ARIZONA INDIAN NATIONS: Shaping Arizona’s Future

1. ARIZONA INDIAN NATIONS: Shaping Arizona’s Future Presented by Joan Timeche NNI Assistant Director

2. Long-Hair Katsina dancers, painting by Gilbert Timeche My daughter, Briana, in traditional Hopi dress. Hopi Buffalo dancers Village of Old Oraibi, Hopi Reservation, ~ 1980’s

3. Native Nation Building Building Indian Economies The Arizona American Indian Demographics Traditional Economies Modern Economies Economic Impact of AZ Indian Nations Challenges & Opportunities Questions & Answers Presentation Topics

4. NATIVE NATIONS IN THE UNITED STATES Sources: Bureau of Indian Affairs and US Census 2000 • 562 federally recognized tribes in 31 states • > 2.5 million Native Americans (~1.5% of US population) • 55.7 million acres of trust land across the U.S.

5. The Puzzle Native Nation Building What explains the success that some American Indian nations have had in building sustainable, self-determined economies?

6. Characteristics of theNation Building Approachto Economic Development • Sovereignty in practice • Effective governing institutions • Cultural match • Strategic orientation • Leadership

7. Development Planning and Process in the Nation-Building Approach 6. Implement them Leadership 5. Choose projects 4. Craft development policies 3. Identify strategic priorities/concerns 2. Build capable institutions 1. Claim jurisdiction (decision-making power)

8. 21 federally recognized, diverse and tribes • > 236,000 Native Americans reside on reservations(> 255,000 statewide) • AZ tribes control > 14.7 million acres or 28 percent of Arizona’s overall land base; and vast natural resource holdings: • Forests • Minerals • Scenic & natural wonders • Millions of acre feet of water

9. DEMOGRAPHICS (2000 U.S. Census) • 236,876 reside on reservations, approximately 5 percent of the state’s population • Per capita income: • $4,970 to $16,635, • 8 reservations had poverty levels of 40 percent or more • Unemployment rates range from 0 to 37 percent, which is unusually low and may be inaccurate, as most Indian nations cite rates double and triple those rates

10. TRADITIONAL ECONOMIES Pre-European contact . . . • Thriving, self-sufficient life ways • Sophisticated agricultural technologies and complex societies • Barter economy As tribes progressed into 20th century, became more acculturated, changed to cash economy, traditional life-ways changed

11. MODERN ECONOMIES • Varying levels of economic activity, much attributable to the geography and uniqueness of each tribe (see Industries table) • Language, culture, customs as well as institutions of governance impact the local political, social, economic environment and pace at which it develops • On most reservations, businesses and development are owned and controlled by the tribal government • In 1992, only 0.64 percent of all firms in AZ were Native American owned firms. Does not include micro enterprises -- the invisible economy.

12. Gaming - the single most important catalyst for Indian nations. Some 2005 AZ statistics: • 21 tribes have compacts • 15 tribes have casinos, 2 no longer operate casinos, and 6 have machine transfer agreements • 12,122 slot machines and 441 tables games

13. Use of Gaming Proceeds • Gaming revenues are directed towards improving the standard of living for Native Americans and ensuring a better future. • physical • health • education • social services • government • economic diversification

14. Tourism – Increased interest and volume of tourists Opportunity to capture a greater share of monetary benefits through sound plans for managed and sustainable tourism.

17. Sheraton Wild Horse Pass Resort & Spa, Gila River Indian Community

18. Utility Authorities - Ft. Mojave & TON control and own all utilities, several are researching the expansion beyond water services Ft. Mojave & SRPMIC serve as regional landfills. Telecommunications - Ft. Mojave, TON, GRIC, SCAT, Navajo, and Hopi Agriculture - 14 tribes actively involved in agriculture GR farms exports to Pacific Coast companies and uses technology in daily operations Some have registered tribal herds Other Industries – manufacturing, industrial parks, mining, retail, etc. Modern Economies (cont’d) Pavilions Shopping Center - Salt River Indian Community

19. Estimated $288.2 million in household expenditures (1993). 90 cents of every $1 goes off the reservation Reservation-based enterprises employed both Indian and non-Indians and spent approx. $68 million for goods & services (statewide) resulting in $3.4 million in state tax revenues. Tribal government expenditures estimated at $43 million (off-res purchases only) and $40.2 million of direct & induced income and 1,704 jobs. Federal govt-tribal govt transactions (DOI, HUD, IHS, DOL) for Indian programs in 1993 est. at $523.5 billion, resulting in $8.1 million in AZ transaction privilege tax. State General Fund expenditures attributable to Indian reservation populations estimated at $41.1 billion in 1993 (corrections, AHCCS, DES, DHS, education, youth rehab.) ECONOMIC IMPACT Tribal governments and their people have long contended that tribal economies make significant financial contributions to Arizona economy and its tax revenues. A 1994 study, The Economic & Fiscal Importance of Indian Tribes in Arizona found: This data did not include gaming expenditures.

20. In 2005, AZ Indian casinos generated $1.349 billion (a 13.8 percent from previous year). 10,000+ first tier jobs created, 43% filled by Native Americans, $31m in payroll taxes, $110m in employee benefits $240m spent on in-state vendors for food, merchandise, and services More than $35m spent by tribes and State on oversight, $25m on tribal regulation AZ spends $3,000/year per game on regulation, compared to Atlantic City (3x larger) avg of $672 per game per year and Las Vegas (20x larger) avg of $118 per game per year ECONOMIC IMPACT OF GAMING (2005)

21. With passage of Proposition 202 in 2002, gaming revenues are shared with the State of Arizona - $65.3 million in FY 2004 PLUS 12% with cities and counties. 2005 Contributions to State of Arizona: Instructional Improvement Fund - $31.4 m Trauma & Emergency Services Fund - $15.7 m Tourism Fund - $4.5 m AZ Wildlife Conservation Fund - $4.5 m Problem Gambling - $1.3 m ECONOMIC IMPACT OF GAMING (2005) (cont’d)

22. TOURISM ON ARIZONA INDIAN LANDS • Little data available on Indian tourism • Two recent studies completed by the Center for Applied Research make the following projections:

23. Natural Resources – threats of resource depletion environmental concerns water rights and allocations Agriculture - in 1992 accounted for 10 percent of total state value of six major crops farmed. International markets Water resource allocations Services – reducing enormous economic leakage to off-reservation communities requires development of basic services at local/regional locations. Tribal Private-Sector Development virtually non-existent must be developed to meet the needs of a growing economy success of micro-enterprises could very well lead to the growth of a tribal private sector. CHALLENGES & OPPORTUNITIES

24. Challenge and Opportunities (continued) For successful development to occur, the following are critical: • Common vision about the future of the community  a strategic plan for community & economic development • Informed consent on use of land  a land use plan or comprehensive plan for planned growth.

25. Challenge and Opportunities (continued) • Land for development -land is our most precious resource and often the most controversial. Uncertainties can be reduced by adopting: • a zoning ordinance • an efficient leasing process • a position on private sector development vs. tribal ownership

26. Challenge and Opportunities (continued) • A commitment to development by the local/tribal decision-makers. This includes: • a willingness to learn about development • understanding that you must spend money to make money (authorizing the $$) • understanding and practicing the separation of business and politics

27. Challenge and Opportunities (continued) • Institutional Infrastructure that can support development such as - • a regulatory system that addresses • rules of commerce (Uniform Commercial Code, preference laws, etc.) • acceptable industries (policy statement) • controls you want to impose (safety, health, and other integrity concerns) • registration/licensing of business and collection of fees & taxes

28. Challenge and Opportunities (continued) • a judicial system that • can enforce regulations • is fair & consistent in resolving disputes • a business development process that is efficient and user friendly • Resources to develop the physical infrastructure (water, sewer, electricity, roads, etc.) as most land is either under- or undeveloped

29. Challenge and Opportunities (continued) • The financial resources or willingness to secure funds to support development • Citizen engagement and exercising right to vote in tribal, state, and federal elections (Indians did not have a right to vote until July 15, 1948 Supreme Court of Arizona decision.) • Gathering as much information as possible and seeking the necessary assistance to make informed decisions

30. Challenge and Opportunities (continued) • Believe in self and in our people. We may not be as business savvy as the non-Indian world yet, but we have definitely made major strides. Look at all our accomplishments - - - • in exercising our sovereignty • building our nations • all while maintaining cultural integrity!!

31. It is clearly evident that Indian nations are a major force in shaping Arizona economy.

32. For further information: • Visit: • www.nni.arizona.edu • www.arizonanativenet.com • www.ksg.harvard.edu/hpaied/ • Obtain a copy of: