Statement of Alex Yazza, Jr., Department Director,
Navajo Nation Temporary Assistance for Needy Families Program,
Division of Social Services, Window Rock, Arizona

Testimony Before the Subcommittee on Human Resources
of the House Committee on Ways and Means

Hearing on Welfare Reform Reauthorization Proposals

April 11, 2002

Chairman Herger and Members of the Committee:

My name is Alex Yazza, Jr.. I am the Department Director of the Navajo Nation Temporary Assistance for Needy Families (TANF) Program, Division of Social Services, in Window Rock, Arizona. On behalf of the Navajo Nation, it is a great privilege to be here today to address the viewpoints on tribal TANF for the reauthorization of welfare reform.

The Navajo Nation has a population of 250,000 members and is the largest federally recognized Indian tribe in the United States. Navajoland extends into the States of New Mexico, Arizona and Utah, covering over 27,000 square miles and is compared to the size of the State of West Virginia. Since 1997, the Navajo Nation engaged itself in planning, organizing, developing and implementing it’s own tribal TANF program pursuant to Public Law 104-193, Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Section 412, and pursuant to 45 CFR Part 286, the Tribal  TANF Rules and Regulations. The Navajo Nation negotiated with the States of New Mexico, Arizona, and Utah for the proportionate of the federal “Tribal Family Assistance Grant” (TFAG) block grant funds to begin operations of the tribal program. Pursuant to Fiscal Year 1994 caseload data, the three states served 9,000 Navajo families (27,000 recipients) comprising of an annual budget of  $ 31.2  million.  The Department of Health and Human Services (DHHS) Secretary approved the Navajo Nation TANF Plan to begin administering the tribal program on October 01, 2000. Thus far, the Navajo Nation is the largest tribal TANF program in the United States.

The reauthorization of welfare reform lends the opportunity for Indian Tribes to provide input regarding issues which were not adequately addressed before. Therefore, it is an appropriate time to carefully examine the issues and recommendations to consider before Congress during this legislative session.

Lack of Funding Resources

From the beginning, the lack of adequate funding for Indian Tribes presented a disadvantage for tribal governments to immediately determine if they should apply for the tribal TANF program. Pursuant to P.L. 104-193, Section 412, tribes applying for the administration of the program were provided a funding formula that simply used the state caseload data of Indian families served and state expenditures serving Indian families in Fiscal Year 1994. What Congress and state human service providers did not consider was the socio-economic factors of tribal reservations. For example, the Navajo Nation’s unemployment rate is 53.88 % (1999 BIA Labor Force Statistics) and the cost of living is much higher than urban metropolitan communities. Therefore, the lack of funding resources continues to present unique problems for tribal governments to adequately meet the needs of administering the program. In addition, to providing the cash assistance payments to the Navajo customers, high administration costs and indirect costs creates an inequitable service delivery operations.

The challenges for the Navajo Nation to effectively implement a large tribal TANF program is the lack of funds to:

• Construct new “one stop shop” service delivery centers

• Renovate existing facilities or buildings to house the new tribal TANF program

• To develop or enhance a computer management information system (MIS) to effectively and efficiently serve our Navajo families 

• To anticipate tribal customer caseload increases

• To adjust administration cost of living costs associated with annual 2.5 to 5.0 % COLA

• To develop a culturally enriched training and development program for our customers, staff and partners

Currently, the Navajo Nation receives $ 31. 2 million per year in “Tribal Family Assistance Grant” (TFAG) and has cost allocated this amount for customer benefits payment and administration costs. This amount is still not enough to fully implement a successful tribal TANF program. Congress needs to understand that tribes are stepping into the roles of state TANF administration, liken to become a state provider. In the case of the Navajo Nation, we are now responsible for a tri-state program the size of the State of West Virginia! Therefore our costs escalates even greater in the pre-administration of tribal TANF.

The Navajo Nation requests of the committee to consider providing additional funds for the above mentioned issues to successfully implement the tribal TANF program.

Currently, states are advocating for retaining of the same level of funding at $16.5 billion. In the budget message to Congress,  President Bush also proposes to maintain the same level of funding for states, but with greater emphasis on getting TANF customers to work and encouraging the formation of two-parent families. In either of these two proposals, Indian Tribes are, again, not mentioned in the reauthorization process. Thus, it is incumbent to come before you today to strongly advocate on behalf of Indian Tribes.

In meeting the President’s welfare reform agenda “…to strengthen families and welfare recipients work toward independence and self-reliance”, the Navajo Nation needs more  funding  above and beyond the state formula allocation system pursuant to P.L. 104-193.

The Navajo Nation reaffirms the government–to-government relationship with the federal government and supports the direct funding of federal TANF grants to tribes. The Navajo Nation also supports a funding formula  that provides no less than the current resource level, observing a “no net loss” principle. The Navajo Nation  also supports the President’s proposal that allows for flexibility to be creative to build a network of assistance for low income families. This will allow tribes to further design their own programs, define program eligibility, and establish what benefits and services will be available and developing their own strategies for achieving program goals and including how tribal TANF customers move into the work force.

In speaking on the lack of funds, another issue I want to discuss regards the Title IV-E program. Because Indian children and families need other support services besides TANF to successfully make their transition toward self-sufficiency, there needs to be additional funding available to Indian tribes for these purposes. Many children making this transition will be in foster care and adoptive settings, and therefore, stable funding, much like the funding available through the Title IV-E Foster Care and Adoption Assistance Program could provide these opportunities for Indian children and families. We are encouraged by and supportive of efforts to give tribal governments opportunities for direct funding, such as H.R. 2335, legislation sponsored in the House by Congressman  Dave Camp. We think this legislation would be a good fit with welfare reform reauthorization.

State Maintenance of Effort (MOE)

Currently, it is unclear whether the states will continue to provide state maintenance of effort (MOE) funds to Indian Tribes administering their own tribal TANF program. The Navajo Nation receives MOE funds from the States of Arizona and Utah. The State of New Mexico has not provided MOE funds to the Nation. The states have the discretion to provide state MOE funds to the tribes. The uncertainty that states will provide MOE funds beginning in FY 2003 depends on the economic conditions of the states. In the most recent state legislative sessions, the States of New Mexico, Arizona and Utah have reduced state spending and have cut human service budgets which affects the general funds of the states. There is no guarantee that states will continue to provide MOE to Indian tribes.

The Navajo Nation certainly supports the idea that states should continue to provide MOE, however, also recommends that the Congress consider that it “federalize” the MOE  and provide the tribes a 100 %  MOE federal funds for tribal TANF.

Otherwise, the Congress must consider providing states with better incentives to contribute MOE to tribal programs. These incentives could include:

• Increase the credit toward MOE requirements for funds that states contribute to tribal programs – quintuple (or double) state credit toward MOE contributions to tribal programs. For example, for every dollar that a state contributes to a tribal TANF program, they receive a credit of five dollars (or two) dollars toward their MOE.

• Reimburse states for a share of their MOE contribution to tribal programs. For example, reimburse states thirty cents for every dollar that they contribute to a tribal program.

• Provide both the states that are contributing MOE to tribal programs and the respective tribal programs access to funds from a new pot of money – an economic stimulus package.

In considering these options, the states would continue to provide additional funds to tribal TANF programs and would receive credit towards their MOE requirements. More importantly, the Navajo Nation is obligated to continue to work with the respective states in a collaborative partnership in providing Food Stamps, Medicaid and Child Support Enforcement services to the Navajo families.

Economic Development

In speaking on economic development issues, it is imperative that Congress understand the tribal economic conditions. There are certainly strengths and weaknesses in Indian Country concerning economic development. Often times, there is a misconception that all tribes operate casinos and generate revenues from these casinos for economic development purposes. The Navajo Nation is not a gaming tribe. Much of our revenues generated are from natural resources (coal and oil). Resources are limited to develop the economic infrastructure needed to attract large industries for jobs creation and employment opportunities for our Navajo TANF customers. According to 1998 figures from the Navajo Division of Economic Development, approximately fifty-six percent of Navajo people lived below the poverty level and the per capita income was at $ 5,759 per year.  As mentioned before, the Navajo Nation’s high unemployment rate  (53. 88 %) presents an even greater challenge to providing job services and employment opportunities to the 9,000 Navajo TANF families.

The Navajo Nation government is working hard to attract new investment, businesses, and jobs to the reservation. For example, the Navajo Nation began a tax incentive based on the 1993 “Indian Investment and Employment Tax Incentives Act” to create an investment mechanism to enhance tax-exempt bond authority to provide tribal leaders a critical tool for attracting the necessary capital to facilitate investments in Indian Country.  This is important for the efforts of job creation and capital development for new businesses on the Navajo Nation.

The mission of the Navajo Nation TANF Program is to promote personal responsibility and to provide opportunities to empower the people to make a positive change in their lives. The program will assist families and individuals with time limited cash assistance and social skills to enhance their quality of life and reach their maximum potential of self - sufficiency.   Therefore, it is imperative for the Navajo Nation to find ways to attract various types of businesses to locate on the Navajo Nation to create jobs and spur the economy.

In meeting the goals and objectives of our tribal TANF program, we need funding for economic development activities and initiatives for our customers. The Navajo Nation requests for economic development funds in the form of planning grants to meet the requirements of work participation. For example, the Navajo Nation’s mandatory work requirement rate (MWRR) is at 10 % the first year; 15 % the second; and 20 % the third year and beyond. This means that for the first year of tribal TANF operations, the Navajo Nation must engage (900) tribal TANF customers to work activities mandated by law. Thus, the planning grants provided will definitely add to the Navajo Nation’s movement in creating partnership opportunities with business organizations as well as connecting with new entities and organizations.

The bottom line: “Welfare Reform means Economic Reform” on the Navajo Nation! The help of Congress with economic development dollars will be appreciated.

Southwest Tribal TANF Coalition (SWTTC)

The Navajo Nation is a member of the Southwest Tribal TANF Coalition (SWTTC) formed in the Spring of 2001 to address the welfare reform reauthorization. Members of this coalition are five Arizona tribes administering their own tribal TANF programs. They are: Pascua Yaqui Tribe, Salt  River Pima-Maricopa Indian Community, White Mountain Apache, Hopi Tribe and the Navajo Nation. The coalition is also represented by the Inter-Tribal Council of Arizona (ITCA), Arizona Commission on Indian Affairs (ACIA), Arizona Department of Economic Security (ADES), Arizona State University (ASU), and a Nineteen Tribal Nations Workforce Investment Board. The SWTTC was  successful in meeting with the state TANF administrators, state legislators, federal officials, and being a member of the National Congress of American Indians (NCAI) Tribal TANF Administrators Workgroup. The coalition has developed a position briefing paper on welfare reform (Attachment “A”). The issues addressed are common and provides insights to specific tribal TANF issues in the State of Arizona.

Conclusion

I want to re-emphasize the importance of culture, language and traditions. The life values we incorporated into our program comes from the teachings of our elders. The four tenets of Navajo philosophy of “Pathway to Self-Sufficiency” is evident in our tribal TANF program: Nitsahakees – Thinking; Nahat’a – Planning; Aadiiliil – Doing; and Beeniiseeldo – Growing. This pathway affirms the concept of: “Taa hoo ajiiteego yaateego jiinaa do” – “It is up to you to live a good life”. Therefore, the Navajo Nation and other tribal TANF programs presents some very unique issues to the discussion of tribal welfare reform. It is the hope of tribal TANF programs that Congress begins to hear and listen to the needs of tribal issues. Evidently, “One size DOES not fit all”. In this case, Congress needs to recognize the tribal sovereignty and self-determination issues tribes bring to the table. As new bills are introduced and the debate on reauthorization continues, please keep in mind the Native American population and the efforts we are making to strive for a better way of life. In the name of Nation Building, the Navajo Nation seeks the support of Congress to make a positive change in the lives of our people. Thank you very much.