South Dakota Legislators Surprised at Tribal Successes Story-Date: 12:50 a.m. PST Saturday , October 10, 1998 ------------------------------------------------------------ South Dakota Legislators Surprised at Tribal Successes By Jennifer Peterka, Indian Country Today, Rapid City, S.D. Knight Ridder/Tribune Business News Oct. 5--PIERRE, S.D.--State legislators were astonished and impressed after a review of the long list of economic development and job creation projects accomplished by tribes on South Dakota reservations. "It's quite evident that on the reservations they're not sitting on their duffs waiting for something to happen. They have taken the initiative them selves. They are heading in the right direction," Sen. Robert Benson, R-Clearfield, said. Officials from five tribes met with the members of the Legislature's State Tribal Relations Committee, Sept. 23 to discuss tribal economic development and the impact of welfare reform on South Dakota's American Indian communities. Tribal leaders are clearly trying to improve the lives of people who live on the reservations, where unemployment and poverty is a rampant, said Sen. Richard Hagen, D-Pine Ridge. They have realized that gaming has changed their whole way of life and that gaming will not last forever. Other development is still needed, he added. Projects discussed with the tribal and development officials included: -- Use of natural resources, gravel pits and renewable energy -- Promoting tourism on the reservations, summer youth camps, boat marinas and wildlife guide services. -- Using websites to promote craftsmen and artisans; processing agricultural products, organic beef, buffalo, beef jerky plant and hog confinement operations. -- And, creating utility commissions, telecommunication companies, water treatment plants, data processing plants, premanufactured housing, smoke shops and packaging and labeling businesses. Tribes are encouraging American Indian-owned and -operated small businesses and are helping with revolving loans to help start these businesses, officials said. Housing and mortgage lending was discussed. "So many people are on a waiting list for housing. It's not if we can get this going, it's we have to get this going," Rob Skjonsberg, community development specialist from Norwest Bank said. Mr. Skjonsberg works with other banking institutes to find alternative sources of financing to solve housing problems on the reservations and as a liaison between banks and lenders. "Tribes have balked in the past to these businesses' recovery process," Rep. William Napoli, R-Rapid City, said. He went on to say that some businesses in Rapid City refuse to do business with those on the reservation because of this. "You can't make a blanket statement like that. Our approach is to get to know each tribal court system. Businesses can go to the tribal courts, get to know who you need to deal with. Each tribe is a sovereign nation," Mr. Skjonsberg said. Pat Gross, a rural development and public information coordinator for the U.S. Department of Agriculture, discussed the Empowerment Zone Program. It would provide $40 million grants from the Taxpayer Relief Act of 1997, spread over 10 years, to help five economically distressed communities. Cheyenne River, Oglala , Rosebud and Lower Brule Sioux tribes are among the 35 tribes which are competing for the grants. This is the first time tribal entities have been eligible. These grants represent a new approach to solving problems of distressed communities with emphasis on a bottom-up community-based strategy, rather than a top-down bureaucratic approach, which allows communities to develop their own plans for economic development. The five grants will be awarded Jan. 1 to communities (or tribes) with poverty levels of more than 20 percent of their population. Communities will be evaluated on the effectiveness of their strategic plans, support of the plan and how likely the community will be able to succeed. "It's the most exciting thing I've seen in a long time," Mr. Gross said. With limited opportunity and few jobs currently available on reservations welfare reform has dramatically impacted American Indian communities. "We're struggling down there. We're struggling hard. I see it every day, street people, they're not dumb and they're not stupid. They just can't get a job," said Sen. Hagen. The number of people who are on Temporary Assistance for Needy Families (TANF) in South Dakota has dramatically decreased on and off reservations, from 3,200 people in August of 1997 to 2,100 people in August of 1998. "We didn't create 2,100 jobs in South Dakota. We need to create some jobs out there. If we would make a heavy investment into industry we might be better off in the long run," Sen. Paul Valandra, D-Mission, said. According to James Ellenbecker, of the South Dakota Department of Social Services, the state received a five-year block grant from the federal government to fund the program. The state had the flexibility to design the program to meet the federal guidelines and criteria. As of Oct. 31, 30 percent of all able-bodied parents must be participating in a work activity 30 hours a week. This percentage increases by 5 percent each year. If criteria are not met, the state will lose 5 percent of its funding each year. A one-year sanction could cost approximately $1 million. "South Dakota is ahead of federal regulations. There are some incentives for states that do well on the program," Mr. Ellenbecker said. Tribal officials are concerned that people are being denied TANF benefits because of federal sanctions and guidelines and many are applying to tribal programs for emergency assistance. Mr. Ellenbecker said these people remain eligible for other services and programs like food stamps and child care assistance. South Dakota, unlike other states including Wyoming, does not provide an educational tract for TANF recipients. "People on this program can go to school, but they must still work 30 hours a week. We won't allow them to (go to school) and be totally exempt from work activity," Mr. Ellenbecker said. Tribal officials argued that education is very important and because of the program's idea that higher education is work avoidance, many students can't attend school full time. Students who graduate from tribal colleges are finding jobs that enable them to fully support their families, they said. The fund currently has an excess of $6 million as of September 1997 and he expects an excess of $12 million at the end of this fiscal year, Sept. 30. 1998, Mr. Ellenbecker said. This excess "rainy-day fund" can be transferred to child welfare account, he said. "If the money's there I think that we should aggressively look for ways to help those people," Sen. Benson said. "We are aggressively working with barriers like child care, lack of skill and transportation. We will use the rainy day fund to address these problems," Mr. Ellenbecker said. Legislators agreed this meeting was the most productive the committee has had since formed two years ago. "It's hard for us to accomplish anything without feedback," Sen. James Hutmacher, D-Chamberlain, said. ----- Visit Indian Country Today on the World Wide Web at http://www.indiancountry.com/ (c) 1998, Indian Country Today, Rapid City, S.D. Distributed by Knight Ridder/Tribune Business News. ------------------------------------------------------------