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Navajo-Hopi Observer | Flagstaff, Arizona

home : latest news : latest news May 28, 2016

2/12/2013 12:17:00 PM
President Shelly outlines new projects in State of Nation address
Navajo-Hopi Observer

Navajo Nation President Ben Shelly delivered a message outlining projects to create economic prosperity for the Navajo Nation during his State of the Nation address on the first day of the winter session.

"We must redefine our economic principles. We can no longer sit in the passenger's seat of receiving royalties and taxes, while others dictate our direction. I am proposing new initiatives that will broaden our outlook and create new opportunities to benefit our people," Shelly said during his 20-minute speech.

Shelly talked about budget issues at the federal level. In September last year, Congress passed a continuing resolution to keep the federal government functioning. Shelly said the Navajo Nation has to prepare for potential budget cuts that could be as high as 11 percent for some federally funded programs when the continuing resolution expires in March.

Shelly said one of the projects he plans to recommend to council this spring is the Narbona Growth Fund. The fund would allow businesses formed under the fund access to tax breaks. Also, the fund would create tax revenue for the Navajo Nation, and the fund would place the Navajo people as preferred shareholders, while the Navajo Nation government would serve as common stockholders.

"New companies formed under the Narbona Growth Fund will gain access to tax breaks only offered under the fund. The Navajo Nation will benefit from this new stream of tax revenue," Shelly said.

Shelly introduced another initiative to build a railroad port.

"We are working side by side with Burlington Northern Santa Fe railroad to build a trans-loading rail facility, the first of its kind in the southwest. The port authority will create an opportunity to load rail cars and ship the products on the Trans-Con railway," Shelly said.

A solar panel manufacturing plant is scheduled to open this month in Fort Defiance, Ariz. When fully operational the plant would create more than 400 jobs.

"The solar panels make renewable energy a reality, just one of several areas we are making good in our energy commitment," Shelly said.

Shelly also called for a change in the drilling lease process for Navajo Oil and Gas Company, an enterprise of the Navajo Nation. To explore for new oil or gas, the approval of a lease could take as long as three years. Shelly proposed to grant Navajo Oil and Gas the option of choosing the areas they would like to explore.

"Navajo Oil and Gas has taken the lead role in our oil and gas production. We have an obligation to them. Their success is vital as oil and gas remains a dominant force in the global economy," Shelly said.

He also proposed that changes be made to the Possessory Interest Tax to help new businesses compete. He asked that the Navajo Council lower the tax for new businesses and to phase in the tax over a three-year period.

Shelly also asked the Navajo Council to invest $1.5 million to develop a Navajo Land Department title plant.

"We have been working for the last five years to develop a title plant at our Land Department to assume total control of how we record titles, homesite leases, grazing permits, businesses leases, communication towers and all forms and uses of land," Shelly said.

Shelly discussed the status of federal and state monies the Office of the Controller reported as reverted.

He said $41 million reported as reverted was actually reimbursement money.

"To say that $41 million has gone back to the respective governments is completely inaccurate," Shelly said.

Reports have indicated that the Navajo Nation has reverted about $124 million in federal and state money, but Shelly said the number is misleading. He said that $50 million of the money has yet to be drawn down, including $33 million to complete public safety facilities in Kayenta and Tuba City.

"The Controller imposed limitations to keep programs from using their full funded amount from the states or federal government," Shelly said.

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