Prepared by Trib Choudhary Principal Economic Development Specialist Support Services Department Division of Economic Development PO Box 663 Window Rock, AZ 86515 Tel: 928-871-7394, Fax: 928-871-7381 Email: [email protected] www.navajobusiness.com

Acknowledgement

A number of people have contributed to make this document a reality. The following individuals deserve special thanks for their contributions.

1 Alderman, Amy – Office of the Tax Commission 2 Arn, Ron C – The Navajo Mine (BHP Billiton) 3 Arviso, Tom, Jr. – The 4 Ashley, Martin E. – Assistant Controller, Office of the Controller 5 Balok, Alan F. – P & M Coal Company Barney, Marian – Office of Scholarship and Financial Assistance, 6 Division of Education. 7 Begay, Sally – Shiprock RBDO, Division of Economic Development 8 Begay, Sharlene – Project Development Department, Division of Economic Development 9 Begaye, Wava – Project Development Department, Division of Economic Development 10 Boyd, Thomas – Tourism Department, Division of Economic Development 11 Brown, Bertina – Whippoorwill RBDO, Division of Economic Development 12 Bryson, Kenneth – US Census Bureau 13 Colvin, Jon D – Dineh Cooperative Incorporated 14 Cummins, Lorin R. – Navajo Generating Station 15 Das, Ram – Mineral’s Department 16 Dennison, Gloria – Navajo Election Administration 17 Etsitty, Mary - Navajo Tax Commission 18 Everett, Mike – Navajo Area Indian Health Services 19 Fitting, James E. – The Then Assistant Attorney General 20 Francis, Chester – Native Broadcast Enterprise 21 Ghaun, Hak – BCDS Manufacturing 22 Goldtooth, Kathy – Western Navajo RBDO, Division of Economic Development 23 Gould, Lorraine – Navajo Agricultural Products Industries 24 Jim, Lorraine – Dine' College 25 Johnson, C. Andrea – Ducommun Technologies 26 Klein, Debbie– Navajo Nation Oil & Gas Company, Inc. Navajo Oil and Gas Company 27 Litzin, Louise – Dine' College 28 Maxfield, Richard - Volunteer Consultant thru the Church of Jesus Christ of Later-day Saints 29 Mott, Elliot R – Navajo Arts & Crafts Enterprise 30 Nez, Tincer – Tuba City RBDO 31 Patterson, Cary – Navajo Engineering and Construction Authority 32 Perry, Tony – Project Development Department, Division of Economic Development 33 Plummer, Marshall – Four Corners Power Plant 34 Poudel, Madan Raj – Navajo Division of Health 35 Saap, Stanley – Navajo Hospitality Enterprises 36 Saltclah, Henry – Chinle RBDO 37 Scott, Phillip S – Support Services Department, Division of Economic Development 38 Shepard, Louise – The Navajo Nation Housing Authority 39 Silversmith, Ben – Office of Navajo Government Development 40 Smith, Stanley – Department of Personnel Management 41 Touchin, Arlene – Fort Defiance RBDO, Division of Economic Development 42 Tsosie, Marlene – Navajo Tribal Utility Authority 43 Tully, Earl – Navajo Housing Authority 44 Utter, Jack – Navajo Department of Water Resources

Table of Contents

CHAPTER I A BRIEF INTRODUCTION OF THE NAVAJO NATION

A. The Dine Belief p. 1 B. A Brief History p. 2 C. Geography p. 4 D. Demography p. 4 E. Government p. 5 F. Budget p. 5 G. Sources of Revenue p. 5 (1) Internal Sources of Revenue p. 6 (2) External Sources of Revenue p. 7 H. Prospective Sources of Revenue p. 8 (1) Income Tax p. 8 (2) Slot Machines p. 8 (3) Gaming p. 8

CHAPTER II DIVISION OF ECONOMIC DEVELOPMENT

A. Introduction p. 10 B. Objectives p. 10 C. Authority and Responsibility p. 10 D. Personnel and Organization p. 11 E. Budget p. 11

CHAPTER III THE ECONOMY

1. ASSESSMENT OF THE NAVAJO ECONOMY P. 13

A. Methodology p. 13 B. Unemployment Rate p. 14 C. Per Capita Income p. 16 D. Poverty Rate p. 16 E. Leakage of Navajo dollars to the border towns p. 16 (1) Navajo Nation Shopping Centers (NNSC) p. 17 (2) TSEYI' Shopping Center p. 17

2. EMPLOYERS A. Major Employers p. 18 (1) Tribal Enterprises p. 18 (2) Large Employers in the Private Sector p. 27

CHAPTER IV ECONOMIC DEVELOPMENT STRATEGY

A. What is Economic Development? p. 32 B. What Kind of Job? p. 32 C. Division’s Strategy p. 33 D. Revisions to the Business Site Lease Regulations p. 36 E. Implementation of the Local Governance Act p. 37 F. Financing Opportunities for Small Business and Economic Infrastructure p. 37

i G. Creation of Navajo Venture Capital Investment Services p. 37 H. Comprehensive Land Use Planning p. 37

CHAPTER V ACCOMPLISHMENTS, ECONOMIC DEVELOPMENT POTENTIALS AND CONSTRAINTS

1. ACCOMPLISHMENTS P. 39 2. POTENTIALS p. 45 3. CONSTRAINTS p. 49

CHAPTER VI EDUCATION & HEALTH 1. EDUCATION p. 57 2. HEALTH p. 58

CHAPTER VII CONCLUSION

TABLES:

Fig. 1 –The Organizational Chart of the Navajo Nation Fig. 2 – The Organizational Chart of the Division of Economic Development

Some Comments on the Previous Issues of the CEDS and the Navajo Nation Data from Census 2000.

Bibliography

ii #################################################### CHAPTER I A BRIEF INTRODUCTION OF THE NAVAJO NATION

Introduction: Among some 500 Indian tribes and 318 reservations recorded in the country by the 2000 Census, the Navajo Nation is the home of the largest American Indian tribe, and sprawls across northeast Arizona, and Utah. The term American Indian has a fascinating origin. It originated with Christopher Columbus, who thought he had reached the East Indies, islands off Asia and called the people los Indios. Even after the error was realized the Spanish continued to use the term Indios, which later became Indian in English.

By the early 1970s the word Indian was becoming politically incorrect as it was increasingly identified as a racist term. Native American became the most popular alternative, although it can apply to anyone born in the . A recent survey in the United States indicates that about 50 percent of the Indians sampled preferred the term “American Indian” over “Native American”.

The are not only the most populous tribe in the United States, this is also the tribe best known to non- Indians. This is the tribe which has been studied most by the anthropologists – so much so that a Navajo family has sometimes been defined as “a man, his wife their children, and their anthropologists”. About one hundred films and videos have been released about the Navajos only in recent past, and about 2,600 articles, books and monographs have been published.1

The Navajos have remarkable capacity to adopt the ideas of other people cultural adaptability. The Navajo did not appear as a distinct tribe till 1725. Since then the Navajos have absorbed so many Indians and Indians alike, and have integrated into their own culture the ideas and culture of so many other people – both Indians and non-Indians.

A. The Dine Belief2:

According to Navajo legends, the First Man, the First Woman, the Holy People and all the animals of this earth came from different worlds below. It is believed that the Dine’ were given the skills of life from the Holy People. These skills included the teachings of how to live in balance with nature and all of Mother Earth’s inhabitants and surroundings known as K’e and a life-skill which teaches of peace, harmony, serenity, and balance to create harmony.

According to these teachings Navajos were given a designated place known as Dine bi Keyah (Navajo Land) surrounded by four mountains of reverence - one in each direction to protect and guide the Dine’ in their daily lives, and also to remind them of the precious gift we have in the circle of life. These sacred places are known as The Four Sacred Mountains.

Mt. Blanca (Sisnaajini) sits to the East. This mountain is represented in white and begins the natural way of life and the beginning of hozh’o. This is the place where the sun rises and the day begins. This direction also represents Spring Season, the color of purity, and white shell stone.

Mt. Taylor (Tsoodzil) sits to the South. This mountain is represented in turquoise and continues the day’s journey at mid-day when the sky is blue. This direction also represents the Summer Season, and the beautiful shine of the Turqouise stone.

To the West sits The San Francisco Peak (Doko oosliid). This mountain is represented in Yellow as when the sun sets and the day begins to rest. This also reflects the adulthood of all livings beings. This direction also represents Fall Season, and the warm color of the abalone stone.

To the North sits Mt. Hesperus (Dibeentsaa). This mountain is represented in Black as is the color of Night. This is the time, when all life must rest. It also represents the elderly, the completion of the life circle, the Winter Season, and the mystical color of the jet stone.

So, the circle of life is completed and embraces the essence of life (male and female). Both connected through a bottomless center foundation of sand, which is Mother Earth and beauty is all around (hozh’o)

1 B. A Brief History3:

According to the scientists who study different cultures, the first Navajo lived in western Canada, some one thousand years ago. They belonged to an American Indian group called the Athapaskans,. They called themselves Dineh, or The People.

As time passed on, many of the Athapaskans migrated southward and some settled along the Pacific Ocean where they can be found to this day, and belong to the Northwest Coast Indian tribes.

A number of Athapaskan bands, including the first Navajos, migrated southwards across the plains and through the mountains. It was quite a long and slow trip, but the bands weren’t in hurry. When they would find a good place to stay, they would often live there for a long period of time, and then moved on. For hundreds of years, the early Athapaskan bands followed the herds of wandering animals and searched for good gathering grounds.

According to some scientists, some Athapaskan bands first came into the American Southwest around the year 1300. Some settled in southern Arizona and New Mexico and became the different Apache tribes. Apache languages sound very much like Navajo.

The Navajo Athapaskans settled just east of Farmington, New Mexico. They settled among the mesas, canyons and rivers of northern New Mexico, and gave their land the name of Dine’tah. Three rivers - the San Juan, the Gobernador, and the Largo ran through Dine’tah. By the year 1400, the Navajos came in touch with Pueblo Indians from whom they learnt farming. By 1600s they became fully capable of farming and growing their own food.

As the Navajo population grew, they started migrating to other places in the southwest. Some migrated westward to Arizona, while others headed south to Mount Taylor in New Mexico. Still some migrated northward into Colorado and Utah. By the year 1700, Navajos were living in northern Arizona, New Mexico, southern Colorado and Utah surrounded by four sacred mountains of the Navajo people mentioned earlier.

In the meantime, the Spaniards had already colonized New Mexico. A number of small towns cropped up along the Rio Grande River. Santa Fe was founded in 1610. It became the most important town in the New Mexican colony. Contact between the Navajos and Spaniards grew. Of all the things the Navajos learnt from the Spaniards, riding horses became the most valuable. In no time, Navajos became better horsemen than the Spanish soldiers.

Narbona, later to become a great leader of the Navajo people, was born in 1766 in the Chuska Mountains. From his very childhood, he was a great warrior. He and his son-in-law, spent most of their life fighting the Spaniards, the Mexicans (mestizos), and then the Whites. Later in his life, he became a great peace-maker between various warring factions. Only a few years back, the Washington Pass which connects east and west side of the Chuska mountains, was named Pass to honor this great leader of the Navajo people.

Till 1846, today’s California, Arizona, Nevada, Utah, New Mexico, and Colorado were still part of Mexico. Texas had once belonged to Mexico too, but in 1836 the Texans rebelled and started their own country. By 1848, the Americans had defeated the Mexican army and annexed the above states to the United States.

During those days Navajos and the Spaniards were constantly waging war against each other. At the same time, the Navajos and the Pueblos were fighting against each other. In the August of 1846, the American army rode into Santa Fe. General Kearny, who was the leader of Americans at that time, wanted to have the New Mexican people on his side. He learnt that the Navajos and Apaches were at war against the New Mexicans. Following the principle of Divide and Rule, he decided to help the New Mexicans to win their favor. Antonio Sandoval, a prominent Navajo headman from Mount Taylor area, offered his help to the Americans to make peace with the Navajo people. A peace treaty was signed between the Americans and the Navajos on November 21, 1846. Narbona, Manuelito, Zarcillos Largos, and ten other headmen signed the treaty at Bear Springs. Nonetheless, various factions kept fighting against each other, very often due to misunderstanding. The Navajo headmen who had signed the treaty kept their promise and stopped attacking Mexicans or Americans. But others who had not signed the treaty kept waging war. Americans thought that the Navajo headmen, who had signed the treaty, had broken their promises. A number of fights broke out among the Indians, the pueblos people, the Mexicans, the New Mexicans and the Americans. Quite often, it was hard to see which group was siding with whom. The scenario changed frequently.

2 A number of treaties were signed between various warring groups and with the Americans, but they did not last very long.

In one of the confrontations, the great leader of the Navajo people, Narbona, was killed. His son-in-law, Manuelto, another great leader of the Navajo people, became the headman of the Chuska Navajos. He was quite furious over the death of his father-in-law and promised to take revenge on the Americans and New Mexicans for killing his father-in-law.

Between 1849 and 1851, Navajos raided many settlements across New Mexico, and attacked the Jemez, Zuni, Acoma, Laguna, and Isleta pueblos. Americans built Fort Defiance in 1851 so that they could fight the Navajos more effectively. Nonetheless, war continued among various factions. However, thanks to the efforts by Zarcillos Largos and Henry Dodge, an Indian agent at the Fort Defiance, almost all the fighting was over by 1855.

In 1856, Apache warriors ambushed and killed agent Dodge while he was on a hunting trip near Zuni. After the death of Dodge, things started getting worse. The history took a sharp turn after a Navajo man, while visiting Fort Defiance, killed a black slave of Major Brook, who was the commander of the fort at that time. Americans, with the help of New Mexicans, Utes, and Pueblos charged into Canyon de Chelly and destroyed every Navajo home they could find. They even attacked Zarcillos Largos’ people camped north of Fort Defiance. Zarcillos Largos and other headmen decided to sign another peace treaty with the Americans. (Moustached Man), who later signed the famous treaty of 1868 on behalf of the Navajo people, was one of the headmen. However, peace did not last for long. War continued.

In 1861, some Zuni and New Mexican raiders ambushed Zarcillos Largos and killed him, while he was returning home alone after visiting the Hopis. This angered Manuelito greatly and he promised to continue his fight against the Americans.

In 1862, General James Carleton became the commander of the American troops in New Mexico. He did not trust the Navajo leaders at all, and considered all the Navajos being the enemies of the Americans. He wanted to force all Navajos to a reservation along the salty Pecos river in New Mexico. The General had his men make a fort there, which became quite popular by the name of Fort Sumner. Navajos called that fort “Hweeldi”.

A scout named Christopher ‘Kit’ Carson knew the Navajo people and the land very well. The General Carleton sought the help of Kit Carson to invade the Navajo land. New Mexicans and Utes were also to help the Americans. After learning about the plan, the Navajo leaders met with the General in Santa Fe and again in Fort Wingate in 1863. They assured the General that the Navajos were peaceful people and that they would help the American soldiers stop any outlaw Navajos who were attacking New Mexican settlements. But the General did not believe them and gave then until July 20, 1863 to surrender. Navajos did not comply with the order. As a result, Kit Carson raided numerous places and turned the Navajo peoples’ lives extremely miserable. Eventually, the Navajos started to surrender. (Barboncito did not surrender till August of 1864. Manuelito surrendered in October of 1866). The soldiers gave the Navajo people food and blanket, which surprised them. The news spread and more and more Navajo people surrendered in Fort Defiance and Fort Wingate. By March of 1864, over 5 thousand Navajos were being held by the soldiers as prisoners. Shortly afterwards, groups of Navajos started their march to Fort Sumner, which was hundreds of miles away. This march has become very famous by the name of “the Long Walk”. Old and weak people, as well as children who could not keep pace with the group, were shot dead by the soldiers.

Life in Fort Sumner was nothing but hell. Navajos were not used to the American foods, and did not know how to cook white flour, sugar, salt, coffee beans, and other items which were give to them. They usually cooked these items wrong, which made them sick, and many died. Many Navajos had to hunt for rabbits, mice, and prairie dogs to survive. Later, because of lack of sufficient food supplies, the Americans started distributing ration tickets. Life was so horrible at the Fort Sumner that despite the dangers of slave raiders, soldiers, thirst, hunger and cold, many Navajos tried to escape from the Hweeldi, i.e., Fort Sumner. Many of them were never seen again.

In late May 1868, led by Tecumseh Sherman, a famous Civil War general, many American visitors arrived at Fort Sumner. He was horrified to see the condition of the Navajo people and wanted to with Navajo leaders. In the morning of May 28th, the Americans and the Navajo leaders met, and on June 1, 1868, the famous treaty of 1868

3 was signed. Twenty-nine Navajo leaders signed the treaty - Barboncito being the most important figure. After traveling for more than a month, the Navajos were once more back in their own traditional homeland.

At that time the Navajo Nation was quite small. It covered a territory containing Fort Defiance, Chinle, Many Farms and Shiprock. Since then the Navajo Nation has expanded significantly.

C. Geography:

As mentioned, above the Navajo Nation is the largest reservation in the United States, not only in terms of the reservation population, but also in terms of the area covered by the Nation. It has an area of over 27,000 square miles and is situated on the southwestern Colorado Plateau (Table No. 1). Very often, the size of the Navajo Nation is compared to that of the state of West Virginia. The topography of the Navajoland is characterized by arid deserts and alpine forests with high plateaus, mesas, and mountains reaching as high as 10,500 feet in altitude. And then, there are low desert regions with an altitude of as low as 5,500 feet. Volcanic activities, wind and water erosions have formed and carved the Navajo Nation's many majestic mesas, mountains and canyons. Navajoland boasts a number of world-renowned scenic wonders of the Southwest; e.g., the Canyon de Chelly, the Shiprock peak, the Monument Valley, the Chuska Mountains, the Window Rock, and so on. The beauty and the culture of the Navajo Nation draw over three million tourists annually from all over the world to this majestic land (see Table No. 28).

D. Demography:

Decennial censuses are the best source of any kind of data on the Navajo Nation. According to the Census 2000, the population of the Navajo Nation was 180,462, of which 88,469 or 49.02 percent were male and 91,993 or 50.98 percent were female. Of this number, 175,228, i.e., 97.1% were American Indians and 173,987 or 96.41 percent were Navajos. After the American Indians, white constituted the second largest racial group on the Navajo Nation. The Census 2000 counted 5,223 Whites living on the Navajo Nation, which constitutes 2.89 percent of the total population of the Navajo Nation. (Table No. 2)

In between the Censuses, the Navajo Nation has been estimating its own population figures. The Division of Community Development had been doing so for a number of years after the 1990 Census. Later, the Division of Economic Development took over this responsibility. Based upon the Census 1990 and Census 2000 data, we have calculated that the Navajo population grew at the rate of 1.82% annually between 1990 and 2000. (Table No. 3). Using this growth rate, the population of the Navajo Nation has been estimated to be 193,961 in 2004 and 197,472 in 2005 (Table No. 4).

Some characteristics of the Navajo population have been described below.

(i) Between 1980 and 1990, the Navajo population grew at an annual rate of 1.2% and at an annual rate of 1.82% between 1990 and 2000 (Table No. 3). We believe that the actual growth rate of the Navajo population is considerably higher. However, because of lack of employment opportunities on the Navajo Nation, many younger Navajos move to cities like Phoenix, Albuquerque, and Salt Lake City, thereby reducing the population size of the Navajo Nation and causing a lower population growth rate.

(ii) The Navajo population is relatively young. This is reflected by the fact that the median age of the overall population residing on the Navajo Nation was only 24 years in 2000, whereas the median age of the population of the United States, at large, was 35.3. According to a release of the American Community Survey for the year 2004, which has replaced the Long Form of the Decennial censuses, the median age of the Navajo people living all across the nation - not only inside the Navajo reservation - is 24.7 and for the total population at large is 36.2 years (Table No. 5). Thus even though the median age for the Navajo people has gone up, it is still far lower than the US population. In other words the Navajo population is very young.

(iii) The Navajo population has more female members in comparison to its male counterparts. According to the same report, 51.8% of the Navajos are female and 48.2% are female, the margin of error (MOE) being +/- 2.7 percentage point. Male-Female ratio for the USA at large is 49.9:51.1, margin of error being +/- 0.1 percentage point.

4 E. Government:

The origin of the Navajo Government goes back to 1923, when the first Navajo Tribal Council was established. However, it was not until 1938 when the very first election took place. Since then through 1989, the Navajo Nation government consisted of the tribal Council headed by the Chairman of the Council. In December 1989, Title 2 Amendments were passed, which established a three-branch system of government on the Navajo Nation, comparable to the major democracies of the world.

The Executive Branch is headed by the President and the Vice-President. They are elected by the popular vote of the Navajo people for a term of four years. The list of the Chairmen/Vice-Chairmen and Presidents/Vice- Presidents has been in presented in Table No. 6. Our last presidential election took place in 2002. Chapter by chapter result of the presidential election has been presented in Table No. 7.

The Judicial branch is headed by the Chief Justice of the Navajo Nation. The Chief Justice is appointed by the President and then confirmed by the .

The Navajo Nation Council comprises the Legislative Branch of the Navajo Nation. It consists of 88 members called Council Delegates. These delegates are elected for a four-year term by the registered voters of all the 110 Chapter(s), which are the smallest administrative units on the Navajo Nation. Some council delegates represent more than one Chapter, whereas some Chapters have more than one Council delegate, depending upon the size of the population of the Chapters.

Organizational Chart of the Navajo Government has been presented in Fig. I

Election for the Council delegates and for the President/vice-President of the Navajo Nation takes place on the same day. During 2002 election, 51 of the 88 seats were taken by new faces, which is unprecedented in the Navajo history.

The Navajo Nation Council has 11 Standing Committees. Each Committee has 8 members and each member of the Council serves in one Committee. However, a twelfth Committee – the Intergovernmental Relation Committee, popularly known as IGR, has 11 members and comprises of the Chairpersons of all the 11 Standing Committees. The list of the Standing Committees with the current Navajo Nation Council delegates has been presented in Table No. 8.

Window Rock was chosen as the capitol of the Navajo Nation in the early 1930s by John Collier, the then Commissioner of the Indian Affairs. Not only was the Window Rock a unique and beautiful sandstone formation, it was also just one day’s ride by horseback to the nearest railroad.

Window Rock is much more than just beautiful and serene. Stains at the base of the rock show that a spring existed there at one time. It is now silted over. Water from this spring and from three other locations was procured by medicinemen to be used in the Tohee (Water Way) Ceremony, said to bring rain.

F. Budget:

The budget of the Navajo Nation can be divided into two parts – “Internal Budget” or the General Fund budget, and the "External Budget". The Nation's General Fund budget has been hovering around $120.0 million for a number of years. (Table No. 9A). The current Fiscal Year’s General Fund budget has been estimated to be $130,950,488.85. Of this amount, $101,930,746.0 has been assigned to the Executive branch, $15,262,308.0 to the Legislative branch and $8,572,220.0 to the Judicial branch. FY 2006 has a new category called the Fixed Cost Set-asides. In the past, this was included in the Capital Budget. External budget is significantly larger than the General Fund budget. As can be seen from Table No. 9C or 10A, the total budget of the Navajo Nation for the Fiscal Year is over $546.0 million. Of this amount General Fund budget is only $131.0 million or 24.0%, whereas external budget is over $312.0 million or over 57%.

Table Nos. 10A thru 10E present the Nation's budget for the Fiscal Year 2006.

5 G. Sources of Revenue:

Sources of revenue can broadly be divided into two parts as well – internal and external. Internal revenue is also referred to as General Fund revenues.

(1) Internal Sources of Revenue:

a. Mining: Mining is the most important internal source of revenue on the Navajo Nation. This source contributed $53.8 million, $66.5 million, $67.6 million and $71.3 million (unaudited) to the Navajo Nation coffers in the Fiscal Years 2002, 2003, 2004 and 2005 respectively, and is expected to contribute $56.0 million during the Fiscal Year 2006. The General Fund Budgets for these Fiscal Years were $126.6 million, $117.2 million, $121.0 million and $124.0 million respectively. Thus the revenue from this source accounted for 42.63%, 56.74%, 55.88% and 57.5% of the General Fund budgets of FY 2002, 2003, 2004 and FY 2005 respectively. (Please see table No. 11). In 2006, mining is expected to contribute 42.75% of the Navajo Nation’s General Fund budget, which is less than in previous years. This reduction has been caused basically by the closure of the Black Mesa mine on January 1, 2006 due to the closure of the Mohave Power Plant, which was the primary customer for its coal. An another coal mine, Pittsburgh and Midway Coal Company, will close its operation on the Navajo Nation in 2008. This closure will further reduce the mining revenue to the Navajo Nation very significantly.

Mineral production and royalty has been presented in table No. 12.

b. Taxes: Taxes are the second largest source of revenue on the Navajo Nation. Its share has steadily increased over the past several years. In 1999 taxes contributed only $28.8 million to the Navajo Nation coffers. In FY 2003, this source accounted for $70.5 million which rose to $75.1 million in 2004 and $75.0 million in 2005. It has to be noted that mining again is the major source of tax revenue. Thus, mining plays the most important role in generating revenue for the Navajo Nation. Table No. 13 portrays amount of tax revenue generated by various taxes on the Navajo Nation.

Currently, the Office of the Navajo Tax Commission (ONTC) administers 7 various types of taxes on the Navajo Nation. These taxes have been described below.

A brief description of various taxes has been presented below. i. Possessory Interest Tax (PIT): This is a tax on the taxable value of a possessory interest granted by the Navajo Nation. A possessory interest is the right to be on Navajo land performing a particular activity. The most common forms of possessory interests are oil and gas leases, coal leases, rights-of-way and business site leases. All possessory interests fall within one of the five classifications set forth in the statute. The Office of the Navajo Tax Commission uses common appraisal methods to place a market value on the possessory interest. Next, the taxable value is calculated based on the classification system, where each classification’s taxable value is a certain percentage of its market value. Then, the tax rate of 3% is applied to the taxable value. Possessory interests with a taxable value of less than $100,000 are not taxed.

The PIT is assessed annually on August 1st, with one-half of the payment due November 1 and the remainder due the following May 1.

ii. Business Activity Tax (BAT): This is a tax on the net source gains (gross receipts less deductions) from the sale of Navajo goods or services, with the legal incidence of the tax on the party receiving the gross receipts. Navajo goods are all goods produced, processed or extracted within the Navajo Nation, and Navajo services are all services performed within the Navajo Nation. The taxable source gains are calculated by taking the gross receipts from the sale of such goods or services and subtracting out certain deductions: a standard quarterly deduction of the greater of $125,000 or 10% of total of gross receipts, salaries and wages paid to Navajos, the cost of purchasing Navajo goods or services, and other payments made to the government of the Navajo Nation. The net source gains are then taxed at a rate of 5%. Need clarification.

The BAT is a self-reporting tax, with quarterly returns due 45 days after the end of each calendar quarter.

6 iii. Oil and Gas Severance Tax (SEV): This is a tax on the removal of oil and/or gas from any lands located within the jurisdictional territory of the Navajo Nation, regardless of ownership of such lands. The first purchaser of the product is responsible for filing and paying the tax, although the owner remains secondarily liable. The tax rate is 4%.

The SEV is a self-reporting tax, with monthly returns due 45 days after the end of the month.

iv. Hotel Occupancy Tax (HOT): This is a tax on the amount paid for the rental of a room in a hotel, motel or bed and breakfast. The legal incidence of the tax is on the person paying for the room, but the hotel has the responsibility of filing forms and paying the tax, and is responsible for filing and paying, even if the tax is not collected from the lodger. The tax rate is 8%.

Navajo Nation employees on official business and Navajo Nation Council delegates on official business are exempt from the HOT, but employees of Navajo Nation enterprises are not exempt.

The HOT is a self-reporting tax, with quarterly returns due 90 days after the end of the quarter.

v. Tobacco Products Tax and Licensing Act (TPT): This is a tax on the sale of tobacco products within the Navajo Nation by a distributor or retailer. The tax rate is 40¢ per pack of cigarettes, with the rate for cigars and smokeless tobacco calculated slightly differently. The tax is collected at the distributor level.

The TPT is a self-reporting tax, with monthly returns due 45 days after the end of the month.

vi. Fuel Excise Tax (FET): The Navajo Nation Fuel Excise Tax became effective on October 1, 1999. This tax, with a rate of 18¢ per gallon, is administered in a manner similar to state gasoline taxes. The Office of the Navajo Tax Commission issues fuel manifests to be completed and filed by distributors, which specifies the delivery of fuel within the Navajo Nation. Distributors file tax returns and pay the tax on a monthly basis. Retailers and carriers are required to file reports. This statute also requires distributors, carriers, retailers and refiners to obtain appropriate licenses from the Office of the Navajo Tax Commission on a yearly basis.

The FET is a self-reporting tax, with distributor’s monthly returns due 20 days after the end of each month. There are also certain reporting requirements for retailers, carriers, and refiners.

vii. Sales Tax : This tax went into effect on April 1, 2002. It replaced the Business Activity Tax for most sales. The tax rate is 3% of the gross receipts. It is very similar to state gross receipts taxes. The tax is imposed on all sales of goods or services within the Navajo Nation, with the legal incidence on the seller, and is generally passed on to the consumer. Certain categories of sales are exempt from the tax.

Construction activity is now handled under the Sales Tax. It is taxed at a rate of 3% and no deductions are allowed; the tax rate is applied to the total gross receipts received by the contractor.

The Sales Tax is a self-reporting tax, with quarterly returns due 45 days after the end of each calendar quarter.

For more information, contact: Office of the Navajo Tax Commission PO Box 1903 Window Rock, Arizona 86515 Tel: (928) 871-6681. Fax: (928) 871-7608 www.navajotax.org

(2) External Sources of Revenue:

The Federal, State, Private and other funds, mostly in the form of grants are the primary external sources of revenues on the Navajo Nation. Some of the funds also come in the form of services, e.g., medical and educational services, as well as, welfare benefits to the Navajo people. Grants are the largest source of external revenue. Contrary to the popular belief, revenue from this source has constantly increased over the years. For example, Grants accounted for $296.7 million in FY 2002, $301.3 million in FY 2003, and $310.5 million in FY 2004. Unaudited figure for the FY 2005 and projected figure for the FY 2006 has been estimated to be $300.0 million.

7 Table No. 11 presents various sources of revenue - both external and internal – for Fiscal Years 2002 thru 2006.

H. Prospective Sources of Revenue:

As pointed out earlier, revenue from mineral resources to the Navajo Nation will decline sharply in near future. Peabody Coal Mines, the Pittsburgh and Midway Coal Mine and the Navajo Mine account for over $60.0 million in royalties and taxes to the Navajo Nation, which is roughly 60% of the nation’s total general fund budget.

Of the three mines, Peabody Coal already shut down its Black Mesa operations on January 1, 2006. The Pittsburgh and Midway will close its operation on the Navajo Nation in 2008, unless its lease is renewed which is to expire in 2008.

The closure of these two mining companies will have very severe adverse effect on the revenue of the Navajo Nation, as these two operations account for over 30 percent of the Navajo Nation Government’s budget. The closure will also result in the loss of hundreds of high paying jobs.

What can be done to avoid this crisis has become a matter of serious discussion amongst the officials of the Navajo Nation. At the moment, two options are being considered seriously.

(1) Income Tax: This tax will be a tax on income earned within the Navajo Nation, similar to state and federal income taxes. Agreements with surrounding states regarding credit against state taxes for tribal taxes paid are being explored. Table No. 14A portrays level of household and family incomes, which may be quite helpful in figuring out percentage of tax as well as amount of tax revenue to the Navajo Nation’s coffers. Of the $1,304 million total income of the Navajo people (not Government), wage and salary income plus self-employment income constitute $1,066 million, which is 81.75% of the total income of the Navajo people (see Table Nos. 14A and 14B).

(2) Slot Machines: The Navajo Nation has been allocated 2,400 slot machines. It is expected that these slot machines, if rented out to various casinos in Arizona, may each bring as much as $70.0 a day. Thus the rental of these slot machines may generate a total of $61,320,000.0 a year. It has to be mentioned in this respect that Zuni tribe rented their allotted 450 slot machines at an annual rate of $3.5 million. With this rate the Navajo tribe might get $18.67 million from the rental of its share of slot machines.

(3) Gaming: Indian gaming started with the passage of the Indian Gaming Regulatory Act (IGRA) in the October of 1988 by the United States Congress after a seemingly minor incident in California. The State of California wanted to prohibit bingo games operated by the Cabazon Band of Indian Missions which resulted in a lawsuit. The Supreme Court ruled that the State of California had no authority under Public Law 280 to enforce its bingo and card game statutes on Indian reservations because such laws are regulatory rather than prohibitory. This resulted in the passage of the IGRA, which has pleased neither the Indian tribes nor the states. Nonetheless, the law is in force. The IGRA has three main purposes: (a) to provide a basis for Indian gaming as a means of economic development; (b) to provide a basis for Indian gaming to insure that games are operated fairly for the benefit of tribes without corrupting influences; and (c) to provide a basis for federal oversight through the creation of the National Indian Gaming Commission (is it an association). This law requires that the state and the tribes must negotiate and sign a gaming compact to operate gaming operations within the boundaries of the reservation. One basic provision of the law is that a tribe will be allowed only those games to operate which are already permitted somewhere else in the state.

Since the passage of the lGRA, a number of gaming operations mushroomed in many tribes across the country. In 1995 there were 215 Indian gaming operations in the United States. This number rose to 367 in 2004 – a 71% increase over a period of 9 years. A list of tribes which operate gaming operations has been presented in table No. 15A. More impressive is the gaming revenue. In 1995 the gaming operations generated a total of $5.5 billion, whereas in 2004, this number skyrocketed to $19.4 billion – an increase of 353%. Another interesting feature of the Indian gaming is the fact that in 1995 there were only 8 operations (4% of the total operations) which generated more than $100 million in revenue. However, they generated $3.3 billion (or 44%) of the total gaming revenue. In 2004 the number of operations with annual revenue of $100.0 million or more jumped to 55 which amounted to 14.99% of the total gaming operations in 2004. Revenue from these operations accounted for 69.4% of the total

8 gaming revenue in 2004. Thus, the operations with higher revenue have not only been increasing in numbers, their share of the total revenue has increased even more significantly. Please check table Nos. 15B and 15C for detail.

9

#################################################### CHAPTER II DIVISION OF ECONOMIC DEVELOPMENT A. Introduction:

The Division of Economic Development is one of the 14 Offices and Divisions within the Executive Branch of the Navajo Nation Government. The main purpose of this Division is to create an environment that is conducive to promoting and developing businesses in the commercial, tourism, industrial and other sectors of the Navajo Nation economy, thereby creating jobs and business opportunities. The organizational units and areas of responsibilities of the Division of Economic Development have been presented in Figure 2 - the organizational chart of the Division.

B. Objectives:

To carry out its purposes, the Division has established the following objectives:

1. To promote and create employment and business opportunities in the commercial, industrial, tourism and other private sectors of the Navajo economy for Navajo individuals residing on or near the Navajo Nation;

2. To recommend the enactment, amendment, or rescission of laws, and promulgation and/or reduction of regulations to enhance economic development on the Navajo Nation, and to create a positive business environment;

3. To maintain a decentralized network of business development offices in the primary growth centers of the Navajo Nation in order to provide Navajo individuals and organizations with technical assistance in developing business plans, feasibility studies, financing, planning, loan and grant packaging, business site lease processing, Business Preference Certification, and industrial park management;

4. To develop and manage a comprehensive financing program to expand or develop new economic enterprises for the Navajo Nation.

C. Authority and Responsibility:

The general authorities and responsibilities of the Division are as follows:

1. Manage all funds identified for economic development in a fiscally responsible manner and administer the Navajo Nation Business and Industrial Development Fund BIDF) and Micro-Enterprise Lending Program (MELP) pursuant to the approved Fund Management Plans. (These two funds are administered by the Support Services Department of the DED);

2. Identify and recommend changes in the laws and regulations of the Navajo Nation or other government agencies to reduce or eliminate barriers to entry and expansion faced by new and growing business enterprises, and to eliminate regulatory and jurisdictional conflicts which inhibit the location of major industries within the Navajo Nation;

3. Manage existing and develop new industrial parks, business sites, and other lands dedicated to economic development;

4. Solicit proposals from outside businesses and industries to locate facilities and operations onto the Navajo Nation industrial parks and assist them in implementing proposed projects;

5. Collect, maintain, analyze and disseminate information relevant to business and economic activities on the Navajo Nation (such as socio-economic data, labor market data etc.) and conduct economic feasibility studies and other technical studies to enhance economic development. These research and studies are conducted by the Support Services Department of the Division. Some of the documents prepared by the Department on a regular basis are: the Comprehensive Economic Development Strategy (CEDS) of the Navajo Nation and the BIA Labor Force Study. The CEDS is required by the Economic Development Agency (EDA) to receive funding. Recently, the Department

10 prepared a document called the Navajo Nation Data from Census 2000, which contains, among others, data on demography & housing, on educational attainment and school enrollment by Chapters, on income distribution by Chapters, as well as important data on all the American Indian tribes in the United States.

6. Propose, plan, and undertake economic development projects by investing resources in ventures that adds to Navajo Nation assets and provide opportunities for related business development and employment, including, but not limited to:

a. Expanding, diversifying, and privatizing the operations of Navajo Nation enterprises or other Navajo Nation owned business entities;

b. Developing tourism facilities and services to capture a major share of the tourism market of the southwest;

c. Improving industrial parks and related infrastructure to increase the attractiveness and suitability of the Navajo Nation as a place to locate business; and

d. Developing facilities and services to enhance commercial development;

7. Seek federal, state, and conventional financing for commercial, industrial and tourism projects, and develop other economic programs to enhance economic activities within the Navajo Nation;

8. Execute such directives as may be directed or authorized by the appropriate authority of the Navajo Nation consistent with Navajo and federal laws; and

9. Assist Navajo Nation Chapters in the execution of any and all economic development functions and authorities, which are properly delegated.

D. Personnel and Organization:

There are five Departments under the Division to carry out the above specific functions. They are:

1. Administration Department, 2. Support Services Department, 3. Project Development Department, 4. Small Business Development Department, and 5. Business Regulatory Department.

Also, the Division has seven Regional Business Development Offices (RBDO) to carry out its functions. These RBDOs are located in Chinle, St. Michaels, Shiprock, Aneth, Tuba City, Whippoorwill and Fort Wingate. These RBDOs are supervised by the Small Business Development Department of the Division. Table No. 17 portrays the activities of the RBDO’s for the past several years and Table No. 18 lists various Chapters under the supervision of these RBDO’s.

E. Budget:

From the Table No. 19, entitled "Project Listing," it is clear that we need over $150.0 million to accomplish our goals and objectives. However, the Division's budget is a meager fraction of this amount. For Fiscal Year 2006, the Division's General Fund budget stands approximately at $5.5 million. Naturally, we have to rely on outside sources to accomplish our goals and objectives, which, in turn, is an extremely difficult and massive task.

It has to be noted that that the budget of the Executive Branch of the Navajo Nation – both total and General Fund - has increased over time. For example the total budget has increased from $298.2 million in 2000 to over $522.3 million in 2006, an increase of 75.16%. Similarly, the General Fund budget has also increased from $79.3 million to $111.0 million – an increase of 40.0%.

11 Regarding the budget of the Division of Economic Development though, we have to raise two points. Firstly, the budget of the Division has always been a very negligible fraction of the total budget of the Navajo Nation. For example the total budget of the Division was only 2.05% of the total Executive Branch Budget in 2000, 1.17% in 2001, 1.53% in 2002, 1.65% in 2003, 1.4% in 2004, 1.12% in 2005 and 1.06% in 2006. Please see table No. 9B. for detail. Secondly, its share has declined from 2.05% in 2000 to 1.06% in 2006, a reduction of 48.33% in case of the Total budget. In case of the General Fund budget the share of the Division’s budget has declined by 35.36%. This is one of the major reasons that despite hard efforts by the Division’s staff, very few substantial results have been achieved.

12 #################################################### CHAPTER III THE ECONOMY

The Navajo economy is sometimes compared to that of a third world country. Speaking before the Navajo Nation Council on January 18, 1996, Senator John McCain made the following remarks:

“…………..Each of us shares a strong commitment to promote and defend tribal sovereignty, tribal self- governance, and tribal self-sufficiency.

But my friends, these things we hold dear, will whither and die unless they are watered by a strong Reservation economy that produces a decent standard of living for all our people. Unfortunately, as you well know, economic development success stories in Indian Country are still the exception and not the rule.

Most Americans would be stunned to find out that the basic necessities of life they take for granted are solely lacking on communities across the Country. No other group of Americans is more economically depressed that Native Americans, and no other areas in America suffer more from inadequate infrastructure and a lack of job opportunities than do Indian Reservations and Alaska Native villages.

…… In my lifetime I have been to many places around the world and have experienced many terrible living conditions. What is so shocking is that the social and economic conditions for many Navajos closely resemble those of people living in Third World countries”4.

High unemployment rate; lack of income, paved roads, modern housing and amenities; lower education level; high poverty rate; so on and so forth; give the Navajo economy such a resemblance. It must be cautioned however, that most of the third world countries do not have any kind of safety net, e.g., welfare system, to provide perennial sources of income to the populace, as is the case with the Navajo people.

1. ASSESSMENT OF THE NAVAJO ECONOMY:

As we all know, decennial censuses are the most reliable source of economic data, including other statistics, available on the Navajo Nation. Now and then, some data are made available by the Bureau of Indian Affairs as well. However, it is the Support Services Department of the Division of Economic Development, which, since 1991, has continually been conducting annual employment and income surveys on the Navajo Nation and providing information on the Navajo economy. Because of the Department's meager resources, its surveys are limited to assessing (1) unemployment rate, (2) total personal income, (3) per capita income, and (4) amount of total personal income leaving the reservation without producing any Multiplier Effect.

A. Methodology:

The Support Services Department has compiled a list of all the employers on the Navajo Nation. The list is updated annually. The Department sends questionnaires to all employers asking them mainly two questions - (1) how many people were working for them on a certain date (on December 31st of the previous year), and (2) what was the total salary and benefits paid to all the employees during the entire year. We also request for-profit businesses to report the amount of total gross revenue during the year.

The first question helps us determine the unemployment rate. The second question helps us calculate the total personal income of the Navajo people. And the third one helps us find out how much of the total income of the Navajo people is spent inside the Navajo reservation.

Because of the massive task involved, we do not conduct surveys to assess our Labor Force. According to the 1990 Census, 29.5% of total population of the Navajo Nation was in the labor force. This number has slightly decreased to 28.46% during Census 2000. The same Census 2000 found 49.33% of the US population in general to be in the labor force. The numbers for Arizona, New Mexico and Utah were 46.53, 45.88 and 49.66 percent respectively. (Table No. 20)

13 Why is the Labor Force to Population ratio on the Navajo Nation so low?

The answer lies in the formal definition of the labor force.

To be in the labor force a person (a) has to be over the age of 16; (b) must not be institutionalized (i.e., in schools, in health or other institutions); and (c) must be looking for a job during the past six months.

The third requirement generates a special problem for the Navajo people. The Navajo Nation does not have much employment opportunities, and hence, naturally, the Navajo people cannot be looking for something that does not exist. The result is that a vast majority of the young and able-bodied Navajo individuals are dropped out of the labor force. As these people are not in the labor force, they cannot be counted as unemployed either. Do not forget - labor force is also defined as the sum of employed and unemployed individuals.

B. Unemployment Rate:

Unemployment rate on the Navajo Nation has always been high and has steadily been growing. For example, It was 42.16% in 2001, 46.07% in 2002 47.57% in 2003 and 48.04% in 2004. (Table No. 23)

It has to be noted that unemployment situation on the Navajo Nation has stayed quite high in the face of low unemployment rate in the United States as a whole, and elsewhere in the country. Table No. 21 shows the unemployment rates by the states. At 7.5%, Washington, DC had the worst unemployment rate in June 2005. At 48.03% our unemployment rate is over 6.4 times than that of Washington, DC, and over 8.4 times that of the United States. Furthermore, if we exclude the non-Indians from the picture, our unemployment rate becomes substantially higher. This Department also prepares the Indian Labor Force Report for the US Department of Interior every two years. This report requires us to exclude all the non-Indians from the picture. When we do so, our unemployment rate becomes substantially higher. For example, in 2003 – the last report prepared, our unemployment rate was 54.06%. (Table No 22).

Below are five observations regarding unemployment rate on the Navajo Nation:

(1) The number of people employed on the Navajo Nation over several years has remained constant: The Division of Economic Development started its survey on regular basis in 1991. With some exceptions, the number of people employed on the Navajo Nation has hovered around 30,000. (See Table No. 23). In 2001, the number of people employed was slightly higher than in most of the years. However, this increase in employment figure is due to Youth Opportunity Grant (YOG) Program under the Welfare Act of 1996, and not because of enhanced employment opportunities. Under this program the tribe hired a large number of young individuals to provide them on the job training (OJT).

While the number of jobs has stayed relatively constant, more and more people have entered the labor market each year. As a result, the unemployment rate has steadily gone up. For example, the unemployment rate on the Navajo Nation was 27.9% in 1990. It rose to 42.16% in 2001 and to 48.04 percent in 2004. (Table No. 23). A few years ago, we estimated that the Nation has to create 3,544 jobs each year to maintain the status quo, i.e., to stay at the same level of unemployment rate. Naturally, to take a bite on the existing unemployment rate, we must create more than 3,544 jobs a year. It is quite unfortunate that we hardly create 200 jobs a year on the Navajo Nation.

(2) Most of the jobs are in the "support industries": The backbone of any economy is its “Basic Industries”, which is defined as industries that help bring money from outside. Manufacturing and Agriculture are normally considered to be the leading 'Basic Industries'. Here, on the Navajo Nation, Tourism and Mining can be added to the list. Unfortunately, 'Basic Industries' are very few and far between on the Navajo Nation. Manufacturing, Agriculture and Mining accounted for 305, 202 and 1,405 jobs in 2004, which were 0.99%, 0.66%, and 4.57% of the total employment respectively. Manufacturing and Mining accounted for 7.01% and 0.33% of the total employment in Arizona, 4.54% and .99% in New Mexico and 12.46 and 0.40% of the total employment in USA respectively. . Employment figures for Agriculture sector are not available. (See Table No. 24).

(3) Actual Unemployment rate is very high: Unemployment rate is calculated by dividing the number of people unemployed by the Total Labor Force, and then multiplying the result by 100. The number of people

14 unemployed is derived by deducting the number of people employed from the total labor force. It means higher the labor force, ceteris paribus, higher the unemployment rate.

The definition of labor force plays a decisive role in determining the number of individuals in the labor force. Let us illustrate this with an example. Let us assume that A=number of people employed, B = number of people unemployed, and C= labor force; or C = A + B. Then,

Unemployment Rate = B/C*100, or {(C-A)/C}*100. This is so because C=A+B and hence, B = C-A

Census 2000 found 51,363 individuals in the labor force of the Navajo Nation, which constitute 28.46% of the total population (see Table No. 20). From the same table we can see that 49.33% of the total population of the United States is in the labor force. 2004 population of the Navajo Nation has been estimated to be 193,961. If we were to apply the Navajo Nation’s Labor Force–population ratio of Census 2000, our Labor Force in 2004 would be 55,201 (193,961*.2846). However, if we were to apply the US Labor Force-population ratio to the Navajo population, there would be 95,681 individuals in the labor force of the Navajo Nation (193,961 X .4933 = 95,681). Thus the number of individuals in our labor force varies depending upon which percentage we use to calculate it, which in turn determines the unemployment rate.

Our own research found that a total of 30,738 individuals were employed on December 31st of 2004. Thus our A = 30,738.

If we assume our C to be 55,201 then our B would be 55,201 - 30,738 = 24,463; and our unemployment rate would equal to (24,463/55,201)*100 = 44.32%.

If we assume our C to be 95,681, then our B = 95,681 – 30,738 = 64,943, and our unemployment rate would equal to 64,943/95,681)*100 = 67.87%.

Thus depending upon the size of the labor force, the number of unemployed people keeps changing and so does the Unemployment Rate. Only thing does not change is the number of people employed. We had assumed our labor force to be 59,158 (30.5% of the population) and so our unemployment rate turned out to be 48.04% {(59,158 – 30,738)/ 59,158*100} in 2004. I must reiterate here that the true unemployment rate is over 67% as mentioned above.

(4) Actual Unemployment rate is overstated: Then, there is the flip side of the coin. The Navajo Nation seems to have a strong underground economy, which is not reported. For example, if Joe fixes Jim's truck, and in exchange, Jim paints Joe's house, the whole process goes unreported and falls under the category of underground economy. There are numerous such examples. It is estimated that between 5 to 35% of the US economy is not reported. On the Navajo Nation too, many of the activities directly related to creation of GDP are not reported, nor are the people involved considered 'employed'. Some examples:

(i). There are a number of arts & crafts vendors who sell their products at various road side stalls, at places of tourist attraction, and, wherever they can find customers - both inside and outside of the Navajo Nation. Officially, they are neither employed, nor is their income counted towards computation of the Navajo Nation’s personal income.

(ii) There are a number of food stalls and other vending stalls similar to those at the corner of Hwy. 264 and Hwy 12 in Window Rock, in almost all the major communities of the Navajo Nation. According to knowledgeable sources, these stalls definitely provide a very decent living to the owners. However, their income is not counted towards the calculation of the Navajo personal income, nor are they officially employed.

(iii) There are also a number of Navajo people who work outside the Navajo Nation primarily as railroad workers. Many of them work for a few weeks at a time and then return home with a good chunk of money. After relaxing for a while, off they go again. These people are neither officially employed, nor are their incomes added to the total personal income of the Navajo Nation.

15 A note of caution has to be made regarding those people who live on the reservation, but are employed in the neighboring towns. Right at the very outset of the survey, it was decided by the Survey Team to ignore such people, because as many people commute to work onto the Navajo Nation from outside the reservation as well. Also, it will be almost impossible for the Support Services Department, with its very scant resources, to compile such figures.

Census 2000 found 2,702 self-employed individuals on the Navajo Nation with an aggregate income of $23,454,300.0 (see table No. 14A). Table No. 14B gives same information for each Chapter on the Navajo Nation.

5. A belief that most of the jobs on the Navajo Nation is in Govt. sector is erroneous: This is a common belief among many of the political leaders and govt. officials that 80% of the jobs on the Navajo Nation is to be found in the Government sector. This is not true. Here are the facts. On December 31, 2004, 7,266 individuals were directly working for all kinds of Government combined - Navajo, Federal, State, County, and so on. This amounted to 23.64% of the total employment on the Navajo Nation. An additional 11,242 individuals were employed with 162 educational establishments and 3,491 with various medical establishments. These educational and medical establishments are run by the Federal, the State and the Navajo Governments: BIA schools, and IHS hospitals & Clinics are run by the Federal Government; public schools are run by the states of Arizona, New Mexico and Utah; and quite a few of the schools, and medical establishments are run by the Navajo Government as well. Thus, a total of 14,733 service sector employees were somewhat related to the Government sector in 2004. If we add all together, we find that a total of 21,999 individuals were directly or indirectly getting their paychecks from one or another type of government, which amounts to 71.57% of the total employment on the Navajo Nation. Then, we will have to do similar calculation for the US, Arizona and New Mexico. Otherwise, we would be comparing apples and oranges. In nutshell, Government Sector accounts for only 23.64% of the total employment as opposed to the common belief of 80%. The figures for Arizona and New Mexico are 16.61%, and 24.94%, respectively. (See Table No. 24 for detail). Table No. 25 presents employment figures, as well as the number of employers and total salary and benefits on the Navajo Nation by sectors of economy.

C. Per Capita Income:

Over the years, the unemployment rate on the Navajo Nation has worsened from 27.9% in 1990 to 42.16% in 2001, and to 48.04 percent in 2004. Despite a higher unemployment rate, the Per Capita Income has been steadily rising. This is attributed to the raises given particularly to the Navajo government employees in certain years as well as to the regular COLA's given to the Federal, State, and other government employees.

Table No. 21 compares the unemployment rate and Per Capita Income of the Navajo Nation with that of the US, and all the states. As can be seen from the table, the unemployment rate on the Navajo Nation was almost 7 times higher than in the US. However, the Per Capita Income of the Navajo Nation was almost 4 times less than that of the US, 3.4 times less than that of Arizona, 3.1 times less than that of New Mexico, and 3.2 times less than that of Utah. Table No. 26 presents the median household income of all the states and the Navajo Nation.

D. Poverty Rate:

A high unemployment rate, and hence low income, has resulted in very high Poverty Rate on the Navajo Nation. The Census 2000 also found 42.9% of the Navajo individuals living below poverty level. The numbers for the US, Arizona, New Mexico and Utah were 12.4, 13.9, 18.4, and 9.4% respectively. Current data on the Navajo Nation Poverty Rate is not available yet, but we do have data on Poverty Rates for various School Districts on the Navajo Nation. They have been presented in Table No. 27, along with data for all the states of the United States.

E. Leakage of Navajo dollars to the border towns:

Lack of retail outlets is one of the major problems faced by the Navajo people. A survey by the Support Services Department of the Division shows that only 28.83% of all the Navajo monies are spent inside the reservation. In other words, over 71% of the Navajo money is spent in off-reservation communities (See Table No. 29). This is simply because the Nation lacks wholesale and retail outlets. In remote areas, the problem is further exacerbated by lack of transportation. A ride to Gallup from Low Mountain, for example, costs as much as $60.0 round-trip, provided some vehicle owner volunteers to make the trip. This causes great hardship, particularly to the elderly. The problem typically sky rockets during the winter.

16

There are basically two entities on the Navajo Nation, which have been working very diligently to solve this problem.

(1) Navajo Nation Shopping Centers (NNSC): The Project Development Department of the DED has continually been trying to solve this problem by helping to establish retail outlets throughout the Navajo Nation, particularly in major Growth Centers. Its primary focus is to construct shopping centers. Once the construction is complete and the shopping center is ready to be leased out to business people, it is handed over to the Navajo Nation Shopping Centers (NNSC), which is tasked with administering the shopping centers. Until recently, we had 9 shopping centers. A new shopping center, located in Dilkon, became operational in 2002, bringing the total number of shopping centers to 10. After a number of attempts, the NNSC has finally succeeded in its endeavor to become an independent enterprise of the Navajo Nation. Now the NNSC is in a position to manage its program affairs independently and efficiently without any influence from other Tribal Offices. Table No 30 sheds light on the activities of the shopping centers overseen by the Navajo Nation Shopping Centers across the Nation.

(2) TSEYI' Shopping Center: The TSÉYI’ Shopping Center in Chinle, which is wholly owned and operated by a for-profit subsidiary of Dineh Cooperatives, Incorporated (DCI), is another entity which has tirelessly promoted retail business development in the Navajo Nation.

In 1977, at the urging of the Chinle community, DCI began the phased development of the Tséyi’ Shopping Center. Strategically located in the heart of the Navajo Nation, the center is readily accessible to over one-fifth of the Navajo Nation’s 185,000 residents and to Canyon de Chelly’s 800,000 annual visitors.

Since the blessing by a Navajo Medicineman in March 1981, the 67,000 square foot center has been a hit with the more than 35,000 residents in its market area and has been expanded four times. Current tenants include Bashas’ Diné Supermarket, U.S. Postal Service, Rent-A-Flik, Chinle Laundromat, Pizza Edge, Taco Bell, Black & Gold Athletics, Wells Fargo Bank, Social Security Administration, AHCCCS, USDA Natural Resources Conservation Service, U.S. Probation, Diné College, and Child Support Enforcement Program. Additional retail and office space will be constructed over the next five years until the 15-acre site is fully occupied.

Managed by DCI Shopping Center, Incorporated (DCISCI), this was the first full-service shopping center in the Navajo Nation and has served as a model for the development of shopping facilities in other Navajo Nation towns. A unique master lease arrangement allows tenants to lease space directly from DCISCI without having to obtain BIA or tribal approval.

In June 1987, the Tséyi’ Shopping Center received the U.S. Department of Housing and Urban Development’s highest award and the first ever presented to an Indian community development corporation or an Indian Tribe — the Award for National Excellence.

The center provides employment for over 180 people and generates sales surpassing $17.5 million.

2. EMPLOYERS

There are over 800 employers on the Navajo Nation including various Navajo Nation Govt. offices, the Chapter houses, as well as, the Navajo government offices located in off-reservation communities. If we exclude these Navajo Government offices, the number of employers comes down to 675, of which 240 are Navajo-owned and 435 are owned by non-Navajos. (See Table No. 29).

The backbone of any economy, as mentioned above, is its Basic Industries; of which Manufacturing is the most important one. It has a very high multiplier effect. It has been calculated that creation of one job in Manufacturing creates 3 jobs somewhere else. According to Standard Industrial Classification (SIC) code, 8 establishments on the Navajo Nation fall into the category of Manufacturing. However, only FIVE of these – Ducommun Technologies (formerly known as MechTronics of Arizona), Raytheon Missiles Company, and Tooh Dineh Industries, Cabinet Southwest, Inc., BCDS and Gallup Camper Sales Manufacturing - can be considered as Manufacturing companies in the true sense of the word.

17 Agriculture is another sector in the Basic Industries. Though there are a number of tiny farms scattered across the nation, only the Navajo Agricultural Products Industry (NAPI) can be considered a Basic Industry.

Then, there are 13 hotels and motes on the Navajo Nation, whose primary source of revenue are tourists. This sector has very high potential for development. But, at the moment, hotels and motels constitute a very small fraction of the Navajo economy.

Service sector, which includes all the schools, hospitals, and hotels and motels, is the most dominant employer on the Navajo Nation. On December 31, 2004, this sector had a total of 277 employers (33.29% of the total employers). Total number of people employed by this sector was 15,616 or 50.8 percent of the total employment on the Navajo Nation. Government Sector had 218 employers (26.2% of the total employers) including Chapter houses and Navajo government offices (including those in the off-reservation communities), and with 7,266 people employed, this sector accounted for 23.64% of the total employment on the Navajo Nation. Sector by sector employment and related figures have been presented in Table No. 24.

A. Major Employers:

Navajo Government is the largest employer on the Navajo Nation. In 2004, all three branches of the Navajo Government together employed 6,225 individuals, of which 6,061 were Navajos and 164 non-Navajos. It had employees at 163 locations including all the Chapter houses. The total salary and benefits disbursed amounted to $173,979,467.0.

In terms of numbers of individuals employed, State of Arizona occupied the second position. A total of 3,857 individuals were employed with the State of Arizona, a vast majority of whom were employed with various school districts run by the State of Arizona.

Navajo area Indian Health Services (NAIHS) was the third largest employer. A total of 3,164 individuals were employed with the NAIHS, of which 2,506 were Indians and 658 non-Indians. These numbers do not include individuals who were employed in Gallup or in Winslow.

Office of Indian Education Program under the Bureau of Indian Affairs ranked fourth in the large employers list. Agency offices and schools run by these agency offices employed a total of 2,835 individuals all across the Navajo Nation, of which 2,146 were Indians and 689 non-Indians. These numbers do not include individuals employed by the Navajo Region Bureau of Indian Affairs in Gallup.

In terms of the number of people employed, State of New Mexico ranked fifth in our list of large employers. It had a total of 1,320 employees, of which 719 were Navajos and 601 were non-Navajos. Most of these individuals were employed with various schools run by the State of New Mexico. Table No. 31 lists all the major employers on the Navajo Nation.

Major employers can be divided into two broad categories – (a) Tribal Enterprises and (b) Private Sector enterprises.

(1) Tribal Enterprises:

There are 13 enterprises on the Navajo Nation, which are owned and operated by the Navajo tribe. These tribal enterprises have been listed in Table No. 32. Some of these enterprises are also the major employers on the Navajo Nation, and have been described below (not in any order of priority):

a. Navajo Agricultural Products Industries (NAPI): Navajo Agricultural Products Industry (NAPI) was established in 1972 to develop the agricultural economy f the Navajo Nation. It is the sole commercial agribusiness enterprise on the Navajo Nation and is responsible for utilizing the canal system of the Navajo Indian Irrigation Project (NIIP) to irrigate crops on 110,000 acres of farm land. Currently, 70,000 of the planned 110,630 irrigable acres have been developed. Its products are sold throughout the United States, Mexico, and other international markets using the “Navajo Pride” trademark. Commodities marketed under the Navajo Pride brand name include alfalfa, pinto beans, corn, potatoes, wheat and pumpkins. Some of the NAPI’s nationally recognized customers include Frito-Lay, Campbell’s Soup and Purina. Crop revenues support all NAPI operations.

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NAPI is a major employer of the region, employing 110 full-time and up to 375 seasonal employees during peak season. Subcontractors, joint venture partners of NAPI and independent truckers employ additional workers.

As a member of the four corners community and San Juan County, NAPI contributes a remarkable diversity to a region where the oil and gas industry dominates the market. NAPI takes pride in serving the local communities of Farmington, Bloomfield, Kirtland, Ojo Amarillo, Shiprock, Fruitland and Aztec, along with many other Navajo communities within a two hundred mile radius of the facility.

The total economic impact of $199,051,691 for 2002 through 2004 illustrates NAPI’s financial support for the local economy in the economic region. This would include the Navajo Indian Irrigation Project (NIIP) expenditures, Employee expenditures and Contract expenditures. Other benefits from NAPI and NIIP include 287 miles of road systems, four housing projects, electrical and gas utilities, both for the public and the industry.

b. Navajo Nation Shopping Center (NNSC): In 1982, the former Advisory Committee of the Navajo Tribal Council approved a Plan of Operation for the Navajo Nation Shopping Centers (NNSC) Management. This resolution set in motion a program that would manage the Window Rock Shopping Center and grew to manage other shopping centers throughout the Navajo Nation. Since then, by the Government Services Committee of the Navajo Nation Council Resolution GSCF-13-96 has incorporated the NNSC’s Plan of Operation in the Division of Economic Development’s Plan of Operation.

Today, as a semi-enterprise entity with the Navajo Nation Division of Economic Development, NNSC has grown to ten shopping centers. The Dilkon shopping center is the latest one.

The NNSC greatly contributes to the Navajo Nation communities by providing employment, goods and services, revenues, business opportunities and increasing local commerce development.

Since the development of the first shopping center, NNSC has progressively and successfully made significant improvements in the management of its shopping centers. Supported by a staff of experienced personnel, NNSC is rapidly becoming a key trust in economic development initiatives for the Navajo Nation. This achievement is symbolic of what is yet to come in the future.

The NNSC has outgrown its current Plan of Operation in managing ten shopping centers. After a number of attempts, the NNSC has finally succeeded in its endeavor to become an independent enterprise of the Navajo Nation. Now the NNSC is in a position to manage its program affairs independently and efficiently without any influence from other Tribal Offices. Table No 30 sheds light on the activities of the shopping centers overseen by the Navajo Nation Shopping Centers across the Nation.

c. Navajo Housing Authority: On May 1, 1963, the Navajo Housing Authority was established to provide the Navajo people with safe, decent and sanitary homes. The Native American Housing and Self Determination Act of 1996 changed the face of NHA forever. The Navajo Nation Council appointed NHA to serve as the Tribally Designated Housing Entity (TDHE) of the Navajo Nation.

Today, NHA manages a housing stock of over 8,000 housing units across the Navajo Nation, while providing funding and self-sufficiency for over 57 different housing providers on the Navajo Nation.

The implementation of NAHASDA block grant funding has reinvigorated many Navajo communities on the reservation with a synthesis of public rental and homeownership opportunities. Since 1998, NHA has distributed nearly an average of $89.25 million of housing funds on the Navajo Nation for various housing activities, including the recent development of land use plan funding of $3.5 million for all Navajo Nation chapters. Each chapter will receive $40,000 for land use planning.

While housing conditions on the Navajo Nation warrant between 20,000 and 30,000 housing units, NHA currently manages over 8,000 housing stock across the Navajo Nation through the 15 housing management offices across the Navajo Nation. A sign of the future, the NHA Mortgage Dept. is on the cusp of closing their first mortgage with a Navajo Family in the Bread Springs, N.M. area.

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The five-year Indian Housing Plan presents nine immediate goals of the NHA. They are as follows:

People excellence: Increase staff development skills and sub-recipient administrative capacities by providing training and technical assistance in NAHASDA project activities.

Pride in the NHA: Maintain high profile in public events and public information inclusive of housing and community development functions.

Provide quality and timely customer service: Issue homeownership outstanding titles for conveyance by 50% and record at the Navajo BIA title plant.

To promote opportunities for resident self-sufficiency: To increase local empowerment for resident organizations, including resident management corporations and other resident groups.

Improve housing and community environment: Construct and modernize 686 new or upgraded homes on the Navajo Nation and provide for renovation of NHA, homeowner, elderly and transitional housing.

To seek alternative funds: Secure additional funding sources for alternative housing development and diversity housing initiatives.

To fulfill TDHE administrative capacity and leadership: The NHA will establish a self-monitoring system to conduct an annual assessment of the TDHE administrative capacity and NAHASDA assisted activities in coordination with the Navajo Nation.

To promote economic growth: To provide gainful employment for the Navajo workforce.

Table No. 33 provides some highlights of the activities of the Navajo Housing Authority.

d. Navajo Tribal Utility Authority (NTUA): The Navajo Tribal Utility Authority (NTUA) is a multi- utility provider to the residents, schools, governmental entities, and businesses on the Navajo Nation. NTUA provides essential electrical services, natural gas services, water services and wastewater services to customers on the vast 27,000 square mile Navajo in northeastern Arizona, northwestern New Mexico, and southeastern Utah.

The Authority was created by the Navajo Nation Council in January of 1959 and achieved status of an enterprise of the Nation in 1965. NTUA’s Plan of Operation provides for a 7-member Management Board, which oversees the activities of the Authority. The Board Members are appointed by the Government Services Committee of the Navajo Nation Council, and each member serves a staggered 3-year tem. Daily activities of NTUA are managed by a General Manager who is directly responsible to the Authority’s Management Board.

NTUA’s electric power is purchased from Tucson Electric Power, PacifiCorp, Public Service Company of New Mexico, and Western Area Power Administration. NTUA does not generate any electricity but must depend on transmission agreements to deliver power to 14 delivery points surrounding the Navajo Reservation. The rates for electrical services are lower than rates provided by other utilities in the communities surrounding the Navajo Nation.

Approximately 60 MW of energy and capacity are secured in long-term power purchase contracts and about 40 MW is being purchased in the open market as needed. NTUA’s peak demand reached 114,400 kW in 1999. NTUA is contemplating entering the power generation arena. Generating its own power or securing a block of generation power will assure NTUA of an adequate supply of low cost electricity. Growth over the next decade is estimated to be approximately 3% per year.

NTUA’s purchase of natural gas is from El Paso Marketing, which delivers cost-efficient gas to delivery points in New Mexico and Arizona. Currently, NTUA is in the process of completing its 4-inch main line extension to the community of Crownpoint, New Mexico, where a town distribution system is planned.

20 Water is essential to the development of the Navajo Nation. Capital investments of over $230 million in water and wastewater infrastructures have been made by the U.S. Indian Health Service on the Navajo Reservation. The operation and maintenance of the vast systems have been delegated to the Navajo Tribal Utility Authority. Water rates are competitive and are equal to or slightly higher than in the surrounding municipalities in the area. Water revenues are generally sufficient to meet operating expenses.

NTUA is completing its mapping project wherein a new Geographical Information System (GIS) is being installed. The completed project will identify and monitor all of NTUA’s utility systems, electric, natural gas, water and wastewater main lines, distribution laterals, meters, poles, and related appurtenances. The GIS system will greatly enhance NTUA’s ability to provide utility services at the lowest reasonable cost to its customers.

NTUA’s goal is to strive for excellent service to its customers and to meet the challenges of the future.

Table No. 34 sheds light on the services provided by the NTUA, and table No. 35 highlights the Revenue-generating activities of the NTUA.

e. The Navajo Nation Hospitality Enterprise: In October 1982, the Navajo Tribal Council established the Navajo Nation Hospitality Enterprise (NNHE), as an enterprise of the Navajo Nation. The Enterprise is organized for the purposes of establishing an independent, financially self-sustaining, and successful Navajo business enterprise which will generate revenue for the Navajo Nation, provide employment and training opportunities to the Navajo people, provide commercial office space, and provide professional hotel and restaurant services and quality facilities to the traveling public.

At the time of establishment, NNHE consisted of one property - the Navajo Nation Inn, located in Window Rock, Arizona. NNHE has grown significantly during the past years. The growth includes conversion of the Navajo Nation Inn to the Quality Inn in Navajo Nation Capital. Additionally, three new properties have been built or acquired: Navajo Travel Center, Tuba City Quality Inn and the Quality Inn-Lake Powell.

Descriptions of the NNHE properties follow:

(i) Quality Inn – Navajo Nation Capital, Window Rock Arizona

56 room hotel 260 seat restaurant Gift shop 11,548 square foot office complex

The guest rooms were renovated and the Navajo Nation Inn became a franchise of Choice Hotels International in May 2005. Additionally, high speed internet was added to all guest rooms.

The Quality Inn – Navajo Nation Capital employs approximately 72 people and has revenues of approximately $2.1 million annually.

(ii) Navajo Travel Center, Navajo Arizona

Shell service station and convenience store Subway restaurant

The Navajo Travel Center was designed and built by NNHE. The site is leased from the Office of Navajo Hopi Indian Relocation (ONHIR). The lease includes an option for additional land for further expansion. The project was funded by a loan from the Division of Economic Development and a grant from ONHIR.

The convenience store inventory includes novelty gift shop items including T-shirts, Route 66 memorabilia, hot sauces, toys, books, magazines and so on.

21 The Navajo Travel Center employs approximately 19 people, and has revenues of approximately $3.8 million annually. The revenues of the Travel Center have grown from $1.4 million in 1996, the first full year of operations.

(iii) Tuba City Operations, Tuba City Arizona

80 room Quality Inn Hotel 325 seat Hogan Restaurant 31 space recreational vehicle park, including 5 tent spaces Tuba City Trading Post and Convenience Store The operations include approximately 6 acres of land

The Tuba City Operations employ approximately 89 people and has revenues of $3.3 million annually.

(iv) Quality Inn - Lake Powell – Purchased July, 2005:

130 room Quality Inn Hotel 120 seat Restaurant and Lounge Gift Shop

The Quality Inn – Lake Powell employs approximately 21 people and has revenues of approximately 2.8 million annually.

Goals: The future plans for the Navajo Nation Hospitality Enterprise include continued upgrading of facilities and further hotel acquisitions.

f. Navajo Engineering and Construction Authority (NECA): Navajo Engineering and Construction Authority (NECA) was established on June 13, 1972 as a wholly owned enterprise of the Navajo Nation. Since that time NECA has developed into one of the most capable heavy construction/highway contractors operating within the boundaries of the Nation. The primary purpose of NECA is to provide Navajo Nation owned construction capabilities on behalf of, and for the benefit of the Navajo people, as well as to provide increased financial benefit to the Nation and to provide employment and training to the people of the Nation. The established place of business for NECA is Shiprock, NM.

NECA provides a wide variety of construction services for its clients, and operates primarily within the boundaries of the Navajo Nation. Annual revenues have exceeded $50 million for the past several years. The majority of NECA’s activities involve the construction of infrastructure projects including roads, highways, bridges, dams, waterlines, sewer-lines, water-tanks, irrigation facilities, and water/wastewater treatment facilities. Over the years NECA has also performed a significant amount of reclamation work for the uranium and coal industries. NECA owns an extensive equipment fleet that is well maintained and continually upgraded.

NECA also enjoys the benefits of an experienced and well trained workforce. As a construction company operating in a seasonal environment, employment levels at NECA fluctuate throughout the year. In the winter months employment levels drop significantly since construction activity typically slows during this time of year. In the spring, summer, and fall months, our employment peaks at levels in excess of 500 full time employees. Our annualized average employment levels typically exceed 450.

NECA has successfully supported the economy of the Navajo Nation through the creation of hundreds of jobs for the Navajo people. These jobs have provided stability for the individual workers and their families, as well as generated millions of dollars annually in wages. In recent years, total payrolls have exceeded $10 million annually. These payrolls in turn provide employees the opportunity to support local businesses in their communities. NECA has consistently demonstrated an ability to perform profitably, and has returned dividends to the Navajo Nation annually since 1992.

On February 9, 2006, NECA received the 2005 Enterprise of the Year award from National Center for American Indian Enterprise Development (NCAIED)

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g. Navajo Nation Oil & Gas Company (NNOGC): NNOGC was created by the Navajo Nation in December 1993 by Resolution EDCO-89-93. From its inception, the company was designed to assist in achieving goals of the Navajo Nation for development of its energy resources. NNOGC is wholly owned by The Navajo Nation, with the shareholders being represented by the eleven shareholder Representatives, one from each of the eleven standing committees of the Navajo Nation Council. The Navajo nation contributed $500,000 for the development and implementation of NNOGC’s operations. In 1999, NNOGC returned the Nation’s original investment of $500,000 in the form of dividends.

In December 1997, the Secretary of the Interior approved the federal articles of incorporation for NNOGC. Reincorporation as a Section 17 corporation ensures that the company will be exempt from federal income tax for business conducted outside the Navajo Nation.

NNOGC’s downstream operations include its Wholesale and Retail Operations. NNOGC secured the Chevron jobbership in 1996. Chevron’s reputation for quality products, service and image enhance NNOGC’s market position and, thereby, increases profitability. NNOGC’s fuel jobbership distributes Chevron products, supplied directly by Chevron, USA, and unbranded products, supplied by Giant Refinery. NNOGC continues to serve nine Chevron locations on the Navajo reservation, three wholesale and six retail. The Company’s retail operations consist of six company-owned retail facilities in Window Rock, Kayenta, Tohatchi, Chinle, Blue Gap and Cortez. The Cortez Chevron is the company’s first off-reservation location. The Company has also acquired a station at Blue Gap, Arizona, and is upgrading that station to meet the high standards that the public has grown to expect of the Navajo Nation Oil and Gas Company.

In 1999, the Company was delegated the authority from the Navajo Nation government to negotiate a gasoline excise tax sharing agreement with the State of Arizona. The Company concluded those negotiations, and Arizona and the Nation agreed, in essence, that the Navajo Nation would impose its own gasoline excise tax of 18 cents per gallon for all gallons sold on the Navajo reservation, and that the tax would be divided as follows: Arizona would receive 0.6 cents of the 18.0 cents, and the Navajo Nation would receive 17.4 cents of the 18.0 cents. Subsequently, the Navajo Nation Council enacted the Navajo Nation Fuel Excise Tax, and executed the tax sharing agreement as negotiated by the company. This tax results in approximately $13 million per year of additional funds for the Navajo Nation treasury. The Council has passed a resolution dedicating this new income stream for road construction and maintenance.

NNOGC’s midstream and upstream operations include Crude Oil Marketing and Transportation. Since August 1995, the Navajo Nation sold its royalty-in-kind crude oil to NNOGC, and NNOGC markets the Nation’s royalty oil. This benefits the Nation by allowing it to capture premiums above the Four Corner crude oil posted prices.

In 2002, NNOGC purchased the 87 miles segment of the former Tex New Mex 16 inch crude oil pipeline and 40 miles of crude oil gathering lines within the Aneth Field from Giant Industries. NNOGC operates the pipeline and gathering system under the name of Running Horse Pipeline. The pipeline transports approximately 15,000 barrels of per day BOPD which is nearly all of the production from Southeast Utah.

During the past three years, NNOGC has been aggressively expanding its upstream business unit. NNOGC purchased a 10.3% interests in the Ratherford Unit of Aneth Field. The purchase of these producing properties has proved to be prudent and profitable, especially in light of high crude oil prices. The company has also added to its upstream business unit by negotiating Mineral Exploration and Development Agreements with the Navajo nation for two tracts, Canal Creek and Echo House Mesa. This negotiation followed many months of examination of seismic data, which suggest that these two tracts may have significant reserves of oil.

In November, 2003, NNOGC purchased the Equipment associated with three producing wells and one injector well and signed a service agreement with the Navajo Nation to operate these wells. With these wells, NNOGC commenced production operations for the first time.

In November, 2004, NNOGC closed on the purchase of 25% of Chevron Texaco interests in the Great Aneth Area with the rights to increase ownership in the future. This acquisition increased the company’s net daily production from 300 BOPD to approximately 1000 BOPD.

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On March 31, 2005, the company acquired a 50% interest in three additional leases with five producing wells. Two of these leases were strategically located adjacent to our Echo House Mesa Operating Agreement acreage.

The Company is well on its way to becoming a fully integrated petroleum company. Because of its expanded operations the company’s Board of Directors decided to build corporate offices at the Karigan development. Construction is complete and the and the corporate office has moved to its new building.

h. Native Broadcast Enterprise: As a tribally owned for–profit enterprise, Native Broadcast Enterprise (NBE) is governed by a Plan of Operation, which is approved by the Economic Development Committee (EDC) of the Navajo Nation Council. The Economic Development Committee has oversight authority over a five-member NBE Management Board.

In 2004, NBE’s budget for payroll and other compensation totaled $825,176. NBE’s sales totaled $1,600,000. Currently, 90% of personnel employed by NBE are Navajos. Current staffing pattern is as follows:

Management 4 Navajos Announcers 6 Navajos 1 non-native Sales Executives 3 Navajos Other regular Staff 8 Navajos

NBE also employs various other individuals on temporary basis as needed.

Native Broadcast Enterprise’s revenues are generated from sales of advertising spots to businesses in all communities within the Navajo Nation and border towns, including Albuquerque, NM and Phoenix, AZ. NBE competes with other media such as other radio stations, print media, yellow pages, and television for the same Navajo dollar.

KTNN-AM, a component of the Native Broadcast Enterprise, is a 50,000-watt AM clear channel commercial radio broadcast operation licensed to the Navajo Nation by the Federal Communications Commission (FCC). KTNN operates on AM frequency 660 kilohertz. 50,000 watts is the strongest radio signal allowed for an AM commercial broadcast radio station in the United States. The Navajo Nation is recognized as the only Indian nation licensed to operate a 50,000-watt AM broadcast facility.

KTNN is engaged in the delivery of bilingual (Navajo and English) information and entertainment to the Navajo Nation during its daytime broadcast operations. KTNN radio’s daytime coverage encompasses the entire Navajo Nation. At sunset, KTNN is required by FCC to go directional, blocking its broadcast signals to the east and directing all its radio signals westward; however, at night, KTNN’s radio signal expands to cover most of the western United States, including parts of Canada and Mexico.

KWRK-FM, another component of the Native Broadcast Enterprise, is a 100,000-watt FM radio broadcast operation providing services to the general population in and around Window Rock, Arizona. KWRK radio operates on FM frequency 96.1 MHz. The current format for KWRK-FM radio is contemporary country and western hits.

The 100,000-watt signal reach for KWRK is a 70-mile radius encompassing communities of Ganado, Houck, Window Rock, Fort Defiance, Sheep Springs, and Gallup.

i. Navajo Arts & Crafts Enterprise (NACE): Crafts have long been an important enterprise for America’s First People. Because there was no common currency among the tribes, Native American bartered and traded among themselves and with their neighbors. The Navajo traded crafts with Zuni, Pueblo, Ute, Apache, Hopi and other tribes long before Europeans entered the Four Corner’s Region.

To protect craft traditions and the livelihood of its artisans and craftspeople, Navajo leaders created Navajo Arts & Crafts Guild at Fort Wingate, New Mexico in 1940. Today, the organization is called Navajo Arts & crafts Enterprise (NACE) and is headquartered in Window Rock, Arizona. NACE is a non-profit business wholly owned

24 by the Navajo Nation and is the only Navajo Nation-owned business representing the cultural heritage of the Navajo people thru the sale of Navajo arts and crafts to the general public.

At the present time NACE operates retail stores in Alamo, Chinle, Cameron, Kayenta, Navajo National Monument and in Window Rock. NACE also has a catalog and web site, www.gonavajo.com. NACE operates an important production shop and repair facility within the Window Rock store, and also in Alamo, New Mexico. These shop facilities facilitate custom jewelry fabrication, jewelry repair and restoration services. In addition, in Window Rock, NACE also offers engraving, embroidery and leather crafts.

As was the case when the arts and crafts guild was first created more than 60 years ago, today’s Navajos are alarmed at the volume of counterfeit products flooding the Four Corner’s region and the world. Many of the products sold as authentic handmade Navajo crafts are, in fact, machine-made offshore or made by non-Navajos. Navajo elders are astonished at the number of consumers traveling Route 66 (Interstate 40) across New Mexico and Arizona who eagerly purchase fake products from roadside vendors and hotel curio shops, indifferent to the fact that many of their purchases are bogus.

Today, NACE provides the conscious consumer with the opportunity to purchase directly from the Navajo Nation, and doing so provides an important livelihood to the artisans who rely heavily on the sale of their crafts to sustain their family.

j. The Navajo Times: The Navajo Times is the largest Native American owned newspaper in the world. It is a weekly publication and is distributed every Thursday morning throughout the southwestern United States. The Navajo Times has a paid circulation of 22,400 but it has a worldwide readership of well over 100,000 each week.

The Navajo Times is owned and operated by the Navajo Times Publishing Company, Inc. (NTPC). The corporate headquarters and the newspaper offices are located in Window Rock, Ariz.

NTPC, Inc. is the only Native American publishing company that owns and operates its own printing press. In addition to printing the Navajo Times, NTPC also prints numerous local and regional publications for other tribes and pueblos, governments, towns, schools, hospitals and much more.

The Navajo Times is an award-winning newspaper that has reaped numerous honors throughout its 45-year history. Most recently, the Arizona Newspapers Association awarded the Navajo Times first place for General Excellence among weekly newspapers in the state on September 17 at its awards banquet. In August 2005, the Native American Journalists Association honored the Navajo Times as the Best Native Weekly Newspaper in the country at its annual convention held in Lincoln, Nebraska. In addition, the staff of the Navajo Times garnered a number of individual awards for their writing, photography, layout and design, printing and advertising.

Other notable honors the Navajo Times has earned include being awarded the Missouri Honor Medal of Distinguished Service in Journalism by the University of Missouri, School of Journalism in Columbia in September 2000, and being awarded the Freedom of Information award by the Arizona Newspapers Association in October 2004.

In 2000-2001, the Navajo Times publisher Tom Arviso Jr. attended Stanford University in Palo Alto, Calif. on a John S. Knight Fellowship in Journalism where he studied newspaper management. Mr. Arviso is the first and only Native American to have been awarded the Knight Fellowship at Stanford. In the spring of 2003, the Navajo Times reporter Marley Shebala spent a semester at the University of California in Berkley teaching a course on Native writing. Shebala attended University of California on a journalism fellowship provided by the University's Department of Communications and Journalism.

The Navajo Times has a total staff of about 30 and most of them are of Navajo heritage. These excellent employees are trained and educated in the communications, journalism, graphic arts, advertising and printing professions. Native American journalists number less that one percent in the major newsrooms across the country and so the Navajo Times is quite proud and fortunate to have their talented and dedicated staff.

The Navajo Times is currently owned and operated by NTPC, Inc., a for-profit corporation. But that was not always

25 the case. Since its inception in 1960, the Navajo Times was owned and operated by the Navajo Nation government. Being owned by the tribal government caused numerous problems for the staff when it came to both editorial and business issues. Therefore, after many years of struggling with the tribal government and its politics, the Navajo Times publisher Tom Arviso Jr. devised a plan to separate the newspaper operation from tribal ownership so that the Navajo Times could actually be a free and independent newspaper and business.

On October 23, 2003, Mr. Arviso presented a resolution before the Navajo Nation Council seeking their approval to incorporate the Navajo Times and become NTPC, Inc., thereby becoming an independent newspaper and a for-profit publishing company. The NNC heard Mr. Arviso's presentation and then voted unanimously in favor of the resolution. As a result of this history-making event, the Navajo Times has blazed a new path for other tribal owned media throughout Indian Country to follow so that they, too, can separate themselves from tribal ownership.

The Navajo Times has been a longtime advocate of Freedom of the Press and the First Amendment, and as a result it is looked at as the leader in Native media when it comes to dealing with editorial censorship, manipulation and pressure. From a business standpoint, NTPC, Inc. is doing quite well, and has wisely reinvested its profits back into the company by way of purchasing a new $2 million press system, a computer-to-plate (CTP) pre-press system, modern computers and software, a new accounting system, and hiring more talented, educated and trained professional staff. Having the right staff and equipment allows the pages of the Navajo Times to come alive each week with vibrant and exciting color, full of action photographs, interesting news articles, sports, community events and advertising. The Navajo Times is easily accessible at local newsstands throughout the Four Corners area and in Phoenix and Albuquerque. You can also read the Navajo Times on the Internet at its web site at: www.navajotimes.com.

For more information about the Navajo Times you can call the main office in Window Rock at 928-871-6641 or 6642. You can also write to the Navajo Times at P.O. Box 310, Window Rock, AZ 86515. Pick up a copy of the award-winning Navajo Times, the "Newspaper of the Navajo People" today.

k. Dineh Power Authority (DPA): Navajo Transmission and Generation Project: The DPA is an enterprise of the Navajo Nation, established by the Navajo Nation Council pursuant to resolutions CN-87-85 and CJA-2-96. The authority of DPA is codified at 21 N.C.C. § 201 et seq. DPA is authorized to participate in energy development projects that provide ownership, design, financing, and operation of the projects, and to sell, wheel or distribute power, energy and transmission services from these projects.

With cooperation from Houston-based Sithe Global LLC, the Dine’ Power Authority of the Navajo Nation has embarked on building a 1,500-megawatt power plant called Desert Rock at a cost of $2.2 billion. The plant will be located on 600 acres of tribal land in Burnham Chapter. If everything goes well, the construction of the plant will start by the end of 2006 and will start its operation in 2010.

This plant is designed to be environmentally safest in the United States, as it will emit only 3,500 tons of nitrogen oxide and sulfur dioxide annually into the air. Currently, the San Juan Generating Station and Four Corners Power Plant together emit 67,000 tons of nitrogen oxide and 37,000 tons of sulfur dioxide.

The economic benefit to the reservation is projected to be very substantial. Annual revenue of over $52.0 million is expected to be generated from the Desert Rock Power Plant. The break down of the revenue is as follows:

Navajo Tax (BAT, PIT and Sales) $17,000,000.0 Water Fee $5,000,000.0 Lease $100,000.0 Coal Royalties $20,877,000.0 Coal Taxes $8,979,000.0 TOTAL $52,267,000.0

Source: Sithe Global FACT SHEET produced by the Dine’ Power Authority.

Besides, Desert Rock is expected to create approximately 1,000 temporary jobs during its construction period, which is to last for 4 years. After the construction is complete, the plant will have 400 permanent employees – 200 in

26 power plant operation and 200 in mine operation. The project will also invest approximately $25.0 million in road, water, and other infrastructure in the area.

Significance of Desert Rock Power Plant increases dramatically when we take into consideration the closure of the Black Mesa Coal Mine. Closure of this mine has resulted in the loss of 165 high paid jobs, and severe drop in the revenue to the Navajo Nation coffers. This proposed Power Plant will not only replenish the lost revenue and jobs, it will create additional revenue to the Navajo Nation Government and additional jobs to the Navajo people.

Furthermore, it has to be mentioned that the economic impact of such huge operation is very large. It has been estimated that every dollar of activities in such huge operation generates over $2.7 worth of other economic activities in the community.

(2) Large Employers in the Private Sector:

Private businesses are the basic foundation of an economy. Even though the Nation does not have as many private businesses as we would like to see, there are at least a few, which play very important role in the economy of the Navajo Nation. Some of these employers have been described below (without any order of preference):

a. Tooh Dineh Industries, Incorporated: From a three person precision machine shop begun in 1983 in an unused boarding school dormitory, Tooh Dineh Industries, Incorporated (TDII) has grown to become the largest electronics manufacturing firm in northern Arizona. It is currently ranked as the world's 85th largest contract manufacturer by Electronic Business.

Tooh Dineh Industries, Inc. is a wholly-owned subsidiary of Dineh Cooperatives, Incorporated, and is located in the Navajo Nation Community of Leupp, just 45 miles from Flagstaff, Arizona. Its highly trained workforce of over 89 employees manufactures high-quality electronics for the information, communications and transportation industries. The company's 2004 payroll was over $1.7 million and its worldwide sales exceeded $10.0 million. TDII is a sole source supplier to such major corporation as Apple Computer, General Motors, Hewlett-Packard, and Motorola. The firm achieved ISO 9002 certification in 1996.

Tooh Dineh Industries has expanded steadily over the years, now occupying 55,000 square feet of space devoted to turnkey and consignment contract manufacturing. TDII also provides board repair services for Apple Computer and General Motors.

b. Frontier Company (NCC): Telephone services on the Navajo Nation are currently being provided by the Frontier Company, formerly known as Navajo Communications Company (NCC).

Frontier Company’s central office switches and inter-exchange network are 100% digital. It has 630 miles of aerial cable, 870 miles of buried cable that includes 184.1 miles of fiber optics. Before the year-end, the Company will add 143 additional miles of fiber with approximately the same growth within the next 3 years. The network is made up of 21 microwave repeaters, 12 OPAC, 70 digital sub-carriers, 10 sub-carriers and 2 BETRS radio systems.

In the year 2000, the then NCC added 11 communities to the Internet, and continues to roll out new technologies such as ATM/frame relay switch, wireless applications, and additional upgrades from copper and microwave to fiber transport. It continues to add new customers by improving its cable plant and digital carriers. The Frontier is continuously looking to latest technology to serve its Navajo Nation customers.

The Frontier Company is also the largest provider of cable TV on the Navajo Nation, and has 4,000 subscribers. The Frontier has a professional staff of 94 employees, 95% of which are Native Americans.

c. Ducommun Technologies: Ducommun Technologies, previously known as MechTronics of Arizona, is located in Fort Defiance, Arizona. The facility has changed its name and ownership a number of times since it opened in 1967. Initially, the facility was part of General Dynamics Corporation and was a General Dynamics Operation until 1992. For a brief period in time, Hughes Aircraft, which was owned by General Motors, took over. Delphi Automotive took over the facility in 1993, constructing aircraft wiring assemblies/wiring harnesses for the defense and aerospace industries. In August of 2001, the Navajo facility was acquired by MechTronics of Arizona,

27 which is a Ducommun company. In October of 2001, MechTronics of Arizona’s Phoenix facility and Fort Defiance facility merged with a sister division in the Ducommun family to form Ducommun Technologies Inc. The facility employed over 500 people in 1995, and today, the employment is just over 100. The combined DTI enterprise now employs over 400 people and is comprised of three facilities – one in Phoenix, AZ (100,000 sq. ft.), one in Carson, CA (180,000 sq. ft.) and the Navajo facility in Fort Defiance, AZ (60,000 sq. ft.). The manufacturing capabilities of these three locations serve the military and aerospace industries, providing a single solution for electro-mechanical fabrication and sub-system integration. DTI has positioned itself as a Tier 1 provider to prime contractors.

Individuals and companies interested in learning more about DTI and the Navajo facility should contact Vince Tamburrelli, Vice President, Marketing and Sales, (602) 305-4900 or at [email protected].

d. Four Corners Power Plant: The coal-fired Four Corners Power Plant is the first mine-mount generating station built to take advantage of the large deposits of sub-bituminous coal in the Four Corners Region. It marks the commitment of Arizona Public Service Company (APS) made more tha n 30 years ago to use coal as primary generation fuel.

Construction of Four Corners Units 1& 2 (each rated at 170 megawatts) began in 1961. They went into commercial operation in 1963. Unit 3 (220megawatts) began producing electricity in 1964 while Units 4 & 5 (rated 740 megawatts each) began commercial operation in 1969 and 1970 respectively.

Four Corners’ total generating capacity is 2,040 megawatts, enough to power more than 300,000 homes. It is one of the largest coal-fired generating stations in the U.S. The total original cost of all five units was $283.0 million.

The low-sulfur coal burned at Four Corners comes from the adjacent Navajo Mine, operated by BHP minerals. The five boilers burn an average of 28,000 tons of coal a day, or about 10 million tons annually.

Cooling water for all five units comes from the man-made Morgan Lake, adjacent to the Plant.

Four Corners delivers power through its switchyard to utilities in Arizona, California, New Mexico and Texas.

APS operates the entire plant and is the sole owner of Units 1, 2, & 3. Ownership of Units 4 & 5 is divided among six southwestern utilities: APS owns 15%; El Paso Electric Company owns 7%; Public Service Company of New Mexico owns 13%; the Salt River Project owns 10%; Southern California Edison Co. owns 48%; and Tucson Electric Power Co. owns 7%. The Four Corners Power Plant is located on Navajo tribal land and 72% of its 586 employees are members of the Navajo tribe. An annual payroll of more than 41.0 million boosts the local economy.

Environmental considerations: Four Corners Units 1, 2 & 3 are equipped with a wet venture scrubber system for control of both sulfur dioxide (SO2) and particulates (flyash).

The original cost of the scrubber system for Units 1, 2 & 3 was nearly $27.0 million but upgrading over the years has brought the cost to approximately $48.0 million. The baghouses for Units 4 & 5 cost $170.0 million and the scrubber system for these two units carries a price tag of $275.0 million. (This translates to an extra $1 per month on a $70.0 APS electric bill). In 1989-1991, Units 3, 4 & 5 were retrofitted with low NOx burners in order to bring the plant into compliance with New Mexico regulations concerning the release of Oxides of Nitrogen (NO2) into the atmosphere. These burners were installed at a cost of about $50.0 million.

APS generators are linked to major energy-use centers, to each other, and to neighboring utilities by network of more than 2,200 miles of high-voltage transmission lines.

The total generating capacity of all APS generating stations is now 4,013,910 kilowatts and growing.

e. Navajo Mine: Navajo Mine is one of the largest employers on the Navajo Nation. This mine is operated by BHP Billiton. Coal production here is used by the Four Corners Power Plant. The five boilers of this plant burn an average of 25,000 tons of coal per day, or about 10 million tons annually.

28 In December of 2004, this mine had a total of 357 employees and its total salary and benefits for the whole year of 2004 exceeded $41.0 million.

Employment: Navajo: 309 Non-Navajo: 48 Salary plus Benefits: $41,293,225

f. Raytheon Missile Systems Company - NAPI Facility: The RMS-NAPI Facility (formerly Hughes Missile Systems Company) broke ground in September 1988 and opened on June 30, 1989.

The RMS-NAPI Facility is located 7 miles South of Farmington, NM and is accessible via Air from Albuquerque, Phoenix, and Denver. The Facility is located on the Navajo Agricultural Products Industry (NAPI) industrial park with a total of 42,000 square feet with potential growth on a 25-acre site. Of this, 28,000 square feet is occupied by production workstations and administrative offices. The facility is sized to fit approximately 2000 employees on a 1-8-5 shift and is environmentally controlled for lighting, temperature, and humidity.

Facility Construction and production equipment was financed through the Navajo Nation on a Lease Back arrangement. RMS was awarded a 15-year lease in 1989 and three 6-year lease for the equipment. The total cost to the Navajo Nation was approximately $6.0 million.

RMS-NAPI Facility currently employs an average of 100 individuals with 93% highly skilled Navajo population. RMS has developed self-directed, highly skilled, strong and diversified workforce. RMS offers exceptional solder workmanship and on-site production engineering supporting the following categories: Electrical, Industrial, Computer, Mechanical, and Manufacturing. Our performance driven Product Teams provide excellent quality in workmanship, exceptional record of on-time delivery, and a World Class Environmental, Health, and Safety rating.

The RMS-NAPI Facility manufactures and integrates electromechanical systems, interconnect assembles, and complete launcher systems for all branches of the US Military Services. This amounts to fourteen different missile programs.

Prior to employment, all training is contracted with the Navajo Department of Workforce Development and San Juan Community College through their Business & Industry Training Center. This process is unique as it brings together a co-op of business, technology and academia to the classroom in the form of specific curriculum. Training includes Quality Awareness, Electronic Assembly, and Mechanical Assembly. Over 400 Native American students received training designed to meet Raytheon’s requirements.

The RMS-NAPI Facility has also instituted a Manufacturing Verification Program (MVP). The main objective of the program is to reduce and eliminate traditional costly inspections. After successful completion of MVP program, operators are capable of verifying their own work to meet standards during random audits. The RMS-NAPI Facility achieved a 5.28 Sigma Quality rating in 1999.

The economic impact of this facility is exceptional. The RMS-NAPI facility generates $1.2 million in local operating expenditures, $62.5 million in Annual Product Value, and supports the local economy with an annual payroll of $2.5 million. The vision of the RMS-NAPI facility is to be the world class provider of diversified labor intensive products utilizing the highly skilled Navajo workforce. Our Mission is dedicated to achieving our customers’ needs through high performance teams, while offering job satisfaction for our employees and honoring the cultural diversity of our workforce.

g. Navajo Generating Station: The Navajo Generating Station (NGS) is a three unit, coal fired steam electric generating plant with a total net output rating of 2,250 megawatts, located within the Navajo Nation, five miles southeast of Page, Arizona.

The NGS includes a 76-mile long electric railway. The railroad transports approximately 8 million tons of coal annually from Peabody Western Coal Company’s Kayenta mine located on Black Mesa. Lake Powell supplies

29 approximately 30,000 acre-ft of water per year to make up for evaporation from the plant’s cooling towers and scrubbers.

NGS is owned by the United States Bureau of Reclamation (24.3%), SRP (21.7%), Los Angeles Department of Water and Power (21.2%), Arizona Public Service (14.0%), Nevada Power Company (11.3%), and Tucson Electric Power (7.5%). Salt River Project (SRP) is the operating owner of the plant.

The plant was initiated in 1968 as an alternative method of meeting the power needs of the Southwest after a major hydroelectric project was blocked. The units went into commercial operation in 1974, 1975, and 1976.

Original construction cost of the plant was $650,000 million, including $200 million for pollution control equipment. Scrubbers have subsequently been installed to remove 98% of the sulfur dioxide from the flue gas emitted through the plant’s three chimneys. The scrubbers were placed in service in 1997, 1998, and 1999. The capital cost of the scrubbers was $430 million.

The total number of permanent employees at the plant is 512, with 69% of those being Native Americans. There are also approximately 300 seasonal employees hired by the plant, with 93% of those being Native Americans. The plant’s annual payroll is more than $47 million.

h. The Pittsburg & Midway Coal Mining Co. (P&M) McKinley Mine: The McKinley Mine began operation at its facility located south of highway 264 near Blackhat New Mexico in 1962. In the early seventies the operation expanded to its current size and location with approximately 15,000 acres of the lease being located on the Navajo Nation. P&M itself (Pittsburg is spelled without an “h” on the end) was granted a charter of operation in the state of Kansas in May of 1885.

The McKinley Mine is a surface coal mine with a production capacity of 6.5 to 7.5 million tons annually depending on market. Out of the current top 29 major surface coal mines in the United States, McKinley Mine is ranked 24th based on annual production.

The McKinley Mine is a dragline operation using four Bucyrus Erie 1370-W Walking Draglines with a bucket capacity of 63 cubic yards as the major pieces of stripping equipment to uncover coal. Stripping at the McKinley Mine is also augmented by the use of a truck/shovel/loader fleet to uncover coal.

McKinley Mine is represented by the United Mine Workers of America (UMWA) and operates 3 shifts per day, employing 301 employees, of which, 91% are Navajos. 238 of the employees are represented by UMWA

McKinley Mine’s major customers are Arizona Public Service Company (APS), Salt River Project (SRP), Arizona Electric Power Cooperative (AEPCO), Tucson Electric Power (TEP) and Abitibi Consolidated (manufacturer of recycled paper products).

i. Peabody Energy's Arizona Mines: Peabody Energy's Arizona surface mines are located on the Navajo and Hopi reservations, about 20 miles southwest of Kayenta. The adjacent Black Mesa and Kayenta surface mines have operated for more than three decades, creating local jobs, providing tribal revenue and encouraging economic development in reservation communities. The mines produce about 13 million tons of coal each year from a large reserve leased from the Navajo Nation and the Hopi Tribe.

Mining occurs under complex geological conditions, with coal extracted from multiple seams and splits of seams ranging in size from three to 18 feet. Black Mesa's low-sulfur coal has a high heating value of approximately 10,700 British thermal units (Btu) per pound.

Each year, royalties, taxes and business payments generated from the mining operation provides the tribes with more than $45 million in revenue, which equates to about 80 percent of the Hopi's budget and nearly 30 percent of the Navajo's annual general budget. Mining operations provide nearly 700 jobs. About 90 percent of the Black Mesa work force is American Indian, making Peabody one of the nation's largest private employers of tribal members. The company's payroll and benefits exceeded $51 million last year.

30 Black Mesa Mine was opened in 1970 and shipped 4.6 million tons of steam coal in 2002. The mine employed about 240 workers, sells coal under a long-term contract. Its coal is crushed and transported by conveyor to an independent company, the Black Mesa Pipeline Inc. There the coal is ground into a powder-like substance and mixed with water to form a coal-water mixture that flows through an underground pipeline 273 miles to the Mohave Generating Station near Laughlin, Nev.

Because of EPA regulations, the Mohave Generating Station near Laughlin, Nevada, closed its operations. As this power plant was the sole buyer of coal from Black Mesa Mine, it had to close its operation on January 1, 2006. Closure of this mine will definitely have very adverse economic impact not only on the 160 or so people laid-off from the mine, but also on the Navajo Nation coffers.

Kayenta Mine is adjacent to the Black Mesa Mine and began operating in 1973. The mine shipped 8.3 million tons of steam coal during 2002. The mine employs approximately 400 workers. The coal is crushed, then carried via conveyor 17 miles to storage silos, where it is loaded on an electric train and transported 83 miles to the Navajo Generating Station near Page, Ariz.

The Arizona mines are part of St. Louis-based Peabody Energy, the world's largest coal company. Its coal products fuel more than 9 percent of all U.S. electricity generation and more than 2 percent of worldwide electricity generation.

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CHAPTER IV ECONOMIC DEVELOPMENT STRATEGY

A. What is Economic Development?

Gunnar Myrdal, a noted economist and Nobel Prize laureate, defined economic development as (a) Creation of Employment Opportunities, (b) Increasing Per Capita Income, and (c) Reducing the Gap between Rich and Poor.

The Employment Act of 1946 states:

It is the continuing policy and responsibility of the Federal Government to use all practical means consistent with its needs and obligations and other essential considerations of national policy to coordinate and utilize all its plans, functions, and resources for the purpose of creating and maintaining, in a manner calculated to foster and promote free competitive enterprise and the general welfare conditions under which there will be afforded useful employment opportunities, including self-employment for those able, willing, and seeking to work, and to promote maximum employment, production and purchasing power.5

Lately, various high placed officials of the US Department of Interior have been defining economic development as “improving the quality of life thru employment opportunities.”

An editorial in the Arizona Republic of April 24, 2003 says – “Our stand: Creating more opportunities on reservation would truly honor Piestewa.” The same article further quotes the late Hebert Hubert Humphrey: “A job is the best social program in the world.” It paves the way for so much other progress, in health, housing, education and economic opportunity.6

Creating 100,000 employment opportunities by 2008 was the theme of the National Summit on Emerging Tribal Economies, which was held from September 16 thru September 19, 2002 in Phoenix, Arizona.

In all these statements and definitions, the importance of creating employment opportunities is quite loud and clear. None of the definitions or statements, for example, implies that the purpose of economic development is to improve the quality of life by giving people free per capita money from Gaming, or by providing them with welfare checks. All these statements and definitions talk about creating employment opportunities. No wonder, creation of employment opportunities is the top priority of all the leaders of the developed countries and many of the developing countries as well.

B. What Kind of Job?

Economists have divided job into the Economic base jobs and the Support jobs. Economic base jobs are created by the economic base enterprises which are those where the product or service being produced is sold outside the local economy. Enterprises in Manufacturing, Agriculture, Mining, and Tourism sectors are categorized as economic base enterprises. Of these Manufacturing is considered to be the most important. Support jobs are those associated with the local service and retail enterprises. When economic base jobs are being added to the economy, job choices increase, paychecks get bigger, and so on. It has been estimated that 1,500 economic base jobs create 2,500 local service retail jobs. In other words, if we create 1,500 economic base jobs, a total of 4,000 jobs are created. It has also been estimated that 4,000 jobs support a population of 10,000. Thus, it is easy to see that to support a population of 10,000, we must have 1,500 economic base jobs.7

The importance of base jobs for an economy is nicely summarized by one of the slides of the Statewide Economic Study commissioned by the Arizona Department of Economic Security which concludes that without a base industry a town turns into a ghost town.

Unfortunately, 'Basic Industries' are very few and far between on the Navajo Nation. Manufacturing, Agriculture and Mining accounted for 305, 202 and 1,405 jobs in 2004, which were 0.99%, 0.66%, and 4.57% of the total employment respectively (See Table No. 24). Among the 'basic industries', Manufacturing is considered to be the

32 most important, and usually employs a sizable portion of the labor force in a fast developing economy. Manufacturing has always been regard as pillar of economic strength, as it has a very large multiplier effect. According to reports from the National Association of Manufacturing (NAM) two thirds of our research and development capacity are concentrated in manufacturing, and that each dollar’s worth of manufactured goods creates an additional $1.43 of economic activity in other sectors, which is twice the $.71 multiplier for output in services. Additionally, manufacturing workers earned an average of $16.71 an hour in October, 2005.8 In the US, this sector accounted for 12.46% of the total employment in 2003. However, this figure for the Navajo Nation, as mentioned above, is less than 1 percent (See Table No. 24). Table No. 36 gives employment pattern of some of the developed countries. As can be seen from the table, Basic Industries accounted for 21.6% of total employment in the United States, 24.2% in Canada. 24.5% in Australia, 31.9% in Japan, 32.7% in Germany, 34.5% in Italy and 24.4% in Sweden.

C. Division’s Strategy:

Taking into consideration this paramount importance of a base industry to the economy, the current Shirley-Dayish administration is actively working towards recruiting base industries, and particularly the Manufacturing industries onto the Navajo Nation. As we all know, there exist a number of barriers to achieve this goal. We will discuss these barriers later. Nonetheless, the Division of Economic Development is committed to do everything possible under its power to achieve this goal. DED’s current priorities are industrial and tourism development (both of which fall under the base industry category), throughout the Navajo Nation. The main highlights of the Division’s of economic development plan are as follows:

1. Industrial Development: There are seven industrial plants in operation on the Navajo Nation. They are:

*Raytheon at the NAPI Industrial Park, * Ducommun Technologies, formerly known as MechTronics of Arizona in the Fort Defiance Industrial Park, *Tooh Dine’ Industry in the Leupp Industrial Park, *Southwest Cabinet at the Church Rock Industrial Park, and *Gallup Camper Sales, *Navsew in Montezuma Creek, and *BCDS Manufacturing in Shiprock.

Considering the paramount importance of Manufacturing, the Division is working on a number of projects, of which the important ones are listed below: a) Latex Glove Manufacturing Plant: The latex glove has the prospect of ever-expanding market in future. Because of bio-chemical terrorist threats, the usage of latex globe is expected to expand dramatically in the United States. The Division of Economic Development is working with a latex glove manufacturing company to expand its business onto the Navajo Nation. A few years ago, the staff of the Division as well as a consultant to the Division visited the company’s plant in Tecate, Mexico. Immediately afterwards, they including some members of the Economic Development Committee of the Navajo Nation Council, also visited the company’s Oregon plant. At the moment the Division is diligently working to bring this company onto the Navajo Nation. Our status as Hubzone and high possibility of acquiring 8(a) status, as well as DoD and other Federal, State and Local government agencies’ set asides, will be quite favorable to us.

On April 29, 2006, the Navajo Nation Council approved a legislation to provide $700,000.0 for the construction of a rubber glove manufacturing plant in Church Rock. b) Montezuma Creek Sewing Factory: A Tennessee Corporation named Omega Apparels entered into a contract with the US Department of Defense for sewing various uniforms for the Navy. NevaSew, a Montezuma Creek name, began operations in December 2003 with 14 Navajo employees sewing US Navy dress skirts in an abandoned factory on the Navajo Reservation in southeast Utah. A successful bid for a second government subcontract to produce Army combat uniform tops has allowed the firm to expand to more than 50 employees. It is projected that NavSew will inject $1.5 million in wages into the local economy each year, which definitely is a tremendous boost.

33 NavSew is committed to developing a business that is managed and operated by local people. We hope that this business will expand soon by getting contracts from various Federal and state agencies. c) BCDS Manufacturing Operation: BCDS Manufacturing, Inc. is a registered Navajo corporation that was founded and chartered in the Navajo Nation in 2003. Created through a partnership between the Navajo Nation Division of Economic Development and industry experts, it is located in Shiprock, NM at 200 Ayani Neez Blvd. NE. Some may remember this facility as the old wool marketing building.

A major renovation was completed in the spring of 2005 to the front of the building providing over 4500 sq. ft. of modern office space. Recently work is being done to complete the renovation of the remainder 25,200 sq. ft. of the building, which will house tools and equipments for fiberglass injection molding and metal fabrication projects. The manufacturing portion of the facility is called Navajo Industrial Development Center, or NIDC in short. Its capability includes fiberglass products manufactured through the state of the art Resin Transfer Mold (RTM) process. By creating a master mold the BCDS is able to produce almost any fiberglass item imaginable - efficiently and in large numbers. By the end of 2005, the BCDS manufacturing had been awarded a contract by the Federal government to manufacture 2700 hood components for military Humvees using this manufacturing technique. BCDS is currently in the process of completing this contract which is scheduled for the first part of 2006.

Metal fabrication facility is nearing its completion and should be in full swing soon. The production model is designed to efficiently manufacture a variety of flat bed trailers that will be sold across the western region of the United States. Although building trailers is the primary focus of metal manufacturing facility, the tools and machinery will give BCDS the ability to produce a wide variety of products involving metal fabrication. Combined with fiberglass capability, BCDS Manufacturing will have the potential to pursue a wide range of manufacturing opportunities both with private and government sectors. Currently BCDS has over 30 employees and is hoping to provide more opportunities for skilled tradesman in the near future.

{(The BCDS Manufacturing can be contacted at PO Box 1197, Shiprock, NM 87420. Tel: 505-368-4020. Fax: 505-368-2527. Website - www.nidcshiprock.com (currently under construction)} d) Bottling Water Project: The Bottled Water Project is another project the Division is working on diligently. A feasibility study for this project is almost complete and will determine the location and market of the project more precisely. Without the final study we expect this project to cost between $4.0 and $10.0 million, and create 65 jobs. The plant would be a high tech plant similar to one near San Bernardino in California. The proposed location is Winslow area.

A second proposal has come from Minnesota. This proposal has four phases. The first phase is to cost $1.2 million in which one bottling water plant will be established. In phase II, the plant will start producing ice. Phase III will develop a distribution program using vending machines, and phase IV will establish remote water purification plants

(e) Housing Panel Manufacturing: Advanced Building and Development LLC of Colorado produces housing panels. Houses constructed by using these panels are very energy efficient. The Division is working to establish one plant here on the Navajo Nation. The project is in very preliminary stage. To’hajiillee and Churchrock have been identified as possible sites.

(f) Indian Tribal Economic Alliance (ITEA): The ITEA consists of ten Indian tribes. ITEA generated $35.0 million in revenue from a contract from the DoD by digitizing DoD manuals and directories. The Division of Economic Development of the Navajo Nation is a new member of the ITEA.

2. Tourism Development: Tourism has the potential of generating a substantially large amount of income to the Navajo Nation and the Navajo people. However, for lack of a developed tourism industry, we have not been able to do so. Enormous number of visitors comes to the Navajo Nation. However, facilities to accommodate them are few and far between. As a result, we are not in a position to capture a substantial portion of the tourist dollars. For example, we have only thirteen motels with 970 rooms on the Navajo Nation, whereas a small city of Gallup, New Mexico has 32 lodging facilities. There are no RV parks, rest areas, or welcome centers on the Navajo Nation. Organized tours are few and far between. We do have some horseback tours and vehicle tours in certain areas like in Tuba City (dinosaur tracks), in the Kayenta/Monument Valley area, in Canyon de Chelly and in LeChee Chapter

34 area. However, there are no tours that equate to the Grand Circle Tour in the Southwest. Many tours are made possible, and generate substantial amount of revenues to the tour operators because of our culture, history, and land; but all these tour operators are from outside of the Navajo Nation.

To promote tourism on the Navajo Nation and to capture more of the tourist dollars, a number of projects have been planned. The major ones have been described below.

(1) Proposed Antelope Point Marina & Resort Project: Of the projects related to tourism development on the Navajo Nation, Antelope Point Marina and Resort Project has a special significance, as it is to be located at one of the most magnificent places on the Navajo land. This project has a very long history. This project was in the Priority Listing of the Overall Economic Development Plan of 1983-84, i.e. - some 22 years ago. Some say that this project was talked about as far back as in mid 60’s. However, it is only recently that some real development started taking place. In coordination with the , a public boat launch ramp was built in spring 1999, and a seasonal day-use recreational area is operational from May to October of the year.

The National Park Service and Navajo Nation entered into Concession Contract and Business Site Lease in January 2003 and September 2002 with Antelope Point Holdings, LLC of Paradise Valley, Arizona, as the developer and operator of the proposed Antelope Point Marina and Resort project. The Antelope Point Holdings, LLC has proposed to invest up to $75.0 million to develop marina and resort project. Facilities proposed at Antelope Point include diverse facilities and services, which will be developed in four phases from May 2003 to December 2006. Phase I – May 2003 to February 2004 includes marina with 300 leased boat slips; customer restrooms with showers and laundry facilities; covered fuel dock, dry boat storage; infrastructure, power, water, and effluent holding tanks; access roads and entry point for the site; parking for marina with trailer spaces; grading for future hotel parking; and grading for Marina boat launch ramp. Phase II – February 2004 to January 2005 includes public Marina with 225 slips including 120 slips for houseboat and powerboat rental and remaining 105 slips for courtesy and commercial services; Marina Village with full service restaurant, offices and public restrooms; tour boat operations; boat repair and maintenance building; and land based Convenience Store with parking and fuel and public restrooms. Phase III – August 2004 to February 2005 includes RV Park area with 150 spaces with power and water; campground area with 50 spaces; and addition to Convenience Store public restrooms with showers and laundry facilities. Phase IV – April 2005 to December 2006 includes 225 Resort casita units; infrastructure for resort with power, water and sewer; paving of hotel parking area; and Cultural Center and Artists Studios.

Due to continued draught in the states that feed the Colorado River, Antelope Point Holdings did not finish construction of all projects in Phase I outlined in the Business Site Lease. Low water level condition is causing delay on the proposed development schedules and scale of development. Despite of this situation, the developer was able to invest nearly $16.0 million in developing access roads, walkway to the marina with 80 wet boat slips, dry storage yard, fuel dock, launch ramp and boat repair shop, which opened for business in 2004. Currently the Antelope Point Marina employs 45 full time people in the off-season and around 100 during peak season. Additional 20 boat rental slips and water treatment plant are under construction now, construction documents reviews for development of Marina Village store and restaurant on water is on going. The remaining three phases will follow after the completion of Phase I projects.

(2) The Navajo Nation Scenic Byway Program: To promote tourism on the Navajo Nation, the Navajo Nation Scenic Byway Program was initiated some time ago. Dinetah Scenic Road N-12 begins at Lupton on Interstate 40 and continues to Tsaile. From there it continues west on N-64 into Chinle, Arizona. The road passes thru seven Chapters – Lupton, Oak Springs, St. Michaels, Ft. Defiance, Red Lake/Navajo, Tsaile/Wheatfields and Chinle.

The National Scenic Byway Program was created as a part of the Intermodal Surface Transportation Act of 1991, popularly known as ISTEA. This was the first piece of transportation legislation to provide programs and funds to do more than just building roads. The legislation enabled communities to seek funding to enhance the area adjacent to roads through such things as constructing picnic areas, protecting resources, or constructing wayside interpretive welcome centers and exhibits, and rest areas.

To be eligible for nomination under the National Scenic Byway Program, a route must first receive official designation under its state scenic byway program. Once this has been attained, the sponsoring group or agency can

35 nominate the byway either as a National Scenic Byway or as All-American Road. Both designation categories recognize the significance of the intrinsic qualities along the roadway. Designation as an All-American Road indicates that the road has not only regional but national significance and is a destination in itself.

It is the philosophy of the National Scenic Byway Program that byways are conceived by, shaped, and managed to serve the community or communities through which they pass.

On June 18, 1996, the Transportation & Community Development Committee (TCDC) of the Navajo Nation Council formally designated N-12 from Lutpton to Tsaile and then N–64 from Tsaile to Chinle its first Scenic Road, based on their unique and outstanding scenic, cultural, archeological, historic and recreational values. In May 2001, the road was renamed Dinetah (Among the People) Scenic Road. On June 15, 2001, the Arizona Department of Transportation (ADOT) Board, pursuant to Resolution No. 2001-06-047 designated N-12 and N-64 as a Scenic Road as defined in Arizona revised Section 41.512(2).

The designation by ADOT as a scenic road provides the Navajo Nation the opportunity to apply for Federal Highway Administration (FHWA) Scenic Byway Grants. The Navajo Nation Tourism Department submitted a Corridor Management Plan (CMP), and in July 2002 the Nation was awarded the CMP grant for a total amount of $156,000.00 - $123,200.0 from the Federal Highway Administration and $32,800.0 match from the Navajo Nation Fuel Excise Tax Revenue. The objectives of the CMP grant is to produce and implement a Comprehensive Management Plan for the Dinetah Scenic Road that will provide a comprehensive understanding of the route. The CMP will also incorporate the communities’ plans to preserve and enhance the road, and to prepare the road to be designated as All American Road.

Designation as an All American Road is very important. As indicated above, such a designation will change the Dinetah Scenic Road to a road of national significance and will be a destination in itself. The designation will also provide $25,000.0 annually to maintain and protect the intrinsic qualities along the route. The local people will also benefit from the ROAD as they can start small scale businesses, e.g., Bread and Breakfast, sale of Navajo jewelries, Tour Guide services, and so on. The Department of Tourism has already submitted the proposal to the Arizona Department of Transportation. All American Road designation is expected to occur in 2007.

The Navajo Tourism Development Department is taking the lead in the Dinetah Scenic Byway development and has established the Navajo Nation Scenic Byway Steering Committee to insure the success of the project.

3. Commercial & Real Estate Development: Office and retail space development has been initiated by Chuska/Sahara, using private financing and using the BIA loan guarantee program at various sites. The sites are:

*Tuba City Office and Retail Complex (42,000 sq. ft.) - This site project is complete now, *Kayenta Office and Retail Complex, *Shiprock Office and Retail Complex, *Dilkon Office and Retail Complex, *Fort Defiance Office and Retail Complex - The developer has already initiated discussion the Fort Defiance Chapter officials), and *Crownpoint Office and Retail Complex - The developer will be talking with Crownpoint Chapter officials shortly.

Table No. 19 presents the Project Priority Listing of the Division.

D. Revisions to the Business Site Lease Regulations: Business Site Leasing is a very cumbersome process on the Navajo Nation. It takes a long time to get a business site lease on the Navajo Nation. Both the Navajo Nation and the Bureau of Indian Affairs are involved in granting a business site lease to a prospective business person. However, it is the Bureau of Indian Affairs (Secretary of Interior) which has the final authority to award a lease to operate a business on the Navajo land. The process has been described later in the document.

It is believed that the involvement of BIA in granting a business site lease has exacerbated the process. To ease this process, the Navajo Nation decided to sideline the BIA from the process, and be only the second tribe - after Tulalip reservation in the state of Washington, to take over the business site leasing process in its own hands. After a lot of

36 internal discussions and hearings, a request was made to the United States Congress to pass a law which will eliminate BIA from the process. Subsequently, the Navajo Nation Trust Land Leasing Act of 2000 - 25 USC §145(e) was passed by the United States congress and signed into law by the then president Bill Clinton. Following the passage of the law, the secretary of interior requested the Navajo Nation to develop business site regulations. The Navajo Nation developed the regulations and submitted the document to the Department of Interior in August 2005. Both these entities are ironing out the differences at the moment. The regulations also call for a Business Site Leasing Management Plan.

E. Implementation of the Local Governance Act: The historic legislation, the Local Governance Act (LGA), has granted our chapters, among other things, similar authorities that off-reservation municipalities now have. For example, this act allows the chapters to develop local governments, to do their own land-use planning, and also gives the authority of business site lease approvals, zoning, taxation, revenue generation, bonding, ordinance development, infrastructure development and so on. The potential economic impact of this legislation is quite significant, as worldwide experience demonstrates the wisdom of granting local governments the tools to effectively address their problems and respond to opportunities. The Kayenta Township, long a pilot project for local governance, is a model of this potential. Shonto became the first Chapter to be certified under the LGA. So far some more Chapters have been certified under the LGA. These Chapters are: Nahata Dziil, Steamboat, New Comb and Tuba City.

F. Financing Opportunities for Small Business and Economic Infrastructure: The Navajo Nation has also initiated the development of Navajo Nation banking services to meet the needs of Navajo businesses and citizens. We are currently exploring many options and will proceed with the most prudent and viable banking development. Options include: co-opting the Norwest Bank, enabling the Nation to purchase its assets, including savings accounts and equity, located on the reservation. Services that are cost efficient on a large-scale basis can be maintained by Norwest Bank. This would allow the Navajo Nation to develop a banking corporate brand name and provide vital banking services. Products such as mortgages, credit cards, IRAs, and others would be provided.

G. Creation of Navajo Venture Capital Investment Services: The Division of Economic Development has proceeded to create such services in the near future. A Navajo venture capital firm would be created in private sector. The firm would be managed by a qualified management team, and would provide several million dollars of investment annually to serious Navajo entrepreneurs. The venture capital service will provide necessary assistance to the entrepreneurs in planning, and will significantly increase their chances of success. As a result of the private nature of the business, the management team would be highly qualified and would have incentive to truly help businesses succeed, as they would get a share of the return on investment.

The lack of infrastructure continues to be a major challenge for the development of the Navajo economy. Fortunately, in a time when Navajo Nation revenues are limited, the Navajo Nation and the 110 chapters have the tool of bond financing. Chapters were authorized through the Local Governance Act to generate revenue through a community bond process for purposes such as infrastructure development projects. Bonding creates an opportunity for chapters that have a secure revenue stream, e.g., from a local tax, to make immediate impact. Model bond ordinances are being developed to help chapters benefit from this important authority. The Division of Economic Development is creating a plan for tax-exempt bond financing using the tax revenue stream from the Fuel Excise Tax enacted a while ago to create vital infrastructure for economic development.

H. Comprehensive Land Use Planning: The ability of a government to control land thru a comprehensive land use planning is a necessity for sound economic development. The Local Governance Act requires chapters to develop a community-based comprehensive land use plan before they can exercise their authorities over business and homesite lease approval, and zoning ordinances. The benefits of a comprehensive land use plan include fostering housing and business development by establishing infrastructure, such as, sewer and water; identifying areas for preservation; and delineating suitable land for commercial, industrial, residential, and recreational uses. A land use plan also serves as a basis for many ordinances such as for housing development and architectural standards for commercial buildings. The zoning ordinance can set the operational rules of where and how business is to be conducted and would ensure that a chapter’s economy grows over time in ways that are complimentary to the chapter’s expectations.

37 Land use planning is complete for most of the Chapters. The cost of land use planning per Chapter ranges between 30 and 40 thousand dollars, and is financed by a grant from the HUD under NAHASDA.

38 #################################################### CHAPTER V ACCOMPLISHMENTS, ECONOMIC DEVELOPMENT POTENTIALS AND CONSTRAINTS

1. ACCOMPLISHMENTS

Unemployment Rate, Inflation Rate, Growth Rate and Balance of Payments are the four measures of Economic performance of a nation. Of these four measures, the Navajo Nation does not and cannot have any control over the Inflation Rate or the national Balance of Payments. So, only things we can have some control over is the Unemployment Rate on the Navajo Nation and the Growth Rate of the Navajo economy. We may add one more category to the conventional measures of Economic performance of a nation, namely the Poverty Rate.

The Support Services Department of the Division of Economic Development conducts a survey annually to measure the status of the Navajo economy in terms of Unemployment Rate and Per Capita Income. The latest survey conducted was for December 31st of the year 2004. The results of the survey were described earlier. Table No. 23 provides figures for Per Capita Income and Unemployment Rates for a number of years.

Major Accomplishment: Developing the Navajo economy is a hard stone to grind. Even the President of the Navajo Nation, Joe Shirley acknowledged this bitter truth that there is no economic development on the Navajo Nation.25

Nonetheless, the important accomplishments of the Division, in the last few of years, have been described below:

A. Dilkon Shopping Center: In 1994, Dilkon Chapter withdrew 10 acres of land that was designated as a commercial area. Subsequently, the Division of Economic Development funded a market feasibility study to determine the economic needs of the primary and secondary market areas. The initial infrastructure was developed in 1999-2000, with the Navajo Nation investing approximately $1.0 million to prepare the 10-acre site for construction of the commercial center.

Dilkon Shopping Center is a 26,000 square foot commercial building that has five tenants and two vacant lease areas. Construction of the center began in October 2001 and was completed in 9 months. The anchor tenant is Basha’s Dine’ Markets and is owned by Basha’s Corporation of Chandler, AZ. The store provided 46 new jobs and they received over 400 employment applications. Pizza Edge, owned by Mr. Larry Justice of Tuba City, AZ provides a variety of pizza and ice cream, a sit down area and drive-up service. The fast-food restaurant created 10 new jobs. Golden Shears Hair Salon is owned by Ms. Esther Yazzie from Tuba City, AZ. The hair salon provides similar services you would receive from nearby border towns. The salon will provide 5 jobs. Hollywood AZ Video is operated by Mr. Mike Vandermale of Page, AZ. The 3,000 square foot video store has provided 6 new jobs. Redd Laundromat is owned by Shawn & Tom Redd of Shiprock, NM. The 3,000 square foot laundromat is a popular place since there is no local laundry in the area. The laundry will provide 4 new jobs. The total construction cost is $4.0 million. In October, 2000, the Navajo Nation was awarded a Public Works Grant in the amount of $2,500,000 from the U. S. Department of Commerce Economic Development Administration-Seattle Regional Office. Other funding sources include: Navajo Nation Division of Economic Development and Navajo Nation Shopping Center Management Program.

Following are the impacts of the project:

(1) Provide employment. A total of 70 new jobs are provided by the new center. Over 250 temporary jobs were provided during Phase I and Phase II of the construction of the project with the majority of construction completed by Navajo workers. (2) Provide direct retail service to local consumers. (3) Develop an economic base for the community and surrounding areas. (4) Stop a portion of leakage of Navajo dollars to nearby border towns. (5) Provide the opportunity for Navajo and Non-Navajos to go into business. (6) Generate revenue.

39 The Project is a continuation of the Navajo Nation’s economic development strategy to develop commercial centers for major growth and secondary growth centers. Dilkon, AZ is considered a secondary growth center. The market area includes communities within the southwest region of the Navajo Nation.

Dilkon Shopping Center is the 10th shopping center developed on the Navajo Nation. The other shopping centers are located at Tuba City, Kayenta, Shiprock, Pine Hill, Pinon, Navajo, NM, Window Rock, Crownpoint and St. Michaels. Over the years, the shopping centers have been developed as a joint effort between the Navajo Nation Division of Economic Development and the Navajo Nation Shopping Center Management.

In September 2002, the project was recognized by the U.S. Department of Commerce-Economic Development Administration for achievement in business development at their annual conference in San Diego, California.

The project team consists of the following:

Developer: Navajo Nation Division of Economic Development Project Development Department

Architect: David N. Sloan & Associates Albuquerque, New Mexico

Contractor: Arviso-Okland Construction Company, Inc. Tempe, Arizona

Management: Navajo Nation Shopping Centers.

B. Montezuma Creek NavaSew: The Montezuma Creek Navasew started its operations in December 2003 with only 14 Navajo employees sewing US Navy dress skirts in an abandoned factory on the Navajo Reservation in southeast Utah. By December 2005, it had expanded to 50 employees. This expansion was possible thanks to a successful bid for a second government subcontract to produce Army combat uniform tops. It is projected that NavaSew will inject $1.5 million in wages into the local economy each year, which definitely is a tremendous boost to the local economy. One remarkable characteristics of NavaSew is that it is managed and operated by the local people.

Additionally, Denny’s restaurant in St. Michaels created another 80 permanent jobs in 2003. An additional 286 temporary or construction jobs were created at various locales on the Navajo Nation during 2003.

184 new permanent jobs, as well as 144 construction or temporary jobs were created during 2004. These jobs were mainly created by the Shiprock Subway, Shiprock Navajo Ace Home Center, Tuba City Sonic Drive-in restaurant, Montezuma Creek NavaSew, Carvesa’s Car Wash in Tuba City, Nations Gas Technologies in Navajo, NM, Shiprock’s Nizhoni Smiles, Shiprock’s Rezrock Café and BCDS in Shiprock.

C. Karigan Child Care Center: In 1994, the Navajo Nation purchased 113 acres of private land known as Karigan Estates. The Navajo Nation Division of Economic Development was responsible to develop Karigan Estates. The overall master plan of development included: housing, office building complex, a restaurant, a commercial area and a day care center.

Karigan Child Care Center is a 15,000 square foot building that can accommodate upto 170 children. The center has 16 classrooms, three learning centers, a large cafeteria, a kitchen, a laundry room, few administration rooms, is fully furnished, and consists of three playground areas.

The project costs $3.0 million and was primarily funded by the Department of Health & Human Services, Administration for Children & Families through a grant awarded to the Navajo Nation Division of Social Services. Other funding sources included the Navajo Nation Division of Economic Development.

40 The intent of the development of Karigan Child Care Center is to provide a unique center that will accommodate to the critical need for childcare services. The center has unique characteristics within the interior and exterior designs of the building that are derived from Navajo cultural concepts and relate to the development of children.

The project began construction on June 5, 2000 and was completed on September 30, 2001.

Following are the impacts of this project:

1) Employment – The center provides approximately 30 new jobs and provided over 250 temporary construction jobs. All jobs were performed primarily by Navajo people.

2) The Center provides child-care services to approximately 170 children - from infants to school-children during and after school program. The populated age groups are the toddlers ranging from 2-4 year olds.

3) The Center Generates revenue for the Navajo Nation coffers.

The project team consisted of:

DEVELOPER: Project Development Department Division of Economic Development

FUNDING SOUCE: Administration for Children & Families Department of Health & Human Services San Francisco, CA

ARCHITECT: Weller Architects Albuquerque, New Mexico

CONTRACTOR: Arviso Construction Company, Inc. Fort Wingate, New Mexico

D. Karigan Professional Building Complex: A two-story office building of 28,646 square feet was constructed on 2.28 acres of land within the Karigan Estates at St. Michaels, Arizona. The project includes a structure of steel frame, concrete foundation, stucco, exterior/interior finish, aluminum window units, single ply roof system, plumbing and HVAC system, utilities, asphalt pavement, concrete curbs/sidewalk, landscaping and office furnishing. The complex was constructed in compliance with current building and fire codes.

Developer: The Navajo Nation; Division of Economic Development, Project Management by: the Project Development Department Architect: Weller Architects, P.C. of Albuquerque, NM Contractor: Chuska Development Corporation, Tohatchi, NM (Navajo owned) Cost: $3,900,000.00 ( Funding is an investment of Navajo Nation funds) Construction Period: May 2001 – July, 2002.

Tenants: Upper Level: Division of Economic Development comprises of five departments—Administration Office, Support Services, Small Business Development, Tourism, Business Regulatory and Project Development.

Lower Level: Fort Defiance Regional Business Development Office, the Office of Navajo Tax Commission, the Navajo Gaming Regulatory Office.

The Navajo Nation Council, by Resolution, approved the purchase of 113 acres of land known as the Karigan Property and directed the Division of Economic to prepare a master plan and develop the property for the benefit of the Navajo Nation. The property has high potential for commercial and residential development. The Master Plan was completed and the Infrastructure Development project, the Karigan Child Care Center and the Karigan

41 Professional Office Complex have been completed. A number of houses has cropped all across the property, and a number of new houses are under construction. This project has definitely created a number of jobs for the Navajo people.

The Receipts generated through rental of office space in the Office Complex reverts to the Business Industrial Development Fund (BIDF). The BIDF is a loan program of the Navajo Division of Economic Development.

E. BCDS Manufacturing Operation: BCDS Manufacturing, Inc. is a registered Navajo corporation that was founded and chartered in the Navajo Nation in 2003. Created through a partnership between the Navajo Nation Division of Economic Development and industry experts, it is located in Shiprock, NM at 200 Ayani Neez Blvd. NE. Some may remember this facility as the old wool marketing building.

A major renovation was completed in the spring of 2005 to the front of the building providing over 4500 sq. ft. of modern office space. Recently we have been working to complete the renovation of the remainder 25,200 sq. ft. of the building, which will house tools and equipments for fiberglass injection molding and metal fabrication projects. The manufacturing portion of the facility is called Navajo Industrial Development Center or NIDC in short. Our capability includes fiberglass products manufactured through the state of the art Resin Transfer Mold (RTM) process. By creating a master mold we are able to produce almost any fiberglass item imaginable efficiently and in large numbers. By the end of 2005, the BCDS manufacturing had been awarded a contract by the Federal government to manufacture 2700 hood components for military Humvees using this manufacturing technique. We are currently in the process of completing this contract which is scheduled for the first part of 2006.

Our metal fabrication facility is nearing its completion and should be in full swing soon. Our production model is designed to efficiently manufacture a variety of flat bed trailers that will be sold across the western region of the United States. Although building trailers is the primary focus of our metal manufacturing facility, our tools and machinery will give us the ability to produce a wide variety of products involving metal fabrication. Combined with our fiberglass capability, BCDS Manufacturing will have the potential to pursue a wide range of manufacturing opportunities both with private and government sectors. Currently we have over 30 employees and are hoping to provide more opportunities for skilled tradesman in the near future.

{(The BCDS Manufacturing can be contacted at PO Box 1197, Shiprock, NM 87420. Tel: 505-368-4020. Fax: 505-368-2527. Website - www.nidcshiprock.com (currently under construction)}

F. Industrial Development Projects

Fort Defiance Industrial Park

• A Master Lease between the Navajo Nation and Apache County for 4.77 acres in the Fort Defiance Industrial Park was approved in January 2004. The purpose of this lease is to create a District II sub-office for the maintenance of school bus routes and other county roads in Apache County.

• Lease renewal negotiations have been completed in October 2005 by the Department with Ducommun Technologies, Incorporated, formally know as MechTronics of Arizona. An agreement to renew their business site lease to occupy a 55,900 square foot industrial building on a 10 acre parcel with in the Fort Defiance Industrial Park.

Church Rock Industrial Park

• The department has completed lease negotiations with Cabinets Southwest, Inc. (CSW) in renewing its lease with the Navajo Nation in July 2005. Cabinets Southwest manufactures and sells residential cabinets for the housing industry. The renewal term of this lease is for another ten (10) years. Cabinets Southwest has been a tenant of the Church Rock Industrial Park since 1998 in a 72,500 square foot facility on 13.097 acres.

• The Department was successful in receiving $150,000 from the New Mexico State Legislature. An award letter was sent by the New Mexico Indian Affairs Department for construction of infrastructure for Lot 5 in

42 preparation of the Rubber Gloves manufacturing facility. The Business and Industrial Development Fund will contribute $100,000 for this infrastructure development. The Department will process a scope of work to New Mexico and begin the process of approvals by the Navajo Nation to accept funds.

• As directed by the DED Administration, the Department sought the sponsorship for legislation for $700,000 from the Undesignated Reserves appropriation for the Rubber Gloves project. The legislation was approved by the Economic Development Committee in July, by the Budget and Finance Committee in August and by the Ethics and Rules in September of 2005. During this exercise of committee approvals, the Department learned that the Undesignated Reserves balance is only $170,000. This legislation will be on the Spring Session’s agenda of the NNC which will convene on April 17, 2006.

NAPI Industrial Park

• Upland Desert Popcorn Incorporated opened their facilities in May 2004 in the NAPI Industrial Park with an employment of 10 people.

• Raytheon Missile Systems renewed their business site lease in the NAPI Industrial Park in July 2004 for another five years. They currently occupy a 38,000 square foot facility on a 25 acre parcel. Raytheon has informed the Navajo Nation with a letter of intent to expand their facility by 10,000 square feet to current tribal building F001-039 (38,000 SF) at the NAPI Industrial Park just south of Farmington, New Mexico. This expansion is due to the increase contract work at Raytheon and to accommodate for more work space and storage space. Manufacturing work consists of building various components and wiring for the U. S. Department of Defense.

Chinle Industrial Park

• A business site lease renewal for the White Mesa Materials, Inc. is was approved in July 2005. White Mesa Materials, Inc. is engaged in production and delivery of sand and mineral aggregate (mixed concrete). This renewal is for twenty (20) years for .96 acres within the Chinle Industrial Park

Shiprock Industrial Park

• BCDS Manufacturing Corporation’s business site lease was approved by the BIA on June 20, 2005 for its occupation of the former Wool Warehouse. BCDS, Inc currently employs five (10) people. This is a metal fabrication facility seeking federal contracting opportunities with: Defense Supply Center, Tank/Automotive Command, Warner Robins Air Force Base, Army Material Command and the Air Force Army Command.

Fort Wingate Land Transfer

• The Navajo Nation’s MOU Team has met on two occasions in 2005 on land allocation of the military installation consisting of over 22,000 acres. • The Department participated in the RCRA permit meetings with the New Mexico Environmental Department (NMED), the U. S. Army, the U. S. Department of Interior, EPA Region 6, the Pueblo of Zuni and the BIA. The final permit was completed in July 2005. The permit was issued on August 29, 2005. • The MOU Team sponsored a public meeting for Navajo Nation stakeholders on October 7, 2005 with Navajo Chapters and Navajo Nation Departments about the clean-up activities that the U. S. Army will conduct via the RCRA permit.

Economic Development Administration Grant Award

• The Department received a grant award of $76,992 for industrial development planning and for administrative expenses from the Economic Development Administration within the U. S. Department of Commerce.

43 State of New Mexico Economic Development Award

• At the 2005 Governor’s Summit for Economic Development in Farmington, New Mexico, the Department received 1st place in the Technology Based Category for their web site. The site is as the following address: www.navajoadvantage.com

Future Tenants:

Church Rock Industrial Park: Navajo Agricultural Products Industrial (NAPI) Rail Development Office and Thompson’s Mini Market, Service Station and Laundromat and Navajo Safety Products, Inc.

Navajo Forestry Products Industry (NFPI) Industrial Park: Clear Choice Water Systems may relocate here in near future.

Fort Defiance Industrial Park: Heavy Equipment Yard and Maintenance Warehouse of the Navajo Housing Authority will relocate here in near future.

Other Projects

Fort Wingate Land Transfer Project: Transfer of the Parcels 1, 15 & 17 of the former Fort Wingate Depot Activity to the Bureau of Indian Affairs for the benefit of the Navajo Nation and the Pueblo of Zuni was completed.

G. White Cone Store

The community of White Cone, Arizona, located in the southwestern area of the Navajo Nation, approximately 50 miles north of Interstate 25 and Holbrook, Arizona continues to grow in terms of development and population.

The grand opening of White Cone High School for the 2005/2006 school year made history for the small community. This is the first high school ever for the White Cone area. Future housing development, a multi-purpose facility and plans for an elderly home are all part of a growing environment for the southwest community.

In order to accommodate the growth and demand for basic goods and services, such as gasoline, propane, fresh produce, groceries, an eating establishment, post office and laundry services, the chapter withdrew a 4.0 tract of land for future business development.

White Cone Store, approximately 5,000 square feet in size, will be located near the White Cone Chapter House. The business site lease tract is located at the southwest corner of the intersection of Arizona State Road 77 and the street leading into the Navajo Housing Authority (NHA) Subdivision.

The Project Development Department of the Division of Economic Development took the lead to secure Giant Industries, Inc. to develop a gas station, laundry, small post office and convenience store with a sit-down eating area. The community is targeted as a rural Navajo Nation community that indicates growth potential. Market information also indicates a demand for retail operations to accommodate the traffic flow from Keams Canyon to Holbrook, Arizona.

The main objectives of the project are to provide basic retail goods and services to a growing community, provide employment, generate revenue, and establish an economic base. A total of 50 construction and 15 permanent jobs are anticipated from this project. In addition, the Navajo Nation will benefit by receiving business site lease revenues and Navajo Nation sales taxes.

The project is in two phases: Phase I that included site development was completed in February, 2005. The work included construction of access to the 4.0 business site lease tract, earthwork for parking lot, business site pads and drainage structures and construction of sewer lines. Phase II consists of architect/engineering of the store and construction.

44 The Navajo Nation and Giant Industries, Inc. have projected to complete the construction by March, 2006. A feasibility study, all necessary clearances, a business site lease and development funds have been completed and secured. The community and White Cone Chapter officials have been very supportive of the project. The ground- breaking ceremony took place on February 28, 2006.

2. POTENTIALS

A. Natural Resources:

The Navajo Nation is very rich in natural resources - land, forests, minerals, and water being the important ones. The Nation has over 17 million acres of land and holds 523,000 acres of Ponderosa pine and Douglas fir, as well as 4.5 million acres of Pinon pine and Juniper. However, it is the Coal reserves, and those of Oil and Gas, which are paramount for the economy of the Navajo Nation. The reservation is estimated to hold up to 40 million tons of uranium, 4 billion tons of coal and millions of barrels of oil.9 The Nation also holds substantial reserves of copper, fractured sand, helium, gypsum, clay, sand, and gravel.

Water is another very important natural resource the Navajo Nation possesses. Water is “Liquid Gold” as declared by the Governors of Arizona and New Mexico a short time ago.

Most of the Navajo Nation is located within two major river basins, the San Juan and Little Colorado, which are part of the larger Colorado River Basin. A small part of the eastern main reservation, a part of Ramah, and all of Alamo and Canoncito reservations are located within the Rio Grande Basin. A part of the northwestern Navajo Nation is in the main stem Colorado River Basin. The Big Baquillas Ranch is located in both the Gila River and the Verde River Basins.

These basins hold enormous amounts of water. However, it is only now that the water right issues have begun to be discussed seriously on the Navajo Nation. It is becoming increasingly obvious that water, and control over it, may become a very important source of revenue to the Navajo Nation. The enormous economic value of water was made evident to even the most uninformed observers when, in 2001, the farm and infra-structure of the Navajo Agricultural Products Industry (NAPI) were valued by appraisers at approximately one billion dollars, while the contract water that the Secretary of the Interior supplies to the NAPI farm was valued by the same appraisers at as much as 4.2 billion dollars. Only recently, we started marketing our pristine water of N-Aquifer to the Peabody Coal Company at some reasonable rate. Still, we do not charge any money to Navajo Generating Station located in Page for the 34,100 acre foot of water they use annually. A reasonable lease price of $250.0 per acre-foot will bring $8.5 million annually to the Navajo Nation coffers.

Water development, water marketing/leasing, water rights activities, and water use conflicts are rising throughout the West. For example, in 2002, the proposed water rights settlement for the Gila River Indian Community, south of Phoenix, was announced in the regional media. That tribe is planning to receive rights to just over 650,000 acre-feet of water (or 1.3 billion dollars worth of water rights, based on reasonable regional price of 2002). In addition, the tribe is also supposed to receive $400.0 million worth of settlement and subsidy money to aid in community infrastructure development and water distribution.

Right here the Zuni tribe also got water settlement only recently, which will provide the pueblo members with $19.0 million to buy water rights and enable them to restore a wetlands area in eastern Arizona they call Zuni Heaven. The Zuni settlement resolves a quarter-century of disputes that had resulted in lawsuits over water rights dating back to 1979.10

While other government, corporate, and private interests have been extensively involved in acquiring and developing water resources on a large scale in the Southwest for many decades, the Navajo Nation is only now beginning to take its first substantive steps toward asserting its own interests on a sale comparable to some of its water competitors.

B. Tourism:

45 The Tourism industry has great development potential on the Navajo Nation. The Nation is full of scenic and historic wonders. Its spectacular scenery - Monument Valley, Canyon de Chelly, Chaco Canyon, to name just a few – attracted over 2.5 million tourists in 2004. Additionally, over 6.7 million tourists visited the tourist attraction sites in close vicinity to the Navajo Nation. (See Table No. 28).

The economic impact of visitor spending on the Navajo Nation (direct, indirect and induced) totaled more than $100.0 million in 2002. Summer season produced the highest level of visitor spending at $35.0 million; Spring visitor spending was second at $25.0 million: Fall produced $22.0 million; and the Winter season produced approximately $19.0 million.11

It is widely believed that tourism can generate a substantially larger amount of income to the Navajo people. However, for lack of a developed tourism industry, we have not been able to do so. For example, there are only 13 lodging facilities on the Navajo Nation with a total of 970 rooms, whereas a small town of Gallup has 33. Consequently, after spending all day on the Navajo Nation, tourists drive off to the border towns to spend the night taking the tourist dollars with them. Similarly, there are many skilled Navajo craftsmen, who are world-renowned for their high quality silver work and weaving. However, for lack of appropriate retail outlets for their wonderful works, these crafts people are unable to sell their products to the tourists, and end up selling them to the scrupulous traders in the border towns, who in turn sell the same stuff to the tourists at exorbitant prices. Thus, the Navajo craftsmen as well as the tourists - both end up being losers. We have a large number of tourists visiting the Navajo Nation, but we capture a very small amount of tourist dollars.

C. Lower Taxation:

Generally speaking, taxation on the Navajo Nation is lower in comparison to other places in the United States. This is particularly true for businesses which are newly established or which have expanded their operation onto the Navajo Nation. There are a number of tax incentives currently in place.

(1) Federal: President Clinton signed into law the "Indian Investment and Employment Tax Incentives - Omnibus Budget Reconciliation Act of 1993,” popularly known as Omnibus Package. This law provides two types of tax incentives to the companies, which either relocate or expand their businesses onto an Indian reservation.

§13321 of the law allows for faster depreciation of machinery and equipment if used on an Indian reservation. Usually, many types of machinery are depreciable over seven years; however, under the Act, such property used on an Indian reservation would be depreciable over only four years. It is intended to reduce the investor's "cost" of capital by allowing the investor to receive the resulting tax savings sooner.

§13322 of the Act establishes an "Indian Employment Credit." This incentive will generally provide private sector employers a 20% credit against income tax liability for the first $20,000 of wages and benefits paid to an Indian worker.

Both of these federal tax incentives are available to businesses for a 10-year period beginning January 1, 1994, and have helped quite a few businesses on various Indian reservations.

This Act is up for reauthorization. It is expected that the Act will be reauthorized for another 10 years, which will give us an opportunity to recruit base industries.

(2) State of Arizona: In 1989, Arizona House and Senate adopted the Arizona Enterprise Zone Program and designated Navajo and Apache counties as enterprise zones. Thus, portions of the Navajo Nation, which are located within Apache and Navajo counties, qualify for the incentives. Incentives include state income tax and state property tax credits for any businesses operating in any of the enterprise zones. Non-Navajo businesses may qualify for state income tax credits. Because the state does not tax property and tribal member income on the reservation, the state-tax benefits will have no effect on tribal members.

(3) State of New Mexico: New Mexico has passed a law to give state tax credit to the Manufacturing companies against any taxes paid by such companies to an Indian tribe.

46 (4) Navajo Nation: The Nation does not tax corporate income, inventories, and personal income. Also, the Nation does not have property or unemployment tax, however, these may change.

D. BIDF & MELP:

NAVAJO NATION BUSINESS & INDUSTRIAL DEVELOPMENT FUND (BIDF):

In 1987 the Navajo Nation Council established the Navajo Nation Business & Industrial Development Fund (BIDF) to provide a source of funds for commercial, industrial and tourism projects and to provide loans for 100% Navajo owned small businesses. At the time, and it is still true today, there was a serious lack of investment capital and lending capital available to would-be entrepreneurs and existing Navajo-owned businesses operating on the Navajo Nation.

The BIDF was initially funded with a $15.0 million contribution from Tribal General Funds in 1988 and, although there have been a few relatively minor contributions made by the Council over the years, the initial contribution was the only significant one made. The Fund operates under an overall Plan of Operation spelled out in Section 1701 of the Navajo Nation Code. Loans and investments are made pursuant to specific guidelines approved by the Economic Development Committee and modified from time-to-time as changing conditions and experience suggest. The Division of Economic Development administers the Fund in cooperation with the Division of Finance, which provides the official accounting and collections efforts. The BIDF is audited each year as part of the overall tribal government independent audit.

As of June 30, 2005, the BIDF had provided a total of $51,320,568 in funds for large project loans and investments, small business loans and micro-enterprise loans. The projects include shopping centers located in the major and secondary growth centers throughout the Navajo Nation; industrial projects, such as the Raytheon plant located on Navajo Agricultural Products Industry (NAPI); tourism projects, such as the Antelope Point Resort and Marina project; and scores of individually Navajo-owned small businesses located across the Nation. Although there have been some less than successful loans and investments over time, the successful projects greatly outweigh the ones that are not. For example, the Navajo Nation Oil & Gas Company was initially capitalized by the BIDF and, today, the net worth of the Company alone substantially exceeds any and all losses of the BIDF in other projects.

Today, the BIDF is fiscally healthy and viable and has funds available for small business loans and other worthwhile projects. The BIDF rarely provides the entire capital required for a project. Capital from other viable sources is always encouraged and when all sources have been exhausted, the BIDF will often step in and cover the shortfall. BIDF goals include: provide loans and investments that cannot otherwise be obtained, spread the risk by investing small amounts, relative to the size of the BIDF, in several diverse projects, seek a reasonable return on investment and support those projects that create new Navajo jobs.

The Small Business Loan Program under the BIDF provides low interest rate loans ranging from $10,000 to $150,000 to small Navajo businessmen for business start-ups and expansion.

Since its inception, the BIDF and the Small Business Loan Program have funded a total of 33 commercial, industrial and tourism projects, and 99 small business projects with funding amounts totaling $13.9 million and $6.8 million respectively. Additionally, Micro-Enterprise loans have been made available to 90 Navajo individuals.

Lending activities of the BIDF have been presented in Table No. 37.

E. Low Operational Cost:

Operational cost of doing business on the Navajo Nation is relatively lower. Labor cost, the cost of building rental, and the cost of utilities are far lower here than in a metropolitan area. Table No. 38 compares the labor cost on the Navajo Nation with that in some of the metropolitan areas of the United States.

F. Closeness to Markets:

47 Closeness to market is another factor, which can boost the economic development potential of the Navajo Nation. Santa Fe railroad and Interstate 40 lie just on the southern border of the reservation. They provide excellent access to the markets in the southwestern US as well as nationwide.

G. Gaming:

The Navajo Nation Council approved gaming three times and every time, the then President of the Navajo Nation vetoed the resolution recommending for a referendum on the issue. Two times gaming referendum was defeated. The third time around, the gaming was approved. The results of all the three referendums have been presented in table No. 16. After the passage of the referendum, a number of Chapters have already passed resolutions to establish gaming operations within their Chapter boundaries.

The Tohajiilee Chapter started working on it even before the third referendum. It has already signed compacts with the State of New Mexico and with the Federal Government. In 2003, the Chapter already had had the ground- breaking ceremony for a 100,000 square-foot Casino. However, because of problems related to access to the prospective casino site, nothing much has happened. Lately, it looks increasingly likely that some another Chapter may start gaming operation even before Tohajiilee.

H. Alcohol:

Natives American were prohibited by federal law from drinking from 1832 until the repeal of the law in 1953 with the passage of P. L. 83-277, which gave each tribe the authority to legalize and regulate alcohol use on their reservations if they so chose. The Navajo Nation opted to stay dry.

In 1993, the Division of Economic Development conducted a study on legalizing alcohol. The study found that legalizing sale and consumption of alcohol would create 4,344 new jobs, and would bring a substantial amount of revenue to the Nation's coffers. Contrary to popular belief, studies have also found that legalizing alcohol actually helps reduce its abuse. For example, a study conducted by Philip May found that “the overall effect of legalization on alcohol on a reservation is a lower rate of alcohol related deaths than on a similar prohibition reservation.”12

Consumption or sale of alcoholic beverages is not something to be advocated. However, over a century of experience has showed us that the Navajo Government has not been able to control either the sale or consumption of alcohol by the Navajo people. With all the 'wet' border towns around the Nation, it seems very unlikely that we can stop or even curtail the consumption of liquor by some of the Navajo people. With ever declining budget of the Navajo Government, it also seems unlikely that we will be able to control the activities of the bootleggers. Thus, liquor issue, however undesirable it may be, is not something over which we have or may have any control. It is only through proper education and more importantly thru creation of employment opportunities that we can curtail the abuse of alcohol by some Navajo people. All that requires money: And legalization of alcohol does have potential to provide us with that. On the other hand, prohibition policy is only helping the border towns to prosper without any kind of benefits reverting back to the Navajo people. We have all the vices of a 'wet' land, but none of the benefits. As there is no easy way of prohibiting abuse of alcohol by some Navajo people, it may probably be better to legalize it.

In this regard it has to be mentioned that sale of alcohol was legalized for the Antelope Point site in 2001.

48

3. CONSTRAINTS

Before we discuss the barriers to economic development, it may be worthwhile to mention that not many people think that the Navajo economy is an underdeveloped or depressed economy. This writer talked to a number of people (informally) regarding the need of economic development on the Navajo Nation. To my great surprise, I found out that most of the people (I talked to) do not think that economic development is something, which is needed on the Navajo Nation. To the ordinary people, better roads, good housing, electricity, closeness to water sources etc. are more important than creation of employment opportunities. When asked if they needed jobs, a number of the respondents did not quite understand even the question. What job - used to be the normal reaction.

A number of people argue that there is not enough help from the Federal or State Governments to develop the economy in the Indian country, and for that matter on the Navajo Nation. On the contrary, according to a report by the GAO, between 1997 and 1999, there were 98 federal programs under 18 different federal agencies to assist tribes and tribal members with economic development, job creation, entrepreneurship and business development. Interestingly, only fifty-four of the programs were reported as used at least once by at least one tribal entity.13

During the month of June and July 2001, Eastern Navajo Regional Business Development Office (RBDO) sent a questionnaire to all the thirty-one Chapters of the Eastern Navajo Agency. 25 Chapters, out of 31, responded to the Survey. One of the questions asked was, “Is economic development a priority in your Chapter?” 15 Chapter Coordinators had responded “yes” and 10 had responded “No”. To a second question –“Where does economic development fit into the priorities of your Chapter”, it was ‘high priority’ for 7 Chapter Coordinators, ‘mid-level priority’ for 5, and ‘low priority’ for 13 Chapter Coordinators. Thus, for 52 percent of the Chapter Coordinators in the Eastern Navajo Agency, economic development is not something, which you want. By the way Eastern Navajo Agency’s unemployment rate in 2004 was 65.72%, which was worst among all the agencies on the Navajo Nation.

It has also to be pointed out that the opinions above are the opinions of just the Chapter Coordinators, and may not reflect the opinions of the ordinary people. It is quite possible that higher percentage of the ordinary people will respond negatively to the need of economic development. As it was mentioned above, good housing, good roads, electricity, and so on are the things they need - but not jobs.

This is reflected in the fact that the grazing permit holders have rescinded their initial offer of land for business purposes in a number of occasions. This may also be the reason behind moratorium on economic development projects in Chinle.

We believe that the reason for indifferent (and even hostile) attitude towards economic development may lie in various types of welfare payments to the Navajo people, of which the Temporary Assistance to Needy Families (TANF) is the most important one. TANF is just only one of the welfare programs helping the Navajo people. A review of a 1991 report by the Congressional Research Service revealed that eleven federal departments funded approximately 198 programs and services, for which American Indian Governments could apply.14 According to 2000 Census, 7,285 or 15.25% of the households (out of a total of 47,761 households on the Navajo Nation) were receiving public assistance income in 1999. Furthermore, 9,374 households had Social Security Income and 7,394 had Supplemental Security Income. And then 9,612 households derived incomes from unspecified sources, which very well may be from some sort of welfare program. Please see Table No. 14A. Neither the aggregate amount, nor the average amount of income derived from these sources, are substantial. By the way, much bragged about self- employment; which includes arts and crafts, as well as, farming and grazing; provides an average of only $8,680.0 per annum to a household and only 2,702 households are engaged in such activities. Nonetheless, incomes derived from various sources are enough to sustain people’s livelihood. Cost of living is quite low: Most of the Navajos own their own houses, trailers or the hogans; and so there is no monthly mortgage or rental to be paid; many of the houses do not have utility and so there is no utility bills to be paid; and 60.1% of the houses do not have telephone service, and so there is no telephone bill either. Thus, income derived from various sources turn out to be sufficient to maintain the current standard of living, and so many people do not seem to have any motivation to find employment.

If we are to have a meaningful discussion as to how to significantly reduce unemployment and seriously build the Navajo economy, we have to start with certain assumptions:

49

The unemployment rate on the Navajo Nation is 48.04%. However, as discussed earlier, our true unemployment rate is 67.87%, i.e., over 67.87% of able-bodied, age-sufficient, individuals cannot find a job.

It is the Navajo government’s (and Federal government’s) responsibility to provide full employment for its citizens. It is a basic duty of sovereignty. How long do you think the United States of America would remain a sovereign country if there was a 50%+ unemployment rate? During the Great Depression in the United States, the unemployment rate rose to about 25% for a short time and, even then, there was open talk of anarchy. Had the Federal government not taken steps to create jobs and stimulate the economy, it is likely we would see a much different government today.

Taking into consideration this very important role of a Government, the Division of Economic Development hosted a Navajo Nation Economic Summit at the Northern Arizona University in the year 2000. The primary purpose of the Summit was to openly discuss the barriers to economic development on the Navajo Nation, and develop possible solutions to overcome the barriers. Though there were a number of issues discussed at the Summit, we are summarizing the important ones below:

Private capital inside the Navajo Nation is quite meager to build a thriving economy, and outside capital must be sought. It has to be mentioned here that in this age of Corporate world, no country has been able to develop on its own. In recent years we have seen that even the communist China, which was cut out from the rest of the world, resorted to the Western capital. Because of cheap labor in China, the cost of doing business dropped dramatically for the Western companies. However, it is the people of China who benefited the most. Their income rose significantly because of higher salary compared to what they were getting before, their living standard shot up, and only in few years China is considered to be an economic Giant. Now Peoples’ Republic of China is the second largest economy in the world. On the other hand, India stayed poor as before. Few years earlier, the Govt. of India realized that adhering to the Gandhian philosophy of shunning the West would lead them to no where. And following the path of Thailand and China, they also started inviting foreign investment to India. The result is India has the fastest growth rate of GDP at the moment and currently is the fifth largest economy in the world. However, here in our own backward, we have been shunning the outside investment: We have passed the Sovereign Immunity Act; we insist on using the tribal courts to solve the disputes with outside investors; and we have the most cumbersome business site leasing process you can imagine to keep the outside investment at a bay. Therefore, if we want this capital, we have to do the things necessary for it to come here. There have to be compromises on issues such as sovereign immunity, court jurisdiction/dispute resolution, triple taxation, infrastructure, gaming, alcohol and layers of governmental rules and regulations, and so on.

Let’s face it – some of the areas of the Navajo Nation will never see significant development. There are too few people, no market, no trained labor force, too remote, no infrastructure in many areas. The five or six Navajo growth centers and a few Navajo communities near interstate highways and near larger Anglo-communities stand the best chance to develop significantly. Like it or not, this is where efforts should be concentrated. Look at the United States; most job opportunities are in the cities, not in rural America.

The above statements are a fact of life. The politicians and the people can deny them or ignore them but unless they recognize them and decide to make some compromises, then the situation will remain the same.

If we generally agree with the above, we can proceed to talk about specific barriers. By far the largest barrier to attracting significant outside investment is unwillingness to waive the Sovereign Immunity and insistence on the exclusive use of Tribal courts.

A. Sovereign Immunity Act:

The term Sovereign Immunity is very often misunderstood as Sovereignty; and waiving Sovereign Immunity is misconstrued as giving away Sovereignty. “Sovereign Immunity is the right of a sovereign government not to be sued in any court unless it first gives its consent to be sued.”15 The Office of the Comptroller of the Currency defines Sovereign immunity as “a governmental immunity that prevents a court from entering orders against the government in the absence of a clear waiver. As governments, Indian tribes enjoy sovereign immunity from suit under federal common law. Tribal sovereign immunity is similar to the sovereign immunity of the United States or

50 of the individual states. Although tribal sovereign immunity does not cover individual Indians, it does extend to tribal governmental agencies, such as Indian housing authorities.”16

From the above discourse, it becomes clear that Sovereignty and Sovereign Immunity are two different things. When a politician, or a highly placed official says, as we have often heard, “we must never waive our sovereignty”, he or she do not know what he/she is talking about. It is interesting to note that even Neal McCaleb, Assistant Secretary-Indian Affairs of the US Department of Interior, speaking at the National Summit of Emerging Tribal Economies kept referring to the term Sovereignty, whereas he meant Sovereign Immunity.

It is impossible for a government to waive its “sovereignty”. It can waive sovereign immunity but never sovereignty. Waiving sovereign immunity just means “you can sue me if I breach our contract”. In fact, being able to waive sovereign immunity is the sign of a nation’s sovereignty. Only a sovereign nation can exercise its power of doing so. In other words, a nation, which is not sovereign, cannot exercise its power of waiving sovereign immunity.

Waiving sovereign immunity is an essential factor in bringing outside investment onto the Navajo Nation. How do you expect the world to do business with you if you enter into a contractual arrangement and say “I can sue you if you breach our contract; however, you cannot sue me if I breach.” Yet that is largely the position taken here. On June 27 and 28, 2001, the staff of the Division of Economic Development had a “regroupment” conference in a resort and casino located on the Yavapai-Prescott Apache reservation in Prescott, Arizona. Stanley Rice, the president of the Yavapai-Prescott Apache tribe, made it quite clear to us that to have economic development on the Navajo Nation, we will have to waive our sovereign immunity, similar to many tribes and sovereign governments have done.

B. Tribal Courts:

Along with unwillingness to waive the sovereign immunity, there is also a strong insistence on the exclusive use of the Tribal courts. Naturally, outside investors are quite unwilling to invest their money in such an environment. Like it or not, no outside investor will risk significant investment under a contractual arrangement with the Navajo Nation or its citizens and be restricted exclusively to the Navajo judicial system in the event of a dispute.

There are a number of reasons for this. Some have been pointed out below:

There is a perception among the outside investors – and probably a rightful one - that if there is a dispute with a non- Navajo, the Navajo courts are biased in favor of the Navajos. As Senator McCain put it, "Many entrepreneurs think Reservations are not business-friendly, because they've heard a few stories about what sounds like arbitrary tribal decision making17.

A number of other tribes have gotten around this problem by allowing binding arbitration. The tribe selects one arbitrator, the outside investor selects one arbitrator and the third arbitrator is selected by agreement between the first two arbitrators. Arbitrators are trained, experienced and relatively unbiased in the subject matter. Most investors are willing to submit final decisions on disputes to this type of arrangement.

The importance of disputes being settled in a fair and independent court can hardly be emphasized enough. To entice tens of billions of dollars of investment in oil and gas, even the Russians, who are ill-famed for protectionism, have agreed that disputes would be settled not in Russian courts, but by arbitrators in Stockholm.18 No-body would think that the Russians gave away their sovereignty to the Western Oil and Gas companies. Only recently, President Bush signed legislation that allows business disputes on Gila River lands to be resolved in a federal court, rather than in a tribal court. Gila River officials sought the bill to assure those involved in discussions that it would waive sovereign immunity and resolve business disputes off the reservation.19

Some tribes have established “contract courts” where the judges are well educated, highly qualified, experienced trial lawyers; not just someone’s political appointee. Investors tend to feel safe in allowing disputes to go into this type of court. The key words are flexibility and compromise. More progressive tribal governments have recognized the problem and done the things necessary to assure fairness. We have not done so yet.

51 C. Cumbersome Business Site Leasing Process:

Business Site Leasing Process is one of the most formidable barriers to the economic development on the Navajo Nation. There are just too many regulations: Too many signatures are required before one can start a business on the Navajo Nation. Speaking before the Navajo Nation Council on January 18, 1996, Senator John McCain observed, "...it takes three to five years to get the governmental approvals necessary to open a dry-cleaning shop in Window Rock! The same approvals can be obtained in Flagstaff in just 3 days. Now, why on earth is this tolerated? 20 What kind of business climate is that?”

“It took us four or five years to get the necessary permits to set up the NAPA store in Shiprock.” Said Shawn Redd, owner of the NAPA store in Shiprock”. “….Getting the various approvals and permits in Gallup only took about a month.”21

Table No. 56 presents the time requirement (in days) to get a business site lease in selected countries of the world.

Complicated, cumbersome and lengthy process of obtaining a Business Site Lease disappoints many prospective businesspersons to operate a business on the Navajo Nation. And then there is uncertainty of future. Once, a business site lease is "awarded," it may not be readily renewed when it expires.

The process of obtaining a business site lease has been described below:

WHO IS INVOLVED IN THE BUSINESS SITE LEASE APPROVAL PROCESS?

I BIA (a) Regional Director (b) Solicitor (c) Area Realty Office (d) Agency Realty Office (e) Appraisal Office

II NAVAJO NATION (a) RBDO (b) DOF (c) DOJ (d) President’s Office (e) Legislative Council (f) EDC (g) Chapters (h) Land Owner (i) NTUA (j) Property Surveyor (k) Environmental Consultant (l) Archaeological Consultant

WHAT IS THE BUSINESS SITE LEASING APPROVAL PROCESS?

I NON-ESTABLISHED BUSINESS SITE 1. Land User Consent 2. Chapter Approval 3. Property Survey 4. Environmental Assessment 5. Archeological Survey 6. Property Appraisal 7. Procurement Check 8. SAS Process a. RBDO Develop Lease Package

52 b. Credit Officer Review c. Signature of SBDD Director d. Signature of DED Executive Director e. Finance Department Review and Signature f. Justice Department Review and Signature g. President’s Office Review and Signature h. Legislative Counsel Review and Signature 9. EDC Agenda and Necessary Copies 10. EDC Approval 11. Navajo Nation President Approval 12. BIA Approval Process a. Realty Office Review b. Lease Processing Fee c. Bond Requirements d. Insurance Requirements e. Regional Director Approval

BIA APPROVAL PROCESS

40 days Realty Office Review “ Lease Processing Fee Collection “ Bond Requirements “ Insurance Requirements “ Regional Director Approval

Subtotal 40 days + 16 weekend days = 56 calendar days or 8 weeks or 2 months

Total 180 days = 72 weekend days = 252 calendar days or 36 weeks or 9 months Fast Track

If land is available and the Business Development Corporation provides all surveys and assessments, packaging by RBDO’s for BSL could take 15 days for approval.

D. Dual and Triple Taxations:

Taxation in itself is not a vice. The Navajo Nation is a sovereign nation, and it has all the right to impose various taxes as any other sovereign nation. Problem arises from dual or triple taxation which many of the businesses on the Navajo Nation have to pay. Dual taxation occurs when two different taxing jurisdictions tax the same transaction or income. On the Navajo Nation, this occurs when both a state and the Nation tax the same transaction. The Navajo Nation does not have an income tax, so there is no dual taxation of income. However, several of our taxes do overlap with the surrounding states’ taxes. It should be noted that federal taxes apply on income and activities within the Navajo Nation in the same manner as outside Indian Country. Examples of dual taxation on the Navajo Nation are as follows:

First, our Oil and Gas Severance Tax is imposed on all oil and gas severed from the Navajo Nation. All three states also impose similar taxes, and companies must pay both taxes.

Next, our Sales Tax overlaps with the states’ excise taxes. As an initial matter, it should be noted that the states cannot impose their excise tax on transactions in the Arizona and New Mexico portions of the Navajo Nation, if either the buyer or the seller is a Navajo; and in Utah, the tax does not apply if the buyer is a Navajo. Therefore, in general, the only transactions that are taxable by a state are ones where both the buyer and seller are non-Navajos. This occurs most often in construction contracts such as state highway construction or federal contracts for schools or medical facilities. If the construction project is being performed for the Navajo Nation by a company owned by a Navajo, or an individual Navajo, no state tax applies; only the Navajo tax applies is the Navajo Sales Tax.

53 In the area of taxation of tobacco, both state and tribal taxes apply, although in the Arizona portion of the Nation, where there are two state taxes on tobacco, the second state tax is offset by the Navajo Tobacco Products Tax. In other words, a taxpayer can take a credit against that state tax for tribal taxes paid.

We have been able to address the dual taxation of fuel through legislation or intergovernmental agreements. As a result, there is no dual taxation of fuel within the Navajo Nation, with the exception of diesel sold in the New Mexico portion of the Nation.

(The section on dual and triple taxation was contributed by Amy Alderman, Tax Attorney. Office of the Navajo Tax Commission).

F. The Complex Issue of Land:

The complexity of land ownership and control on the Navajo Nation is a basic problem of Navajo law. The majority of the Navajo Nation (the “Rez” or Big Navajo) is tribal trust land. Tribal trust land is legally “owned” by the United States, as trustee, for the tribe as a whole. The Nation, as beneficiary of the trust, does not need the permission of the trustee to use its own land. However, any “alienation” of land (usually through a lease, the concept of “selling” land is unacceptable to most Navajos) may be done only with the approval of the trustee.

However, even though the population density on the Navajo nation is less than ten people per square mile, the tribal trust lands on Navajo are completely occupied by “withdrawals” for governmental and business purposes, and primarily by customary use areas, often coupled with BIA issued grazing permits, which create an unwritten but perpetual “exclusive use” for an area. As a result of these customary uses, it has been estimated that 80% or more of tribal trust lands on the Navajo Nation are controlled by less than 20% of the Navajo families.

In addition to tribal trust lands there are Individual Indian Allotments harkening back to the days of the General Allotment Act of 1888. There are 160 acre parcels, primarily in the Eastern Agency which are beneficially owned by individuals or individual families, but held in trust for those families by the United States in much the same manner that tribal trust lands are held in trust for the entire Navajo Nation.

The Navajo Nation today is considerably larger than the original 1868 reservation, having undergone more than 20 expansions since that time. Each time the reservation boundaries were expanded, the expansions were subject to existing fee land interests. As a result there are pockets of privately owned fee lands throughout the Navajo Nation. Many large blocks of fee land, particularly in the Eastern Agency, have been purchased by the nation itself as a part of its land acquisition program.

There are also pockets of state owned lands on the Nation (so called “school lands”) in expansion areas and a considerable amount of BLM controlled federal land in the eastern Agency. In addition, there are the so called “Executive Order” withdrawals where the federal government has appropriated land for the purpose of providing services to member of the Nation.

G. The Legal Matrix

(i) Federal Law

Federal Law governs land transactions on much of the Navajo Nation where the Long Term Leasing Act (25 USC 415) and the regulations issued under that act (25 CFR 162) apply. Federal law also governs rights-of- ways and mineral and timber extraction. The federal government also has concurrent criminal jurisdiction with the Navajo Nation over major crimes.

(ii) Navajo Law

There are three levels of Navajo Law to consider: Statutory Law, Case Law and Common Law. The Navajo Council has enacted 26 Titles to the Navajo Nation Code (two of which have been repealed). The Navajo Nation Code has recently been published by Wests in four volumes which costs $500, with a CD for $450, or the package for $750. The Code should soon be available on Westlaw.

54 The Navajo Nation Code is strongly protective of Navajos in the area of employment and contracting. It also provides that only the Navajo Nation Council can waive the sovereign immunity of the Navajo Nation and then only by 59 votes (2/3) of the full Council.

Navajo Case Law includes published decisions going back almost 40 years. Publication has been sporadic, particularly over the past ten years, but recent decisions are available on the Supreme Court Web site and all decisions probably will be available on Westlaw in the near future.

The third level of Navajo law is Navajo Common Law, or Navajo custom or tradition. The statutes allow the courts to use common law, and in the absence of statutes or applicable federal law. Common law is essentially unwritten and some of it is sacred lore, which can neither be written nor even talked about outside of ceremonial contexts. It is largely equitable and primarily deals with interpersonal relationships.

Navajo law and civil procedure is complex, and any one doing business with the government, courts, administrative bodies, or even other businesses, would be well advised to have their legal representatives associate with a member of the Navajo Nation Bar.

(iii) State Law

Under Navajo Nation Choice of Law Rules, Navajo Courts are permitted to apply state laws on principals of comity in the absence of Navajo or applicable federal law. However, the Navajo Nation government itself is never subject to state law, although private parties may agree to use state law in disputes to be settled by Navajo courts.

There is little question that Navajo Courts have jurisdiction on tribal trust lands, although there are issues as to jurisdiction on rights-of-ways and fee land (where the issue become whether or not the lands are “Indian Country”). The entire Eastern Agency, being outside of the boundaries of the reservation, is a major jurisdictional problem although the area is an integral part of the Navajo political social systems, and the Navajo Nation exercises effective civil and criminal jurisdiction over most of this area.

(The sections on the Complex Issue of Land and the Legal Matrix have been extracted from a paper, entitled the Legal Consideration of Doing Business on the Navajo Nation”, presented by James Fitting, the then Assistant Attorney General; to the Arizona Association for Economic Development on October 11, 2005)

G. Lack of Hotels and Motels: Tourism development stands a very good chance of reducing unemployment here. People from all around the world already come to this region. The Nation just has to do a better job of capturing the tourist dollars. This does not mean more advertising and promotion, but more tourism infrastructure, viz. a viz., more quality hotel rooms and restaurants and tour packages. We have only thirteen motels with 970 rooms on the Navajo Nation, whereas a small city of Gallup, New Mexico has 32 lodging facilities. There are no RV parks, rest areas, or welcome centers on the Navajo Nation. Organized tours are few and far between. Most importantly, when the tourists come, they must be guaranteed a quality experience that they won’t forget. Alcohol drinks are a part of a quality experience for most tourists. The Nation must allow alcohol drinks in certain places. The Navajo Nation already has world-renowned natural attractions. Why not focus on this potential more? Right now we have plenty of tourist – 2.5 million annually, but not tourist dollars.

H. Grazing Permit:

Although land is abundant, it has constraints that curtail quick solutions to improve an economically depressed area. The majority of the Navajo land is held in trust by the BIA. When the Tribe needs to use it for a specific purpose, it has to be withdrawn from the BIA. This process can take as long as two years. Also there is something called grazing permit, which was developed by the BIA in early 1930’s in an effort to prevent overgrazing and to control erosion. The permits were issued to use the grass and other surface plants for grazing. Over the years, the grazing permits were used and treated as land use permits, which was not the original intent. The situation has given the grazing permit holders a sense of ownership, and their permission is needed to pursue any economic development project on or near areas they claim as their land. Many economic development projects have failed to become

55 reality simply because grazing permit holders did not consent to any development in their grazing areas, and in a number of occasions, the grazing permit holders have rescinded their earlier offer of land.

Two solutions can be offered to solve this problem, which are not mutually exclusive.

First, we should buy off the grazing permits in major communities, townships, and wherever economic development seems highly possible. In other words we should compensate the grazing permit holders for relinquishing their hold on the land.

Secondly, we should levy a tax on the grazing permits, which will force many of the grazing permit holders to voluntarily relinquish their hold on the land. Many of the grazing permit holders do not have any livestock anyway.

These parcels of lands should then be turned into enterprise zones with one separate authority (which may be named as the Economic Development Authority) which will solely be responsible to provide business site lease, along with other powers related to an enterprise zone.

I. Lack of Infrastructure:

Expenses of bringing water, power, phone, roads, sewer systems to a business site are enormously high. Table No. 39 presents the available road system on the Navajo Nation. The Federal government has to help more in this area.

J. Lack of Entrepreneurs:

Entrepreneurs are the movers and shakers of the economy. These are the people who pull together various resources of production - Land, Labor and Capital and get the economy moving forward. While, there are certainly a number of Navajo entrepreneurs selling rugs and jewelry; arts & crafts; food items, e.g., hamburgers, mutton stew & fry bread and other items; those with a high level of organizational ability required by a modern economy, are very few and far between. And these higher caliber entrepreneurs prefer to run businesses somewhere else rather than on the Navajo Nation, because of the above-mentioned cumbersome bureaucratic process of getting a business site lease and uncertain future.

K. Lack of Capital:

There are not very many Navajo people who have any significant amount of savings or equity, which can be used as collateral to borrow money from financial institutions. To fill this gap, the Nation has established the Business and Industrial Development Fund (BIDF) and Micro Enterprise Loan Program MELP), which are administered by the Support Services Department of the DED. These funds offer various business loans to qualified Navajos. However, collateral is required to obtain a loan from these funds too. Many Navajo people cannot access the loan because of a lack of collateral. Secondly, these funds are not adequate to address the vast capital needs of the Navajo economy.

L. Lack of Banking:

Navajo Nation lacks banking and other financial institutions to support businesses and industries. There are altogether five financial establishments on Navajo Nation to serve the financial needs of over 197,000 people, whereas Gallup, a city of 25,000 people has eight.

Besides, there are a host of other constraints, which are responsible for slow economic growth on the Navajo Nation and in most of the Indian country.

56 #################################################### CHAPTER VI EDUCATION & HEALTH

1. EDUCATION

A. Secondary Education:

Educational services at high school level or below are provided by EIGHT types of educational establishments on the Navajo Nation. They are: (1) Arizona Public Schools, (2) New Mexico Public Schools, (3) Utah Public Schools, (4) Bureau of Indian Affairs Schools, (5) Grant Schools, (6) Association of Navajo Controlled Schools, (7) Chartered Schools, and (8) Private Schools. Besides, the Nation also has the Headstart Program operated by the Navajo Nation Government.

Most common schools (k-12) receive funding from the Navajo Nation under the Johnson O' Malley program.

Table No. 40 presents current school enrollment figures for some of the schools on the Navajo Nation. Table No. 41 presents Chapter by Chapter school enrollment data on the Navajo Nation from Census 2000. Table No. 42A and 42B present school enrollment data on the Navajo Nation and in the United States.

One of the major problems faced by the Nation in this respect is very high drop out rate among the Navajo high school students. A study of the Navajo reservation high schools found that 31 percent of students dropped out before graduating.22

B. Higher Education:

(1) Dine' College: Dine' College is the most important post-secondary educational institution on the Navajo Nation. This prestigious institution of higher learning was chartered by the Navajo Nation in 1968. The founders of the Dine' College envisioned a unique school where Navajo students could receive an associate degree and prepare for a career while learning about the history, culture, language and philosophy of the Navajos. It has grown from a one-campus College to a multi-campus institution with eight campus sites located in major population centers on the Navajo reservation. Since its establishment, it has enrolled over 100,000 students and has conferred approximately 2,500 degrees and certificates. Enrollment and graduation figures for the Dine’ College have been presented in Table Nos. 43 and 44 respectively. Table No. 45A and 45B present college enrollment data on the Navajo Nation and in the USA from Census 2000.

(2) Crownpoint Institute of Technology (CIT): Crownpoint Institute of Technology (CIT) located at Crownpoint, New Mexico, is another establishment of higher education. CIT provides vocational and technical training to approximately 400 Navajo students annually.

(3) Kayenta Center of the Northern Arizona University: Kayenta Center of the Northern Arizona University is yet another institution of Higher Education on the Navajo Nation. This center started its operation only recently. (4) Northland Pioneer College: Kayenta is home of one of Northland Pioneer College's six centers. The College's centers provide a range of classes towards various degree programs and other student support services, e.g., academic advising, bookstore, library, and student writing center. Classes are provided in-person and via distance learning: interactive-audio, interactive-video, and internet. In addition to Kayenta Center, Northland provides numerous special interest classes in communities throughout the Navajo Nation: Most notably Early Childhood Education classes at most Navajo Headstarts, and adult basic education classes in 11 Navajo Nation communities, plus the New Lands at Sanders. The College also has dual enrollment agreements with several school districts serving the Navajo Nation: Chinle, Ganado, Monument Valley, Pinon, Valley (Sanders). Concurrent enrollment enables high school students to begin earning college credit while still enrolled in high school.

It is sad that College enrollment of the Navajo youth is considerably less in comparison to overall College enrollment in the USA. For example, only 14.8% of the Navajo youth between the ages of 18 and 24 were enrolled

57 in college in 2000 compared to 34% in the USA for the same age category. Please see Table Nos. 45A and 45B. C. Scholarships: The office of Navajo Nation Scholarship and Financial Assistance has been providing scholarships to the Navajo students attending various colleges and universities for a number of years. In 2005, with the help of the Office of Navajo Scholarship and Financial Assistance, a total of 6,201 scholarships were awarded to the Navajo students attending various colleges and universities across the country. The total dollar amount was $12.8 million. Of this amount the Federal funds accounted for $9.4 million or 73.29%, General Funds accounted for 18.56%, Corporate and Private Funds accounted for 4.11%, and Memorandum of Agreement with various educational establishment accounted for 4.03% of the total scholarship amount. (See table No. 46).

Education level on the Navajo Nation is substantially lower compared to other geographical areas or other ethnic groups. According to Census 2000, only 55.93% of the total population living on the Navajo Nation over the age of 25 had High School degree or higher, and only 7.29% had Bachelor’s degree or higher. These numbers for the American Indians only were 54.22 and 4.85% respectively. (See Table No. 47). Respective numbers for the US are 80.40% and 24.40%; for Arizona, 80.97% and 25.53%; for New Mexico, 78.85% and 23.45%; and 87.73% and 26.13% for the state of Utah. It also has to be noted that 12.16% of the Navajo Nation population had no education, which is substantially higher than 1.53% of the Arizonans, 2.0% of New Mexicans, and 1.44% of the US population not having any schooling. (See Table No. 48). Ethnically, in the US, these numbers are 83.58% and 26.08% for the White; 72.26% and 14.26% for the Blacks; 70.92% and 11.48% for the African Americans; 80.43% and 44.06% for the Asians; and 78.25 and 13.79% for the American Indians and Alaska Natives. (See Table No. 49).

Taking into consideration, the importance of education for the well-being of the Dine’ and also substantially lower level of educational attainment of the Navajo people, education has been assigned the top priority by the current Shirley-Dayish administration.

2. HEALTH

HEALTH CARE for many Native Americans in this country sinks to Third World levels. According to a draft report by the U.S. Commission on Civil Rights, deaths from alcoholism are 770 percent more likely among Native Americans than the general population; from tuberculosis, 650 percent; and from diabetes, 420 percent. In some tribes, one in two people suffer from diabetes. The Indian Health Service, primary health care provider for more than 1.6 million members of federally recognized tribes, is so under-funded that it spends only $1,914 per patient per year, about half of what the government spends on prisoners ($3,803), and far below what is spent on the average Americans ($5,065). Funding is so low that to be transferred out of an IHS facility for specialized treatment, a patient must be in danger of losing a life or limb.23

Birth and Death rates: Birth-rate on the Navajo has been declining over time. For example, birth-rate for the Navajo populace was 31.1 per 1,000 population in 1990-92. This number has dropped to 21.7 in 1996-98. Nonetheless, the birth-rate of the Navajo population is still higher than the US birth-rate which was 16.3 per 1,000 population in 1990-92 and has dropped to 14.5 in 1996-98 (Please see table No. 50). In the same period, the mortality rate for the Navajo area has remained unchanged. For example, mortality rate for the Navajo areas was 628.7 per 1000,000 population in 1990-92. In 1996-98 the figure is almost the same - 628.9. For the US, the number was 513.7 in 1990-92 and dropped to 479.0 in 1996-98. Life expectancy at birth was 73.3 for the Navajo area in 1996-98 and 76.5 for the US overall population in 1997. Please See Table No. 51.

Homicide and suicide rates are higher on the Navajo Nation compared to overall US population. In 1990-92, homicide-rate in the Navajo area was 19.3 per 100,000 population which slightly increased to 19.7 in 1996-98. For the US as a whole, this number declined from 10.9 per 100,000 population in 1990-92 to 8.0 in 1996-98. The suicide-rate in the Navajo area was 18.2 per 100,000 population in 1990-92 which declined to 16.8 in 1996-98. The numbers for the US population in general were 11.4 in 1990-92 and 10.6 in 1996-98. Please see table No. 52.

Infant Death Rate has decreased from 9.4 per 100,000 population in 1990-92 to 8.2 in 1996-98. The US numbers were 8.9 infant death per 100,000 population in 1990-92 which decreased to 7.2 in 1996-98. Please see table No. 53.

58 Life expectancy at birth is 72.3 years on the Navajo Nation and 76.5 years for the US population as a whole. Please see table No. 54.

A. Service Providers:

There are a number of entities – both private and public, which provide health care services to the Navajo people. Important ones have been described below:

(1) Navajo Area Indian Health Services: The Navajo Area Indian Health Services (NAIHS) is by far the largest provider of health care services to the Navajo people. It administers numerous clinics, health centers, and hospitals, providing health care services to the members of the Navajo tribe. The Navajo Area coordinates with both the Phoenix and Albuquerque IHS Area Offices for the delivery of health services to the Navajo, Hopi, and Zuni Reservations because these reservations are close to each other. A list of medical establishments run by the Navajo Area Indian Health Services has been provided in Table No. 55.

(2) Division of Health: A major portion of the Navajo Nation health care delivery system is sponsored by the Navajo Tribe itself. The Navajo Division of Health Improvement was originally established in 1977. Later, it was re- named as Navajo Division of Health (NDOH). It has the mission of ensuring that quality and culturally acceptable health care is available and accessible to the Navajo people through coordination, regulation, and where necessary, direct service delivery. The NDOH also provides a variety of health-related services in the areas of nutrition, aging, substance abuse, behavioral health, and emergency medical services (e.g., ambulance). The division has community health representatives scattered all across the Navajo Nation. The Division has three departments which are directly involved in providing health care services. It provides services in the area of alcohol/substance abuse, mental health, domestic violence, FAS/FAE, physical fitness, DWI services, traditional healing, and health education. It also operates Nanizhooni Center in Gallup which provides temporary shelter to people suffering from alcohol abuse. The center does not provide treatment.

Currently, NDOH provides health care, food supplement and other support services to thousands of Navajo individuals - infants, children, youths, adults, elders and their families - through over 30 different programs and projects throughout the Navajo Nation. NDOH also provides an array of services through subcontracts with other service providers.

The operating annual budget of NDOH is over $78 million of which 85% come from federal, state and local governments and other private agencies. The other 15% come from the Navajo Nation general funds including as part of the matching requirements. There are over 1,400 professional, technical and support service personnel working for NDOH at Window Rock central office and its field offices/clinics located throughout the Navajo Nation.

NDOH provides services thru 5 Agency offices, 8 Service Delivery Areas, 110 Chapter communities and thru many contractors located both on and off the Navajo reservation.

The NDOH provides health care services to the Navajo people thru the following programs:

Health Programs and Projects

1 Behavioral Health Services (includes AZ funded Regional Behavioral Health Program) 2 Community Health Representative Program (include CHR, Social Hygiene, Tuberculosis Control, and AIDS/HIV Programs) 3 Health Education Program 4 Public Health Nursing (Kayenta) Program 5 Environmental Health and Sanitation Program 6 Navajo Area Agency on Aging (include Senior Citizen Center, Adult-in-Home Care, Elderly Home care, Foster Grandparent, and Dine Elder Protection Programs) 7 Women, Infant, and Children (WIC) Program 8 Food Distribution Program 9 New Dawn Program 10 Uranium Workers Program 11 Breast and Cervical Cancer Prevention Program

59 12 Special Diabetes Program 13 Bio-Terrorism Program The NDOH also oversees Native American Research Center for Health (NARCH) Project, Epidemiology Center and Trauma System Development Project, and few other projects.

(3) Others: Besides, there are also a number of private and public establishments that provide health care services to the Navajo people. Notable ones are the Sage Memorial Hospital located in Ganado, AZ, and the Monument Valley Hospital in Monument Valley. Additionally, there are a number of chiropractors, dentists and optometrists, as well as a number of traditional medicinemen who cater to the health care needs of the Navajo people.

60

#################################################### CHAPTER VII CONCLUSION

The Navajo Nation has very often been compared to a Third World economy. As we discussed earlier, the unemployment rate on the Navajo Nation is very high - 48.04% as of December 31, 2004. We also discussed that true unemployment rate is substantially higher (67.87%). The high unemployment rate has resulted in very low Per Capita Income and high poverty rate (42.9% according to 2000 Census). As can be seen from the Table No. 21 our Per Capita Income was $7,733.78 in 2004, which is substantially lower than that of any state. The table also provides state by state data on per capita income and unemployment rate.

A few years ago, the Division of Economic Development had concluded that 3,544 jobs had to be created annually to maintain the status quo, i.e., to stay at the same level of unemployment rate. We are nowhere close to that number.

Moreover, the Welfare Reform Act of 1996 requires that the Nation must create jobs for at least 10% of the TANF recipients to avoid penalty. The TANF program has been taken over by the Nation since April 1, 2002, and now it has become the responsibility of the Navajo Nation to create employment for at least 10 percent of the TANF recipients to avoid penalty.

Thus, the Navajo Nation is currently faced with a massive task of creating jobs - not only to accommodate the current welfare recipients, but also to reduce the massive unemployment rate of 48.04%.

Poor economic conditions have a direct impact on the social life of the Navajo people. According to a report published in the Navajo Times (March 20, 2003), the Navajo Nation had 36,944 alcohol-related incidents, 8,262 Driving Under the Influence cases, with 5,000 ending in arrests in 2002. Additionally, 2,842 were other alcohol- related activities such as bootlegging. Reported public intoxication incidents were 26,968 with 13,348 resulting in arrests24. We believe that lack of employment opportunities is directly responsible for the abuse of alcohol by some Navajo individuals.

Thus, it is imperative that the creation of employment opportunities be the main focus of the Navajo Nation.

The Division of Economic development has been assigned with this extremely important, but difficult task of creating employment opportunities on the Navajo Nation. However, this massive task cannot be accomplished by the Division of Economic Development alone. We would suggest the following: a. Economic development should truly be the top priority of the Navajo Nation. It seems that even though economic development is talked about extensively, and particularly during elections, it is largely forgotten afterwards. The latest actions of the US Govt. show what a Govt. can and should take steps to boost the economy. We are nowhere close to that. b. To entice outside investment onto the Navajo Nation, we should exercise our authority of waiving sovereign immunity. It is a proven fact that without a Base Industry, an economy cannot be developed in the true sense of the word. Because of this very fact, any country, which is serious about economic development, goes a long way to entice foreign investments. Peoples’ Republic of China and India are the latest examples. Various communities in the United States provide different types of incentives to the businesses so that they can move into those communities. According to the Arizona Department of Commerce, incentives have come to play an increasingly critical role in business attraction. Many states and local communities have set aside substantial sums of money to support projects they deem to be desirable. Incentive assistance can be based on any number of criteria, but typically place a great deal of weight on the number and quality of jobs being created.

Here, on the Navajo Nation, we are just doing the opposite. We are literally forcing the outside investment to stay away by insisting on not waiving sovereign immunity, or insisting on the exclusive use of tribal court system.

61 c. We must make the Business Site Leasing process as easy as it can be made. The Division of Economic Development has worked very hard to streamline this process. However, contrary to our expectations, nothing has changed in the approval process. d. The Division’s project budget should be increased dramatically. We almost never have any money for development purposes. It may be worthwhile to note that the annual budget of the Division of Economic Development, which is supposed to help create jobs for the people, hovers around just $4.0 million. It is interesting to note that the Division’s budget is merely 1.06 % of the Executive branch’s total budget in FY 2006. It is so pathetic that the share of the Division’s budget has declined by 48.33% between FY 2000 and FY 2006. In terms of only General Fund budget, its share has declined from 7.72% in 2000 to 4.99% in FY 2006 – a decline of 35.36%. (Please see table No. 9B)

Economic development is an extremely difficult task on the Navajo Nation. Even the current president of the Navajo Nation acknowledged this bitter truth. However, he believes that lack of infrastructure is to be blamed for this25. There are just too many barriers. The Office of the President & the Vice-President, the Navajo Nation Council, the Judicial Branch, other tribal Divisions, and the Chapters – all must make a concerted effort to eliminate the barriers to outside investment.

62 Table No. 1 TYPE OF NAVAJO NATION LANDS AND LEASES as of 3/31/1998

Types of Lands Arizona New Mexico Utah Total

Navajo Nation Trust 10,158,784.82 2,795,418.26 1,223,933.96 14,178,137.04

Navajo Nation Fee 585,169.98 357,000.00 424.90 942,594.88

Individual Indian Allotment 81,963.81 671,043.50 9,741.80 762,749.11

State Lands Lease 256,905.79 126,760.10 - 383,665.89

BLM Leases - 150,002.23 - 150,002.23 U.S. Forest Service Permit 174,000.00 - - 174,000.00

Government E.O. PLO & School Tract 91,838.99 5.99 91,844.98

New Lands 345,032.00 - - 345,032.00

11,601,856.40 4,192,063.08 1,234,106.65 17,028,026.13

The Navajo Nation has: 17,028,026.13 Acres or 26,606.29 Sections Square miles of land or 739.06 Townships of Navajo Nation Lands and Lease Lands.

Source: Title Section ONLA, Lands Department, Division of Natural Resources.

P. T 1 Table No. 2 The Navajo Nation - an Overview

Percent Total Population 180,462 100 Male 88,469 49.02 Female 91,993 50.98 American Indians 175,228 97.10 Navajo 173,987 96.41 White 5,223 2.89 Median Age 24.0 Number of Housing Units 68,744 100.00 Occupied Housing Units* 47,603 69.25 Vacant Housing Units 21,141 30.75 Trailer Units 12,885 Housing Units Lacking Complete Plumbing Facilities 15,279 31.9 Housing Units Lacking Complete Kitchen Facilities 13,447 28.1 Housing Units Lacking Telephone Service 28,740 60.1 Number of Households** 47,603 Number of Families** 37,903 Average Household Size 3.77 Average Family Size 4.36 Per Capita Income$ 7,269.0 Median Household Income$ 20,005.0 Median Family Income$ 22,392.0 % Individuals Below Poverty Level 42.90 % Families Below Poverty Level 40.10 % Families W/Female Householder Below Poverty Level 53.10 % of Individuals with High School Degree (25 years or over) 55.93 % of Individuals with Bachelor's Degree (25 years or over) 7.29 Number of Vehicles 37,008 Car, Truck of Van 32,175

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

P. T2 Table No. 3 NAVAJO POPULATION GROWTH RATE

YEAR POPULATION t= P1/P0 Annual Growth Rate* 1868 9,000 1878 11,850 10 1.317 2.75 1888 18,000 10 1.519 4.18 1898 20,500 10 1.139 1.30 1908 29,032 10 1.416 3.48 1918 31,250 10 1.076 0.74 1928 34,892 10 1.117 1.10 1930 41,786 2 1.198 9.02 1935 44,025 5 1.054 1.04 1940 48,722 5 1.107 2.03 1945 61,000 5 1.252 4.49 1950 69,167 5 1.134 2.51 1960 79,587 10 1.151 1.40 1970 95,104 10 1.195 1.78 1980 129,553 10 1.362 3.09 1990 146,001 10 1.127 1.20 2000 175,228 10 1.200 1.82

1868 9,000 2000 175,228 132 19.470 2.25

USA**

1980 226.5 1990 248.7 10 0.1 0.94 2000 281.4 10 0.1 1.24

*Annual Growth Rate "r" has been computed by using the Formula: r = ln(p1/p0)/t, which has been derived from the Standard Growth Rate Formula: P1 = P0rt or, p0ert = p1 or, ert = p1/p0, or lnert = ln(p1/p0), or rtlne = lnp(1/p0), or rt = ln(p1/p0), since lne = 1. Thus, r = ln(p1/p0)/t

Where, P0 = Population in the Base Year P1 = Population in Current Year r = Growth Rate t = Number of Years in between.

** Population figures for the USA are in millions

Source: The Navajo Nation figures for 1868 thru 1980 have been taken from The Navajo Nation Fax 1988. Figures for 1990 and 2000 have been taken from the Census Reports.

The Navajo Nation figures for 1980, 1990 and 2000 do not include non-Indians. Total reservation population including non-Indians was 138,690 in 1980; 151,105 in 1990; and 180,462 in 2000.

p. T3 Table No. 4 Population Projection of the Navajo Nation till 2020

Ag. Chapters2000 2001 2002 20032004 2005 2006 2010 2015 2020 EN Alamo 2,072 2,110 2,148 2,187 2,227 2,267 2,308 2,481 2,715 2,971 SR Aneth 2,286 2,328 2,370 2,413 2,457 2,501 2,546 2,737 2,996 3,279 EN Baca/Prewitt 889 905 922 938 955 972 990 1,064 1,165 1,274 EN Becenti 506 515 525 534 544 554 564 606 663 726 SR Beclabeto 819 834 849 865 881 897 913 981 1,074 1,175 WN Birdspring 829 844 859 875 891 907 923 993 1,086 1,189 CH Black Mesa 398 405 413 420 428 435 443 476 521 571 WN Bodaway/Gap 1,837 1,870 1,904 1,939 1,974 2,010 2,047 2,200 2,407 2,634 EN Bread Springs 1,017 1,036 1,054 1,074 1,094 1,113 1,133 1,218 1,333 1,459 SR Burnham 240 244 249 253 258 262 267 287 314 344 WN Cameron 1,231 1,253 1,276 1,299 1,323 1,347 1,371 1,474 1,613 1,765 EN Canoncito 1,649 1,679 1,710 1,741 1,773 1,805 1,838 1,975 2,161 2,365 EN Casamero Lake 549 559 569 580 591 601 612 658 720 788 EN Chichiltah 1,692 1,723 1,754 1,786 1,819 1,851 1,885 2,026 2,217 2,427 WN Chilchinbeto 1,325 1,349 1,374 1,399 1,424 1,450 1,476 1,587 1,737 1,901 CH Chinle 8,756 8,915 9,078 9,243 9,411 9,582 9,756 10,486 11,475 12,558 EN Church Rock 2,802 2,853 2,905 2,958 3,012 3,066 3,122 3,356 3,672 4,019 WN Coalmine Mesa 374 381 388 395 402 409 416 448 490 537 WN Coppermine 673 685 698 710 723 736 749 805 881 965 FD Cornfields 830 845 860 876 892 908 924 994 1,088 1,190 EN Counselor 1,018 1,037 1,055 1,075 1,095 1,114 1,134 1,220 1,335 1,461 SR Cove1 0 000000000 FD Coyote Canyon 957 974 992 1,010 1,028 1,047 1,066 1,146 1,254 1,372 EN Crownpoint 2,906 2,959 3,013 3,068 3,124 3,180 3,238 3,481 3,809 4,168 FD Crystal 778 792 807 821 836 851 866 931 1,019 1,115 SR Cudeii2 0 000000000 WN Dennehotso 1,626 1,656 1,686 1,716 1,747 1,779 1,811 1,947 2,130 2,332 FD Dilkon 2,206 2,246 2,287 2,329 2,371 2,414 2,458 2,642 2,892 3,164 CH Forest Lake 573 583 594 605 616 627 638 686 751 822 FD Fort Defiance 5,754 5,859 5,965 6,074 6,185 6,296 6,410 6,891 7,541 8,253 SR Fruitland, Upper 2,892 2,945 2,998 3,053 3,109 3,165 3,223 3,464 3,790 4,148 FD Ganado 3,030 3,085 3,141 3,198 3,256 3,315 3,375 3,628 3,970 4,345 CH Hard Rock 1,256 1,279 1,302 1,326 1,350 1,375 1,400 1,504 1,646 1,802 SR Hogback 1,386 1,411 1,437 1,463 1,490 1,517 1,545 1,660 1,816 1,988 FD Houck 1,529 1,557 1,585 1,614 1,643 1,673 1,703 1,831 2,004 2,193 EN Huerfano 2,366 2,409 2,453 2,498 2,543 2,590 2,637 2,834 3,101 3,394 FD Indian Wells 970 988 1,006 1,024 1,043 1,062 1,081 1,162 1,271 1,391 WN Inscription House 1,214 1,236 1,259 1,281 1,304 1,328 1,352 1,453 1,590 1,740 EN Iyanbito 1,034 1,053 1,072 1,091 1,111 1,131 1,152 1,238 1,355 1,482 FD Jeddito 1,299 1,323 1,347 1,371 1,396 1,421 1,447 1,555 1,702 1,863 WN Kaibeto 1,970 2,006 2,042 2,080 2,118 2,156 2,195 2,360 2,582 2,826 WN Kayenta 6,315 6,430 6,547 6,666 6,787 6,910 7,036 7,562 8,276 9,057 FD Kinlichee 1,404 1,430 1,456 1,482 1,509 1,536 1,564 1,681 1,840 2,014 FD Klagetoh 1,037 1,056 1,075 1,095 1,115 1,135 1,156 1,242 1,359 1,488 EN Lake Valley 442 450 458 467 475 484 493 530 580 635 WN Lechee 1,890 1,924 1,959 1,995 2,031 2,068 2,106 2,263 2,477 2,711 WN Leupp 1,605 1,634 1,664 1,694 1,725 1,756 1,788 1,922 2,103 2,302 EN Little Water 571 581 592 603 614 625 636 684 749 819 FD Low Mountain 923 940 957 974 992 1,010 1,028 1,105 1,209 1,323 FD Lower Greasewood 1,408 1,434 1,460 1,486 1,513 1,540 1,568 1,686 1,845 2,019 CH Lukachukai 2,012 2,049 2,086 2,124 2,163 2,202 2,242 2,410 2,637 2,886 FD Lupton 1,000 1,018 1,037 1,056 1,075 1,095 1,115 1,198 1,311 1,435 EN Manuelito 358 365 371 378 385 392 399 429 469 514 CH Many Farms 2,773 2,823 2,875 2,927 2,980 3,034 3,089 3,321 3,634 3,977 EN Mariano Lake 870 886 902 918 935 952 969 1,041 1,140 1,247 FD Mexican Springs 1,318 1,342 1,366 1,391 1,416 1,442 1,468 1,578 1,727 1,890 SR Mexican Water 815 830 845 860 876 892 908 976 1,068 1,168 EN Nageezi 1,003 1,021 1,040 1,059 1,078 1,098 1,118 1,201 1,315 1,439 p. T4 Ag. Chapters2000 2001 2002 20032004 2005 2006 2010 2015 2020

FD Nahata Dziil 1,452 1,478 1,505 1,533 1,561 1,589 1,618 1,739 1,903 2,083 EN Nahodishgish 404 411 419 426 434 442 450 483 529 579 FD Naschitti 1,695 1,726 1,757 1,789 1,822 1,855 1,889 2,030 2,221 2,431 WN Navajo Mountain 632 644 655 667 679 691 704 757 828 906 CH Nazlini 1,151 1,172 1,193 1,215 1,237 1,260 1,283 1,378 1,508 1,651 SR Nenahnezad 1,695 1,726 1,757 1,789 1,822 1,855 1,889 2,030 2,221 2,431 SR Newcomb3 0 000000000 FD Oak Springs 613 624 636 647 659 671 683 734 803 879 EN Ojo Encino 709 722 735 748 762 775 789 849 929 1,016 WN Oljato 2,292 2,334 2,376 2,419 2,463 2,508 2,554 2,744 3,003 3,287 EN Pinedale 1,129 1,150 1,170 1,192 1,214 1,236 1,258 1,352 1,480 1,620 CH Pinon 3,066 3,122 3,179 3,236 3,295 3,355 3,416 3,671 4,018 4,397 EN Pueblo Pintado 464 472 481 490 499 508 517 556 608 666 EN Ramah 1,676 1,707 1,738 1,769 1,801 1,834 1,867 2,007 2,196 2,404 FD Red Lake 2,412 2,456 2,501 2,546 2,592 2,639 2,687 2,888 3,161 3,459 SR Red Mesa 1,138 1,159 1,180 1,201 1,223 1,245 1,268 1,362 1,491 1,632 EN Red Rock 2,030 2,067 2,105 2,143 2,182 2,221 2,261 2,431 2,661 2,912 SR Red Valley 1,742 1,774 1,806 1,839 1,872 1,906 1,941 2,086 2,283 2,499 SR Rock Point 1,367 1,392 1,417 1,443 1,469 1,496 1,523 1,637 1,792 1,961 EN Rock Springs 992 1,010 1,028 1,047 1,066 1,085 1,105 1,188 1,300 1,423 CH Rough Rock 919 936 953 970 988 1,006 1,024 1,100 1,204 1,318 CH Round Rock 1,292 1,316 1,339 1,364 1,389 1,414 1,440 1,547 1,693 1,853 FD Saint Michaels 6,147 6,259 6,373 6,489 6,607 6,727 6,849 7,362 8,056 8,817 SR San Juan4 19 19 20 20 20 21 21 23 25 27 SR Sanostee 1,908 1,943 1,978 2,014 2,051 2,088 2,126 2,285 2,500 2,736 FD Sawmill 914 931 948 965 983 1,000 1,018 1,095 1,198 1,311 SR Sheep Springs 821 836 851 867 883 899 915 984 1,076 1,178 SR Shiprock 9,279 9,448 9,620 9,795 9,973 10,154 10,338 11,112 12,161 13,308 WN Shonto 2,419 2,463 2,508 2,553 2,599 2,647 2,695 2,896 3,170 3,469 EN Smith Lake 1,067 1,086 1,106 1,126 1,146 1,167 1,188 1,277 1,398 1,530 EN Standing Rock 680 692 705 718 731 744 758 815 891 976 FD Steamboat 1,668 1,698 1,729 1,761 1,793 1,826 1,859 1,998 2,186 2,393 SR Sweetwater 1,413 1,439 1,465 1,492 1,519 1,547 1,575 1,693 1,852 2,027 CH Tachee/Blue Gap 1,443 1,469 1,496 1,523 1,551 1,579 1,608 1,728 1,891 2,069 SR Teecnospos 1,323 1,347 1,372 1,397 1,422 1,448 1,474 1,585 1,734 1,898 FD Teestoh 934 951 968 986 1,004 1,022 1,041 1,119 1,224 1,340 EN Thoreau 1,450 1,476 1,503 1,531 1,559 1,587 1,616 1,737 1,901 2,080 FD Tohatchi 2,076 2,114 2,152 2,191 2,231 2,271 2,312 2,486 2,720 2,977 WN Tolani Lake 755 769 783 797 812 826 841 904 989 1,083 WN Tonalea 2,537 2,583 2,630 2,678 2,727 2,776 2,826 3,038 3,325 3,639 EN Torreon/Star Lake 1,818 1,851 1,885 1,919 1,954 1,989 2,025 2,177 2,382 2,607 CH Tsaile/Wheatfields 2,044 2,081 2,119 2,158 2,197 2,237 2,278 2,448 2,679 2,932 EN Tsayatoh 747 761 774 789 803 818 833 895 980 1,072 CH Tselani 1,351 1,376 1,401 1,426 1,452 1,478 1,505 1,618 1,770 1,937 WN Tuba City 8,736 8,895 9,057 9,222 9,390 9,560 9,734 10,462 11,449 12,530 FD Twin Lakes 2,251 2,292 2,334 2,376 2,419 2,463 2,508 2,695 2,950 3,228 SR Two Grey Hills 1,838 1,871 1,906 1,940 1,975 2,011 2,048 2,201 2,409 2,636 CH Whippoorwill 1,457 1,484 1,511 1,538 1,566 1,594 1,623 1,745 1,909 2,090 FD White Cone 1,383 1,408 1,434 1,460 1,487 1,513 1,540 1,656 1,813 1,984 EN White Horse Lake 547 557 567 577 588 598 609 655 716 784 EN White Rock 60 61 62 63 64 65 66 71 78 86 FD Wide Ruins 1,225 1,247 1,270 1,293 1,317 1,340 1,364 1,467 1,605 1,757 Total 180,462 183,749 187,093 190,494 193,961 197,472 201,060 216,108 236,503 258,822

Notes 1 Cove is combined with Red Valley. 2 Cudeii is combined with Shiprock. 3 Newcomb is combined with Two Greyhills. 4 Most of the data on San Juan is included in Nenahnezad.

Source: For 2000 - Census 2000. For Subsequent Years Extrapolated by Trib Choudhary. Support Services Department. Division of Economic Development. p. T5 Table No. 5 Selected Population Profile - US and the Navajos

Navajo Alone or Subject United States MOE in any Combination MOE Total Population 285,691,501 Male 48.90% +/-0.1 48.20% +/-2.7 Female 51.10% +/-0.1 51.80% +/-2.7 Median Age (years) 36.2 +/-0.2 24.7 +/-0.9 Average Household Size 2.6 +/-0.01 3.61 +/-0.34 Average Family Size 3.18 +/-0.01 4.32 +/-0.30 School Enrollment (Population 3 years or over enrolled in school) 75,475,565 +/-42,350 103,363 +/-17,305 Nursery school, preschool 6.20% +/-0.01 7.80% +/-2.2 Kindergarten 5.30% +/-0.01 5.10% +/-2.0 Elementary School (grades 1-8) 43.10% +/-0.02 42.20% +/-4.4 High School (grades 9-12) 22.00% +/-0.01 24.10% +/-3.5 College or Graduate School 23.40% +/-0.02 20.80% +/-3.6 Educational Attainment (Population 25 years and over) 186,534,177 +/-80,390 130,603 +/-13,619 Less than high school diploma 16.1% +/-0.01 27.2% +/-3.4 High school graduate (includes equivalency) 29.5% '+/-0.01 29.1% +/-3.9 Some college or associate's degree 27.4% '+/-0.01 32.6% +/-3.8 Bachelor's degree 17.2% '+/-0.01 5.9% +/-2.2 Graduate or professional degree 9.9% '+/-0.01 5.3% +/-2.1 High school graduate or higher 83.9% '+/-0.01 72.8% +/-3.4 Male, high school graduate or higher 83.6% +/-0.02 69.3% +/-4.4 Female, high school graduate or higher 84.3% '+/-0.01 75.5% +/-4.7 Bachelor's degree or higher 27.0% +/-0.02 11.2% +/-3.0 Male, bachelor's degree or higher 28.6% +/-0.02 8.3% +/-3.9 Female, bachelor's degree or higher 25.6% +/-0.02 13.3% +/-4.1 Disability Civilian Population 5 years and over 1,677,628 +/-72,375 109,683 +/-22,153 With any Disability 14.3% +/-0.1 17.2% +/-2.0 Employment Status Population 16 years and over 220,794,313 +/-60,388 172,127 +/-16,989 Civilian Labor Force 65.50% +/-0.1 63.20% +/-4.1 Unemployed as a percent of Civilian Labor Force 7.20% +/-0.1 17.50% +/-3.0 Total Households 109,902,090 +/-238,125 72,337 +/-10,420 Median Household Income $44,684 +/-214 $27,389 +/-4,389 Total Families 73,885,953 +/-260257 54,012 +/-5,998 Median Family Income $53,692 +/-257 $30,040 +/-5,493 Per Capita Income $24,020 +/-91 $10,701 +/-794 Poverty Rate - All Families 10.10% +/-0.1 27.70% +/-5.2 No Telephone Service Available 4.30% +/-0.1 26.80% +/-5.7 Median Value of Housing Units $151,366 +/-932$ 83,677 +/-18,850

Source: US Census Bureau. 2004 American Community Survey.

Data are based on a sample and are subject to sampling variability. The degree of uncertainty for an estimate arising from sampling variability is represented through the of a margin of error. The value shown here is the 90 percent margin of error

p. T6 Table No. 6 THE PRESIDENTS OF THE NAVAJO NATION

Dates Chairman Vice-Chairman 1922-28 Chee Dodge 1928-32 Deshna Clah Chischilly Maxwell Yazzie 1932-36 Thomas Dodge Marcus Kahuno 1937-38 Henry Taliman, Sr. Roy Kinsel 1938-42 Jacob C. Morgan Howard Gorman 1942-46 Chee Dodge Sam Ahkeah 1946-50 Sam Ahkeah Chee Dodge/Zhealy Tso1 1951-54 Sam Ahkeah John Claw/Adolph Maloney2 1955-59 Paul Jones Scott Peterson 1960-63 Paul Jones Scott Peterson 1963-66 Raymond Nakai Nelson Damon 1967-70 Raymond Nakai Nelson Damon 1971-74 Peter MacDonald Wilson Skeet 1974-78 Peter MacDonald Wilson Skeet 1978-82 Peter MacDonald Frank E. Paul 1983-87 Edward T. Begay 1987-88 Peter MacDonald3 Johnny R. Thompson 1989-89 Marshall Plummer* 1989-91 Leonard Haskie** Irving Billy 1991-94 Peterson Zah4 Marshall Plummner4 1994-98 Albert A. Hale5 Thomas E. Atcitty 1998-98 Thomas E. Atcitty6 Milton Bluehouse7 1198-99 Milton Bluehouse8 Frank Chee Willeto 1999-03 Kelsey A. Begay Taylor McKenzie, MD 2003-PresenJoe Shirley, Jr. Frank Dayish, Jr.

Chee Dodge was elected by popular vote but died before taking office. As a result, Zhealy Tso was elected by the Navajo 1 Tribal Council to serve the unexpired term. John Claw resigned from office. As a result Adolph Maloney was elected by the Navajo Tribal Council to serve the unexpired 2 term. Both Chairman and Vice-Chairman were placed on administrative leave to clear allegations by the US Senate Select 3 Committee. The Navajo Tribal Council by resolution appointed an Interim Chairman and Interim Vice Chairman. The first elected President and Vice-president of the Navajo Nation. They were elected in November 1990 and inaugurated on 4 January 15, 1991. On February 19, 1998, Albert A. Hale resigned due to allegations of wrongdoing and Thomas E. Atcitty became President. 5 6 On July 24, 1998, Thomas E. Atcitty was forced to step down because of allegations of wrong-doing. 7 On March 4, 1998, Milton Bluehouse was appointed Vice-President. 8 On July 24, 1998, Milton Bluehouse assumed the duty of the President * Marshall Plummer was President of the Navajo Nation for only 22 days from February 17 to March 10, 1989. ** Leonard Haskie served both as the Chairman of the Navajo Nation Council and as the President.

Mrs. Grace Davis became the first woman to become the Navajo Tribal Council member after the death of her husband Roger Davis, Sr., and served out the remaining two years. Ms. Anne D. Wauneka is the first woman to be elected as the Navajo Nation Council Delegate.

Source: Office of Navajo Election Administration. The Navajo Nation.

p. T 7 Table No. 7 2002 PRESIDENTIAL ELECTION RESULTS BY CHAPTERS

Total Registered Joe Shirley Chapters Population Voters* Taylor McKenzie Frank Dayish Alamo 2,072 855 286 283 Aneth 2,286 1,166 229 404 Baca/Prewitt 889 1,030 224 374 Becenti 506 462 117 174 Beclabeto 819 481 152 174 Birdspring 829 663 195 163 Black Mesa 398 432 66 115 Bodaway/Gap 1,837 924 314 255 Bread Springs 1,017 617 226 190 Burnham 240 450 138 129 Cameron 1,231 748 222 172 Canoncito 1,649 738 266 170 Casamero Lake 549 451 101 142 Chichiltah 1,692 995 286 334 Chilchinbeto 1,325 692 149 260 Chinle 8,756 2,693 405 1,039 Church Rock 2,802 1,295 314 435 Coalmine Mesa 374 678 122 243 Coppermine 673 614 196 127 Cornfields 830 698 182 244 Counselor 1,018 650 145 164 Cove1 0 455 123 164 Coyote Canyon 957 919 214 342 Crownpoint 2,906 1,113 266 323 Crystal 778 739 218 212 Cudeii2 0 503 161 160 Dennehotso 1,626 837 203 286 Dilkon 2,206 896 208 302 Forest Lake 573 511 117 184 Fort Defiance 5,754 2,685 545 815 Fruitland, Upper 2,892 1,001 286 313 Ganado 3,030 1,043 232 359 Hard Rock 1,256 721 178 226 Hogback 1,386 927 298 264 Houck 1,529 1,016 259 373 Huerfano 2,366 1,246 406 314 Indian Wells 970 684 147 202 Inscription House 1,214 710 270 152 Iyanbito 1,034 593 150 182 Jeddito 1,299 720 155 251 Kaibeto 1,970 976 369 221 Kayenta 6,315 1,912 464 467 Kinlichee 1,404 1,155 209 506 Klagetoh 1,037 751 165 236 Lake Valley 442 342 93 104 Lechee 1,890 757 280 54 Leupp 1,605 920 306 234

p. T 8 Total Registered Kelsey Begaye Joe Shirley Chapters Population Voters* Taylor McKenzie Frank Dayish Little Water 571 592 171 193 Low Mountain 923 672 186 187 Lower Greasewood 1,408 852 221 313 Lukachukai 2,012 1,036 213 369 Lupton 1,000 594 117 218 Manuelito 358 546 113 151 Many Farms 2,773 1,123 204 552 Mariano Lake 870 614 153 229 Mexican Springs 1,318 736 206 244 Mexican Water 815 716 138 200 Nageezi 1,003 949 188 345 Nahata Dziil 1,452 731 153 224 Nahodishgish 404 338 74 149 Naschitti 1,695 1,243 253 514 Navajo Mountain 632 569 190 139 Nazlini 1,151 756 131 354 Nenahnezad 1,695 893 232 252 Newcomb3 0 530 154 163 Oak Springs 613 573 106 242 Ojo Encino 709 626 180 165 Oljato 2,292 1,184 272 411 Pinedale 1,129 769 146 278 Pinon 3,066 1,410 261 513 Pueblo Pintado 464 486 117 180 Ramah 1,676 971 267 289 Red Lake 2,412 427 101 142 Red Mesa 1,138 846 181 321 Red Rock 2,030 1,026 270 358 Red Valley 1,742 989 350 310 Rock Point 1,367 886 293 290 Rock Springs 992 857 279 247 Rough Rock 919 590 73 230 Round Rock 1,292 740 127 312 Saint Michaels 6,147 1,692 341 537 San Juan4 19 425 104 85 Sanostee 1,908 1,299 321 475 Sawmill 914 813 139 348 Sheep Springs 821 522 149 167 Shiprock 9,279 3,676 922 1,078 Shonto 2,419 1,102 338 311 Smith Lake 1,067 557 166 170 Standing Rock 680 558 103 223 Steamboat 1,668 994 259 379 Sweetwater 1,413 776 170 283 Tachee/Blue Gap 1,443 662 136 233 Teecnospos 1,323 973 285 338 Teestoh 934 797 131 263 Thoreau 1,450 786 158 287 Tohatchi 2,076 1,067 243 432

p. T 9 Total Registered Kelsey Begaye Joe Shirley Chapters Population Voters* Taylor McKenzie Frank Dayish Tolani Lake 755 575 141 183 Tonalea 2,537 1,184 396 303 Torreon/Star Lake 1,818 1,062 319 295 Tsaile/Wheatfields 2,044 1,131 279 470 Tsayatoh 747 684 171 214 Tselani 1,351 1,224 246 415 Tuba City 8,736 2,893 572 661 Twin Lakes 2,251 1,112 310 439 Two Grey Hills 1,838 822 249 239 Whippoorwill 1,457 720 191 214 White Cone 1,383 790 232 227 White Horse Lake 547 491 136 165 White Rock 60 294 66 99 Wide Ruins 1,225 714 116 300 TOTAL 180,462 97,729 24,166 31,754

* Registered Voters' numbers are for August, 2000

Notes: 1 Population figure for Cove is combined with Red Valley. 2 Population figure for Cudeii is combined with Shiprock. 3 Population figure for Newcomb is combined with Two Greyhills. 4 Most of the population data on San Juan is included in Nenahnezad.

Sources:

1 For Population - Census 2000.

2 For Voter Registration: Edward T. Begay, Speaker, Navajo Nation Council. Ist Quarterly Report to the Navajo Nation Council. Winter Session. January 2001.

3 For Election Results: Office of Navajo Election. The Navajo Nation.

p. T 10 Table No. 8 20th NAVAJO NATION COUNCIL STANDING COMMITTEE MEMBERSHIPS

Budget and Finance Committee

Bennie Shelly Chairperson Eastern Agency Harold Wauneka Vice Chairperson At-Large Lorenzo Bedonie Chinle Agency Richard T. Begaye Northern Agency Jerry Bodie At-Large Ernest Hubbell Fort Defiance Agency Danny Simpson At-Large Raymond Maxx Western Navajo Agency

Economic Development Committee

Lawrence R. Platero Chairperson Eastern Agency Vice Chairperson Northern Agency Ralph Bennett Fort Defiance Agency Roy B. Dempsey At-Large Tom LaPahe Chinle Agency Tommy M. Tsosie Western Agency Alice M. White At-Large

Education Committee

Leonard Chee Chairperson Western Agency Wallace Charley Vice Chairperson Northern Agency Andy R. Ayze Chinle Agency Katherine Benally At-Large Lee Jack, Sr. At-Large Edison D. Jones Fort Defiance Agency David L. Tom At-Large Ida M. Nelson Eastern Agency

Ethics and Rules Committee

LoRenzo C Bates Chairperson Northern Agency Curran D. Hannon Vice Chairperson Fort Defiance Agency Joe M. Lee Eastern Agency Francis Redhouse At-Large Roscoe D. Smith At-Large Duane Tsinigine Western Agency Harry Williams, Sr. At-Large Arthur D. Yazzie Chinle Agency

p. T 11 Government Services Committee

Ervin M. Keeswood, Sr. Chairperson Northern Agency Roy Laughter Vice Chairperson Western Agency Leo R. Begay Chinle Agency Mel R. Begay At-Large Charles S. Damon II Eastern Agency Cecil Frank Eriacho At-Large Orlanda Smith Hodge Fort Defiance Agency Leonard Teller At-Large

Health and Social Services Committee

Jerry Freddie Chairperson Fort Defiance Agency Evelyn J. Acothley Vice Chairperson Western Agency Eddie J. Arthur Chinle Agency Alice W. Benally At-Large Harry Hubbard Eastern Agency Willie W. Johnson Sr. Northern Agency Thomas Walker, Jr. At-Large Peterson B. Yazzie At-Large

Human Services Committee

Omer Begay Jr. Chairperson Fort Defiance Agency Woody Lee Vice Chairperson Northern Agency Larry Anderson, Sr. At-Large Harriett K. Becenti At-Large Young Jeff Tom Eastern Agency Philbert L. Tso Western Agency Elbert R. Wheeler Chinle Agency Tom M. White, Jr. At-Large

Judiciary Committee

Willie Greyeyes Chairperson Western Agency Raymond Berchman Vice Chairperson Fort Defiance Agency Kee Allen Begay, Jr. At-Large Nelson Gorman Jr. Chinle Agency Northern Agency Edward P. Padilla At-Large LeRoy L. Thomas At-Large Ernest D. Yazzie Jr. Eastern Agency

p. T 12 Public Safety Committee

Hope MacDonald-Lonetree Chairperson At-Large Pete Ken Atcitty Vice Chairperson Northern Agency Benjamin Curley Fort Defiance Agency Harry D. Brown Sr. Western Agency Harry H. Clark Chinle Agency Lorenzo Curley At-Large Harry Willeto Eastern Agency

Resources Committee

George Arthur Chairperson Northern Agency LaVern Wagner Vice Chairperson Eastern Agency Nelson S. Begaye At-Large Herman Daniels Sr. At-Large Harry J. Goldtooth Western Agency Norman John II Fort Defiance Agency Amos F. Johnson Chinle Agency Larry Noble At-Large

Transportation and Community Development Committee

Mark Maryboy Chairperson Northern Agency Willie Begay Vice Chairperson At-Large Sampson Begay Fort Defiance Agency Leslie Dele Western Agency Edward V. Jim At-Large Johnny Naize Chinle Agency David B. Rico Eastern Agency Willie Tracey Jr. At-Large

Source: Office of Legislative Services

p. T 13 Table No. 9A SUMMARY OF THE EXECUTIVE BRANCH GENERAL FUND BUDGET FISCAL YEAR 2000 - 2006

% increase DESCRIPTION 2000 2001 2002 2003 2004 2005 2006 2000-06 1. Executive Offices$ 3,062,463 $ 3,372,817 $ 4,219,132 $ 3,872,789 $ 4,888,543 $ 5,023,171 $ 5,013,284 63.70 2. Department of Justice$ 3,502,446 $ 3,838,805 $ 4,161,183 $ 3,770,405 $ 4,168,308 $ 3,887,006 $ 3,727,175 6.42 3. Gaming Regulatory $ 250,000 $ 643,683 4. Office of Management and Budget$ 774,111 $ 877,528 $ 874,099 $ 910,567 $ 1,102,939 $ 1,051,946 $ 933,094 20.54 5. Office of Navajo Tax Commission$ 1,191,860 $ 1,295,935 $ 1,277,443 $ 1,395,709 $ 1,400,665 $ 1,383,422 $ 1,359,092 14.03 6. Office of the Controller$ 2,759,030 $ 3,042,620 $ 3,082,252 $ 3,137,387 $ 3,672,836 $ 3,892,400 $ 3,588,307 30.06 7. Division of General Services$ 3,204,650 $ 3,394,003 $ 3,793,197 $ 3,713,552 $ 4,590,752 $ 4,472,151 $ 4,229,380 31.98 8. Division of Economic Development$ 3,892,513 $ 3,940,316 $ 4,574,294 $ 4,390,250 $ 4,545,016 $ 4,553,656 $ 4,409,412 13.28 9. Division of Community Development$ 15,387,636 $ 21,109,195 $ 22,629,061 $ 17,775,781 $ 18,405,183 $ 18,715,977 $ 20,254,697 31.63 10. Division of Human Resources$ 3,343,305 $ 3,591,257 $ 4,409,065 $ 4,267,990 $ 4,553,379 $ 4,821,206 $ 4,752,217 42.14 11. Division of Dine Education$ 4,944,088 $ 5,790,901 $ 7,034,490 $ 6,108,981 $ 7,532,059 $ 7,942,683 $ 9,618,941 94.55 12. Division of Natural Resources$ 13,530,267 $ 14,726,101 $ 16,272,698 $ 15,619,256 $ 14,950,152 $ 15,139,853 $ 14,853,001 9.78 13. Environmental Protection Agency$ 1,141,433 $ 1,354,792 $ 1,361,960 $ 1,444,212 $ 1,471,317 $ 1,492,139 $ 1,461,134 28.01 14. Division of Public Safety$ 4,625,090 $ 5,156,120 $ 7,373,007 $ 5,618,444 $ 6,641,694 $ 6,750,558 $ 6,787,361 46.75 15. Division of Health$ 8,192,842 $ 9,385,857 $ 10,310,336 $ 11,189,956 $ 9,622,799 $ 11,391,038 $ 11,260,600 37.44 16. Division of Social Services$ 3,250,087 $ 3,348,520 $ 3,330,528 $ 3,232,192 $ 3,318,584 $ 3,273,852 $ 3,184,368 (2.02) 17. Fixed Costs$ 7,252,002 $ 7,278,991 $ 8,955,216 $ 10,207,552 $ 9,305,482 $ 8,646,651 $ 9,094,060 25.40 18. Fixed Cost Credit$ (3,563,744) (100.00) 19. Navajo Nation Grants$ 2,798,458 $ 2,775,261 $ 5,064,230 $ 2,784,992 $ 1,770,142 $ 1,515,142 $ 5,855,000 109.22 Executive Branch Total $ 79,288,537 $ 94,279,019 $ 108,722,191 $ 99,440,015 $ 101,939,850 $ 104,202,851 $ 111,024,806 40.03 Legislative Branch Total $ 8,162,078 $ 9,994,439 $ 11,094,563 $ 11,197,163 $ 11,613,785 $ 12,192,822 $ 12,466,538 52.74 Judicial Branch Total $ 5,075,212 $ 5,539,447 $ 6,388,037 $ 6,592,205 $ 7,150,067 $ 7,424,465 $ 7,459,145 46.97 Grand Total $ 92,525,827 $ 109,812,905 $ 126,204,791 $ 117,229,383 $ 120,703,702 $ 123,820,138 $ 130,950,489 41.53

Source: Office of the Controller. Division of Finance. The Navajo Nation.

p. T 14 Table No. 9 B SUMMARY OF THE EXECUTIVE BRANCH TOTAL BUDGET FISCAL YEAR 2000 - 2006 % increase DESCRIPTION2000 2001 2002 2003 2004 2005 2006 2000-06 1. Executive Offices$ 3,386,606 $ 11,407,202 $ 4,602,405 $ 4,256,062 $ 5,452,092 $ 5,708,412 $ 5,740,095 69.49 2. Department of Justice$ 4,526,231 $ 4,802,804 $ 5,754,690 $ 5,069,141 $ 5,244,154 $ 5,023,480 $ 4,956,332 9.50 3. Gaming Regulatory $ 250,000 $ 643,683 #DIV/0! 4. Office of Management and Budget$ 1,308,732 $ 2,008,261 $ 1,445,644 $ 1,482,112 $ 1,532,164 $ 1,547,251 $ 1,486,670 13.60 5. Office of Navajo Tax Commission$ 1,191,860 $ 1,299,170 $ 1,280,927 $ 1,399,193 $ 1,400,665 $ 1,383,422 $ 1,359,092 14.03 6. Office of the Controller$ 8,471,307 $ 18,746,084 $ 9,308,988 $ 9,034,182 $ 8,653,967 $ 9,547,955 $ 10,022,040 18.31 7. Division of General Services$ 28,959,432 $ 34,577,302 $ 39,877,591 $ 42,207,998 $ 43,153,339 $ 48,299,493 $ 49,619,924 71.34 8. Division of Economic Development$ 6,120,545 $ 9,665,040 $ 6,901,719 $ 6,692,675 $ 7,089,978 $ 5,644,026 $ 5,539,826 (9.49) 9. Division of Community Development$ 30,111,170 $ 91,622,910 $ 60,141,329 $ 40,634,188 $ 50,522,942 $ 43,057,051 $ 44,210,924 46.83 10. Division of Human Resources$ 18,380,609 $ 70,038,129 $ 27,462,138 $ 48,325,755 $ 58,956,633 $ 44,465,167 $ 43,463,254 136.46 11. Division of Dine Education$ 52,419,308 $ 127,839,303 $ 59,886,569 $ 56,553,493 $ 95,018,957 $ 71,312,269 $ 95,377,180 81.95 12. Division of Natural Resources$ 26,931,949 $ 42,056,147 $ 30,612,113 $ 26,164,004 $ 25,923,530 $ 32,865,817 $ 37,562,527 39.47 13. Environmental Protection Agency$ 4,853,648 $ 9,441,257 $ 5,657,534 $ 7,174,236 $ 8,044,171 $ 6,654,896 $ 7,192,708 48.19 14. Division of Public Safety$ 32,036,630 $ 65,271,336 $ 35,951,952 $ 30,088,351 $ 32,345,152 $ 45,439,478 $ 44,845,633 39.98 15. Division of Health$ 51,612,494 $ 158,600,966 $ 60,040,688 $ 18,336,996 $ 63,260,259 $ 70,351,008 $ 63,303,231 22.65 16. Division of Social Services$ 16,605,973 $ 162,558,793 $ 84,665,798 $ 88,717,027 $ 86,614,854 $ 100,397,856 $ 88,351,023 432.04 17. Fixed Costs$ 12,035,145 $ 11,873,692 $ 11,810,862 $ 13,063,198 $ 12,214,830 $ 11,810,654 $ 12,630,300 4.95 18. Fixed Cost Credit$ (3,563,744) $ - 19. Navajo Nation Grants$ 2,813,008 $ 2,790,561 $ 5,289,530 $ 5,950,742 $ 1,935,152 $ 1,823,460 $ 6,017,867 113.93 Executive Branch Total $ 298,200,903 $ 824,598,957 $ 450,690,477 $ 405,149,353 $ 507,362,839 $ 505,581,695 $ 522,322,309 75.16 Legislative Branch Total $ 9,380,097 $ 11,320,969 $ 11,320,969 $ 12,626,138 $ 13,857,543 $ 14,455,953 $ 15,262,308 62.71 Judicial Branch Total $ 6,060,687 $ 7,829,716 $ 7,829,716 $ 7,647,175 $ 8,249,500 $ 8,532,579 $ 8,572,220 41.44 Grand Total $ 313,641,687 $ 843,749,642 $ 469,841,162 $ 425,422,666 $ 529,469,882 $ 528,570,227 $ 546,156,837 74.13

DESCRIPTION 2000 2001 2002 2003 2004 2005 2006 % Change 2000-06 8. Division of Economic Development$ 6,120,545 $ 9,665,040 $ 6,901,719 $ 6,692,675 $ 7,089,978 $ 5,644,026 $ 5,539,826 (9.49) Executive Branch Total $ 298,200,903 $ 824,598,957 $ 450,690,477 $ 405,149,353 $ 507,362,839 $ 505,581,695 $ 522,322,309 75.16 Executive Branch General Fund $ 79,288,537 $ 94,279,019 $ 108,722,191 $ 99,440,015 $ 101,939,850 $ 104,202,851 $ 111,024,806 40.03 Econ. Dev. Budget as % of total Executive Branch Budget 2.05 1.17 1.53 1.65 1.40 1.12 1.06 -48.33 Econ. Dev. Budget as % of total Exe. Branch Gen. Fund Budget 7.72 10.25 6.35 6.73 6.96 5.42 4.99 -35.36

Source: Office of the Controller . Division of Finance. The Navajo Nation.

p. T 15 Table No. 9C Summary Budget of the Navajo Nation Fiscal Year 2000 thru 2006

Executive Legislative Judicial Capital* Branch Branch Branch Budget Total General Fund$ 79,288,537 $ 8,162,078 $ 5,075,212 $ 92,525,827 External Fund $ 218,912,366 $ 1,218,019 $ 985,475 $ 221,115,860 Total$ 298,200,903 $ 9,380,097 $ 6,060,687 $ 313,641,687 General Fund$ 94,279,019 $ 9,994,439 $ 5,539,447 $ 109,812,905 External Fund $ 730,319,938 $ 1,326,530 $ 2,290,269 $ 733,936,737 2001 Total$ 824,598,957 $ 11,320,969 $ 7,829,716 $ 843,749,642 General Fund$ 108,722,191 $ 11,094,563 $ 6,388,037 $ 126,204,791 External Fund $ 341,968,286 $ 1,486,056 $ 1,060,663 $ 344,515,005 2002 Total$ 450,690,477 $ 12,580,619 $ 7,448,700 $ 470,719,796 General Fund$ 99,440,015 $ 11,197,163 $ 6,592,205 $ 117,229,383 External Fund $ 305,709,338 $ 1,428,975 $ 1,054,970 $ 308,193,283 2003 Total$ 405,149,353 $ 12,626,138 $ 7,647,175 $ 425,422,666 General Fund$ 101,939,850 $ 11,613,785 $ 7,150,067 $ 206,048 $ 120,909,750 External Fund $ 405,422,989 $ 2,253,758 $ 1,099,433 $ - $ 408,776,180 2004 Total$ 507,362,839 $ 13,867,543 $ 8,249,500 $ 206,048 $ 529,685,930 General Fund$ 104,202,851 $ 12,192,822 $ 7,424,465 $ 217,051 $ 124,037,189 External Fund $ 401,378,844 $ 2,263,131 $ 1,108,114 $ - $ 404,750,089 2005 Total$ 505,581,695 $ 14,455,953 $ 8,532,579 $ 217,051 $ 528,787,278 General Fund$ 101,930,746 $ 12,466,538 $ 7,459,145 $ 9,094,060 $ 130,950,489 External Fund $ 407,761,263 $ 2,795,770 $ 1,113,075 $ 3,536,240 $ 415,206,348 2006Total$ 509,692,009 $ 15,262,308 2000 $ 8,572,220 $ 12,630,300 $ 546,156,837

Note: *For the Year 2006 this column represents Fixed Cost Set asides.

SourceOffice of Management and Budget. Division of Finance.

p. T 16 Table No. 10A SUMMARY OF THE NAVAJO NATION BUDGET FISCAL YEAR 2006

INDIRECT SPECIAL SPECIAL NAVAJO NATION GENERAL COST PROPRIETARY FIDUCIARY REVENUE FUND - REVENUE FUND - TOTAL DESCRIPTION FUND FUND FUND FUND INTERNAL EXTERNAL (Col. B thru G) Executive Branch 101,930,745.62 12,894,131.00 47,346,519.00 16,902,483.00 19,178,361.00 311,439,769.28 509,692,008.90 Legislative Branch 12,466,538.06 2,496,910.00 269,400.00 29,459.89 15,262,307.95 Judicial Branch 7,459,144.90 72,722.00 1,040,353.00 8,572,219.90 Fixed Cost Setaside 9,094,060.27 3,536,240.00 12,630,300.27 NAVAJO NATION TOTAL: 130,950,488.85 19,000,003.00 47,615,919.00 16,902,483.00 19,178,361.00 312,509,582.17 546,156,837.02

Source: Office of Management and Budget. Division of Finance.

p. T 17 Table No. 10 B SUMMARY OF THE EXECUTIVE BRANCH BUDGET FISCAL YEAR 2006

ABCDEFGH INDIRECT SPECIAL SPECIAL BRANCH GENERAL COST PROPRIETARY FIDUCIARY REVENUE FUND - REVENUE FUND - TOTAL DESCRIPTION FUND FUND FUND FUND INTERNAL EXTERNAL (Col. B thru G) 1. Executive Offices 5,013,284.00 726,811.00 5,740,095.00 2. Department of Justice 3,727,174.78 1,229,157.00 4,956,331.78 3. Gaming Regulatory 643,683.00 643,683.00 4. Office of Management and Budget 933,094.00 553,576.00 1,486,670.00 5. Office of Navajo Tax Commission 1,359,092.40 1,359,092.40 6. Office of the Controller 3,588,307.34 2,017,973.00 915,760.00 3,500,000.00 10,022,040.34 7. Division of General Services 4,229,380.00 2,682,127.00 41,435,759.00 1,272,658.00 49,619,924.00 8. Division of Economic Development 4,409,411.78 380,414.00 750,000.00 5,539,825.78 9. Division of Community Development 20,254,697.00 1,666,689.00 14,067,000.00 8,222,538.00 44,210,924.00 10. Division of Human Resources 4,752,217.00 1,377,561.00 12,060,500.00 30,000.00 25,242,976.00 43,463,254.00 11. Division of Dine Education 9,618,941.00 362,019.00 50,000.00 827,466.00 1,628,385.00 82,890,369.36 95,377,180.36 12. Division of Natural Resources 14,853,000.51 886,061.00 4,720,000.00 1,010,000.00 16,093,465.16 37,562,526.67 13. Environmental Protection Agency 1,461,134.00 172,324.00 1,544,626.00 4,014,624.00 7,192,708.00 14. Division of Public Safety 6,787,360.81 383,224.00 37,675,048.15 44,845,632.96 15. Division of Health 11,260,600.00 185,946.00 500,000.00 51,356,684.61 63,303,230.61 16. Division of Social Services 3,184,368.00 270,249.00 225,000.00 84,671,406.00 88,351,023.00 18. Navajo Nation Grants 5,855,000.00 14,517.00 148,350.00 6,017,867.00 19. BRANCH TOTAL: 101,930,745.62 12,894,131.00 47,346,519.00 16,902,483.00 19,178,361.00 311,439,769.28 509,692,008.90

Source: Office of the Management and Budget. Division of Finance.

p. T 18 Table No. 10 C SUMMARY OF THE LEGISLATIVE BRANCH BUDGET FISCAL YEAR 2006

SPECIAL SPECIAL BRANCH GENERAL INDIRECT COST PROPRIETARY FIDUCIARY REVENUE FUND - REVENUE FUND - TOTAL DESCRIPTION FUND FUND FUND FUND INTERNAL EXTERNAL (Col. B thru G) 1. Navajo Nation Council 4,630,295.82 789,444.70 5,419,740.52 2. Government Services Committee 12,228.45 79,647.90 91,876.35 3. Budget and Finance Committee 42,950.91 77,512.72 120,463.63 4. Education Committee 40,922.82 60,876.70 101,799.52 5. Public Safety Committee 29,909.91 74,277.60 104,187.51 6. Resources Committee 39,198.19 65,579.80 104,777.99 7. Ethics and Rules Committee 85,361.19 85,361.19 8. Judiciary Committee 34,585.55 73,134.22 107,719.77 9. Economic Development Committee 78,930.91 78,930.91 10. Health and Social Services Committee 31,961.55 73,425.82 105,387.37 11. Human Services Committee 31,849.82 59,507.70 91,357.52 12. Transportation and Community Dev. Com. 65,829.82 61,272.04 127,101.86 13. Intergovernmental Relations Committee 75,294.46 70,103.96 145,398.42 14. Navajo Nation Labor Commission 308,316.75 308,316.75 15. Office of the Speaker 1,826,351.80 196,948.38 2,023,300.18 16. Office of Government Development 375,595.22 375,595.22 17. Office of Legislative Counsel 604,900.85 347,799.38 952,700.23 18. Navajo Utah Commission 208,156.67 208,156.67 19. Office of Legislative Services 1,305,065.64 432,814.38 1,737,880.02 20. Ethics and Rules Office 274,661.45 274,661.45 21. Office of Election Administration 1,075,526.68 19,400.00 1,094,926.68 22. Board of Election Supervisors 53,749.09 53,749.09 23. Black Mesa Review Board 53,387.28 29,459.89 82,847.17 24. Office of the Auditor General 785,733.75 34,564.70 820,298.45 25. Navajo-Hopi Land Commission 85,070.73 85,070.73 26. Commission on Emergency Management 13,299.09 13,299.09 27. Eastern Agency Land Commission 44,751.59 44,751.59 28. Office of Eastern Navajo Land Commission 252,652.07 252,652.07 29. Navajo Nation Code Enterprise 250,000.00 250,000.00 BRANCH TOTAL: 12,466,538.06 2,496,910.00 269,400.00 29,459.89 15,262,307.95

Source: Office of Management and Budget. Division of Finance

p. T 19 Table No. 10D SUMMARY OF THE JUDICIAL BRANCH BUDGET FISCAL YEAR 2006

SPECIAL SPECIAL GENERAL INDIRECT COST PROPRIETARY FIDUCIARY REVENUE FUND - REVENUE FUND - BRANCH DESCRIPTION FUND FUND FUND FUND INTERNAL EXTERNAL TOTAL 1. Administrative Office of the Courts 872,517.00 72,722 1,040,353 1,985,592.00 2. Chinle Judicial District Court 837,000.00 837,000.00 3. Crownpoint Judicial District Court 874,741.00 874,741.00 4. Window Rock Judicial District Court 982,669.90 982,669.90 5. Shiprock Judicial District Court 845,430.00 845,430.00 6. Tuba City Judicial District Court 840,643.00 840,643.00 7. Ramah Judicial District Court 732,876.00 732,876.00 8. Supreme Court 402,267.00 402,267.00 9. Peacemaker Court 147,249.00 147,249.00 10. Kayenta Judicial District Court 765,586.00 765,586.00 11. Dilkon Judicial District Court 158,166.00 158,166.00 BRANCH TOTAL: 7,459,144.90 72,722 1,040,353 8,572,219.90

Source: Office of Management and Budget. Division of Finance.

p. T 20 Table No. 10 E THE NAVAJO NATION - FISCAL YEAR 2006 SUMMARY OF THE FIXED COST OPERATING BUDGET

SPECIAL SPECIAL GENERAL INDIRECT COST PROPRIETARY FIDUCIARY REVENUE FUND - REVENUE FUND - FIXED COST DESCRIPTION FUND FUND FUND FUND INTERNAL EXTERNAL TOTAL 1. Fixed Cost Setasid9,094,060.27 3,536,240.00 12,630,300.27 2.ED COST TOTAL: 9,094,060.27 3,536,240.00 12,630,300.27

Source: Office of Management and Budget. Division of Finance

p. T 21 Table No. 11 SOURCES OF NAVAJO NATION REVENUE

Unaudited Projected Sources of Revenue 2002* 2003* 2004 2005 2006 Oil & Gas$ 17,019,868.0 $ 21,474,230.0 $ 20,362,284.0 $ 32,057,296.0 $ 24,667,000.0 Mining$ 53,843,504.0 $ 66,483,843.0 $ 67,611,027.0 $ 71,345,531.0 $ 56,000,000.0 Taxes$ 62,429,594.0 $ 74,366,906.0 $ 62,527,193.0 $ 63,259,300.0 $ 53,400,000.0 Fuel Excise Tax $ 12,221,707.0 $ 14,105,408.0 $ 9,349,950.0 Land, Building, Business Site & ROW$ 10,866,814.0 $ 9,995,749.0 $ 12,846,470.0 $ 23,454,489.0 $ 15,000,000.0 Investment Income$ 34,768,339.0 $ 29,640,625.0 $ 72,684,194.0 $ 70,000,000.0 $ 70,000,000.0 Grants Revenues$ 296,749,454.0 $ 301,339,097.0 $ 310,538,682.0 $ 300,000,000.0 $ 300,000,000.0 Contribution from Plan Participants Insurance Premium Income Court Fines & Fees $ 1,173,604.0 $ 1,100,000.0 Charges for Services Other Revenue$ (67,852,661.0) $ 65,803,471.0 $ 7,183,752.0 $ 800,000.0 Total$ 407,824,912.0 $ 569,103,921.0 $ 565,975,309.0 $ 575,395,628.0 $ 530,316,950.0

* For FY 2002 and 2003 Other Revenue includes Net Increase in Fair Value of Investments, Other Incomes, Statutory Allocation to Permanent Fund, Statutory Allocation of Current Year Revenues and so on. In 2002 there was a huge decrease in the fair value of investment (over $72 million) resulting in negative Other Revenue.

Source: Office of the Controller. Division of Finance. The Navajo Nation.

p. T 22 Table No. 12 Revenue from Minerals on the Navajo Nation (in million dollars)

1999 2000 2001 2002 2003 2004 2005* Coal Revenue $48.00 $46.40 $48.90 $51.20 $63.70 $66.10 $72.04 Oil Revenue $13.24 $22.62 $22.42 $17.17 $19.02 $19.35 $30.21 Gas Revenue $1.68 $0.96 $2.10 $0.85 $1.95 $2.07 $2.11 LPG Revenue $0.05 $0.25 $0.17 $0.03 $0.19 $0.08 $0.15 Total $62.97 $70.23 $73.59 $69.25 $84.86 $87.60 $104.51

Minerals Production on the Navajo Nation

1999 2000 2001 2002 2003 2004 2005* Coal Prod. (mln. tons) 22.80 22.80 23.50 23.70 24.40 26.09 27.50 Oil (bbls.) 6,146,701 5,604,846 5,141,285 4,530,000 4,250,000 3,800,000 3,440,000 Gas (Mcf) 9,169,999 8,198,449 8,625,787 8,520,000 8,100,000 7,700,000 7,310,000 LPG. Prod. (gal.) 2,012,006 1,594,414 1,448,707 750,000 800,000 750,000 750,000

Notes: * The numbers are estimates.

Source: Mineral's Department. Division of Natural Resources. The Navajo Nation.

p. T 23 Table No. 13 The Navajo Nation Tax Revenue by Category (FY 03 - 06)

Projection FY 03 FY 04 FY 05 FY 06 SALES - Non-Retail$ 8,758,993 $ 11,837,525 $ 11,017,361 $ 11,632,500 PIT - Current$ 26,542,045 $ 25,748,718 $ 27,194,585 $ 24,255,000 SEV - Current$ 3,070,283 $ 4,765,749 $ 5,161,119 $ 3,465,000 BAT - Current$ 14,749,866 $ 13,630,404 $ 13,699,450 $ 13,860,000 TPT - Current$ 208,831 $ 241,232 $ 253,726 $ 200,000 HOT - Current$ 666,969 $ 969,486 $ 691,755 $ 739,500 FET - Current$ 12,064,487 $ 13,138,542 $ 12,214,905 $ 9,800,550 SALES - RETAIL$ 4,489,163 $ 4,810,646 $ 4,765,930 $ 4,176,000 GRAND TOTAL$ 70,550,637 $ 75,142,302 $ 74,998,831 $ 68,128,550

Source: Office of The Navajo Nation Tax Commission

p. T 24 Table No. 14A Sources and Amounts of Income on the Navajo Nation

Number of Average Type of Income Total Amount* Recipients** Amount*** Aggregate Wage or Salary Income in 1999 $ 1,042,782,500 33,245 $ 31,366.6 Aggregate Self-employment Income in 1999 $ 23,454,300 2,702 $ 8,680.3 Aggregate Interest, Dividends, or Net Rental Income in 1999 $ 6,144,600 2,235 $ 2,749.3 Aggregate Social Security Income in 1999 $ 65,959,100 9,374 $ 7,036.4 Aggregate Supplemental Security Income in 1999 $ 41,874,500 7,394 $ 5,663.3 Aggregate Public Assistance Income in 1999 $ 24,982,200 7,285 $ 3,429.3 Aggregate Retirement Income in 1999 $ 43,786,400 4,539 $ 9,646.7 Aggregate Other Types of Income in 1999 $ 55,058,200 9,612 $ 5,728.1 TOTAL $ 1,304,041,800 76,386 $ 17,071.7

Aggregate Income Deficit in 1999 $ 139,747,100 Married Couple Family $ 67,565,600 Other Family $ 72,181,500

*Total amount may not match because of rounding.

** The total number of households has been calculated by Trib Choudhary. It has to be noted that there are only 47,761 households on the Navajo Nation, whereas in this table the number has added up to 76,386. This is so because a number of households derive income from more than one source.

*** Has been calculated by Trib Choudhary

**** From one of the census tables.

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

p. T 25 Table No. 14B Amount and Sources of Income by Chapters

CHAPTERS TOTAL Agency Aggregate wage income salary or in 1999 Aggregate self- employment income in 1999 Aggregate interest, dividends, or net rental income in 1999 Aggregate Social in income Security 1999 Aggregate Suppl. in Income Security 1999 Aggregate public income assistance in 1999 Aggregate retirement income in 1999 Aggregate other types of income in 1999 # 511 326 26 23 110 70 106 62 89 Alamo EN Amt. 14,583,900 11,361,000 375,000 16,900 917,700 320,600 544,900 275,200 772,600 # 581 381 17 15 75 121 90 18 94 Aneth SR Amt. 15,882,800 13,544,900 16,700 3,600 602,200 744,800 424,600 85,700 460,300 # 206 158 31 0 33 29 39 12 37 Baca/Prewitt EN Amt. 5,305,200 4,172,800 333,900 0 214,900 155,900 126,200 144,300 157,200 # 137 97 0 0 26 18 17 25 31 Becenti EN Amt. 2,780,400 2,005,200 0 0 157,600 73,300 1,300 395,300 147,700 # 284 194 18 22 35 44 6 30 56 Beclabeto SR Amt. 6,335,100 5,374,600 89,100 500 222,900 231,100 5,400 209,500 202,000 # 182 143 9 4 49 15 30 19 50 Birdspring WN Amt. 5,600,700 4,490,200 8,100 600 410,600 128,600 68,500 104,900 389,200 # 165 80 8 0 43 60 37 15 31 Black Mesa CH Amt. 2,140,700 1,256,000 56,800 0 163,500 277,600 133,300 162,000 91,500 # 469 295 18 6 103 132 74 34 117 Bodaway/Gap WN Amt. 12,605,100 9,590,000 151,400 19,200 597,300 829,700 134,100 240,000 1,043,400 # 3131820 219728112383 Bread Springs EN Amt. 6,116,200 4,808,500 0 1,000 566,400 112,100 61,900 94,700 471,600 # 67 58 0 10 17 8 0 0 11 Burnham SR Amt. 1,386,000 1,217,200 0 400 136,600 25,200 0 0 6,600 # 314 229 26 14 78 47 38 18 129 Cameron WN Amt. 7,922,000 6,190,300 118,000 19,400 506,400 225,200 114,400 53,000 695,300 # 407 297 40 6 61 56 105 16 92 Canoncito EN Amt. 9,854,900 7,496,200 387,900 12,900 306,300 302,000 457,700 290,300 601,600 # 128 81 7 0 28 12 15 12 45 Casamero Lake EN Amt. 2,367,200 1,589,400 117,600 0 207,200 72,900 30,200 56,200 293,700 # 534 368 64 28 139 73 58 28 148 Chichiltah EN Amt. 14,962,700 10,620,700 395,300 2,200 1,889,300 377,100 99,600 183,400 1,395,100 # 360 189 19 0 65 94 41 35 73 Chilchinbeto WN Amt. 7,949,800 5,440,900 463,500 0 556,600 747,500 130,900 285,600 324,800 # 2,210 1,550 130 201 328 235 522 218 312 Chinle CH Amt. 69,289,700 58,763,400 328,900 402,600 2,490,900 1,497,100 2,053,500 2,446,800 1,306,500 # 692 511 32 5 84 124 114 27 137 Church Rock EN Amt. 16,372,400 13,180,600 247,700 0 692,000 605,400 250,900 75,600 1,320,200 # 114 61 26 16 29 37 19 39 7 Coalmine Mesa WN Amt. 2,115,600 859,800 88,400 34,600 188,000 200,200 41,400 640,200 63,000 # 154 80 6 4 55 58 25 17 29 Coppermine WN Amt. 3,119,200 2,109,200 0 100,000 265,300 343,700 38,400 116,300 146,300 # 223 148 0 0 72 52 21 12 40 Cornfields FD Amt. 5,222,200 3,828,600 0 0 583,500 317,800 134,600 86,400 271,300 # 337 100 0 8 61 69 145 48 69 Counselor EN Amt. 3,666,300 1,506,200 0 100 383,600 353,400 821,000 308,300 293,700 # Cove1 S Amt. 0

p. T 26 Amount and Sources of Income by Chapters

CHAPTERS TOTAL Agency Aggregate wage income salary or in 1999 Aggregate self- employment income in 1999 Aggregate interest, dividends, or net rental income in 1999 Aggregate Social in income Security 1999 Aggregate Suppl. in Income Security 1999 Aggregate public income assistance in 1999 Aggregate retirement income in 1999 Aggregate other types of income in 1999 # 2501945 136046306048 Coyote Canyon FD Amt. 7,406,700 5,698,100 60,000 500 425,200 196,300 115,400 764,000 147,200 # 882 756 56 115 110 38 123 109 114 Crownpoint EN Amt. 28,180,600 24,228,700 497,700 173,300 733,100 204,600 427,800 1,110,100 805,300 # 238 134 15 9 65 42 37 45 62 Crystal FD Amt. 5,449,800 3,871,600 46,500 16,400 490,400 223,800 117,700 506,600 176,800 # Cudeii2 SR Amt. 0 # 384 244 7 6 74 129 56 9 71 Dennehotso WN Amt. 7,736,800 5,734,500 105,100 12,000 520,300 956,600 120,500 57,800 230,000 # 560 360 4 34 118 128 111 28 142 Dilkon FD Amt. 12,692,200 10,102,400 20,000 46,500 680,700 774,900 378,800 218,900 470,000 # 143 66 8 0 43 14 47 8 43 Forest Lake CH Amt. 1,507,800 858,600 7,300 0 319,100 95,300 85,900 35,500 106,100 # 1,567 1,205 84 160 189 67 222 138 276 Fort Defiance FD Amt. 55,391,800 49,127,500 550,000 235,000 1,005,800 532,600 714,400 1,416,900 1,809,600 # 730 634 48 65 136 62 63 60 135 Fruitland, Upper SR Amt. 22,404,800 18,503,600 1,047,500 32,500 921,000 334,400 163,800 593,100 808,900 # 874 764 35 67 126 66 28 60 289 Ganado FD Amt. 35,326,400 29,954,400 332,000 71,000 1,854,100 677,800 161,300 509,200 1,766,600 Lower # 380 216 0 8 61 61 52 46 112 FD Greasewood Amt. 8,172,600 6,519,400 0 12,000 352,100 435,700 168,900 424,200 260,300 # 3011814 134661712488 Hard Rock CH Amt. 5,755,900 4,556,900 6,800 49,300 256,900 281,000 164,100 175,600 265,300 # 332 229 11 7 122 52 52 67 70 Hogback SR Amt. 8,285,400 6,153,000 66,000 200 847,900 206,200 198,300 605,800 208,000 # 449 283 32 10 125 48 56 27 69 Houck FD Amt. 8,479,200 6,522,800 377,300 12,200 915,400 185,400 125,900 140,600 199,600 # 587 426 35 91 130 73 93 66 93 Huerfano EN Amt. 14,040,100 11,033,700 619,000 266,800 735,500 315,900 147,400 478,300 443,500 # 258 171 19 16 86 57 52 49 52 Indian Wells FD Amt. 8,551,900 6,486,900 97,700 252,900 589,200 257,500 170,400 552,200 145,100 Inscription # 369 232 29 10 79 89 56 32 97 WN House Amt. 8,851,200 7,194,900 86,300 12,200 464,900 566,200 66,500 142,700 317,500 # 247 178 16 0 65 38 38 26 25 Iyanbito EN Amt. 5,248,200 4,075,800 65,400 0 360,400 186,400 58,300 395,000 106,900 # 330 194 0 0 130 67 84 41 62 Jeddito FD Amt. 6,984,000 4,454,500 0 0 993,200 403,500 373,100 506,900 252,800 # 415 360 3 0 55 54 79 42 159 Kaibeto WN Amt. 16,262,400 13,444,000 99,000 0 448,900 483,600 138,600 310,000 1,338,300 # 1,576 1,272 66 88 258 187 248 122 283 Kayenta WN Amt. 54,871,700 47,594,300 473,000 946,700 2,082,200 1,042,000 808,900 642,600 1,282,000 # 393 261 83 5 74 36 30 64 87 Kinlichee FD Amt. 11,519,400 8,042,800 1,170,600 1,500 427,600 128,200 190,000 1,002,600 556,100

p. T 27 Amount and Sources of Income by Chapters

CHAPTERS TOTAL Agency Aggregate wage income salary or in 1999 Aggregate self- employment income in 1999 Aggregate interest, dividends, or net rental income in 1999 Aggregate Social in income Security 1999 Aggregate Suppl. in Income Security 1999 Aggregate public income assistance in 1999 Aggregate retirement income in 1999 Aggregate other types of income in 1999 # 320 190 22 8 79 48 40 37 31 Klagetoh FD Amt. 5,827,500 4,218,600 40,100 400 612,700 231,700 74,500 228,300 421,200 # 105891602416233117 Lake Valley EN Amt. 2,937,400 1,883,900 13,000 0 168,900 71,700 56,900 727,400 15,600 # 416 397 14 4 65 35 44 27 136 Lechee WN Amt. 18,598,600 16,839,400 76,900 8,800 392,700 127,200 81,000 408,400 664,200 # 458 332 13 54 75 91 69 71 83 Leupp WN Amt. 11,920,700 8,999,000 21,600 -30,400 778,000 504,300 192,800 907,500 547,900 # 113 100 19 0 14 12 22 21 31 Little Water EN Amt. 2,451,000 1,888,600 127,000 0 152,300 69,700 59,300 102,100 52,000 # 285 200 7 0 74 53 68 16 58 Low Mountain FD Amt. 6,704,900 5,567,100 37,800 0 388,900 219,500 157,900 179,100 154,600 # 528 230 54 27 115 61 94 54 98 Lukachukai CH Amt. 7,647,100 4,728,800 408,400 204,600 720,500 343,600 273,000 461,800 506,400 # 291 170 22 7 45 53 45 17 79 Lupton FD Amt. 6,095,500 4,202,100 199,700 19,100 335,100 297,100 120,400 351,200 570,800 # 159 110 13 0 76 39 0 14 58 Manuelito EN Amt. 3,090,000 1,871,300 227,500 0 390,400 258,100 0 7,200 335,500 # 786 598 17 60 94 100 188 67 143 Many Farms CH Amt. 20,982,800 17,798,700 18,300 313,000 494,500 484,200 683,800 574,600 615,700 # 261 146 17 7 52 26 23 4 82 Mariano Lake EN Amt. 4,850,400 3,746,500 63,200 1,800 350,400 131,600 98,900 14,000 444,000 Mexican # 286 204 15 15 50 41 15 45 78 FD Springs Amt. 9,899,700 7,661,300 14,700 3,100 507,500 220,700 87,700 713,800 690,900 # 170 93 0 0 44 76 53 15 10 Mexican Water SR Amt. 4,439,100 3,513,600 0 0 175,400 473,700 158,900 90,000 27,500 # 2631480 108661352421 Nageezi EN Amt. 5,088,900 3,589,400 0 8,000 690,300 348,100 119,100 214,200 119,800 # 385 262 36 19 100 69 71 36 81 Nahata Dziil FD Amt. 11,462,300 6,698,700 238,600 75,200 664,100 396,500 187,700 2,577,700 623,800 # 103 64 6 0 35 26 18 9 20 Nahodishgish EN Amt. 1,946,700 1,300,100 224,500 0 111,000 179,900 38,400 31,600 61,200 # 570 299 35 16 144 91 64 103 101 Naschitti FD Amt. 13,947,400 9,496,000 152,700 135,500 1,420,800 438,600 212,600 1,049,600 1,041,600 Navajo # 209 155 0 6 69 25 14 23 54 WN Mountain Amt. 4,853,500 4,015,800 0 0 384,900 79,400 2,200 78,500 292,700 # 331 147 7 0 62 77 80 40 68 Nazlini CH Amt. 5,096,700 3,517,700 4,600 0 369,800 365,200 333,200 287,300 218,900 # 439 362 16 26 113 65 22 66 79 Nenahnezad SR Amt. 10,364,800 8,140,200 33,000 21,100 1,188,000 421,900 21,600 269,200 269,800 # Newcomb3 SR Amt. 0 # 179 105 18 0 23 5 10 19 31 Oak Springs FD Amt. 4,935,000 4,185,200 228,000 0 100,300 14,300 24,200 140,600 242,400

p. T 28 Amount and Sources of Income by Chapters

CHAPTERS TOTAL Agency Aggregate wage income salary or in 1999 Aggregate self- employment income in 1999 Aggregate interest, dividends, or net rental income in 1999 Aggregate Social in income Security 1999 Aggregate Suppl. in Income Security 1999 Aggregate public income assistance in 1999 Aggregate retirement income in 1999 Aggregate other types of income in 1999 # 174 90 0 7 28 30 44 6 39 Ojo Encino EN Amt. 4,398,800 3,771,500 0 100 150,900 117,400 180,600 800 177,500 # 548 395 61 20 97 108 109 71 54 Oljato WN Amt. 16,767,300 13,624,500 810,500 188,300 747,900 566,700 242,000 455,900 131,500 # 293 208 16 0 70 70 69 0 52 Pinedale EN Amt. 5,095,100 2,955,800 237,600 0 540,900 447,500 522,100 0 391,200 # 760 460 44 37 120 81 156 100 128 Pinon CH Amt. 17,702,400 14,337,000 962,600 38,500 567,300 545,000 379,200 355,000 517,800 # 157 96 0 6 46 52 78 21 38 Pueblo Pintado EN Amt. 2,657,600 1,518,100 0 1,200 206,500 290,100 300,000 280,800 60,900 # 449 283 21 25 86 94 98 1 57 Ramah EN Amt. 9,224,100 7,178,500 131,000 5,900 533,400 509,600 512,700 7,000 346,000 # 578 448 62 9 87 52 170 72 132 Red Lake FD Amt. 11,818,100 9,165,600 199,300 15,300 750,300 298,100 595,900 290,600 503,000 # 3082300 114955591819 Red Mesa SR Amt. 9,077,900 8,029,100 0 32,800 217,700 319,900 172,700 105,700 200,000 # 5053525 284038891877 Red Rock EN Amt. 12,182,400 10,814,900 7,000 74,400 254,800 120,900 270,000 76,200 564,200 # 499 305 21 29 155 126 72 49 76 Red Valley SR Amt. 10,659,500 8,282,400 15,800 31,300 792,000 587,900 146,400 433,200 370,500 # 404 283 11 10 73 87 33 19 46 Rock Point SR Amt. 11,707,100 10,575,100 26,600 600 477,600 369,500 104,500 74,100 79,100 # 231 154 9 0 38 23 32 21 53 Rock Springs EN Amt. 11,413,200 9,962,100 9,000 0 150,600 102,800 95,000 804,300 289,400 # 209 157 7 0 41 61 69 5 33 Rough Rock CH Amt. 4,921,500 3,404,200 39,100 0 270,700 423,100 366,800 105,000 312,600 # 325 148 8 0 112 63 96 59 46 Round Rock CH Amt. 4,764,600 3,011,700 1,700 0 649,700 338,200 300,800 378,900 83,600 # 1,624 1,471 168 159 164 55 161 144 267 Saint Michaels FD Amt. 64,305,300 54,685,800 2,851,100 249,500 1,927,400 299,800 450,200 2,006,300 1,835,200 # 14140 000000 San Juan4 SR Amt. 182,000 182,000 0 000000 # 0 00 000000 San Juan4 SR Amt. 0 00 000000 # 620 315 51 11 237 171 65 56 169 Sanostee SR Amt. 12,863,800 9,014,100 129,600 17,100 1,405,500 956,300 198,500 425,900 716,800 # 232 123 34 26 95 50 20 46 58 Sawmill FD Amt. 4,784,600 3,106,400 184,300 6,600 669,700 281,400 67,300 276,200 192,700 # 234 149 8 5 63 35 55 14 63 Sheep Springs SR Amt. 4,261,700 1,723,700 32,000 0 548,200 195,000 186,500 129,400 1,446,900 # 2,474 1,945 196 63 440 184 118 269 495 Shiprock SR Amt. 75,080,400 60,671,700 1,950,800 222,100 3,401,800 1,032,400 512,100 3,138,200 4,151,300 # 638 455 43 15 128 177 84 85 181 Shonto WN Amt. 20,624,700 16,604,000 205,900 17,300 587,600 1,069,700 214,600 792,600 1,133,000

p. T 29 Amount and Sources of Income by Chapters

CHAPTERS TOTAL Agency Aggregate wage income salary or in 1999 Aggregate self- employment income in 1999 Aggregate interest, dividends, or net rental income in 1999 Aggregate Social in income Security 1999 Aggregate Suppl. in Income Security 1999 Aggregate public income assistance in 1999 Aggregate retirement income in 1999 Aggregate other types of income in 1999 # 294 172 19 0 38 46 26 26 55 Smith Lake EN Amt. 6,798,000 5,555,900 242,900 0 239,800 269,800 135,900 150,200 203,500 # 232 127 36 7 68 33 7 16 72 Standing Rock EN Amt. 4,242,700 3,039,100 100,200 800 373,100 169,900 1,900 166,100 391,600 # 427 280 12 33 56 94 75 30 108 Steamboat FD Amt. 8,263,900 6,114,800 432,000 229,900 375,100 368,100 151,300 281,800 310,900 # 336 187 4 7 118 114 53 17 40 Sweetwater SR Amt. 5,747,800 4,108,800 1,200 10,500 638,200 575,600 165,400 139,500 108,600 Tachee/Blue # 404 161 6 0 100 129 124 27 76 CH Gap Amt. 7,286,100 4,518,500 5,900 0 908,700 738,700 724,500 160,500 229,300 # 426 211 8 16 93 68 39 26 110 Teecnospos SR Amt. 8,353,400 6,349,100 112,000 200 397,600 303,800 144,200 122,300 924,200 # 208 140 16 0 77 60 26 19 50 Teestoh FD Amt. 6,507,000 4,935,900 44,200 0 861,600 338,100 70,800 148,400 108,000 # 415 296 12 19 107 52 54 53 72 Thoreau EN Amt. 10,297,100 7,769,300 150,000 287,000 747,000 327,000 231,600 346,000 439,200 # 590 496 16 29 105 65 51 43 85 Tohatchi FD Amt. 18,613,100 16,789,900 11,600 40,000 583,200 312,300 210,000 188,500 477,600 # 2091410 104752594056 Tolani Lake WN Amt. 5,418,800 3,774,500 0 54,700 326,100 226,500 196,800 554,000 286,200 # 627 418 25 10 108 152 54 54 195 Tonalea WN Amt. 15,635,600 12,571,500 420,000 12,100 395,600 821,000 114,500 537,600 763,300 Torreon/Star # 377 226 23 16 80 76 158 46 47 EN Lake Amt. 8,275,600 5,498,300 75,900 255,400 512,400 591,300 690,600 293,900 357,800 Tsaile/Wheatfiel # 527 314 41 11 77 67 119 46 101 CH ds Amt. 13,053,100 9,457,600 321,300 160,800 687,600 373,600 350,400 461,800 1,240,000 # 149921905750221822 Tsayatoh EN Amt. 3,048,700 2,236,100 1,600 0 317,200 222,200 102,000 87,100 82,500 # 454 297 15 11 59 77 88 24 98 Tselani CH Amt. 9,405,600 7,650,000 14,900 5,500 334,700 525,000 265,000 51,600 558,900 # 2,164 1,837 189 198 279 286 196 242 445 Tuba City WN Amt. 88,276,300 77,532,600 1,911,300 470,400 1,830,600 1,728,800 724,400 2,462,700 1,615,500 # 658 459 50 0 141 90 52 41 127 Twin Lakes FD Amt. 18,027,400 14,131,400 418,400 0 1,119,000 679,800 187,000 212,000 1,279,800 # 537 316 28 17 155 102 58 32 83 Two Grey Hills SR Amt. 13,385,700 10,822,200 64,500 40,200 1,037,900 512,300 204,700 142,400 561,500 # 280 177 0 9 32 67 94 15 60 Whippoorwill CH Amt. 5,747,600 4,633,300 0 35,100 153,100 432,600 288,400 87,200 117,900 # 346 213 6 5 85 76 33 24 74 White Cone FD Amt. 9,605,500 6,775,600 144,000 2,500 473,800 427,000 456,900 372,200 953,500 White Horse # 164 88 0 0 45 63 31 18 36 EN Lake Amt. 2,574,400 1,549,100 0 0 219,400 449,600 43,100 175,800 137,400

p. T 30 Amount and Sources of Income by Chapters

CHAPTERS TOTAL Agency Aggregate wage income salary or in 1999 Aggregate self- employment income in 1999 Aggregate interest, dividends, or net rental income in 1999 Aggregate Social in income Security 1999 Aggregate Suppl. in Income Security 1999 Aggregate public income assistance in 1999 Aggregate retirement income in 1999 Aggregate other types of income in 1999 # 2517108880017 White Rock EN Amt. 136,400 25,100 -22,400 10,600 70,800 22,300 0 0 30,000 # 326 210 18 9 91 88 50 38 84 Wide Ruins FD Amt. 9,013,600 6,899,600 175,900 113,000 626,600 482,100 151,800 252,600 312,000 # 76,386 33,245 2,702 2,235 9,374 7,394 7,285 4,539 9,612 TOTAL Amt. 1,304,089,750 1,042,815,419 23,457,076 6,147,112 65,968,064 41,882,124 24,989,179 43,791,177 55,067,923

# - Number of Households Amt. - Amount of Income

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

p. T 31 Table No. 15A Gaming Tribes in the United States by States (Note: This list is not intended to be exhaustive. Because gaming facilities open and close over time, Tribes may be included that do not presently operate a gaming facility.

ALASKA Klawock Cooperative Association San Manuel Band of Mission Indians Metlakatla Indian Community Santa Rosa Band of Tachi Indians of the Santa Rosa Rancheria Santa Ynez Band of Mission Indians ARIZONA Sherwood Valley Rancheria Ak Chin Indian Community Shingle Springs Rancheria Cocopah Indian Tribe Smith River Rancheria Colorado River Indian Tribes Soboba Band of Luiseno Indians Fort McDowell Mohave-Apache Indian Community Susanville Indian Rancheria Gila River Indian Community Sycuan Band of Mission Indians Pascua Yaqui Tribe of Arizona Table Mountain Rancheria Quechan Indian Tribe Temecula Band of Luiseno Mission Indians Salt River Pima-Maricopa Indian Community Trinidad Rancheria San Carlos Apache Tribe Tule River Tribe of the Tule River Indian Reservation Tohono O'odham Nation Twenty-Nine Palms Band of Mission Indians Tonto Apache Tribe Tyme Maidu Tribe of the Berry Creek Rancheria White Mountain Apache Tribe Viejas Band of Mission Indians Yavapai Apache Nation Yavapai-Prescott Indian Tribe COLORADO Southern Ute Indian Tribe CALIFORNIA Ute Mountain Ute Tribe Auberry Big Sandy Rancheria Augustine Band of Mission Indians CONNECTICUT Barona Band of Mission Indians Mashantucket Pequot Tribe Big Valley Rancheria of Pomo Indians Mohegan Tribe of Indians of Connecticut Bishop Paiute Tribe Cabazon Band of Mission Indians FLORIDA Cahto Tribe of the Laytonville Rancheria Miccosukee Business Committee Cahuilla Band of Mission Indians Seminole Tribe Chemehuevi Indian Tribe Chicken Ranch Band of Me-Wuk Indians IDAHO Colusa Band of Wintun Indians Coeur d'Alene Tribe Coyote Valley Band of Pomo Indians Kootenai Tribe of Idaho Elk Valley Rancheria Nez Perce Tribe Fort Mojave Tribal Council Shoshone-Bannock Tribes Hoopa Valley Tribe Hopland Band of Pomo Indians IOWA Jackson Rancheria Band of Miwuk Indians Sac & Fox Tribe of Mississippi in Iowa Lake Miwok Indian Nation of the Middletown Rancheria Mooretown Rancheria KANSAS Morongo Band of Mission Indians Iowa Tribe of Kansas and Nebraska Pala Band of Mission Indians Kickapoo Nation in Kansas Pit River Tribe Prairie Band Potawatomi Redding Rancheria Sac and Fox Nation of Missouri Rincon San Luiseno Band of Mission Indians Robinson Rancheria of Pomo Indians Rumsey Indian Rancheria

p. T 32 LOUISIANA Chitimacha Tribe of Louisiana NEW MEXICO Coushatta Tribe of Louisiana Mescalero Apache Tribe Tunica-Biloxi Tribe of Louisiana Pueblo of Acoma Pueblo of Isleta Bay Mills Indian Community Pueblo of Laguna Grand Traverse Band of Ottawa/Chippewa Indians Pueblo of Pojoaque Hannahville Indian Community Pueblo of San Felipe Keweenaw Bay Indian Community Pueblo of San Juan Lac Vieux Desert Band of Lake Superior Chippewa Indians Pueblo of Sandia Little River Band of Ottawa Chippewa Pueblo of Santa Ana Little Traverse Bay Bands of Indians Pueblo of Taos Saginaw Chippewa Indian Tribe Pueblo of Tesuque Sault Ste. Marie Tribe of Chippewa Indians NEW YORK MINNESOTA Oneida Nation of New York Bois Forte Band of Chippewas Seneca Nation of Indians Fond du Lac Reservation Business Committee St. Regis Mohawk Tribe Grand Portage Band of Chippewa Indians Leech Lake Band of Chippewa Indians NORTH CAROLINA Lower Sioux Indian Community Eastern Band of Cherokee Indians Mille Lacs Band of Chippewa Indians Prairie Island Indian Community NORTH DAKOTA Red Lake Band of Chippewa Indians Spirit Lake Sioux Nation Shakopee Mdewakanton Sioux Community Standing Rock Sioux Tribe Upper Sioux Community Three Affiliated Tribes of the Fort Berthold Reservation White Earth Band of Chippewa Indians Turtle Mountain Band of Chippewa Indians

MISSISSIPPI OKLAHOMA Mississippi Band of Choctaw Indians Absentee-Shawnee Tribe of Oklahoma Cherokee Nation of Oklahoma MISSOURI Cheyenne and Arapaho Tribes of Oklahoma Eastern Shawnee Tribe of Oklahoma Chickasaw Nation of Oklahoma Choctaw Nation of Oklahoma MONTANA Citizen Band Potawatomi Indians of Oklahoma Assiniboine & Sioux Tribes of the Fort Peck Reservation Comanche Indian Tribe Blackfeet Tribe of Indians Delaware Tribe of Western Oklahoma Chippewa Cree Tribe of the Rocky Boy's Reservation Ft. Sill Apache Tribe of Oklahoma Confederated Salish and Kootenai Tribes of the Flathead Rese Iowa Tribe of Oklahoma Crow Indian Tribe Kaw Nation of Oklahoma Fort Belknap Indian Community Kickapoo Tribe of Oklahoma Northern Cheyenne Tribe Miami Nation Modoc Tribe of Oklahoma NEBRASKA Muscogee (Creek) Nation Omaha Tribe of Nebraska Osage Nation Santee Sioux Tribe of Nebraska Otoe-Missouria Tribe of Oklahoma Winnebago Tribe of Nebraska Ponca Tribe of Oklahoma Quapaw Tribe of Oklahoma NEVADA Seminole Nation of Oklahoma Las Vegas Paiute Tribe Seneca-Cayuga Tribe of Oklahoma Moapa Band of Paiutes Thlopthlocco Tribal Town Tonkawa Tribe of Oklahoma

p. T 33 OREGON Burns Paiute Tribe WISCONSIN Confederated Tribes of the Grand Ronde Community Bad River Band of Lake Superior Tribe of Chippewa Indians Confederated Tribes of the Siletz Indians of Oregon Forest County Potawatomi Community Confederated Tribes of the Umatilla Indian Reservation Ho-Chunk Nation Confederated Tribes of the Warm Springs Reservation of Or Lac Courte Oreilles Band of Lake Superior Chippewas Coquille Indian Tribe Lac du Flambeau Band of Lake Superior Chippewa Indians Cow Creek Band of Umpqua Indians Menominee Indian Tribe of Wisconsin Klamath Tribes Oneida Tribe of Indians of Wisconsin Red Cliff Band of Lake Superior Chippewas SOUTH DAKOTA Sokaogon Chippewa Community Cheyenne River Sioux Tribe St. Croix Chippewa Indians of Wisconsin Crow Creek Sioux Tribe Stockbridge-Munsee Community Flandreau Santee Sioux Tribe Lower Brule Sioux Tribe WYOMING Oglala Sioux Tribe Northern Arapaho Tribe of the Wind River Indian Reservation Rosebud Sioux Tribal Council Sisseton-Wahpeton Sioux Tribe Yankton Sioux Tribe

TEXAS Kickapoo Traditional Tribe of Texas

WASHINGTON Confederated Tribes and Bands of the Yakama Indian Nation Confederated Tribes of the Chehalis Reservation Confederated Tribes of the Colville Reservation Jamestown S'Klallam Tribe Lummi Nation Makah Indian Tribe of the Makah Indian Reservation Muckleshoot Indian Tribe Nisqually Indian Tribe Nooksack Indian Tribe Port Gamble S'Klallam Tribe Puyallup Tribe of Indians Shoalwater Bay Indian Tribe Spokane Tribe of Indians Squaxin Island Tribe Suquamish Tribe Swinomish Indian Tribal Community Tulalip Tribes of Washington Upper Skagit Indian Tribe

Source: National Indian Gaming Commission. (Complied from gaming operation audit reports received and entered by the NIGC through 7/7/05).

p. T 34 Table No. 15B Year by Year Tribal Gaming Revenues

Gaming operations with fiscal years ending in 2004

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $250 million and over 15$ 7,200,911 4.10% 37.10% 480,061 376,449 $100 million to $250 million 40$ 6,277,698 10.90% 32.30% 156,942 155,160 $50 million to $100 million 33$ 2,240,010 9.00% 11.50% 67,879 67,233 $25 million to $50 million 60$ 2,144,497 16.30% 11.00% 35,742 33,391 $10 million to $25 million 68$ 1,122,554 18.50% 5.80% 16,508 15,924 $3 million to $10 million 57$ 344,352 15.50% 1.80% 6,041 5,913 Under $3 million 94$ 77,488 25.60% 0.40% 824 530 Total 367$ 19,407,510 99.90% 99.90%

Gaming operations with fiscal years ending in 2003

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $250 million and over 11$ 5,381,204 3.10% 32.00% 489,200 343,230 $100 million to $250 million 32$ 5,333,377 8.90% 31.70% 166,668 163,916 $50 million to $100 million 35$ 2,459,698 9.80% 14.60% 70,277 65,416 $25 million to $50 million 57$ 2,040,711 15.90% 12.10% 35,802 35,219 $10 million to $25 million 69$ 1,170,169 19.30% 7.00% 16,959 16,741 $3 million to $10 million 57$ 350,398 15.90% 2.10% 6,147 5,819 Under $3 million 97$ 90,569 27.10% 0.50% 934 523 Total 358$ 16,826,126 100.00% 100.00%

Gaming operations with fiscal years ending in 2002

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $250 million and over 10$ 4,640,064 2.90% 31.50% 464,006 302,298 $100 million and over 31$ 4,870,596 8.90% 33.10% 157,116 150,174 $50 million to $100 million 24$ 1,694,606 6.90% 11.50% 70,609 68,225 $25 million to $50 million 55$ 1,978,519 15.80% 13.40% 35,973 38,984 $10 million to $25 million 65$ 1,067,513 18.60% 7.30% 16,423 16,570 $3 million to $10 million 63$ 386,399 18.10% 2.60% 6,133 5,373 Under $3 million 101$ 79,965 28.90% 0.50% 800 469 Total 349$ 14,717,662 100.10% 99.90%

p. T 35 Gaming operations with fiscal years ending in 2001

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $100 million and over 39$ 8,398,523 11.80% 65.50% 215,347 158,836 $50 million to $100 million 19$ 1,415,755 5.80% 11.00% 74,513 79,083 $25 million to $50 million 43$ 1,528,611 13.00% 11.90% 35,549 34,264 $10 million to $25 million 58$ 997,546 17.60% 7.80% 17,199 16,328 $3 million to $10 million 57$ 385,654 17.30% 3.00% 6,766 7,292 Under $3 million 114$ 96,257 34.50% 0.80% 844 575 Total 330$ 12,822,346 100.00% 100.00%

Gaming operations with fiscal years ending in 2000 Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $100 million and over 31$ 6,606,284 10.00% 60.30% 213,106 141,684 $50 million to $100 million 24$ 1,693,510 7.70% 15.50% 70,563 73,314 $25 million to $50 million 41$ 1,360,777 13.20% 12.40% 33,190 29,944 $10 million to $25 million 50$ 856,464 16.10% 7.80% 17,129 17,335 $3 million to $10 million 55$ 350,110 17.70% 3.20% 6,366 6,250 Under $3 million 110$ 91,545 35.40% 0.80% 832 365 Total 311$ 10,958,690 100.10% 100.00%

Gaming operation fiscal years ending in 1999 Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000)

$100 million and over 28 $ 5,845,787 11% 61% 208,778 136,897 $50 to $100 million 19 $ 1,323,996 8% 14% 69,684 70,412 $25 to $50 million 32 $ 1,166,820 13% 12% 36,463 37,004 $10 to $25 million 54 $ 926,309 21% 10% 17,154 16,769 $3 to $10 million 46 $ 284,345 18% 3% 6,181 6,392 Under $3 million 73 $ 67,439 29% 1% 924 656 Total 252 $ 9,614,696 100% 101%

Gaming operation fiscal years ending in 1998 Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $100 million and over 23 $ 4,674,895 8% 55% 203,256 127,972 $50 to $100 million 20 $ 1,354,563 7% 16% 67,728 68,922 $25 to $50 million 31 $ 1,090,227 11% 13% 35,169 34,639 $10 to $25 million 56 $ 948,089 21% 11% 16,930 16,287 $3 to $10 million 55 $ 341,064 20% 4% 6,201 5,746 Under $3 million 88 $ 79,079 32% 1% 899 583 Total 273 $ 8,487,917 99% 100%

p. T 36 Gaming operation fiscal years ending in 1997

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $100 million and over 15 $ 3,298,611 6% 44% 219,907 137,779 $50 to $100 million 22 $ 1,676,320 8% 22% 76,196 73,955 $25 to $50 million 35 $ 1,182,924 13% 16% 33,798 32,695 $10 to $25 million 52 $ 890,465 20% 12% 17,124 17,305 $3 to $10 million 53 $ 311,960 20% 4% 5,886 5,493 Under $3 million 88 $ 91,069 33% 1% 723 723 Total 265 $ 7,451,349

Gaming operation fiscal years ending in 1996

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $100 million and over 12 $ 2,604,463 5% 41% 217,039 168,682 $50 to $100 million 20 $ 1,511,280 9% 24% 75,564 74,605 $25 to $50 million 24 $ 843,558 10% 13% 35,148 34,553 $10 to $25 million 61 $ 1,022,540 26% 16% 16,763 16,100 $3 to $10 million 42 $ 233,520 18% 4% 5,560 5,807 Under $3 million 73 $ 85,507 31% 1% 1,171 978 Total 232 $ 6,300,868

Gaming operation fiscal years ending in 1995

Number of RevenuesPercentage of Mean Median Gaming Revenue Range Operations (in thousands) Operations Revenues (in '000) (in '000) $100 million and over 8 $ 2,014,492 4% 37% 251,812 168,241 $50 to $100 million 19 $ 1,485,172 9% 27% 78,167 78,664 $25 to $50 million 22 $ 793,567 10% 15% 36,071 35,998 $10 to $25 million 57 $ 883,545 27% 16% 15,501 14,488 $3 to $10 million 36 $ 214,549 17% 4% 5,960 6,165 Under $3 million 73 $ 63,691 34% 1% 872 601 Total 215 $ 5,455,016 101% 100%

Source: National Indian Gaming Commission. (Complied from gaming operation audit reports received and entered by the NIGC through 7/7/05).

p. T 37 Table No. 15C Growth in Indian Gaming

Revenues (in millions)

Source: National Indian Gaming Commission

p. T 38 Table No. 16 RESULTS OF REFERENDUM VOTE ON GAMING by CHAPTERS

1994 1997 2004 Rgstrd CHAPTER Yes No Yes No Yes No Voters* Population** Alamo 302 149 89 27 136 382 921 2,267 Aneth 253 328 155 136 262 143 1,098 2,501 Baca 188 136 130 118 281 203 965 972 Becenti 134 169 67 111 100 86 469 554 Beclabeto 179 150 116 122 134 92 481 897 Birdsprings 125 175 91 63 126 91 571 907 Black Mesa 99 117 63 79 113 72 417 435 Bodaway/Gap 208 384 121 167 217 206 893 2,010 Bread Springs 183 163 116 133 246 147 624 1,113 Burnham 81 151 40 112 80 47 398 262 Cameron 169 227 146 201 181 172 686 1,347 Canoncito 219 213 62 57 219 150 745 1,805 Casamero Lake 121 107 83 56 100 23 387 601 Chichiltah 268 346 119 210 297 216 985 1,851 Chilchinbeto 112 258 106 140 194 149 591 1,450 Chinle 562 661 401 391 595 302 2,472 9,582 Church Rock 327 250 217 216 394 179 1,254 3,066 Coalmine Mesa 124 176 108 58 157 115 655 409 Coppermine 131 172 91 105 130 72 575 736 Cornfields 174 266 143 168 181 133 637 908 Counselor 79 137 56 77 94 111 483 1,114 Cove 96 143 48 111 121 68 468 0 Coyote Canyon 258 272 175 195 324 151 815 1,047 Crownpoint 254 251 150 199 242 85 991 3,180 Crystal 274 200 162 167 234 164 654 851 Cudeii 140 147 71 144 108 66 575 0 Dennehotso 225 250 146 171 267 163 797 1,779 Dilkon 235 236 243 142 306 194 916 2,414 Forest Lake 102 189 63 109 101 94 414 627 Fort Defiance 689 560 432 492 561 331 2,330 6,296 Fruitland, Upper 270 322 136 308 140 173 955 3,165 Ganado 255 355 166 218 279 185 904 3,315 Hard Rock 129 330 99 162 147 157 604 1,375 Hogback 300 229 148 208 218 182 854 1,517 Houck 251 294 216 187 344 143 985 1,673 Huerfano 264 385 129 280 278 417 1,251 2,590 Indian Wells 162 197 121 114 181 104 577 1,062 Inscription House 140 259 107 160 146 156 682 1,328 Iyanbito 198 110 150 64 264 57 591 1,131 Jeddito 223 256 155 104 173 66 634 1,421 Kaibeto 255 324 109 202 215 229 948 2,156 Kayenta 421 527 303 372 317 280 1,540 6,910 Kinlichee 297 399 241 257 386 192 1,113 1,536

p. T 39 1994 1997 2004 Rgstrd CHAPTER Yes No Yes No Yes No Voters* Population** Klagetoh 216 340 137 193 224 137 663 1,135 Lake Valley 75 105 38 48 83 73 319 484 Lechee 209 219 125 131 168 185 689 2,068 Leupp 171 298 129 180 216 235 837 1,756 Little Water 150 192 80 82 130 112 573 625 Low Mountain 161 202 137 94 203 117 641 1,010 Lower Greasewood 241 267 201 153 264 159 764 1,540 Lukachukai 248 392 146 214 264 183 902 2,202 Lupton 181 191 144 142 191 90 529 1,095 Manuelito 120 125 67 100 212 80 552 392 Many Farms 277 423 235 260 314 180 1,104 3,034 Mariano Lake 175 200 100 112 182 106 636 952 Mexican Springs 260 169 172 140 242 123 661 1,442 Mexican Water 120 153 76 94 110 90 577 892 Nageezi 232 277 126 200 227 148 932 1,098 Nahata Dziil 140 142 130 89 278 99 784 1,589 Nahodishgish 113 57 64 53 97 52 327 442 Naschitti 331 377 217 269 319 201 1,092 1,855 Navajo Mountain 96 186 62 105 137 99 513 691 Nazlini 172 276 136 173 272 145 707 1,260 Nenahnezad 212 216 113 199 155 159 843 1,855 Newcomb 142 203 63 178 112 124 474 0 Oak/Pine Springs 130 216 114 113 198 116 533 671 Ojo Encino 102 118 50 61 162 118 607 775 Oljato 243 431 105 226 209 225 1,188 2,508 Pinedale 178 199 127 101 247 100 834 1,236 Pinon 260 367 196 220 330 197 1,259 3,355 Pueblo Pintado 103 176 68 71 124 118 436 508 Ramah 173 232 148 275 294 253 952 1,834 Red Lake 127 91 76 88 129 89 405 2,639 Red Mesa 171 241 101 103 187 63 839 1,245 Red Rock 233 231 153 150 313 180 1,024 2,221 Red Valley 212 276 166 298 224 209 931 1,906 Rock Point 164 380 111 202 143 133 832 1,496 Rock Springs 194 182 125 125 263 128 846 1,085 Rough Rock 143 200 82 88 205 98 527 1,006 Round Rock 178 207 114 142 244 130 636 1,414 Saint Michaels 496 430 334 293 369 208 1,561 6,727 San Juan 93 76 68 72 78 44 309 21 Sanostee 307 520 175 351 282 256 1,318 2,088 Sawmill 248 272 184 159 237 132 720 1,000 Sheep Springs 223 147 92 107 178 120 524 899 Shiprock 909 822 556 778 763 488 3,572 10,154 Shonto 232 367 170 154 281 245 1,067 2,647 Smith Lake 123 148 81 112 131 104 528 1,167 Standing Rock 131 129 91 99 199 91 529 744 Steamboat 329 338 196 206 359 187 941 1,826

p. T 40 1994 1997 2004 Rgstrd CHAPTER Yes No Yes No Yes No Voters* Population** Sweetwater 157 275 108 157 154 115 708 1,547 Tachee/Blue Gap 108 304 65 160 150 99 606 1,579 Teec Nos Pos 238 341 110 203 228 197 900 1,448 Teestoh 162 260 125 153 227 139 691 1,022 Thoreau 207 158 115 126 217 102 795 1,587 Tohatchi 383 293 211 237 418 175 1,045 2,271 Tolani Lake 136 160 109 78 135 108 487 826 Tonalea 218 417 172 255 307 264 1,037 2,776 Torreon/Star Lake 265 241 114 136 175 122 992 1,989 Tsaile/Wheatfields 242 308 166 179 350 193 1,046 2,237 Tsayatoh 175 188 101 89 242 62 654 818 Tselani/Cottonwood 242 372 155 235 315 208 1,031 1,478 Tuba City 424 525 441 356 530 437 2,390 9,560 Twin Lakes 336 228 181 157 491 202 1,092 2,463 Two Grey Hills 174 238 163 179 160 91 763 2,011 Whippoorwill 165 251 107 107 213 133 682 1,594 White Cone 196 269 153 113 212 139 721 1,513 White Horse Lake 100 146 53 73 107 151 479 598 White Rock 72 74 45 50 45 29 252 65 Wide Ruins 230 249 140 128 237 89 708 1,340 Total 23450 28073 15305 18087 25051 16732 91021 197,471

* Updated on August 22, 2005 ** Population figures have been extrapolated by Trib Choudhary based upon the 2000 Census

Source: The Navajo Nation Office of the Election Administration.

p. T 41 Table No. 17 PERFORMANCE OF THE RBDO'S

RBDO's Activities 1998 1999 2000 2001 2002 2003 2004 Till July 2005 Number 1 1 4 1 0 0 1 Small Business Loans Approved Amount$ 150,000.0 Number 7 11 9 3 5 3 1 2 Micro Loans Approved** Amount$ 12,500.0 $ 2,500.0 $ 10,500.0 Leases Approved 31513 6 1 3 Leases Modified 51121 0 2 1 Ft. Defiance Leases Terminated 11412 0 1 2 Professional Service Contracts Approved 237319 Public Trainings 22887 1757 9 Number 0 0 0 Small Business Loans Approved Amount 0 0 0 Number 25631 1 0 0 Micro Loans Approved Amount$ 2,500.0 0 0 Leases Approved 82323 4 7 2

Shiprock Leases Modified 42624 3 4 3 Leases Terminated 3 0 2 3 2 Professional Service Contracts Approved 3 1 Public Trainings 22 22 21 Number 3 2 1 1 0 1 Small Business Loans Approved Amount$ 100,000.0 0$ 72,500.0 Number 25211 1 2 2 Micro Loans Approved Amount$ 900.0 $ 3,750.0 6,000.0 Leases Approved 64114 7 7 3

Tuba City Leases Modified 13 6791 1 1 0 Leases Terminated 2 1 3 2 0 0 1 Professional Service Contracts Approved 41331 Public Trainings 61314

p. T 42 RBDO's Activities 1998 1999 2000 2001 2002 2003 2004 Till July 2005 Number 1 1 1 1 Small Business Loans Approved Amount$ 92,000.0 Number 6 4 2 2 5 2 Micro Loans Approved Amount$ 11,000.0 $ 5,000.0 Leases Approved 32231 1 Chinle Leases Modified 3 2 2 3 1 Leases Terminated 1512 1 Professional Service Contracts Approved 1 Public Trainings 23 43 29 Number 1 2 N. A. N. A. N. A. Small Business Loans Approved Amount N. A. N. A. N. A. Number N. A. N. A. N. A. Micro Loans Approved * Amount N. A. N. A. N. A. Leases Approved N. A. N. A. N. A.

Eastern Leases Modified 1 N. A. N. A. N. A. Leases Terminated 1 N. A. N. A. N. A. Professional Service Contracts Approved 2 1 N. A. N. A. N. A. Public Trainings N. A. N. A. N. A. Number N. A. N. A. N. A. Small Business Loans Approved Amount N. A. N. A. N. A. Number 1 1 N. A. N. A. N. A. Micro Loans Approved

* Amount N. A. N. A. N. A. Leases Approved (land withdrawal) 1 N. A. N. A. N. A.

Aneth Leases Modified N. A. N. A. N. A. Leases Terminated N. A. N. A. N. A. Professional Service Contracts Approved N. A. N. A. N. A. Public Trainings N. A. N. A. N. A.

p. T 43 RBDO's Activities 1998 1999 2000 2001 2002 2003 2004 Till July 2005 Number 0 0 0 Small Business Loans Approved Amount

* Number 1 0 1 Micro Loans Approved Amount$ 5,000.0 $ - $ 7,000.0 Leases Approved 1 2 2 1 Leases Modified 00 0

Whippoorwill Leases Terminated 21 2 Professional Service Contracts Approved 1 1 Public Trainings 10 13 11

* These RBDOs were opened at the beginning of Fiscal Year 2000. ** Includes outside loans and grants - loan to Sandia from First Bank of Phoenix, Navajo Nation

N.A. No activity reported.

Source: Various RBDO's. Division of Economic Development.

p. T 44 Table No. 18 CHAPTERS UNDER DIFFERENT RBDOs

ANETH CHINLE EASTERN FT. DEFIANCE SHIPROCK WESTERN WHIPPOORWILL 1 Aneth Chinle Alamo Cornfields Beclabeto Birdsprings Black Mesa 2 Dennehotso Lukachukai Baca Coyote Canyon Burnham Cameron Blue Gap/Tachee 3 Mexican Water Many Farms Becenti Crystal Counselor Chilchinbeto Dilkon 4 Oljato Nazlini Bread Springs Ft. Defiance Cove Coalmine Mesa Forest Lake 5 Red Mesa Rock Point Canoncito Ganado Cudeii Coppermine Hard Rock 6 Sweetwater Rough Rock Casamero Lake Houck Hogback Gap/Bodaway Indian Wells 7 Teec Nos Pos Round Rock Chichiltah Kinlichee Huerfano Inscription House Jeddito 8 Tsaile/Wheatfields Church Rock Klagetoh Nageezi Kaibeto Low Mountain 9 Tselani/Cottonwood Crownpoint Lower Greasewood Nenahnezad Kayenta Pinon 10 Iyanbito Lupton Newcomb LeChee Teestoh 11 Lake Valley Mexican Springs Red Valley Leupp Whippoorwill 12 Little Water Nahata Dziil San Juan Navajo Mountain White Cone 13 Manuelito Naschitti Sanostee Shonto 14 Mariano Lake Oak Springs Sheep Springs Tolani Lake 15 Nahodishgish Red Lake Shiprock Tonalea 16 Ojo Encino Sawmill Two Greyhills Tuba City 17 Pinedale St. Michaels Upper Fruitland 18 Pueblo Pintado Steamboat 19 Ramah Tohatchi 20 Red Rock Twin Lakes 21 Rock Springs Wide Ruins 22 Smith Lake 23 Standing Rock 24 Thoreau 25 Torreon 26 Tsayatoh 27 White Horse Lake 28 White rock 29 30 Total 7 9 28 21 17 16 12

Source: Division of Economic Development.

p. T 45 Table No. 19 FY 2006 PROJECT PRIORITY LISTING

Job Creation Project Description Location Projected Cost Source of Financing Temp. Perm. Nahata Dziil Shopping Center NahataDzill, AZ $6,250,000 NN, EDA, Private 40 100 Alamo Mini-Market Alamo, NM $1,800,000 USDA, NM, NN, Private 30 20 Raytheon Expansion NAPI, NM $4,000,000 NN 40 50 Church Rock Industrial Site Infrastructure Church Rock, NM $200,000 NN 20 Latex Gloves Manufacturing Plant Church Rock, NM $6,450,000 NM, NN, BIDF, Fed. Prog. 20 80 Ganado Commercial Center Ganado, AZ $3,000,000 Fed. Prog, NN 30 50 Bio Mass Facility Navajo, NM $10,000,000 Private, NN, 20 40 Kerley Valley Commercial/Industrial Site Tuba City, AZ $2,460,000 AZ, Fed. Prog, NN 25 100 Shonto Jct. Commercial/Industrial Park Shonto, AZ $500,000 AZ, Fed. Prog, NN 20 15 Coalmine Canyon Commercial/Industrial Coalmine Canyon, AZ $1,445,000 Fed Prog. 15 10 Site Chilchinbeto Commercial/Industrial Park Chilchinbeto, AZ $1,485,000 Fed. Prog, ADOT, AML, NN 15 25

Bitter Springs Commercial Site Bittersprings, AZ 420,000 AZ, Fed Prog, NN 15 10 Kaibeto Commercial & Tourism Kaibeto, AZ $575,000 Fed. Prog. NN, State 15 20 Development Montezuma Creek Shopping Center Montezuma Creek, UT $2,486,016 NN, USDA, EDA, UNTF & NRB 40 30 Antelope Point Marina & Resort LeChee/Page $75,000,000 Private 175 150 Sheep Springs Welcome Center Sheepsprings, NM $1,014,500 HOT, NM 20 6 Auto Parts Store & Auto Repair Chinle, AZ $500,000 20 15 Church Rock Gateway Indian Market & Church Rock, NM $300,000 Fed. Prog. NN, State 20 20 Incubator Service Center Infrastructure Huerfano Roadside Devmt-Tourism Huerfano, NM $500,000 Fed. Prog. NN, State 10 20 Torreon Roadside Development-Tourism Torreon, NM $1,300,000 Fed. Prog. NN, State 10 20 Convenience Store/Gas Station Tse Bonito, NM $1,000,000 Private 20 15 Gorman's Trailer Court Chinle, AZ $20,000 4 4 Convenience Store & Gas station Sheepsprings, NM $500,000 Private 20 10 Karigan Estates - Residential St. Michaels, AZ $30,000,000 Private, NN 40 0 Church Rock Industrial Site Church Rock, NM $200,000 NN 20 Wheatfields Lake Renovation Wheatfields, AZ $110,463 FHWA Scenic Roads 100 5 Karigan Estates Apartment Complex St. Michaels, AZ $2,000,000 Private, BIDF 25 4 Mystery Valley RV Park & Campground Monument Valley, UT $150,000 4 CEC, NN 19 5 Car Wash Chinle, AZ $100,000 Private 5 2 TeecNosPos Commercial Center TeecNosPos, AZ $4,300,000 40 35 Technology Outsourcing Business Montezuma Creek, UT $250,000 USDA/RBEG, SBA, BIDF 20 15 Montezuma Creek Sewing Factory Montezuma Creek, UT $380,000 Various 8 25 Convenience Store/Gas Station Chinle, AZ $1,000,000 20 15 Storage Units Chinle, AZ $50,000 4 3 Motel & Restaurant Shiprock, NM $3,100,000 Private 50 50 New Fairgrounds Shiprock, NM $1,500,000 10 2 Sawmill Commercial Center Sawmill, AZ $800,000 NN, Private 40 10 Monarch Park St. Michaels, AZ $550,000 NN 10 50 Karigan Restaurant St. Michaels, AZ $3,750,000 NN 50 40 Tire Shop & Repairs St. Michaels, AZ $100,000 Private 3 15 Satellite Communication Center Tse Bonito, NM $2,000,000 Private 20 15 Eastern Navajo Office & Retail Complex Crownpoint, NM $4,000,000 50 50 Office Complex & Retail Center Shiprock, NM $5,000,000 50 50 Motel & Convention Center Shiprock, NM $3,100,000 50 50 TOTAL: $183,645,979 1,278 1,251

Source: Project Development Department. Division of Economic Development. The Navajo Nation.

p. T 47 Table No. 20 Population Labor Force Ratio L. F. as a Population Population Labor Force Region percentage of AZ 5,130,632 2,387,139 46.53 NM 1,819,046 834,632 45.88 UT 2,233,169 1,104,431 49.46 USA 281,421,906 138,820,935 49.33 The Navajo Nation 180,462 51,363 28.46

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

p. T 48 Table No. 21 Unemployment Rate by States

Unempl. Unempl. States Rate Per Capita States Rate Per Capita 1 1 Jun-04 Income in 2004 Jun-04 Income in 2004 United States 5.7$ 30,547 Missouri 5.7$ 28,387 Montana 4.4$ 24,908 Alabama 5.5$ 25,778 Nebraska 3.7$ 29,065 Alaska 7.4$ 31,954 Nevada 4.4$ 30,981 Arizona 5.0$ 26,378 New Hampshire 3.8$ 34,352 Arkansas 5.8$ 23,858 New Jersey 4.8$ 38,333 California 6.3$ 32,478 New Mexico 5.7$ 24,291 Colorado 5.5$ 33,446 New York 5.9$ 35,454 Connecticut 4.8$ 42,104 North Carolina 5.6$ 27,124 Delaware 4.1$ 33,259 North Dakota 3.4$ 29,120 District of Columbia 8.1$ 48,044 6.2$ 29,049 Florida 4.8$ 29,173 Oklahoma 5.1$ 26,051 Georgia 4.7$ 27,870 Oregon 7.5$ 27,796 Hawaii 3.2$ 29,826 Pennsylvania 5.5$ 30,928 Idaho 4.8$ 25,132 Rhode Island 5.2$ 31,285 Illinois 6.1$ 31,858 South Carolina 6.9$ 25,200 Indiana 5.1$ 27,910 South Dakota 3.5$ 28,617 Iowa 4.8$ 28,342 Tennessee 5.3$ 27,828 Kansas 5.5$ 28,575 Texas 6.1$ 28,029 Kentucky 5.4$ 25,698 Utah 5.3$ 24,675 Louisiana 5.8$ 25,580 Vermont 3.5$ 30,392 Maine 4.5$ 28,348 Virginia 3.8$ 32,903 Maryland 4.2$ 36,399 Washington 6.2$ 32,738 Massachusetts 5.1$ 38,768 West Virginia 5.4$ 23,995 Michigan 7.0$ 29,635 Wisconsin 4.9$ 29,824 Minnesota 4.6$ 33,259 Wyoming 4.0$ 31,817 Mississippi 6.1$ 22,861 The Navajo Nation* 48.0$ 7,734

1 In Constant 2000 dollars.

* Data for the Navajo Nation is for December 31, 2004.

Source: For Unemployment Rate : US Department of Labor, Bureau of Labor Statistics. Reproduced from New Mexico Labor Market Report. Volume 34. No. 6. Prepared by Economic Research and Analysis. NM Department of Labor

For Per Capita Income : Bureau of Economic Analysis. Survey of Current Business, April 2005

For the Navajo Nation - Support Services Department. Division of Economic Development. The Navajo Nation.

p. T 49 Table No. 22 Labor Force and Unemployment by Agencies*

Navajo Region Combined Totals SERVICE POPULATION: ON-OR-NEAR RESERVATION Age Distribution Data Labor Force Data Total Employed

Agency, Tribe, and Reservation Names Available for Unemployed Total Eligible for Age Under Age 65 & Not Available Work or Total Number Number Not as % of Labor Employed, but Below Tribal Enrollment Services 16 Age 16-64 Over for Work Workforce Employed Employed Force Poverty Guidelines

State/s (A) (1)+(2)+(3) (1) (2) (3) (4) (5) (6) (7) (8) Public (9) Private (10) Total (11) # % Chinle Agency Chinle Navajo AZ 40,434 28,939 10,823 16,084 2,032 9,868 8,248 4,537 3,711 44.99 3,106 1,431 4,537 429 9.46% Eastern Navajo Agency Eastern Navajo NM 49,853 36,243 13,300 20,610 2,333 12,613 10,330 2,664 7,666 74.21 2,457 207 2,664 62 2.33% Fort Defiance Agency Fort Defiance Navajo AZ 50,718 39,443 13,902 22,565 2,976 14,299 11,242 6,298 4,944 43.98 1,972 4,326 6,298 1,298 20.61% Fort Defiance Navajo NM 17,194 9,816 3,610 5,545 661 3,408 2,798 829 1,969 70.37 488 341 829 102 12.30% Shiprock Agency Shiprock Navajo AZ 9,649 5,579 1,994 3,078 507 1,995 1,590 725 865 54.40 474 251 725 75 10.34% Shiprock Navajo NM 39,606 21,756 7,249 13,005 1,502 8,306 6,201 4,193 2,008 32.38 1,431 2,762 4,193 829 19.77% Shiprock Navajo UT 7,166 4,688 1,852 2,535 301 1,499 1,337 313 1,024 76.59 153 160 313 48 15.34% Western Navajo Agency Western Navajo AZ 45,910 36,293 13,552 20,395 2,346 12,398 10,343 4,330 6,013 58.14 2,038 2,292 4,330 688 15.89% Western Navajo UT 3,536 2,433 926 1,362 145 814 693 358 335 48.34 79 279 358 84 23.46% vajo Region TOTALS: 264,066 185,190 67,208 105,179 12,803 65,200 52,782 24,247 28,535 54.06 12,198 12,049 24,247 3,615 14.91

* This table included data on American Indians only

Source: American Indian Population and Labor Force Report 2003. US Department of the Interior. Bureau of Indian Affairs. Office of Tribal Services.

p. T 50 Table No. 23 EMPLOYMENT AND INCOME COMPARED 12/31/97 thru 12/31/2005

1997 1998 1999 2000 2001 2002 2003 2004 2005 Population 174,467 176,564 178,687 180,462 183,784 187093 190,494 193,961 197,471 Labor Force 51,468 53,853 54,500 55,041 56,054 57062 58,101 59,158 60,229 Employed 27,891 30,496 30,708 30,818 32,420 30776 30,464 30,738 30,996 Unemployed 23,577 23,357 23,792 24,223 23,634 26286 27,637 28,420 29,233 Unempl. Rate 45.81 43.37 43.65 44.01 42.16 46.07 47.57 48.04 48.54 Personal Inc. $976,810,909 $1,016,764,284 $1,110,811,059 $1,175,079,929 $1,217,554,156 $1,305,704,368 $1,411,947,247 $1,500,051,602 $1,627,232,654 Per Capita Inc. $5,599 $5,759 $6,217 $6,512 $6,625 $6,979 $7,412 $7,733.78 $8,240.36

Source: Support Services Department. Division of Economic Development.

p. T51 Table No. 24 A Employment by Sectors of Economy 2003

The Navajo USA Arizona New Mexico Nation*

Number of Employees for week including

NAICS Code Industry Code Description March 12, 2003 Percent Number of Employees (in 1,000) Percent Number of Employees Percent Number of Employees Percent

11 Agriculture, Forestry, Fishing, Hunting etc. 180,673 0.16 na na na 202 0.66 21 Mining 454,550 0.40 8.4 0.33 16900 2.08 1405 4.57 22 Utilities 675,938 0.60 11.7 0.47 3900 0.48 2015 6.56 23 Construction 6,381,404 5.63 222.5 8.87 55200 6.78 677 2.20 31 Manufacturing 14,132,020 12.46 175.8 7.01 37000 4.54 305 0.99 42 Wholesale Trade 5,863,860 5.17 96.2 3.83 22600 2.78 88 0.29 44 Retail Trade 14,867,825 13.11 310.4 12.37 92900 11.41 2614 8.50 48 Transportation and Warehousing 4,067,935 3.59 67 2.67 19700 2.42 0.00 51 Information 3,599,902 3.17 46 1.83 14600 1.79 0.00 52 Finance and Insurance 6,463,706 5.70 124.7 4.97 24500 3.01 550 1.79 53 Real Estate and Rental and Leasing 2,044,738 1.80 47.3 1.88 10800 1.33 0.00

54 Professional, Scientific, and Technical Services 7,340,246 6.47 358.5 14.29 93500 11.48 0.00

55 Management of Companies and Enterprises 2,879,156 2.54 0.00 0.00

56 Administrative and Support and Waste Management and Remediation Services 8,511,138 7.51 0.00 0.00 0.00 61 Educational Services 2,776,615 2.45 44.3 1.77 13100 1.61 0.00 62 Health Care and Social Assistance 15,472,183 13.64 235.6 9.39 92100 11.31 0.00 71 Arts, Entertainment, and Recreation 1,832,985 1.62 33.4 1.33 8100 0.99 0.00 72 Accommodation and Food Services 10,439,651 9.21 217.5 8.67 77100 9.47 0.00

81 Other Services (except Public Administration) 5,367,166 4.73 93.1 3.71 29100 3.57 15616 50.80 Federal, State and Local Government 416.9 16.61 203100 24.94 7266 23.64 99 Unclassified 46,352 0.04 0 Total 113,398,043 100.00 2509.3 100.00 814200 100.00 30738 100.00

*Figures for the Navajo Nation are for December, 2004.

Source: County Business Patterns. US Census Bureau. For the Navajo Nation - Support Services Department. Division of Economic Development.

p. T 52 Table No. 24 B Change in the Number of Businesses and Their Receipts 1997 - 2002

Percentage 1997 2002 Change Number of Firms 20,821,934 22,977,164 10.35 United States Sales and Receipts (in $1,000,000)$ 18,553,243 $ 22,634,870 22.00 Number of Firms 197,300 206,125 4.47 American Indian Owned Sales and Receipts (in $1,000,000)$ 34,344 $ 26,396 (23.14)

Source: Economic Census 2002

p. T 53 Table No. 24 C SMALL AND LARGE FIRMS IN THE UNITED STATES in 2002

Sales and Receipts Number Percent (in $1,000) Percent Firms with Paid Employees 5,526,111 24.05 $ 21,867,386,411.0 96.61 non-Employer Establishments 17,451,053 75.95 $ 767,483,995.0 3.39 Total 22,977,164 100.00$ 22,634,870,406.0 100.00

Source: Economic Census 2002. US Census Bureau.

p. T 54 Table No. 24 D Employment by Sectors of Economy in the US

NAICS Number of Sales, Receipts or Annual Payroll % of employees Sectors of Economy Paid Employee Code Establishments Shipments ($1,000) ($1,000) to total employment 21 Mining 24,087 182,911,093 21,173,895 477,840 0.44 22 Utilities 17,103 398,907,044 42,417,830 663,044 0.61 23 Construction 710,307 1,196,555,587 254,292,144 7,193,069 6.60 31-33 Manufacturing 350,828 3,916,136,712 576,170,541 14,699,536 13.49 42 Wholesale trade 435,521 4,634,755,112 259,653,080 5,878,405 5.39 44-45 Retail trade 1,114,637 3,056,421,997 302,113,581 14,647,675 13.44 48-49 Transportation & warehousing 199,618 382,152,040 115,988,733 3,650,859 3.35 51 Information 137,678 891,845,956 194,670,163 3,736,061 3.43 52 Finance & insurance 440,268 2,803,854,868 377,790,172 6,578,817 6.04 53 Real estate & rental & leasing 322,815 335,587,706 60,222,584 1,948,657 1.79 54 Professional, scientific, & technical services 771,305 886,801,038 376,090,052 7,243,505 6.65 55 Management of companies & enterprises 49,308 107,064,264 178,996,060 2,605,292 2.39 Administrative & support & waste management & 56 remediation service 350,583 432,577,580 206,439,329 8,741,854 8.02 61 Educational services 49,319 30,690,707 10,164,378 430,164 0.39 62 Health care & social assistance 704,526 1,207,299,734 495,845,829 15,052,255 13.81 71 Arts, entertainment, & recreation 110,313 141,904,109 45,169,117 1,848,674 1.70 72 Accommodation & food services 565,590 449,498,718 127,554,483 10,120,951 9.29 81 Other services (except public administration) 537,576 307,049,461 82,954,939 3,475,310 3.19 TOTAL 6,891,382 21,362,013,726 3,727,706,910 108,991,968 100.00

Source: US Census Bureau. Economic Census 2002.

p. T 55 Table No. 24 E Number of Establishments by Employment-size class

Ind. Code 1000 100 to 250 to 500 to or Industry Code Description 1 to 4 5 to 9 10 to 19 20 to 49 50 to 99 249 499 999 more Total Forestry, Fishing, Hunting, and 11 Agriculture Support 17,384 4,436 2,357 1,212 301 133 26 9 3 25,861 21 Mining 12,271 3,823 3,252 2,602 908 496 159 60 28 23,599 22 Utilities 7,608 3,130 2,387 2,528 1,347 915 303 133 62 18,413 23 Construction 472,471 122,522 72,842 44,422 12,613 5,731 1,139 312 123 732,175 31 Manufacturing 121,315 59,595 53,594 52,406 25,146 19,548 6,574 2,531 1,140 341,849 42 Wholesale Trade 225,702 84,420 60,954 41,048 12,501 5,884 1,419 457 152 432,537 44 Retail Trade 511,569 284,455 168,978 93,137 32,811 20,723 3,728 458 47 1,115,906 48 Transportation and Warehousing 114,318 30,483 23,774 19,795 7,756 4,529 1,207 505 306 202,673 51 Information 70,586 22,588 17,700 15,601 6,742 4,455 1,427 629 299 140,027 52 Finance and Insurance 264,429 93,340 55,728 29,894 8,810 5,144 1,768 925 553 460,591 53 Real Estate and Rental and Leasing 235,280 53,972 28,367 11,383 2,792 1,307 312 109 30 333,552 Professional, Scientific, and Technical 54 Services 536,749 115,043 68,927 39,518 11,656 6,253 1,738 647 339 780,870 Management of Companies and 55 Enterprises 17,434 6,934 6,949 7,180 3,762 2,869 1,301 630 373 47,432 Administrative and Support and Waste 56 Management and Remediation Services 200,165 52,313 36,264 29,596 14,734 10,637 3,152 1,115 710 348,686 61 Educational Services 35,622 12,133 10,290 10,459 4,170 2,326 681 389 352 76,422 62 Health Care and Social Assistance 330,178 169,610 108,602 62,855 21,711 16,158 3,710 1,689 1,837 716,350 71 Arts, Entertainment, and Recreation 67,379 15,896 11,981 11,149 4,596 2,209 513 156 112 113,991 72 Accommodation and Food Services 206,125 98,026 108,531 119,659 33,318 8,218 955 331 184 575,347 Other Services (except Public 81 Administration) 449,487 155,502 78,252 36,355 8,395 3,253 551 128 44 731,967 99 Unclassified 34,241 1,708 421 118 9 0 0 0 0 36,497 Total 3,930,313 1,389,929 920,150 630,917 214,078 120,788 30,663 11,213 6,694 7,254,745

Source County Business Pattern 2003. US Bureau of Census.

p. T 56 Table No. 24 F NON-EMPLOYER ESTABLISHMENTS IN THE UNITED STATES

NAICS Non- Employers code Sectors of Economy Establishments Receipts ($1,000) Forestry, Fishing & Hunting, and Agricultural Support 11 Services 220,050 8,993,988 21 Mining 82,709 4,923,556 22 Utilities 12,675 548,866 23 Construction 2,071,317 115,269,433 31-33 Manufacturing 290,380 13,401,640 42 Wholesale trade 363,781 30,021,951 44-45 Retail trade 1,838,992 77,895,736 48-49 Transportation and warehousing 808,999 40,697,509 51 Information 232,698 7,550,078 52 Finance and insurance 660,292 44,139,094 53 Real estate and rental and leasing 1,880,042 161,790,129 54 Professional, scientific, and technical services 2,552,880 96,395,283 56 Administrative and support and waste management an 1,262,707 26,909,775 61 Educational services 344,538 4,581,343 62 Health care and social assistance 1,456,915 42,268,298 71 Arts, entertainment, and recreation 865,990 19,999,825 72 Accommodation and food services 241,688 14,178,204 81 Other services (except public administration) 2,459,409 60,467,620 0 Total for all Sectors 17,646,062 770,032,328

Data based on the 2002 Nonemployer Statistics. Includes only firms subject to federal income tax. These data are subject to nonsampling error due to nonresponse, coverage problems, misreporting, and processing error.

Source: U.S. Census Bureau, 2002 Economic Census, Nonemployer Statistics

p. T 57 Table No. 25 EMPLOYMENT BY SECTORS OF ECONOMY 12/31/2005 THE NAVAJO NATION

Number of No. of People Employed Economic Sector Employers Navajo Non-Navajo Salary & Benefits Agriculture 2 217 5$ 6,229,574.0 Construction 26 869 42$ 31,978,378.0 Finance/Insurance/Rea 29 517 17$ 76,775,553.0 Government/Public 225 7,179 318$ 251,303,404.0 Manufacturing 10 359 35$ 10,464,871.0 Mining 11 1,232 141$ 145,602,141.0 Retail Trade 172 2,330 219$ 41,380,280.0 Service 279 12,049 3,383$ 641,276,064.0 Transportation/Communications 72 1,621 375$ 160,276,836.0 Wholesale 10 79 9$ 686,253.0 TOTAL 836 26452 4544$ 1,365,973,354.0

Source: Support Services Department, Division of Economic Development, The Navajo Nation

p. T58 Table No. 26 Three-Year-Average Median Household Income by State: 2002-2004 (Income in 2004 dollars)

Median Standard Median Standard States income error States income error (dollars) (dollars) (dollars) (dollars) United States$ 44,473 $ 126 Montana$ 35,201 $ 734 Nebraska$ 44,623 $ 888 Alabama$ 38,111 $ 962 Nevada$ 46,984 $ 991 Alaska$ 54,627 $ 992 New Hampshire$ 57,352 $ 938 Arizona$ 42,590 $ 873 New Jersey$ 56,772 $ 920 Arkansas$ 33,948 $ 606 New Mexico$ 37,587 $ 902 California$ 49,894 $ 543 New York$ 44,228 $ 545 Colorado$ 51,022 $ 994 North Carolina$ 39,000 $ 598 Connecticut$ 55,970 $ 1,089 North Dakota$ 39,594 $ 695 Delaware$ 50,152 $ 1,071 Ohio$ 44,160 $ 642 District of Columbi $ 43,003 $ 813 Oklahoma$ 38,281 $ 603 Florida$ 40,171 $ 536 Oregon$ 42,617 $ 688 Georgia$ 43,217 $ 667 Pennsylvania$ 44,286 $ 619 Hawaii$ 53,123 $ 1,049 Rhode Island$ 46,199 $ 997 Idaho$ 42,519 $ 824 South Carolina$ 39,326 $ 807 Illinois$ 45,787 $ 669 South Dakota$ 40,518 $ 706 Indiana$ 43,003 $ 686 Tennessee$ 38,550 $ 807 Iowa$ 43,042 $ 846 Texas$ 41,275 $ 458 Kansas$ 43,725 $ 981 Utah$ 50,614 $ 707 Kentucky$ 37,396 $ 700 Vermont$ 45,692 $ 747 Louisiana$ 35,523 $ 859 Virginia$ 53,275 $ 969 Maine$ 39,395 $ 721 Washington$ 48,688 $ 840 Maryland$ 56,763 $ 1,067 West Virginia$ 32,589 $ 687 Massachusetts$ 52,354 $ 959 Wisconsin$ 47,220 $ 782 Michigan$ 44,476 $ 704 Wyoming$ 43,641 $ 743 3 Minnesota$ 55,914 $ 842 The Navajos $ 27,389 $ 4,389 Mississippi$ 33,659 $ 719 Missouri$ 43,988 $ 710

1 The 3-year-average median is the sum of 3 inflation-adjusted single-year medians divided by 3.

2 Excludes the District of Columbia.

3 The number is for ALL Navajos in the United States, and not just for the Navajo reservation.

Last Revised: August 30, 2005

Source: U.S. Census Bureau, Current Population Survey, 2003, 2004, and 2005 Annual Social and Economic Supplements. For the Navajos - 2004 American Community Survey.

p. T 59 Table No. 27 Poverty Status by the States and Selected Counties and School Districts of the Navajo Nation

2003

State All Ages 0 to 17 5 to 17 United States 12.5 17.6 16.1 Alabama 15.2 22.3 21 Alaska 9.9 12.5 10.7 Arizona 13.9 20.7 19.9 Arkansas 16 23.5 21.7 California 13.8 19.6 18.9 Colorado 10 12.8 11.6 Connecticut 8 10.5 9 Delaware 9 13 11.7 District of Columbia 17.5 29.6 30 Florida 13 19.3 18 Georgia 13.3 19.1 17.8 Hawaii 10.8 14.7 13.1 Idaho 11.8 16 13.7 Illinois 11.4 15.6 14.3 Indiana 10 13.7 11.4 Iowa 9.1 12.3 10.1 Kansas 10.4 13.8 11.3 Kentucky 14.9 21.1 19.9 Louisiana 18.1 26.6 25 Maine 10.7 14.3 12.2 Maryland 8.8 11.5 10.1 Massachusetts 9.5 11.9 10.7 Michigan 11 15 13.6 Minnesota 8 10.2 8.6 Mississippi 18.3 26.8 26 Missouri 11.6 16.5 14.8 Montana 14.2 19.9 17.3 Nebraska 10 12.9 10.6 Nevada 11 15.3 14 New Hampshire 6.4 7.8 5.7 New Jersey 8.9 11.8 10 New Mexico 17.7 25.9 24.2 New York 14.3 20.2 19.6 North Carolina 13.4 19.1 16.7 North Dakota 10.5 13.5 11.1 Ohio 10.6 15.3 12.8 Oklahoma 14.6 21.1 19.2 Oregon 12 17.4 15.2 Pennsylvania 10.6 14.9 13.2 Rhode Island 11.3 16.6 15.3 South Carolina 13.8 19.8 18.6

p. T 60 State All Ages 0 to 17 5 to 17 South Dakota 12.4 16.6 14.2 Tennessee 13.5 19.2 17.3 Texas 16.2 22.8 20.7 Utah 10 12.5 9.9 Vermont 9.2 11.9 9.5 Virginia 9.9 13.5 11.6 Washington 11 15.3 12.8 West Virginia 16.3 24.4 22.8 Wisconsin 9 12.4 10.3 Wyoming 10.8 14.6 11.6

The Navajo Nation

Relevant' Relevant' Age 5 Percent* Age 5 to 17 to 17 in Poverty in Poverty Central Unified School Dist 8803 2879 32.70 Gallup-McKinley County Schools 16965 6296 37.11 Chinle Unified School Dist 5755 2711 47.11 Ganado Unified School Dist 2137 768 35.94 Kayenta Unified School Dist 3574 1281 35.84 Red Mesa Unified School Dist 2404 1028 42.76 Tuba City Unified School Dist 4782 1728 36.14 Window Rock Unified School Dist 3175 884 27.84

Arizona 19.9 Apache County 36.4 Coconino County 22.2 Navajo County 28.8 New Mexico 24.2 McKinley County 38.4 Sandoval County 15.7 San Juan County (NM) 23.9 Socorro County 35.4

* Percent in Poverty in the School Districts has been calculated by Trib Choudhary.

Source: US Census Bureau. Small Area Income & Poverty Estimates 2003.

p. T 61 Table No. 28 Visitation Statistics on the Navajo Nation

NAVAJO NATION: 2002 2003 2004 2005 Canyon De Chelly 1,890,881 1,777,218 1,721,233 Hubbell T.P. NPS 189,391 163,846 126,808 Navajo National Monument 58,605 113,127 141,875 Navajo Nation Zoo 26,104 30,487 30,279 11,177 Navajo Tribal Museum 9,352 7,447 Chaco Culture NHP 56,077 82,490 67,015 Monument Valley TP 225,404 218,413 204,960 118,204 Four Corners NM 186,839 5,914 164,156 63,371 Antelope Canyon 77,863 42,953 56,224 27,500 LCR Gorge Navajo TP 6,945 2,242 31,581 8,798 Bowl Canyon Recreation Area 411 TOTAL VISITATION TO NN 2,727,461 2,444,548 2,544,131 229,050 % CHANGE IN VISITATION -0.097 -0.10 0.04

ADJOINING AREAS TO THE NN 2002 2003 2004 Glen Canyon Recreation Area 1,656,071 1,859,372 1,723,093 Grand Canyon National Park 3,165,890 4,054,015 4,239,078 Wupatki National Monument 176,013 272,690 234,994 Petrified Forest National Park 575,225 597,929 531,617 TOTAL VISITATION TO ADJ AREAS 5,573,199 6,784,006 6,728,782 0 % CHANGE IN VISITATION ADJ -0.26 0.22 -0.01

Sources: Department of Tourism. Division of Economic Development. The Navajo Nation.

p. T 62 Table No. 29A MAIN RESULTS OF THE SURVEY 12/31/2005

EMPLOYMENT Total Population1 197,471 Total Labor Force 60,229 Total Persons Employed 30,996 Total Persons Unemployed 29,233 Unemployment Rate 48.54

PERSONAL INCOME* Aggregate Wages and Salary Income $1,365,973,354 Self-employment Income $23,454,300 Aggregate Interest, Dividends, or Net Rental Income $6,144,600 Aggregate Social Security Income $65,959,100 Aggregate Supplemental Security Income $41,874,500 Aggregate Public Assistance Income $24,982,200 Aggregate Retirement Income $43,786,400 Aggregate Other Types of Income $55,058,200 Total $1,627,232,654 Per Capita Income $8,240.36

* All the figures other than the Aggregate Wages and Salary Income have been taken from Census 2000, and have been assumed to be constant.

OUTFLOW OF NAVAJO DOLLARS

Gross Receipts of Wholesale & Retail Trade $268,622,576 Percentage of Total Personal Income 16.51 2 Total Money Spent on the Navajo Nation $482,888,659 Percentage of Total Personal Income 29.68 Percentage of Personal Income Spent off the Navajo reservation 70.32

EMPLOYERS

No. of Navajo Employers3 238 No. of non-Navajo Employers 434 Total No. of Employers 672

p. T63 Notes:

The figure has been estimated by the DED based upon the Census 2000 Data using a growth rate of 1 1.82%.

Labor Force has been estimated at 30.5% of the Total Population.

2 Includes Gross Receipts of Wholesale/Retail Trade, Construction, T/C/U & FIRE Sectors.

A Wholesale & Retail Trade $268,622,576 B Construction $69,001,637 C T/C/U** $139,339,105 D Finance, Insurance and Real Estate $5,925,341 TOTAL $482,888,659

GR of Four Corners Power Plant (GR not reported), Black Mesa Company and Navajo Generating ** Staion has not been included in the total GR of T/C/U, because the GR of these employers come from outside the Navajo Nation.

3 There are a total of 403 Navajo employers on the Navajo Nation, of which 170 are Navajo Govt. Offices. We have subtracted this number (170) from the total and added 5 (one govt. office for each agency) and thus we have 238 Navajo employers on the Navajo Nation instead of 403.

Source: Support Services Department, the Division of Economic Development. The Navajo Nation.

p. T64 Table No. 29B Data By States 12/31/05

Land Area 2005 Labor # of *EMPLOYMENT Unempl Salary & Gross ST. (in acres) Population Force Emplrs. Nav. n-Nav. Total Unempl. Rate Benefits Sales AZ 10,983,091 119,217 36,361 502 17,151 2,766 19,917 16,444 45.22 $887,107,374 $1,100,899,814 NM 5,409,008 71,662 21,857 258 8,472 1,614 10,086 11,771 53.85 $448,140,400 $388,747,922 UT 1,161,460 6,592 2,011 44 604 149 753 1,258 62.55 $24,495,520 $61,007,809 NONN* 0 0 32 225 15 240 (240) $6,230,060 $53,847 17,553,559 197,471 60,229 836 26,452 4,544 30,996 29,233 48.54 $1,365,973,354 $1,550,709,392

* Not On the Navajo Nation.

Source Support Services Department. Division of Economic Development.

p. 65 Source:SupportServicesDepartment,DivisionofEconomic Development.TheNavajoNation. * NONN:Not ontheNavajoNation. *** * AnumberofChaptersseemingly havenegativeunemploymentrates.However,actualratesinthese ** Includes variousNavajoNationGovernmentofficesincludingChapterhouses. * OA 1 7535017416,2 3 6424543,9 29,233 30,996 4,544 26,452 836 60,229 197,471 17,553,560 110 TOTAL NONN*** WN Agency SR Agency FD Agency EN Agency CH Agency A numberofthesejobsmay have beentakenbytheresidentsofneighboringChapters. Chapters areveryhigh.This issobecausethenumberofjobsavailableintheseChapters islargerthantheLaborForce. L.F. hasbeenestimatedat30.5%ofthetotalpopulation Population GrowthRatehasbeenassumedtobe1.842% from2003to2004. AGENCIES

Number of

8607944,6 2791948410158568453.91 38.07 6,884 44.25 3,937 6,972 5,885 40.94 6,404 3,893 8,785 1,071 4,814 5,616 1,013 892 5,391 179 7,893 172 823 12,769 207 4,793 10,341 15,757 41,864 134 33,904 9,509 51,661 6,057,954 31,178 2,726,438 3,523,963 18 3,363,520 20 1,881,685 27 31 14 Chapters

Land Area (in acres)

38,864 2005 Population 184123367040677865.70 7,788 4,066 730 3,336 112 11,854

Labor Force Summary DatabyAgency

Number of Table No.29C 2251 240 15 225 32 Employers* 12/31/05 p. T66

Navajo Number Employed

n-Navajo

Total

Number (240) Unemployed

48.54 Unemployment Rate 5,6,7 311,899,327 398,190,325 392,539,799 26,874,241 255,461,875 421,151,853 378,937,580 360,194,661 143,763,347 221,385,831 ,6,7,5 1,550,709,392 1,365,973,354 ,3,6 53,847 6,230,060 Sal. & Benefits

Gross Receipts Table No. 29D Employment and Income Data by Counties 12/31/2005

2005 EMPLOYMENT Total Unemplo Land Area (in Labor Number of Salary and Counties Populatio Navajo Non-Navajo Unemply yment Gross Sales Acres) Force Employers Total Benefits n Employees Employees ed Rate Apache 4,530,181 65,973 20,122 299 10,689 1,490 12,179 7,943 39.47 473,557,576 450,004,961 Bernalilo 77,965 1,805 551 6 146 54 200 351 63.67 6,986,078 4,507,867 Cibola 167,656 1,834 559 12 280 131 411 148 26.52 13,424,324 1,346,111 Coconino 3,775,830 25,879 7,893 103 3,166 799 3,965 3,928 49.77 186,640,840 228,194,712 McKinley 2,237,687 32,066 9,780 99 2,899 525 3,424 6,356 64.99 119,221,344 33,247,405 Navajo 2,677,080 27,365 8,346 101 3,306 481 3,787 4,559 54.63 166,613,409 423,165,024 San Juan - NM 2,567,807 29,812 9,093 130 4,421 801 5,222 3,871 42.57 348,774,970 343,231,098 San Juan - UT 1,161,460 6,592 2,011 46 817 154 971 1,040 51.70 30,998,245 66,627,467 Sandoval 292,865 3,878 1,183 6 143 26 169 1,014 85.71 6,515,621 330,900 Socorro 65,028 2,267 691 2 360 68 428 263 38.10 7,010,887 0 NONN* 32 225 15 240 (240) 6,230,060 53,847 TOTAL 17,553,559 197,471 60,229 836 26,452 4,544 30,996 29,233 48.54 1,365,973,354 1,550,709,392

* Not On the Navajo Nation

Source: Support Services Department, Division of Economic Development, The Navajo Nation

p. T67 Table No. 30 Occupancy Rate and Sales Revenue of the Navajo Nation Shopping Centers

Shopping Center 2003 2004 Area (Sq. Ft.) Sale Sales Sales Gross Occupied Vacant % Occupied Window Rock Shopping Center$ 15,351,353.00 $ 15,683,707.00 103,384 96,760 6,624 93.59 Tuba City Shopping Center$ 17,845,828.00 $ 18,111,021.00 62,531 46,400 16,131 74.20 Kayenta Shopping Center$ 13,895,381.00 $ 14,250,194.00 81,567 81,567 - 100.00 Shiprock Shopping Center$ 13,410,453.00 $ 13,562,512.00 91,454 79,454 12,000 86.88 Crownpoint Shopping Center$ 5,027,341.00 $ 5,100,189.00 43,838 35,902 7,926 81.90 St. Michaels Shopping Center$ 11,314,625.00 $ 11,361,128.00 53,350 53,350 - 100.00 Navajo Pine Shopping Center$ 1,946,669.00 $ 1,970,727.00 18,000 16,000 2,000 88.89 Pinehill Shopping Center$ 1,107,817.00 $ 1,186,136.00 12,000 10,000 2,000 83.33 Pinon Shopping Center$ 9,195,476.00 $ 9,882,619.00 45,425 45,425 - 100.00 Dilkon Shopping Center$ 4,258,679.00 $ 4,292,217.00 26,170 24,170 2,000 92.36 TOTAL$ 93,353,622.00 $ 95,400,450.00 537,719 489,028 48,681 90.94

Source: The Navajo Nation Shopping Centers.

p. T 68 Table No. 31 Large Employers on the Navajo Nation 12/31/2004

Number Employment Total Annual Name of the Employer of Sites Navajo n-Nav. Total Sal. & Ben Navajo Government 163 6,061 164 6,225 $ 173,979,467.0 State of Arizona* 62 2,776 1,081 3,857 $ 168,798,730.0 Navajo Area Indian Health Services 15 2,506 658 3,164 $ 207,190,669.0 BIA - Office of Indian Education Program 44 2,146 689 2,835 $ 118,756,187.0 State of New Mexico* 32 719 601 1,320 $ 48,302,644.0 Peabody Western Coal Company 1 560 63 623$ 64,880,653 Four Corners Power Plant 1 422 164 586$ 64,232,000 Navajo Generating Station 1 352 170 522$ 59,131,000 Navajo Engineering & Construction Authority** 1 454 4 458$ 13,399,967 Basha's 7 394 15 409 $ 12,724,301.0 Navajo Mine 1 330 69 399$ 41,293,225 Alamo Navajo School Board Alamo Navajo Community School 1 312 68 380$ 1,517,130 Ramah Navajo School Board 1 220 145 365$ 8,665,845 The Pittsburg & Midway Coal Mining Company 1 278 28 306$ 24,800,000 Dine' College 8 199 49 248 $ 7,917,323.0 Sage Memorial Hospital, Inc. 1 203 39 242$ 9,223,771 Navajo Housing Authority 16 208 3 211 $ 5,924,955.0 Navajo Agricultural Products Industry - NAPI** 1 182 4 186$ 5,635,973 Navajo Tribal Utility Authority 6 167 9 176 $ 7,829,901.0 Rock Point Community School Board 1 133 23 156$ 3,680,181 Tohatchi Area of Opportunity Services, Inc. 1 150 5 155$ 3,017,478 Jeddito Public Schools 1 82 63 145$ 3,307,580 Raytheon Missile Systems Company - NAPI 1 120 1 121$ 5,873,229 Apache County District Two Office 1 60 50 110$ 1,253,245 Cameron Trading Post 1 86 19 105$ 2,462,350 T’iists’oozi’ Bi’ O’lta 1 84 16 100$ 4,680,468

* Schools are the majority of the employers in this category.

**These are seasonal businesses. During peak period, they employ very large number of people.

****The following employers are considered "large employers"; however, they did not give permission to publish their individual data. Taken together, their numbers are grouped as "others".

Goulding's Enterprises PC & M Construction Company Navajo Security Company Cameron Trading Post Thunderbird Lodge City Market #2

Note 1: Employment figures are for December 31, 2004. Total salary and benefit figures are for the entire year of 2004.

Note 2: Only those employers have been included in the which have at least 100 employees and whose annual salary & benefits exceed $1,000,000.0.

Source: Support Services Department. Division of Economic Development.

p. T 69 Table No. 32 Tribal Enterprises, Corporations and Authorities Owned 100% By The Navajo Nation

Board Members* Tribal Entity and NAICS Code Contact Person (* indicates non-tribal member) Ken Craig, Act. General Manager Mel R. Begay P.O. Box 170 Terry Day 1 Navajo Tribal Utility Authority Fort Defiance, AZ 86504 Melinda P. Eriacho NAICS Code 221122 Tel: (928) 729-5721 Sonny Clark Fax: (928) 729-2135 Sidney Deets Derrick Watchman Tsosie Lewis, General Manager Ervin Chavez PO Drawer 1318 Edward T. Begay 2 Navajo Agricultural Products Industry Farmington, NM 87499 Jennie Y. Benally NAICS Code 111211 Tel: (505) 327-5251 Fax: (505) 326-3152 Elliot Mott, General Manager Larry Noble PO Box 160 Clarence Chee 3 Navajo Arts & Crafts Enterprise Window Rock, AZ 86515 Lalora Charles NAICS Code 453220 Tel: (928) 871-4090 Dolly Montoya Fax: (928) 871-3340 Alice White Stan Sapp, Managing Agent Lawrence Platero 3233 West Peoria Avenue Lorenzo Max 4 Navajo Nation Hospitality Enterprise Phoenix, AZ 85029 Orlanda Hodge NAICS Code 721110 Tel: (602) 298-0126 Keith Roessler* Fax: (602) 504-6110 Allan Naille*

Chester Francis, General Manager Carol M. Tom P. O. Box 2569 Tina James Tafoya 5 KTNN Radio Station Window Rock, AZ 86515 Troy Little NAICS Code 515112 Tel: (928) 871-2582 Edward Perkins Fax: (928) 871-3479 Steve Begay, General Manager Tim Goodluck P. O. Box 3239 Andrew Simpson 6 Dine' Power Authority Window Rock, AZ 86515 Herbert J. Pioche NAICS Code 221121 Tel: (928) 871-2133 Erickson Benally Fax: (928) 871-4046 Norman John II Tommy M. Tsosie Wilson Groen, General Manager Rodger J. Boyd PO Box 4439 Manuel Morgan 7 Window Rock, AZ 86515 Caleb Roanhorse Navajo Nation Oil & Gas Company, Inc. Tel: (928) 871-4880 Mae-Gilene Begay NAICS Code 447110 Fax: (928) 871-4882 Stanley Yazzie Wilson Ray Rick Marsh* M. Wafaie Zaaza* Cathy Long, Controller Tony Skrelunas Navajo Nation Shopping Centers P. O. Box 478 Wilson Yellowhair 8 NAICS Code 531120 Window Rock, AZ 86515 James Henry Tel: (928) 871-2218/19 Calvin McKerry Fax: (928) 871-4217 Peggy Scott

p. T 70 Board Members* Tribal Entity and NAICS Code Contact Person (* indicates non-tribal member) Tom Arviso, Publisher Martin Ashley P. O. Box 310 James Bettinger* 9 The Navajo Times Publishing Co. Window Rock, AZ 86515 Paul DeMain* NAICS Code 511110 Tel: (928) 871-6641 Jennifer Hatathlie Fax: (928) 871-6409 Edward S. Richards

Cary Patterson, General Manager Lorenzo Bates P. O. Box 969 Ernest Hubbell Navajo Engineering & Construction 10 Authority Shiprock. NM 87420 Richard Bowman NAICS Code 237310 Tel: (505) 368-5151 Tom Tso Fax: (505) 368-3013

Chester Carl, General Manager Leonard Teller P. O. Box 4980 Martha Garcia 11 Window Rock. AZ 86515 Norman D. Benally Navajo Housing Authority Tel: (928) 871-2600 Roy Laughter NAICS Code 236115 Fax: (928) 871-2604 Richard Blackhorse Ben Johnson Cordell Shorty Allan S. Begay, CEO Donald Dodge PO Box 663 Edward S. Richards 12 Window Rock, AZ 86515 Harry Sloan, Jr. Dine' Development Corporation Tel: (505) 371-5538 Arthur Allison NAICS Code 551112 Fax: 928-871-7381 Jack Jackson, Sr.

Nova Wertz, President/CEO Edward S. Richards, Chairman PO Box 687 Roxie June, Secretary 13 Nova Corporation** Window Rock, AZ 86515 Larryl Lynch, Member NAICS Code 541512 Tel: 928-871-5617 Karl C. Jim, Member Fax: 928-871-2114 Donald Denetdeal, Member

* All Board Members are enrolled members of the Navajo Tribe except those indicated with an asterisk. ** 100% owned Subsidiary of Dine' Development Corporation, which is owned 100% by Navajo Nation.

Note: Nova Corporation is the only entity, which is SBA 8(a) BD certified.

Source: Support Services Department. Division of Economic Development.

p. T 71 Table No. 33 Activities of the Navajo Housing Authority

Modernization under Indian Housing Construction Construction for Activities Assistance Act for Rental Homeownership Number of Units Planned (from the IHP) 193 141 272 1998 Number of Units Completed 193 141 272 Number of Units Started but not Completed 0 00 Number of Units Planned (from the IHP) 169 250 220 1999 Number of Units Completed 169 249 225 Number of Units Started but not Completed 0 11 Number of Units Planned (from the IHP) 143 140 305 2000 Number of Units Completed 143 104 148 Number of Units Started but not Completed 0 36 157 Number of Units Planned (from the IHP) 258 45 195 2001 Number of Units Completed 258 45 151 Number of Units Started but not Completed 41 0 44 Number of Units Planned (from the IHP) 150 135 342 2002 Number of Units Completed 32 41 106 Number of Units Started but not Completed 118 0 0 Number of Units Planned (from the IHP) 165 18 364 2003 Number of Units Completed 00 0 Number of Units Started but not Completed 00 0 Number of Units Planned (from the IHP) 130 10 423 2004 Number of Units Completed 00 45 Number of Units Started but not Completed 00 0 Number of Units Planned (from the IHP) 88 0 43 2005 Number of Units Completed 13 0 31 Number of Units Started but not Completed 75 0 22

Source: The Navajo Housing Authority

p. T 72 Table No. 34 Number of Customers of the Navajo Tribal Utility Authority

The Navajo Nation Total Residential Commercial Electric 34,906 33,556 1,350 Natural Gas 6,774 6,563 211 Water 32,178 31,763 415 Waste Water 12,444 12,172 272 Photovoltaic 110 110 - Total 86,412 84,164 2,248 Kayenta (includes Tuba City) Total Residential Commercial Electric 5,753 5,538 215 Natural Gas - - - Water 5,606 5,506 100 Waste Water 2,948 2,872 76 Photovoltaic 40 40 - Total 14,347 13,956 391 Dilkon Total Residential Commercial Electric 3,701 3,584 117 Natural Gas 695 677 18 Water 2,244 2,215 29 Waste Water 902 888 14 Photovoltaic 18 18 - Total 7,560 7,382 178 Chinle Total Residential Commercial Electric 9,396 9,167 229 Natural Gas 1,533 1,487 46 Water 5,721 5,661 60 Waste Water 1,892 1,849 43 Photovoltaic 21 21 0 Total 18,563 18,185 378 Shiprock Total Residential Commercial Electric 7,209 6,970 239 Natural Gas 1,645 1,571 74 Water 7,420 7,311 109 Waste Water 2,397 2,342 55 Photovoltaic 15 15 - Total 18,686 18,209 477 Fort Defiance (includes Crownpoint) Total Residential Commercial Electric 8,847 8,297 550 Natural Gas 2,901 2,828 73 Water 11,187 11,070 117 Waste Water 4,305 4,221 84 Photovoltaic 16 16 - Total 27,256 26,432 824

Source: Navajo Tribal Utility Authority

p. T 73 Table No. 35 2004 Sales Revenue of NTUA

Electric Gas Water Waste Water Total Kayenta$ 5,361,019.00 $ - $ 2,471,376.00 $ 837,699.00 $ 8,670,094.00 Dilkon$ 2,223,143.00 $ 650,736.00 $ 586,470.00 $ 129,826.00 $ 3,590,175.00 Chinle$ 8,424,249.00 $ 2,237,254.00 $ 1,980,254.00 $ 544,608.00 $ 13,186,365.00 Shiprock$ 6,366,233.00 $ 4,514,347.00 $ 2,408,307.00 $ 450,706.00 $ 13,739,593.00 Fort Defiance$ 25,158,816.00 $ 3,250,833.00 $ 3,279,177.00 $ 873,784.00 $ 32,562,610.00 TOTAL$ 47,533,460.00 $ 10,653,170.00 $ 10,725,584.00 $ 2,836,623.00 $ 71,748,837.00

Source: Navajo Tribal Utility Authority

p. T 74 Table No. 36 Civilian Employment by Industry and Country in 2004

United United Industry States1 Canada1 Australia Japan France Germany Italy Sweden Kingdom 2004, Total (6) 139,252 15,950 9,677 62,625 na 35,686 22,105 4,264 na Agriculture, forestry, fishing2 2,232 422 367 2,706 na 864 981 106 na Industry3 27,791 3,437 2,002 17,301 na 10,796 6,650 935 na Manufacturing4 16,484 2,297 1,093 11,466 na 8,090 4,821 683 na 5 Services 109,229 12,091 7,308 42,618 na 24,026 14,474 3,223 na

Percentage

2004, Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 na Agriculture, forestry, fishing2 1.6 2.6 3.8 4.3 na 2.4 4.4 2.5 na Industry3 20 21.5 20.7 27.6 na 30.3 30.1 21.9 na Manufacturing4 11.8 14.4 11.3 18.3 na 22.7 21.8 16 na BASIC INDUSTRY 21.6 24.2 24.5 31.9 na 32.7 34.5 24.4 na 5 Services 78.4 75.8 75.5 68.1 na 67.3 65.5 75.6 na

na - Not available. (1 ) Data for United States and Canada are based on the 2002 North American Industry Classification System (NAICS); data for 2001 are for unified Germany. (2)Includes hunting. (3 ) Includes manufacturing, mining and construction. (4 ) For Italy some mining is included in manufacturing. (5) Transportation, communication, public utilities, trade, finance, public administration, private household services, and miscellaneous services. (6) Break in Services

Source U. S. Census Bureau. Statistical Abstract of the United States: 2006. Table No. 1345. P. 882.

p. T 75 Table No. 37 BIDF Lending Activities 30-Jun-05

Awarded to Date Outstanding Loan Program Number of Loans Loan Amount Number of Loans Loan Amount CIT* BIDF Loans 38$ 13,973,355.0 14$ 6,999,920.0 Small BIDF Loans 103$ 7,139,562.0 61$ 3,526,160.0 Micro-Enterprise Loan 120$ 368,066.0 53$ 128,214.0 TOTAL 261$ 21,480,983.0 128$ 10,654,294.0

Adjustments and reclassifications have been made to these loan programs that may not be reflected in Note: previous publications of the CEDS.

* Commercial, Industrial and Tourism. Source: Support Services Department. Division of Economic Development.

p. T 76 Table No. 38 Labor Cost Comparison

Median Hourly Wage by Occupation Title The Navajo Nation Albuquerque San Jose San Diego Dallas Seattle Electrical & electronic equipment assemblers $ 7.38 $ 100.00 $9.84 $ 133.33 $13.22 $ 179.13 $10.40 $140.92 $9.55 $129.40 $11.12 $150.68 Team assemblers $ 7.38 $ 100.00 $10.95 $ 148.37 $12.20 $ 165.31 $9.14 $123.85 $9.50 $128.73 $11.89 $161.11 Electrical & electronic engineering technicians $ 9.18 $ 100.00 $19.91 $ 216.88 $23.67 $ 257.84 $20.04 $218.30 $21.64 $235.73 $23.94 $260.78 Inspectors, testers, sorters, samplers & tenders $ 8.37 $ 100.00 $14.11 $ 168.58 $14.61 $ 174.55 $13.26 $158.42 $12.45 $148.75 $15.08 $180.17 Computer-controlled machine top operators, metal and plastic $ 7.47 $ 100.00 $12.58 $ 168.41 $15.84 $ 212.05 $11.32 $151.54 $11.03 $147.66 $14.86 $198.93 Shipping, receiving & traffic clerks $ 10.50 $ 100.00 $9.93 $ 94.57 $13.90 $ 132.38 $10.71 $102.00 $10.63 $101.24 $13.29 $126.57

Source: For the Navajo Nation - Support Services Department. Division of Economic Development. For Others - United States Department of Labor, Bureau of Labor Statistics

p. T 77 Table No. 39 Overall Navajo Nation IRR Road Systems (in miles):

BIA Other Agency Total Paved Tribal State County BIA Agency Others TOTAL Shiprock 1202.0 70.7 9.1 254.2 156.8 2.6 0.0 26.0 1721.4 Western 1405.2 452.2 19.5 499.1 114.3 23.2 2.0 6.2 2521.7 Eastern 694.7 0 5.9 508.4 1072.0 0.0 19.7 109.5 2410.2 Chinle 1040.4 61.9 40.6 61.9 307.2 12.6 18.8 0.6 1544 Ft. Defiance 1453.4 195.6 1.5 250.1 50.2 0.0 0.0 0.0 1950.8 NIIP 307.9 0 0.0 50.0 24.5 0.0 0.0 2.2 384.6 New Lands 83.4 34.7 0.0 34.7 0.0 0.0 0.0 6.5 159.3 Total 6187.0 815.1 76.6 1658.4 1725.0 38.4 40.5 151.0 10692.0

Source: Department of Transportation. The Navajo Nation.

p. T 78 Table No. 40 Enrollment in High Schools School Year 2004-05

# of Total Institution Location Schools Enrollment Arizona Public Schools On Reservation 43 17,153 Off Reservation 36 19,842

Arizona Charter Schools On Reservation 7 829 Off Reservation 7 2,222

New Mexico Public Schools On Reservation 29 10,085 Off Reservation 64 27,874

Utah Public Schools On Reservation 6 1,053 (San Juan School District Only) Off Reservation 6 1,898

BIA-OIEP Schools On Reservation 59 15,945 Off Reservation 8 1,303 98,204

On Navajo Enrollment AZ Public Schools 17,153 AZ Charter Schools 829 NM Public Schools 10,085 UT Public Schools 1,053 BIA Schools 15,945 Total 45,065

Off Navajo Enrollment AZ Public Schools 19,842 AZ Charter Schools 2,222 NM Public Schools 27,874 UT Public Schools 1,898 BIA Schools 1,303 Total 53,139

Total Enrollment 98,204

Source: The Office of Educational Research and Statistics - June 21, 2005

p. T 79 Forest Lake Dilkon Dennehotso Crystal Crownpoint Coyote Canyon Counselor Cornfields Coppermine Coalmine Mesa Church Rock Chinle Chilchinbeto Chi ChilTah Casamero Lake Canoncito Cameron Burnham Bread Springs Bodaway Black Mesa Bird Springs Beclabeto Becenti Baca Aneth Alamo CHAPTERS ,1 3 006 1 1 2 7 13 88 22 427 628 0 0 24 36 323 82 86 0 83 0 96 848 98 114 50 17 34 29 135 52 388 520 31 11 163 803 77 0 182 0 779 1,000 0 466 159 36 53 36 608 373 424 144 52 0 50 52 73 0 7 130 0 53 28 198 24 588 14 105 80 0 577 98 2,239 61 1,584 18 80 251 46 83 39 724 118 0 27 76 35 348 97 10 62 6 13 111 21 416 0 55 105 0 80 126 71 61 480 22 15 67 1,455 25 104 127 452 16 0 651 637 24 813 93 106 134 150 25 22 362 0 50 107 20 807 95 573 84 985 589 49 611 0 23 642 2 734 464 4,219 0 22 1,985 0 19 2,224 60 418 128 5 0 1,513 2 51 12 0 80 89 116 45 1,294 0 126 6 915 115 96 2,878 85 314 405 523 0 118 130 567 6 67 551 113 38 154 1,111 71 89 463 128 125 0 91 26 59 0 108 30 25 100 0 79 15 101 1,256 76 42 34 10 2,711 3,990 22 105 661 0 8,209 1,078 1,148 899 124 12 599 1,312 592 74 19 1,712 743 8 0 13 702 18 1,550 29 38 1,313 97 147 921 115 100 89 1,836 97 6 35 7 28 1,006 961 2,154 2,039

9 6 991 1 2 202 800154 0 0 18 225 8 297 12 231 82 30 0 24 199 0 11 29 9 0 0 28 47 55 7 0 22 44 30 46 0 226 64 38 46 0 123 117 47 14 46 6 0 20 0 29 0 0 15 14 417 0 3 14 0 15 451 192 257 12 144 0 4 26 387 278 0 0 9 0 222 12 19 342 37 130 221 0 321 37 124 3 19 7 24 28 172 69 129 0 9 9 0 4 9 8 61 0 41 0 42 0 15 265 13 16 0 35 0 72 26 27 0 213 46 0 41 24 13 31 55 11 11 0 33 27 135 38 45 14 166 0 35 7 0 7 39 0 0 49 24 44 43 392 4 9 7 43 8 7 0 317 450 0 65 24 18 31 734 228 279 8 37 8 7 504 6 0 0 365 120 0 17 955 16 0 377 446 219 0 229 0 6 305 51 764 228 158 188 9 0 647 107 4 433 0 0 9 318 62 20 217 11 0 0 55 24 16 0 30 49 7 221 30 28 37 54 56 434 21 0 7 38 77 8 0 65 8 7 517 1495600090010379300190110063 8 57 17 967 0 200 17 0 330 428 408 27 695 279 854 458 498 891 Total (male + female)

Total Male

Enrolled in nursery school, preschool:

Enrolled in kindergarten: School EnrollmentbyChapters(3yearsorover) Enrolled in grade 1 to grade 4: aeFemale Male Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12: Table No.41 p. T80 Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school

Total Female

Enrolled in nursery school, preschool:

Enrolled in kindergarten:

Enrolled in grade 1 to grade 4:

Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school Mexican Water Mexican Springs Mariano Lake Many Farms Manuelito Lupton Lukachukai Low Mountain Littlewater Leupp Lechee Lake Valley Klagetoh Kinlichee Kayenta Kaibeto Jeddito Iyanbito Inscription House Indian Wells Huerfano Houck Hogback Hard Rock Greasewood Ganado Fruitland Fort Defiance CHAPTERS ,3 8 55 38 0 5 985 26 00358 0 80 64 62 515 277 59 782 0 18 8 516 8 12 59 78 0 309 122 19 61 153 455 464 46 141 0 650 74 127 0 98 0 38 35 157 303 376 68 31 26 5 31 99 47 0 0 19 62 89 38 454 34 38 496 14 8 12 0 47 48 1,378 0 8 55 0 954 59 707 83 94 525 173 17 36 3 589 1,686 92 28 24 6 339 23 0 450 284 69 0 101 0 50 769 0 31 15 0 50 107 153 0 0 50 4 0 328 7 417 125 35 749 143 349 839 15 59 0 487 64 332 0 123 56 349 120 689 0 118 0 522 0 45 0 303 171 11 0 307 76 15 91 15 27 32 47 438 20 0 56 71 118 0 482 35 596 102 123 54 966 9 35 87 0 88 10 71 0 15 59 64 7 1,132 86 335 775 6 496 7 782 83 114 16 114 663 115 1,234 2,974 24 55 131 0 165 25 110 39 0 2,612 8 1,606 121 69 13 19 42 354 18 15 183 29 6 16 109 115 23 9 959 20 19 46 789 158 586 40 0 27 58 15 565 16 29 1,913 200 63 1,583 131 16 139 13 359 407 374 132 9 18 624 69 1,090 1,207 221 150 740 82 59 448 8 181 657 613 56 0 0 150 947 0 306 368 44 1,509 295 139 58 21 9 354 0 0 54 35 70 1,786 0 232 12 547 34 0 16 77 0 55 348 702 0 100 47 26 52 1,034 1,470 2 45 101 1,479 95 28 12 788 1,391 2,960 28 929 66 792 177 5,934 81 89 6 533 71 30 35 113 1,895 74 0 38 2,834 8 11 1,129 91 0 566 89 1,370 77 94 10 32 92 19 1,229 139 24 121 5 223 1,063 144 30 727 284 103 19 2,270 152 468 383 38 31 1,516 566 6 284 1,054 678 22 17 1,190 38 1,335 1,329 70 2,799 1,360 2,839 2,539 5,373

5 0 33 10023380904 11 278 0 208 10 0 21 162 4 291 40 0 72 6 175 0 11 12 52 0 54 9 36 35 32 20 0 39 4 5 29 104 45 358 19 12 0 0 10 213 50 5 8 373 5 0 0 24 296 268 0 444 311 6 15 199 0 266 21 328 18 0 41 0 289 0 37 0 21 12 45 14 81 51 8 23 34 0 52 14 43 0 6 54 28 61 217 11 5 58 46 54 6 0 113 11 52 0 33 82 0 0 4 300 1 10 4 33 12 658 0 454 20 509 10 41 8 827 233 491 264 22 5 512 529 299 0 32 30 956 9 0 0 174 7 51 20 463 52 47 230 55 13 447 43 30 7 42 456 23 965 486 977 Total (male + female)

Total Male

Enrolled in nursery school, preschool:

Enrolled in kindergarten: School EnrollmentbyChapters(3yearsorover) Enrolled in grade 1 to grade 4: aeFemale Male Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

p. T81 Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school

Total Female

Enrolled in nursery school, preschool:

Enrolled in kindergarten:

Enrolled in grade 1 to grade 4:

Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school San JuanPaiute Sheep Springs Sawmill Sanostee San JuanPaiute St. Michaels Round Rock Rough Rock Rock Springs Rock Point Red Valley Red Rock Red Mesa Red Lake Ramah Pueblo Pintado Pinon Pinedale Oljato Ojo Encino Oak Springs Nenahnezad Nazlini Navajo Mountain Naschitti Nahodishgish Nahata Dziil Nageezi CHAPTERS 2 1 ,9 0 879 9112 7 8 42 96 82 616 8 23 98 63 39 25 14 886 570 0 23 111 89 91 7 18 909 1,795 ,7 4 91 17 70029641 97 73 335 9 37 346 87 37 521 24 318 73 13 1,808 94 20 0 0 69 534 76 220 9 71 4 0 247 410 112 61 83 550 271 105 10 8 12 91 300 38 116 8 29 624 0 22 41 13 53 156 100 279 900 53 164 0 9 75 697 138 592 288 0 28 510 4 2,921 97 82 392 0 13 799 0 1,688 0 23 31 7 219 10 73 25 0 580 9 526 39 138 521 46 172 87 1,056 6 85 21 512 404 318 328 0 179 71 26 24 50 78 260 128 135 754 77 19 0 68 3 0 35 41 1,161 61 274 86 12 18 33 378 57 0 65 515 79 48 37 48 12 0 0 76 69 17 78 70 0 81 65 26 29 7 29 56 8 41 1,425 77 122 91 85 38 56 2,762 6 546 898 48 63 19 5,683 1,005 147 10 54 0 144 99 567 1,170 11 79 41 734 11 436 138 10 10 18 47 664 0 135 154 10 477 0 345 870 829 204 10 26 19 52 1,361 881 5 0 195 705 484 1,628 8 621 120 37 130 18 12 1,937 390 0 105 62 1,201 1,048 131 731 35 172 18 2,209 0 57 132 46 1,485 72 6 84 63 1,575 33 72 3,000 110 12 57 1,062 31 18 31 2,067 73 21 10 869 83 5 564 1,603 48 1,000 753 21 1,623 678 1,383 6 5 87 73 002649801083 236 307 0 6 0 16 31 59 8 67 120 46 0 8 8 0 409 503 286 269 0 7 10 6 30 31 37 61 73 70 18 22 0 10 454 476 863 979 7 1 183 9000283681 03 600245 245 0 7 0 41 78 26 28 150 37 14 6 40 7 18 10 234 194 12 8 39 9 197 0 443 16 24 366 16 0 282 182 27 62 208 0 30 99 0 12 6 48 0 5 57 7 26 0 0 43 5 42 17 5 16 65 231 9 0 0 256 12 52 45 0 16 23 207 49 0 14 0 10 41 28 452 0 36 0 44 7 11 30 339 323 7 8 75 263 0 0 169 22 0 26 31 11 163 0 469 0 0 281 26 2 312 0 0 912 221 69 178 15 10 678 8 38 0 68 54 0 16 6 38 401 47 18 0 0 43 297 24 18 18 40 0 281 0 34 12 0 0 0 537 0 6 537 12 0 989 36 0 294 48 247 51 633 0 0 510 37 5 285 17 566 0 137 315 438 839 Total (male + female) 432400000002419000000019 0000000000000 00000000 0 0 0

Total Male

Enrolled in nursery school, preschool:

Enrolled in kindergarten: School EnrollmentbyChapters(3yearsorover) Enrolled in grade 1 to grade 4: aeFemale Male Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

p. T82 Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school

Total Female

Enrolled in nursery school, preschool:

Enrolled in kindergarten:

Enrolled in grade 1 to grade 4:

Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school Source: Census 2000.USCensusBureau. Wide Ruins White Rock White HorseLake White Cone Whippoorwill Two GreyHills Twin Lakes Tuba City Tselani Tsayatoh Tsaile-Wheatfields Torreon Tonalea Tolani Lake Tohatchi Thoreau Teestoh TeecNosPos Tachee Sweetwater Steamboat Standing Rock Smith Lake Shonto Shiprock 1. NorthernArea TOTAL CHAPTERS 2. SouthernArea 7,2 346192196939994907212224,9 7102001939269188744585150,660 581 4,598 8,794 9,198 9,266 1,933 2,080 87,110 48,694 202 2,192 9,097 9,984 9,309 1,956 1,982 83,416 170,526 ,3 7 14 67 6 6 91 56 81 314 6 411 18 361 0 78 29 0 63 9 51 586 55 102 18 448 55 32 71 11 658 9 68 111 0 19 0 26 93 77 521 428 56 564 60 9 23 64 0 0 122 360 77 26 673 111 27 97 31 0 2,467 556 82 88 477 635 385 29 103 123 36 669 3 36 24 190 108 0 18 91 342 372 0 368 944 394 99 10 436 85 76 33 0 44 9 18 96 0 0 7 577 0 468 92 468 22 66 132 7 83 0 1,072 48 350 8 726 20 0 67 65 133 0 639 17 48 117 262 115 25 0 409 104 63 78 86 65 148 127 51 104 0 140 952 21 0 61 842 15 48 0 115 4,168 78 7 46 57 125 66 31 31 561 0 2,219 55 62 14 482 33 54 100 753 62 8 7 30 160 80 26 54 8 74 22 7 78 574 0 1,044 39 22 0 124 19 1,148 115 75 894 0 590 47 6 5 0 391 672 47 36 1,138 22 14 113 4 20 82 410 626 0 56 580 7 8 90 73 673 16 19 656 84 629 411 600 32 101 0 2,718 16 18 1,253 10 151 69 318 898 800 31 396 121 30 348 86 16 1,235 70 32 88 343 128 93 11 137 5 1,842 542 1,016 0 0 37 105 401 92 144 498 43 2,088 3,984 22 23 659 12 0 85 0 288 181 13 8,152 80 274 27 26 641 32 149 10 1,385 44 31 963 97 17 69 73 7 1,171 833 25 78 46 38 1,915 672 52 5 23 74 63 1,675 1,208 57 58 9 0 72 2,356 78 4,564 12 886 54 0 23 2,394 6 694 92 23 1,930 0 0 92 15 1,588 94 278 7 666 106 0 571 613 21 1,339 109 582 519 1,227 7 741 34 423 1,211 69 1,541 8 596 76 1,094 1,044 2,215 4,372 8,936

2 5 305 02 4 7 005 300197 0 0 13 288 0 0 255 56 13 0 0 41 21 24 10 43 210 30 276 43 0 0 244 16 19 0 31 17 56 0 427 7 33 227 20 42 402 0 10 0 1286909010150035590907240019 314 20 37017300586701471973792222170117 53 0 12 10 0 38 372 25 38 23 207 17 55 350 0 22 47 19 626 19 4 24 340 33 6 767 39 502 7 904 0 329 701 Total (male + female)

Total Male

Enrolled in nursery school, preschool:

Enrolled in kindergarten: School EnrollmentbyChapters(3yearsorover) Enrolled in grade 1 to grade 4: aeFemale Male Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

p. T83 Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school

Total Female

Enrolled in nursery school, preschool:

Enrolled in kindergarten:

Enrolled in grade 1 to grade 4:

Enrolled in grade 5 to grade 8:

Enrolled in grade 9 to grade 12:

Enrolled in college, undergraduate years: Enrolled in grad. or professional school:

Not enrolled in school Table No. 42A School Enrollment Data on the Navajo Nation

Total Population American Indians Only Male Female Total Male Female Total Total 83,416 87,110 170,526 79,777 83,631 163,408 Enrolled in nursery school, preschool: 1,982 2,080 4,062 1,922 2,012 3,934 Public school 1,893 1,941 3,834 1,833 1,876 3,709 Private school 89 139 228 89 136 225 Enrolled in kindergarten: 1,956 1,933 3,889 1,922 1,893 3,815 Public school 1,858 1,861 3,719 1,831 1,828 3,659 Private school 98 72 170 91 65 156 Enrolled in grade 1 to grade 4: 9,309 9,266 18,575 8,965 8,958 17,923 Public school 8,918 8,823 17,741 8,614 8,541 17,155 Private school 391 443 834 351 417 768 Enrolled in grade 5 to grade 8: 9,984 9,198 19,182 9,720 8,964 18,684 Public school 9,576 8,858 18,434 9,334 8,659 17,993 Private school 408 340 748 386 305 691 Enrolled in grade 9 to grade 12: 9,097 8,794 17,891 8,814 8,527 17,341 Public school 8,754 8,362 17,116 8,483 8,134 16,617 Private school 343 432 775 331 393 724 Enrolled in college, undergraduate years: 2,192 4,598 6,790 2,040 4,432 6,472 Public school 1,917 4,055 5,972 1,774 3,928 5,702 Private school 275 543 818 266 504 770 Enrolled in graduate or professional school: 202 581 783 109 397 506 Public school 144 458 602 63 308 371 Private school 58 123 181 46 89 135 Not enrolled in school 48,694 50,660 99,354 46,285 48,448 94,733

Source: Census 2000. Extracted by Trib Choudhary

p. T 84 Table No. 42 B School Enrollment in the US by Race

White African American AIAN Asians Hispanic Number % Number % Number % Number % Number % Total: 203,756,357 100.00 32,734,511 100.00 2,325,511 100.00 9,787,918 100.00 33,008,314 100.00 Enrolled in nursery school, preschool: 3,454,118 1.70 787,932 2.41 49,282 2.12 162,879 1.66 671,730 2.04 Public school 1,634,041 0.80 579,824 1.77 39,573 1.70 67,607 0.69 484,518 1.47 Private school 1,820,077 0.89 208,108 0.64 9,709 0.42 95,272 0.97 187,212 0.57 Enrolled in kindergarten: 2,791,195 1.37 641,575 1.96 45,968 1.98 140,100 1.43 776,894 2.35 Public school 2,314,751 1.14 573,713 1.75 42,940 1.85 112,995 1.15 716,283 2.17 Private school 476,444 0.23 67,862 0.21 3,028 0.13 27,105 0.28 60,611 0.18 Enrolled in grade 1 to grade 8: 23,113,764 11.34 5,210,408 15.92 393,045 16.90 1,102,964 11.27 5,564,414 16.86 Public school 20,141,417 9.89 4,901,051 14.97 372,106 16.00 979,247 10.00 5,243,549 15.89 Private school 2,972,347 1.46 309,357 0.95 20,939 0.90 123,717 1.26 320,865 0.97 Enrolled in grade 9 to grade 12: 11,278,192 5.54 2,534,919 7.74 186,290 8.01 619,459 6.33 2,567,913 7.78 Public school 10,070,192 4.94 2,387,622 7.29 175,297 7.54 563,686 5.76 2,408,068 7.30 Private school 1,208,000 0.59 147,297 0.45 10,993 0.47 55,773 0.57 159,845 0.48 Enrolled in college: 12,502,749 6.14 2,224,181 6.79 138,900 5.97 1,252,589 12.80 1,868,699 5.66 Public school 9,289,967 4.56 1,685,006 5.15 113,776 4.89 891,637 9.11 1,468,317 4.45 Private school 3,212,782 1.58 539,175 1.65 25,124 1.08 360,952 3.69 400,382 1.21 Not enrolled in school 150,616,339 73.92 21,335,496 65.18 1,512,026 65.02 6,509,927 66.51 21,558,664 65.31

Source: Census 2000

p. T 85 Table No. 43 Student Enrollment at Dine' College by Headcount Academic Years 1969 thru 2006

ACADEMIC YEAR FALL SPRING SUMMER TOTAL 1968 - 1969 - 301 - 301 1969 - 1970 311 453 - 764 1970 - 1971 498 438 - 936 1971 - 1972 495 523 - 1,018 1972 - 1973 563 387 - 950 1973 - 1974 412 677 - 1,089 1974 - 1975 736 1,014 - 1,750 1975 - 1976 1,099 1,177 - 2,276 1976 - 1977 1,500 1,700 - 3,200 1977 - 1978 944 990 768 2,702 1978 - 1979 1,097 1,776 - 2,873 1979 - 1980 1,609 2,222 - 3,831 1980 - 1981 2,074 2,744 - 4,818 1981 - 1982 1,221 1,991 - 3,212 1982 - 1983 1,419 1,747 - 3,166 1983 - 1984 1,356 2,077 277 3,710 1984 - 1985 1,801 1,878 443 4,122 1985 - 1986 1,228 1,790 428 3,446 1986 - 1987 1,638 1,918 784 4,340 1987 - 1988 1,726 1,805 630 4,161 1988 - 1989 1,405 1,523 832 3,760 1989 - 1990 1,339 1,923 1,018 4,280 1990 - 1991 1,611 1,962 1,253 4,826 1991 - 1992 1,601 1,902 1,133 4,636 1992 - 1993 1,804 1,912 1,283 4,999 1993 - 1994 2,165 2,395 1,214 5,774 1994 - 1995 2,019 2,127 1,022 5,168 1995 - 1996 1,767 2,041 1,284 5,092 1996 - 1997 1,718 1,861 1,148 4,727 1997 - 1998 1,740 2,047 1,002 4,789 1998 - 1999 1,893 1,989 1,003 4,885 1999 - 2000 1,870 2,130 910 4,910 2000-2001 1,793 1,977 816 4,586 2001-2002 1,725 1,835 866 4,426 2002 - 2003 1,726 1,836 1,046 4,608 2003-2004 1,906 2,074 1,011 4,991 2004-2005 2,001 1,907 903 4,811 2005-2006 1,855 * * 1,855

* Data not yet available

Source: Office of Admissions & Records and Office of the Registrar. Dine' Community College.

p. T 86 Table No. 44 Dine' College Graduation by Site (1995 - 2006)

CAMPUS 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Tsaile Campus 71 58 38 28 37 30 42 44 35 70 44 Chinle Center 14 14 28 18 22 30 22 16 17 25 27 Ganado Center 10 15 9 3 5 11 13 11 9 11 15 Kayenta Center 000001010111215 Tuba City Center 32 25 21 29 25 23 12 8 13 36 47 Window Rock Center 12 20 11 24 13 16 21 26 11 18 18 Shiprock Campus 24 33 22 31 26 27 20 20 20 18 22 Crownpoint Center 6 15 10 13 44598148 TOTALS: 169 180 139 146 132 142 135 144 124 204 196

Source: Office of Admissions and Records & Office of the Registrar. Dine' College. Tsaile.

p. T 87 35 yearsandover 25 to34years 18 to24years Source: Census 2000.USCensusBureau.Extracted byTribChoudhary 35 yearsandover 25 to34years 18 to24years 15 to17years Total 15 to17years Total

Enrolled in college Enrolled in college 01 98 0.01.18.9100 48 52 100.00 85.20 14.80 100.00 80.29 19.71 100.00 89.81 10.19 55,199 2,394

.99.1100 .59.5100 .09.0100.00 100.00 100.00 95.90 100.00 90.61 99.66 4.10 93.65 9.39 0.34 100.00 6.35 100.00 100.00 94.25 100.00 87.85 99.70 5.75 91.61 12.15 100.00 0.30 100.00 8.39 97.81 100.00 93.39 100.00 2.19 99.62 6.61 95.84 0.38 4.16 or graduate school or graduate school 7 30,050 10,344 8,508 673 732 965 46,297 24 College orGraduateSchoolEnrollmentbyAge- The NavajoNation College orGraduateSchoolEnrollmentbyAge-TheNavajoNation aeFml Total Female Male

Not enrolled in Not enrolled in Male college or college or graduate graduate school school 30,723 11,076 Total 57,593 Total 9,473 6,321

Enrolled in college Enrolled in college Table No.45A (Percentage) ,5 33,659 9,795 7,138 2,054 1,355 1,752 or graduate school 56,567 5,179 or graduate school p. T88 85,975 18

Not enrolled in Not enrolled in Female college or college or graduate graduate school school

Total Total 5732776,0 66,436 22,226 63,709 20,139 2,727 2,087 35,713 11,150 1767531176119,339 111,766 7,573 61,746 ,9 ,1 56618,363 15,646 2,717 8,890 ,9 21,7 12,314 12,272 42 5,993

Enrolled in college Enrolled in college or graduate school or graduate school

Not enrolled in Not enrolled in Total college or college or graduate graduate school school

Total Total 35 yearsandover 25 to34years 18 to24years 15 to17years Source: Census 2000.ExtractedbyTribChoudhary 35 yearsandover 25 to34years 18 to24years 15 to17years Total

Enrolled in Enrolled in ,8,5 65,486,999 1,687,950 ,5,0 17,945,333 1,957,404 ,4,2 9,590,257 4,241,329 ,1,2 99,107,777 7,919,628 college or college or 2956,085,188 32,945

06 93 0.03.96.1100 40 60 100.00 66.00 34.00 100.00 62.51 37.49 100.00 69.34 30.66 graduate school graduate school .19.9100 .29.8100 .49.6100.00 100.00 97.16 100.00 100.00 89.49 99.37 2.84 92.09 10.51 0.63 100.00 7.91 100.00 100.00 96.88 100.00 88.81 99.28 3.12 91.62 11.19 0.72 100.00 8.38 100.00 97.49 100.00 90.17 100.00 2.51 99.46 9.83 92.60 0.54 7.40 College orGraduateSchoolEnrollmentbyAge- United States College orGraduateSchoolEnrollmentbyAge-UnitedStates aeFemale Male aeFml Total Female Not enrolled in Male Not enrolled in college or college or graduate school graduate school 107,027,405 67,174,949 19,902,737 13,831,586 6,118,133 Total Total ,5,1 73,101,315 2,358,018 ,0,0 17,472,418 2,202,202 ,6,5 8,274,173 4,961,751 ,6,1 104,557,651 9,563,615 Table No.45B

Enrolled in (Percentage) Enrolled in

college or 5,709,745 41,644 college or p. T89 graduate school graduate school

Not enrolled in Not enrolled in college or college or graduate school graduate school 1,2,6 74323236548221,148,671 203,665,428 17,483,243 114,121,266 5493340598185834142,634,282 138,588,314 4,045,968 75,459,333 96460419663,1,5 39,577,357 35,417,751 4,159,606 19,674,620 32594923001,6,3 27,067,510 17,864,430 9,203,080 13,235,924 ,5,8 4591,9,3 11,869,522 11,794,933 74,589 5,751,389 Total Total

Enrolled in Enrolled in college or college or graduate school graduate school

Not enrolled in Not enrolled in Total college or college or graduate school graduate school

Total Total Table No. 46 Scholarship Related Data on the Navajo Nation

FEDERAL FUNDS (PL 93-638) Spring 2005 Summer 2005 Fall 2005 TOTAL Number of Number of Number of Number of Award Amount Students Award Amount Students Award Amount Students Award Amount Students BIA Scholarship$ 3,696,258.0 2032$ 1,775.0 1$ 2,274,120.0 1224$ 5,972,153.0 3257 Chief Manuelito$ 1,774,165.0 505$ - 0$ 1,668,895.0 484$ 3,443,060.0 989 Total Federal Funds$ 5,470,423.0 2,537 $ 1,775.0 1 $ 3,943,015.0 1708$ 9,415,213.0 4,246

GENERAL TRUST FUNDS Number of Number of Number of Number of Award Amount Students Award Amount Students Award Amount Students Award Amount Students Teacher Education$ 271,623.0 180 $ 76,750.0 64 $ 201,800.0 82$ 550,173.0 326 Tucson Electric$ 151,253.0 60 $ - - $ 51,000.0 39$ 202,253.0 99 Trust Funds$ 69,012.0 32 $ - - $ 168,694.0 108$ 237,706.0 140 NECA$ 89,015.0 135 $ - - $ 127,750.0 110$ 216,765.0 245 Graduate $ 714,888.0 202 $ - - $ 414,485.0 110$ 1,129,373.0 312 Sussman Scholarship 48159 12 0 0 0 0$ 48,159.0 12 Total General Funds 1343950 621 76750 64 963729 449$ 2,384,429.0 1134

CORPORATE AND PRIVATE FUND SOURCES Number of Number of Number of Number of Corporate/Private Award Amount Students Award Amount Students Award Amount Students Award Amount Students Total Corporate/Private$ 275,796.0 289 0 - $ 252,500.0 299$ 528,296.0 588

MEMORANDUM OF AGREEMENT Number of Number of Number of Number of Award Amount Students Award Amount Students Award Amount Students Award Amount Students Dine' College$ - - $ 7,550.0 4 $ 152,687.0 81$ 160,237.0 85 ASU NAPS$ - - $ - - $ 274,505.0 120$ 274,505.0 120 ASU Law$ 1,500.0 4 $ - - $ 15,000.0 4$ 16,500.0 8 UNM Law$ 26,250.0 7 $ 15,000.0 6 $ 26,250.0 7$ 67,500.0 20 $ 27,750.0 11 $ 22,550.0 10 $ 468,442.0 212$ 518,742.0 233

GRAND TOTAL$ 7,117,919.0 3,458 $ 101,075.0 75 $ 5,627,686.0 2,668.0 $ 12,846,680.0 6,201

Source: Office of Navajo Nation Scholarship and Financial Assistance. The Division of Education.

p. T 90 Table No. 47 Educational Attainment on the Navajo Nation by Race (25 years and over)

Total Population High School Bachelor's 25 years or over Graduate or Degree or Higher Higher Race No Schooling Number % Number % Number % Number %

American Indians 84,598 100.00 45,867 54.22 4,102 4.85 N. A. N. A. White 2,936 100.00 2,817 95.95 1,960 66.76 N. A. N. A. Total* 88,662 100.00 49,593 55.93 6,464 7.29 10,784 12.16

* Total includes all races and not just American Indians and Whites

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

p. T 91 Table No. 48 Educational Attainment - the Navajo Nation, Arizona, New Mexico, Utah and the USA. (25 years and over)

The Navajo Nation Arizona New Mexico Utah USA Level of Education Male Female Total Percent Total Percent Total Percent Total Percent Total Percent No Schooling Completed 3,917 6,867 10,784 12.16 49,930 1.53 22,736 2.00 8,668 0.72 2,617,960 1.44 Nursery to 4th grade 1,424 1,471 2,895 3.27 27,831 0.85 13,570 1.20 4,392 0.37 1,389,512 0.76 5th and 6th grade 1,570 1,718 3,288 3.71 77,813 2.39 31,379 2.77 11,716 0.98 3,450,278 1.89 7th and 8th grade 2,519 2,126 4,645 5.24 99,122 3.04 37,300 3.29 13,650 1.14 6,297,727 3.46 9th grade 1,397 1,417 2,814 3.17 72,841 2.24 26,919 2.37 17,136 1.43 4,492,879 2.47 10th grade 2,403 2,358 4,761 5.37 84,201 2.59 33,398 2.94 23,652 1.97 5,506,115 3.02 11th grade 2,556 2,730 5,286 5.96 82,716 2.54 34,319 3.02 28,896 2.41 5,187,579 2.85 12th grade, no diploma 2,455 2,141 4,596 5.18 125,093 3.84 40,360 3.56 38,901 3.25 6,773,575 3.72 High School Graduate* 12,488 10,845 23,333 26.32 791,904 24.32 301,746 26.59 294,426 24.58 52,168,981 28.63 Some College, less than 1 year 2,032 2,642 4,674 5.27 280,384 8.61 82,392 7.26 107,522 8.98 12,884,843 7.07 Some College** 4,717 5,657 10,374 11.70 578,781 17.77 177,532 15.64 241,158 20.13 25,466,752 13.98 Associate Degree 1,817 2,931 4,748 5.36 219,356 6.74 67,001 5.90 94,812 7.91 11,512,833 6.32 Bachelor's Degree 1,581 2,554 4,135 4.66 493,419 15.15 154,372 13.60 213,959 17.86 28,317,792 15.54 Master's Degree 617 1,174 1,791 2.02 185,814 5.71 76,028 6.70 64,693 5.40 10,770,947 5.91 Professional School Degree 189 143 332 0.37 57,304 1.76 19,432 1.71 20,554 1.72 3,619,535 1.99 Doctorate Degree 117 89 206 0.23 29,675 0.91 16,317 1.44 13,757 1.15 1,754,331 0.96 TOTAL 41,799 46,863 88,662 100.00 3,256,184 100.00 1,134,801 100.00 1,197,892 100.00 182,211,639 100.00

% High School Graduate or Highe 23,558 26,035 49,593 55.93 2,636,637 80.97 894,820 78.85 1,050,881 87.73 146,496,014 80.40 % Bachelor's Degree or Higher 2,504 3,960 6,464 7.29 766,212 23.53 266,149 23.45 312,963 26.13 44,462,605 24.40 * includes equivalency

** 1 or more years no degree

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

p. T 92 Table No. 49 Educational Attainment in the US by Race (25 years and over)

Level of Education Asian White TOTAL Natives Pacific Islanders Some Other Race Black or African American Native Hawaiian and Other American Indians and Alaska

Number % Number % Number % Number % Number % Number % Number % Less than 9th grade 8,439,716 5.90 1,575,555 7.93 149,790 11.09 709,304 10.68 15,523 7.51 2,436,340 32.01 13,326,228 7.46 9th to 12th grade, no diploma 15,058,521 10.52 3,932,139 19.80 243,130 18.00 590,446 8.89 29,420 14.23 1,612,447 21.19 21,466,103 12.01 High school graduate (includes equivalency) 42,216,532 29.50 5,909,783 29.76 395,041 29.24 1,051,190 15.83 69,559 33.66 1,656,697 21.77 51,298,802 28.70 Some college, no degree 30,763,729 21.50 4,464,348 22.48 319,250 23.63 927,788 13.97 48,765 23.60 1,067,330 14.02 37,591,210 21.03 Associate degree 9,315,598 6.51 1,145,001 5.77 88,718 6.57 436,200 6.57 14,910 7.21 285,690 3.75 11,286,117 6.31 Bachelor's degree 23,734,685 16.59 1,877,471 9.45 102,552 7.59 1,771,798 26.68 20,078 9.71 375,911 4.94 27,882,495 15.60 Graduate or professional degree 13,556,878 9.47 953,798 4.80 52,517 3.89 1,153,945 17.38 8,420 4.07 176,706 2.32 15,902,264 8.90 TOTAL 143,085,659 100.00 19,858,095 100.00 1,350,998 100.00 6,640,671 100.00 206,675 100.00 7,611,121 100.00 178,753,219 100.00

High School Degree of Higher 119,587,422 83.58 14,350,401 72.26 958,078 70.92 5,340,921 80.43 161,732 78.25 3,562,334 46.80 143,960,888 80.54 Graduate Degree or Higher 37,291,563 26.06 2,831,269 14.26 155,069 11.48 2,925,743 44.06 28,498 13.79 552,617 7.26 43,784,759 24.49

Source: Census 2000. Extracted by Trib Choudhary. Support Services Department. Division of Economic Development.

p. T 93 Table No. 50 Number of Births and Birth Rates for NAIHS, HIS, and US, 1990-98 (Per 1,000 population)

Category 1990-92 1991-93 1992-94 1994-96 1996-98 NAIHS Live Births 17,306 16,887 16,103 14,091 13,739 NAIHS Birth Rates 31.1 29.6 27.6 23.2 21.7 IHS 27.3 26.6 25.7 24.1 24 US Birth Rate 16.3 15.9 15.5 14.8 14.5

Source: IHS Regional Differences. Reproduced from 2005 Navajo Community Health Status Assessment. Table No. 8.1. P. No. 82. Navajo Area Indian Health Services.

p. T 94 Table No. 51 Age Adjusted Mortality Rate from All Causes (per 100,000)

Category 1990-92 1991-93 1992-94 1994-96 1996-98 NAIHS Deaths 3082 3203 3219 3227 3426 NAIHS Rate 628.7 641.1 630.9 617.0 628.9 All IHS Rate 598.1 594.1 601.3 609.8 620.7 US All Races Rate 513.7 504.5 513.0 503.0 479.0

Source: 2005 Navajo Community Health Status Assessment. Navajo Area Indian Health Services. Table No. Core Indicator 3: Age Adjusted Mortality Rate from All Causes. P. 93.

p. T 95 Table No. 52 Homicide and Suicide Rates on the Navajo Nation, all IHS and the USA (Per 100,000 population)

Homicide Suicide Category 1990-92 1991-93 1992-94 1994-96 1996-98 1990-92 1991-93 1992-94 1994-96 1996-98 NAIHS 19.3 19.3 15.2 18.2 19.7 18.2 19.1 16.6 15.9 16.8 All IHS 14.6 14.6 13.4 13.5 12.7 16.2 16.2 17.3 17.3 17.6 All Races 10.9 10.5 10.7 9.4 8 11.4 11.1 11.3 11.2 10.6

Source: 2005 Navajo Community Health Status Assessment. Table Nos. 7.3 and 7.5. P. 72-73. Navajo Area Indian Health Services.

p. T 96 Table No. 53 Live Births and Infant Death Rates for NAIHS and the U.S., 1990-98 (Per 100,000)

Category 1990-92 1991-93 1992-94 1994-96 1996-98 NAIHS Live Births 17,306 16,887 16,103 14,091 13,739 NAIHS Infant Death Rates 9.4 10.0 10.0 8.6 8.2 US Infant Death Rates 8.9 8.5 8.4 7.6 7.2

Notes: The Rates are calculated per 100,000 Census population.

Source: 2005 Navajo Community Health Status Assessment. Table No. 8.2. P. No. 83. Navajo Area Indian Health Services.

p. T 97 Table No. 54 Life Expectancy at Birth

Category NAIHS (1996-98) U.S. (1997) Life Expectancy at Birth (in Years) 72.3 76.5

Source: 2005 Navajo Community Health Status Assessment. Table No. 9.9. P. No. 98. Office of Program Planning and Evaluation. Navajo Area Indian Health Services.

p. T 98 Table No. 55 Number of Medical and Dental Facilities by Type for each NAIHS Service Unit, 2004

Category Chinle Crownpoint Ft. Defianc Gallup Kayenta Shiprock Tuba City Winslow Total Hospitals 1 1 1 1 1 1 6 Health Centers 1 1 2 1 1 6 Health Stations 2 211241215 Health Locations 8 3 10 5295345 Dental Clinics 4 322462326

Source: 2005 Navajo Community Health Status Assessment. Navajo Area Indian Health Services. Table No. 3.11. P. 41. Office of Program Planning and Evaluation, NAIHS.

p. T 99 Table No. 56 Time Required to get a Business Site Lease in Selected Countries

Country No. of Days Australia 2 Canada 3 Denmark 5 Iceland 5 United States 5 Singapore 6 Afghanistan 7 Puerto Rico 7 France 8 Jamaica 9 Azerbaijan 115 Venezuela 116 Angola 146 Indonesia 151 Brazil 152 Mozambique 153 Congo 155 Sao Tome and Principe 192 Lao PDR 198 Haiti 203 The Navajo Nation 3 Years

Source: A Presentation by Dr. Maxfield at the Navajo Nation Economic Summit held in Acoma (June 5 - June 7, 2006).

The Navajo Nation number is from our own experience.

P. T 100

SOME COMMENTS

ON

THE PREVIOUS ISSUES OF

THE COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

AND

THE NAVAJO NATION DATA FROM CENSUS 2000

Bibliography

1. Dr. Wendell H. Oswalt, “This Land was Theirs”. Eighth Edition. P. 341.Oxford University Press. 2006).

2. Tony Milfork, Jr. , Dine Belief” (A Flier).

3. This section depends heavily upon a book entitlel, “DINETAH – An Early History of the Navajo People” by Lawrence D. Sundberg. Sunstone Press. 1952.

4. Senator John McCain, “Statement before the Tribal Council of the Navajo Nation on January 18, 1996. Mimeographed. P. 6.

5. Boys, Williams and Michael Melvin, “Macro Economics”. Houghton Mifflin Company, Boston. New York. Fifth Edition. P. 275.

6. The Arizona Republic. April 24, 2003.

7. Mark Neutman, “Economic Development. The ABCs of Recruitment.” The New Mexico Business Resource Guide. 1997. P. 7

8. Connections. Working for America Institute. Volume 4. No. 1. January 2006.

9. Randy Fitzgerald – Comeback in Indian Country. Readers Digest. October 1989. P. 30.

10. The Gallup Independent. June 6, 2003.

11. The Navajo Nation – Final Tourism Report. Prepared by the Arizona Hospitality Research & Resource Center. School of Hotel & Restaurant Management. Northern Arizona University. P. iii.

12. Ronald C. Wood, “Legalization vs. Prohibition of Alcohol on the Navajo Reservation.” May 1977. P. 20 (mimeo).

13. Rick Hill, “Tribes Must Pursue Economic Development”. Indian Gaming. April 2002. P.12.

14. Dr. Shanta Pandey, “Implementations o0f the Temporary Assistance for Needy Families (TANF) on American Indian Reservations: Early Evidence from Arizona>’ Kathry M. Buder Center for American Indian Studies. George Warren Brown School of Social Work. Washington University. St. Louis, Missouri. P.12. (mimeographed).

15. Mark A. Jarboe, Testimony of Mark A. Jarboe before the United States Senate Committee on Indian Affairs. Oversight Hearing on Tribal Sovereign Immunity.” March 11, 1998. P. 3.

16. Office of the Comptroller of the Currency, “Guide to Mortgage Lending in Indian Country.” Washington, DC. July 1997. P. 9.

17. Senator John McCain – Statement before the Tribal Council of the Navajo Nation on January 18, 1996. Mimeographed. P. 6.

18. The Economist. September 23, 2000.

19. The Arizona Republic. April 05, 2002. (Downloaded from www.arizonarepublic.com/articles).

20. Senator John McCain. ibid.

21. The Gallup Independent. July 10, 2002.

22. Jonne McCloskey, “Three Generations of Navajo Women: Negotiating Life Course Strategies in the Eastern Navajo Agency. American Indian Culture and Research Journal 22-2 (1998) p. 119.

23. Editorial in the Washington Post. Monday, August 30, 2004. P. A22.

24. The Navajo Times. March20, 2003.

25. The Navajo Nation Messenger. March 22, 2006.

2

Allan S. Begay Executive Director Division of Economic Development PO Box 663 Window Rock, AZ 86515 Tel: (928) 871-6544 Fax: (928) 871-7381

Phillip S. Scott Chief Financial Officer & Department Director Support Services Department Tel: (928) 871-6544

Leo Watchman Department Director Small Business Development Department Tel: (928) 871-6704

Anthony Perry Department Director Project Development Department Tel: (928) 871-6504

Thomas Boyd Department Director Tourism Department Tel: (928) 871-7647

Frank D. Nez Department Director Business Regulatory Department Tel: (928) 871-6714