APPROPRIATIONS AND TAX ISSUES
IN THE 114
TH
CONGRESS
AMERICAN INDIAN LAW CENTER
8
TH
ANNUAL TRIBAL LEADERSHIP
CONFERENCE
John Harte!
Mapetsi Policy Group!
Appropriations Overview
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Federal Appropriations Process
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President’s FY16 Budget
•
Congressional Budget
•
Appropriations Subcommittees
•
Status of FY16 Funding
President’s Budget Request
In early February of each year, the President submits his proposed budget to Congress for the next fiscal year
The President’s Budget is based on the previous year’s enacted appropriations levels. Congress’ appropriations are likewise compared to the President’s proposed Budget levels.
The House and Senate Budget Committees consider the President’s Budget when setting the budget allocations. (March-April).
The House and the Senate Appropriations Committees then hold hearings and begin drafting the appropriations bills in the spring and summer. (April-July).
Appropriations Subcommittees
The 12 House and Senate AppropriationsSubcommittees determine funding for various agencies:
Agriculture (USDA tribal programs)
Commerce/Justice/Science (DOJ tribal programs)
Defense
Energy & Water (DOE, BOR)
Financial Services (Treasury, FCC, Federal Courts)
Homeland Security (Disaster relief, FEMA)
Interior and Environment (BIA, IHS, EPA)
Labor/Health and Human Services/Education
Legislative Branch
Military Construction/Veterans Affairs
State, Foreign Operations
Senate Interior Appropriations
REPUBLICANS
Lisa Murkowski (AK), Chair Lamar Alexander (TN)
Thad Cochran (MS) Roy Blunt (MO)
John Hoeven (ND) Mitch McConnell (KY) Steve Daines (MT) Bill Cassidy (LA)
DEMOCRATS
Tom Udall (NM) Ranking Dianne Feinstein (CA) Patrick Leahy (VT) Jack Reed (RI)
Jon Tester (MT) Jeff Merkley (OR)
The Full Senate Appropriations Committee consists of 30 Senators (16 R / 14 D). It is Chaired by Sen. Thad Cochran (R-MS) and the top Democrat is Sen. Barbara Milkulski (D-MD)
House Interior Appropriations
REPUBLICANS
Ken Calvert (CA), Chair Mike Simpson (ID)
Tom Cole (OK)
David Joyce (OH) Chris Stewart (UT) Mark Amodei (NV) Evan Jenkins (WV)
DEMOCRATS
Betty McCollum (MN), Ranking
Chellie Pingree (ME) Derek Kilmer (WA) Steve Israel (NY)
The Full House Appropriations Committee consists of 52 Representatives (30 R / 22D). It is Chaired by Rep. Hal Rogers (R-KY) and the top Democrat is Rep. Nita Lowey (D-NY)
Congressional Earmark Ban
Earmark = a congressional directive that funds should
be spent on a particular project
In 2011, House Leaders implemented a comprehensive
ban on “earmarks” in the appropriations legislation. The ban remains in place to this day.
Impacts on funding Indian Country projects = shifts focus
from lobbying Congress to lobbying the Administration / agencies.
The congressional appropriations process remains
important, because it continues to establish the overall funding levels for a wide variety of Indian affairs
Status of FY16 Funding Bills
The deadline for passing legislation to fund the government for FY16 is before midnight on September 30, 2015
Congress has failed to pass any of the 12 appropriations bills
Despite early progress, the process broke down in June on the House Interior Appropriations bill when a rider to prevent the use of the Confederate Flag was attached to the FY16 bill
The more recent issue of funding Planned Parenthood is
threatening to shut down the federal government and funding for federal programs and agencies
A more fundamental problem with FY16 funding stems from the April 2015 Budget allocations that would implement
Status of FY16 Funding Bills:
Interior Appropriations
Overall BIA Funding: House $2.77B (+$165M over FY15); Senate
funds $2.69B (+$92M)
BIA Contract Support Costs: The House fully funds CSC at $277M;
Senate creates an indefinite appropriation at $277M
BIA: House = $854.2M (+43.6M over FY15); Senate funds BIE at
$824.9M (+$14.4M)
Overall IHS Funding: House = $4.79B (+$145.5M); Senate =
$4.78B (+$136.9M).
IHS Contract Support Costs: House fully funds CSC at $718M;
Senate creates an indefinite appropriation at $718M
Federal Acknowledgment: The House rider to prevent
Status of FY16 Funding Bills:
Other Appropriations
Commerce, Justice Science: The Senate bill includes a 7%
tribal set aside for Office of Justice Programs
discretionary funds. If enacted into law, this provision
would be a significant increase of new funding for Indian Country justice programs from DOJ.
Labor, Health, Human Services, Education: House bill
includes a policy rider prohibiting NLRB from application of NLRA to tribes.
Transportation HUD: House maintains funding for the
NAHASDA / IHBG at $650M +$1M to the Sec. 184 Loan Program. Senate maintains $650M but no increase for the Sec. 184 Program.
Status of FY16 Funding Bills:
Prospects for Passage
The September 30
thdeadline is 8 days away
Both House and Senate Leadership have
publicly stated that they will not shut the
government down
However, reaching a deal for a short-term CR
is difficult
40-Member House Freedom Caucus
Presidential politics in the Senate
Taxation Overview
IRS Notice of Proposed Rulemaking on
Reporting Winnings from Slots, Keno, Bingo
(March 4, 2015)
IRS Notice 2015-34 (Implementation of the
TGWE)
The Tribal General Welfare Exclusion Act of
2014, P.L. 113-168 (9/26/14)
Conclusion – Treasury is ignoring the purpose
IRS NPRM proposes “updating” reporting
winnings for slots, keno, bingo because of
advanced technology – player programs
Requested comments on proposal – as well as
possible lowering of threshold $1200 - $600
Tribal implications:
Harm Indian gaming revenues
Violates EO 13175
Comments on the NPRM were accepted
through June 2, 2015
IRS hearing held on June 17, 2015
David Bean, NIGA Board / Puyallup
Council
AGA, Horse Tracks, Gaming
manufacturers
Notice seeks to:
Clarify application of TGWE of 2014 to IRS
Revenue Procedure 2014-35
Seeks comments to implement TGWE
Notice clarifies that TGWE does not supplant Rev.
Procedure 2014-35, consistent with congressional intent of TGWE
Requests comment on terms: “lavish and
extravagant”, “tribal custom and practice”, “items of cultural significance”
Enacted in response to decade of IRS targeted
investigations of tribal government programs and services
TGWE introduced by Rep. Devin Nunes (R-CA) and
Sen. Jerry Moran (R-KS) – broad bipartisan support
With 61 co-sponsors – House Republicans brought
TGWE to the floor under suspension of the rules
Passed by voice vote on 9/16/14
Passed Senate by unanimous consent on 9/18/14
TGWE broadly exempts all tribal government
payments that promote the general welfare
Establishes Tribal Advisory Committee (TAC):
Define terms of TGWE and develop education and
training for IRS field agents
Generally advise the Treasury Secretary on tribal tax
Indian canon of construction: ambiguities resolved in
favor of tribes
Moratorium against IRS investigations