SUBCOMMITTEE RECESS Senator JOHNSTON. Very well. Thank you very much. The subcommittee will be in recess until 10 a.m. tomorrow when we will hear the Indian Health Service. [Whereupon, at 11:45 a.m., Thursday, March 22, the subcommittee was recessed, to reconvene at 10 a.m., March 23.] The subcommittee met at 10:04 a.m., in room 1224, Everett McKinley Dirksen Office Building, Hon. Dennis DeConcini presiding. Present: Senators DeConcini, Burdick, Stevens, and Bellmon. DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS STATEMENT OF HON. FORREST GERARD, ASSISTANT SECRETARY, INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR ACCOMPANIED BY: RICK LAVIS, DEPUTY ASSISTANT SECRETARY, INDIAN AFFAIRS MARTIN E. SENECA, JR., ACTING DEPUTY COMMISSIONER, BUREAU OF INDIAN AFFAIRS LAFOLLETTE BUTLER, SPECIAL ASSISTANT TO DEPUTY COMMISSIONER JOSEPH GORRELL, ASSISTANT DIRECTOR FINANCIAL MANAGEMENT WILLIAM D. BETTENBERG, DIRECTOR OF BUDGET, OFFICE OF THE SECRETARY BUDGET REQUEST Senator DECONCINI. The Subcommittee on the Department of the Interior and Related Agencies will come to order. We are here to conduct our annual examination of the budget for the Bureau of Indian Affairs. The fiscal year 1980 request totals $974.1 million, a reduction below appropriations to date for the current fiscal year of $65.9 million. There is actually a slight increase in the Bureau's operating budget, but this is more than offset with a sharp drop in new appropriations for construction-nearly $80 million below fiscal 1979. The justification has been printed in the record. Our principal witness this morning is Forrest Gerard, Assistant Secretary of the Interior for Indian Affairs. Welcome back, Mr. Secretary. We are always pleased to have you here. If you will, introduce your staff and people. We will print your prepared statement in the record, and you may highlight it for the committee. [The statement follows:] STATEMENT OF FORREST GERARD Mr. Chairman: I am pleased to appear before you and your committee today to talk about the Bureau of Indian Affairs and the budget requirements for Fiscal Year 1980. We are requesting Congress to appropriate $948.1 million for federally funded programs. This represents a decrease of $65.8 million from the appropriated amount of $1,013.9 million in Fiscal Year 1979. If we include the Trust Funds and permanent appropriations, the budget authority for FY-1980 would total $1,333.2 million, or a decrease of $65.6 million. Except for construction, most operating programs of the Bureau are budgeted very near the 1979 level. Increases are included for several programs, including general assistance and child welfare, law enforcement, rights protection, ADP modernization and Indian contract schools. There are decreases for Housing, Employee Development, Forestry and Agriculture. Our budget request is tight. This is in keeping with the Administration's approach to the overall Federal cudget for Fiscal Year 1980. However, with close and efficient management of our resources, we will be able to deliver effective services to the Indian communities. The budget places the Bureau's emphasis on three major areas of responsibility. They are: (a) to recognize and preserve the inherent rights of Tribal self-government and strengthen Tribal capacity to govern, and provide resources for Tribal Government programs; (b) to emphasize management improvement activities that will strengthen BIA's ability to serve Indian people; (c) to fulfill and execute the Federal Government's trust obligation to American Indian Tribes and Alaska Native groups. JUSTIFICATION FOR FEDERAL EXPENDITURES Indian tribal governments are political and economic entities which have important relationships with the Federal Government. The Department of the Interior is the lead agency in the Federal Government to serve the needs of Indians. The Bureau of Indian Affairs plays a major role in providing services. As you know, the Bureau of Indian Affairs is a microcosm of the entire Federal Government. It provides many of the functions of local governments, but includes an overlay of Federal laws and regulations. The Federal Government has an obligation to serve the needs of Indians to achieve self-development in program areas without the loss of Federal trust protection. ORGANIZATIONAL CHANGES I am happy to advise the Committee that the Secretary approved changes to the Departmental Manual on March 8, 1979 which placed the Office of the Assistant Secretary, Indian Affairs under the Office of the Secretary and also reestablished the Office of Commissioner, Indian Affairs. The Office of the Assistant Secretary, Indian Affairs is responsible for policy, planning, and management oversight for the Bureau and as part of the overall program for the Department. The Office of the Commissioner is responsible for the day-to-day operations of the BIA. REORGANIZATION AND MANAGEMENT IMPROVEMENT PROGRAM During FY 1979, we initiated a "Management Improvement Program" to enhance the management posture in Indian Affairs. The activities of this program are continued in the FY 1980 budget request now before you. The Management Improvement Program was initiated with one objective: To develop and implement the elements of management necessary for an effective and efficient operation. We are currently fully involved in and committed to this extensive effort to develop systems, resolve longstanding problems, and organize to effectively and efficiently manage our trust and program responsibilities. The management and protection of Indian and Native trust resources and the delivery of services to tribal governments and their citizenry are responsibilities which must be fulfilled. We have realized for some time that to properly carry out these responsibilities we must make substantive and substantial improvements; we must make major changes in our systems, structures, management, and attitudes. These projects have undertaken activities which will lead to systems TRUST RESPONSIBILITY We can trace the bond which exists between Indian tribes and the The Commerce Clause authorized the federal government to "Regulate commerce..with Indian tribes, and the treaty making powers set the basis for tribal sovereignty as we know it today. In addition the U.S. Supreme Court reaffirmed the soverign nature of Indian tribes in a series of decisions in the 1800s. Treaties, Acts of Congress, and Executive Orders made pursuant to these Consititutional provisions created the trust and federal court decisions have confirmed the trust responsibility. Therefore, it is the mission of the Bureau of Indian Affairs to recognize and preserve the inherent rights of tribal self-government and to strengthen tribal capacity to govern, and to provide resources for tribal government systems. The Bureau also has an obligation to serve as advocate for Indian tribes and to fulfill the federal governments trust obligations. INDIAN PARTICIPATION During the FY-1980 budget cycle we tried to obtain maximum tribal |