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F I S C A L I M P A C T R E P O R T

SPONSOR Hanosh

DATE TYPED 03/01/05 HB 1050

SHORT TITLE Navajo Nation Economic Development Study

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$150.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 930

SOURCES OF INFORMATION

LFC Files

Responses Received From

Indian Affairs Department (DIA)

No Response Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House bill 1050 appropriates $150 thousand from the general fund to the Indian Affairs Depart-

ment for the purpose of Phase I of a market and economic development feasibility study for six

Navajo Chapters in the Eastern Navajo Agency of the Navajo Nation.

Significant Issues

The Indian Affairs Department contributed the following.

The Eastern Navajo Agency communities of Baca, Thoreau, Churchrock, Manuelito, and

Tsa Ya Toh, with the exception of Iyanibitoh, are significantly underdeveloped due to the

complex nature of the fee and federal trust land “checker board” that occurs near the

Southeastern portion of the Navajo Nation. The communities have significant popula-

tions, though the population in some of the communities has dropped in recent years due

House Bill 1050 -- Page 2

partially to economic underdevelopment. Additionally, industry that once contributed to

the economic livelihood of some of the communities has ceased to exist. For example,

uranium mining that sustained the community of Baca no longer exists. Furthermore, the

closure of Fort Wingate near the community of Iyanibitoh led to many Navajo people los-

ing employment.

A marketing and economic development study would be beneficial in determining and

defining economic development in and around the fee and trust land checker board areas.

In addition, an economic development study in some of these communities has never

been conducted, thus such a study would also be beneficial to these communities, espe-

cially for the two communities of Thoreau and Iyanibitoh that have experienced popula-

tion growth.

Unemployment on the Navajo Nation is estimated to be nearly 60 percent. The yearly

per capita income of a member of the Navajo Nation is less than $5,000. The medium

age on the reservation is 23 years old. In the last 10 years, the Navajo Nation population

grew by more than 22%. The statistics combined reveal the need for substantial eco-

nomic feasibility studies for Indian communities in the State of New Mexico.

FISCAL IMPLICATIONS

The appropriation of $150 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to

the general fund.

MW/lg