th Special Session on Tuesday with seven congressmen and women reading the proposed amendments for the Executive Branch budgets into record before adjourning for the week. A copy of the proposed budget amendments, released Wednesday afternoon, detail the suggested reductions in Executive Branch spending. The cuts include salary reductions for 13 administrative positions; eliminating 10 jobs (vacant, proposed or filled); and cutting down on expenses such as shipping, transportation and contractual jobs in 15 departments (including Gray’s office).

Gray said, “I’m not happy about any of it,” on Thursday and called the proposed reductions, “harsh, harsh cuts to the operations of the Osage Nation. I’m hoping in the time we have between now and Monday that some Congress members will come to find out this isn’t the best way to be conducting business.”

The 96 amendments proposed Tuesday came from Congressmen Eddy Red Eagle, Mark Simms, Doug Revard and William “Kugee” Supernaw, as well as Congresswomen Faren Revard Anderson, Jerri Jean Branstetter and Shannon Edwards. Most of the proposed cuts come in the wake of a locked-door meeting Monday attended by these congresspersons, except Simms and Edwards, where many of these reductions are believed to have been discussed.

The Osage News reported the unannounced meeting on its Web site Tuesday – one day after receiving a tip about the impromptu gathering and unsuccessfully gaining access to the meeting in the congressional chambers. Edwards wrote a letter to Gray earlier that day, while she was in the office, saying she could hear the five congresspersons and Congressman Anthony Shackelford meeting in their office’s common area where “these members are going through (three budget) bills to determine what they want to propose as individual amendments tomorrow and how to vote as a block.”

“I think it’s dangerous and sends the wrong message,” Gray said of the unannounced congressional meeting Monday, which included quorums for four congressional subcommittees with those present. “I’ve never seen a state government do something like this.”

Congressman Supernaw defended the proposed cuts in a phone interview Wednesday with the Osage News stating that Congress must trim the FY 2010 budgets (originally totaling about $41 million) in order to keep the spending at the Nation’s 2010 projected revenue of $27 million. Also on Tuesday, Congress passed a resolution which approves the $27 million amount as the 2010 projected revenue figure.

Supernaw cited a section of the Nation’s Constitution which requires Congress to set the budgets for the three branches of government, but adds: “The annual budget shall not exceed projected revenues.” Gray has yet to sign or veto the 2010 revenue projection resolution.

Congressman Raymond Red Corn said Monday the Nation’s budgets have been trimmed to $33 million after cuts were made during earlier subcommittee meetings and also when other spending bills were tabled during the appropriations process. With Monday’s proposed cuts estimated around $3 million, that leaves another $3 million to be cut if Congress members plan to hold FY 2010 spending at the projected revenue amount of $27 million.

What’s on the table for possible budget cuts?

In ONCA 09-63, titled the “FY 2010 Office of the Chiefs Appropriation Act,” More than $830,000 in cuts are suggested for Gray’s office including salary reductions for nine employees and the elimination of two positions. The chief’s office is projecting to spend just over $2.5 million in FY 2010.

Projected cuts to Gray’s staff members’ salaries range from $583 to $22,832. Calls for position eliminations include cutting a legal analyst and a support staff position that’s yet to be filled.

Spending reduction amendments suggested for Gray’s office include: cutting more than $32,000 for lodging, $41,900 for transportation, and $140,000 for litigation matters.

“It would handicap the Executive Branch, as well as the Nation” if the cuts are approved, Gray said. Most of the suggested cuts were voiced by Congresswoman Anderson, who sponsored the appropriation bills for Gray’s office and for the government operations.

ONCA 09-66, the “FY 2010 Government Operations Departments and Programs Appropriation Act,” proposes about $3 million in proposed program spending reductions for 14 departments including the Osage News.

Congressman Red Eagle proposed an amendment to cut $117,500 from the Nation’s burial assistance fund which is used to help surviving tribal members offset funeral costs for their loved ones. The appropriated amount of $367,500 would be dropped to $250,000 if this amendment passes.

“That’s going to cut us back on serving about 70 (clients),” said Constituent Services Administrator Jacque Jones, adding this is the third year she’s requested $367,500 as the same amount for burial assistance. That figure serves 105 clients with the maximum amount of $3,500 distributed to each Osage client requesting assistance.

The demand for burial assistance has gone up in the past two years because of increased advertising of its availability, Jones said. She said her office has served 103 clients for burial assistance in FY 2009, meaning funding remained for two more clients.

Red Eagle also motioned to strike $386,393 from the Home Health budget.

Congressman Supernaw suggested more than $58,000 in cuts to the 2010 budget of the Osage News, including $15,000 that is budgeted for design and layout of the newspaper. The Osage News contracts with a Bartlesville, Okla.-based firm to conduct these duties so the monthly newspaper can be printed and mailed out to the Nation’s constituents.

If the design layout funding is cut from the newspaper’s budget, the Osage News will be unable to print starting in November, Interim Editor Shannon Shaw told Supernaw in the phone interview Wednesday. After further discussion, Supernaw told Shaw, “I’ll try to keep that in there,” by encouraging his congressional colleagues to vote against the amendment when they meet for the 21st Special Session to consider the budgets.

Supernaw also proposed the following cuts to the Osage News: $11,400 cut from transportation; $15,000 for a writing coach; $5,000 to pay freelance writers; and $6,000 cut for outside printing and art work for advertising purposes.

The Communications Department has an audio visual technician position slated to be cut as well as $145,000 for “Web maintenance updates.” Other department items targeted for cuts include a $250,000 public relations campaign and $10,000 for “graphics/ layout.”

Other suggested cuts include: eliminating one proposed assistant position and cutting $100,000 for the intern/ externship program in the Education Department; two positions in Strategic Planning and one in WIC; two assistant staffers at the Fitness Centers in Hominy and Fairfax; reducing the Museum fund for purchasing art/ artifacts from $13,000 to $5,000; and one vacant position, as well as cutting $54,840 for conferences and special events in the Language Department’s budget.

Also this week, Supernaw introduced a bill to trim the Legislative Branch’s FY 2010 budget, even though it’s already been passed. Under ONCA 10-09, Supernaw’s bill calls for reducing his branch’s $2 million budget by $200,000 after proposing to cut a line item for “equipment” and reducing the Office of Fiscal and Performance Review’s budget from over $417,833 to $285,354 with the elimination of two proposed auditor positions.

Congresswoman Edwards issued amendment proposals to both budgets which would allocate the original $2.5 million amount for the chief’s office and $27 million for the government operations budget. Under her amendments, Chief Gray would have authority in allocating the monies to all programs, departments and divisions “in accordance with all budgets and justifications approved” by him.

The 21st Special Session of Congress starts at 2 p.m. Monday in the congressional chambers on the Osage campus.

To view the proposed amendments from the 20th Special Session, click here:

20th Special Session Proposed Amendments