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

SPONSOR Pinto

DATE TYPED 02/21/05 HB

SHORT TITLE Navajo Nation Marketing Study

SB 930

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)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Indian Affairs Department

Economic Development Department

SUMMARY

Synopsis of Bill

Senate Bill 930 appropriates $150 thousand from the general fund to the Indian Affairs Depart-

ment for the purpose of a marketing and economic development feasibility study for the commu-

nities of Baca, Thoreau, Iyanbito, Churchrock, Manuelito and Tsa Ya Toh...

Significant Issues

The Indian Affairs Department reports.

The Navajo Nation communities of Baca, Thoreau, Churchrock, Manuelito, and Tsa Ya

Toh, with the exception of Iyanibitoh, are significantly underdeveloped due to the com-

plex nature of the fee and federal trust land “checker board” that occurs near the South-

eastern portion of the Navajo Nation. The communities have significant populations,

though the population in some of the communities has dropped in recent years due par-

tially to economic underdevelopment. Additionally, industry that once contributed to the

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

nium 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.

Senate Bill 930 -- Page 2

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.

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.

TECHNICAL ISSUES

Since the appropriation deals with state economic development and marketing consideration

should be given to directing the funds to the Economic Development Department. This should

help ensure an integrated economic development effort for the entire state.

MW/lg