Calculating the Bottom Line for First Nations
A few days ago, the federal Conservatives proposed their new budget, totaling out at roughly $280 billion in expenditures (versus apx. $231 billion in revenues). And as we saw in Tim Fontaine’s overview, the 2010 federal budget included a few multi-million dollar programs and services aimed at Aboriginal people.
Millions and billions: these are impressive, even incomprehensible sums of money. But in all the emotional commotion of debates over government spending, and how taxpayers must ultimately pick up the tab for said spending, it’s easy to forget that governments both get and give out that money in much smaller increments.
On the get side, it can be surprising to realize that if you were to receive a dollar from every man, woman and child in this country, you’d instantly have about $33,000,000. Obviously, kids (and, as of Feb. 5 at least 8% of adults) don’t work, but you could cut this in half and still make the point: pooling even tiny sums from millions of people generates massive amounts of money.
On the give side — the spending side — we always need to remember that any government program budget is ultimately divided up as follows:
i) by the number of communities receiving government monies; and
ii) by the number of years these monies will flow.
So, for example, under a one million dollar, five-year program supporting 20 communities, how much do you think each community would get every year? Answer: $10,000 a year. Can you get a lot in the way of goods and services for $10,000/year? Suddenly, $1,000,000 doesn’t seem nearly so impressive.
With that stone cold math in mind, let’s turn our attention to some bottom line equations for First Nations.
According to one section of the Assembly of First Nations (AFN) website, there are over 630 First Nations in Canada. Indian and Northern Affairs Canada (INAC), meanwhile, says there are 615. (The reasons for the gap are for another discussion; we’ll round down to 600 for the sake of convenience and argument.)
Now, imagine with me if you will that the federal government has just announced First Nations across Canada will receive $600,000,000 for some new program over the next 5 years. Six hundred million? Whaa? That’s a lot of money! Isn’t it?
Yes and no. Armed with our new number-crunching formula, we first calculate the following:
$600,000,000 / 600 communities
= $1,000,000 per community
A million dollars per community? Sweeeet! Oh, but wait: we also need to do another calculation:
$1,000,000 / 5 years
= $200,000 per community each year
Okay, still not bad, but how does that actually break down per person in each of those communities?
According to AFN, a majority of First Nations (60%) have fewer than 500 members; just 7 per cent have more than 2,000 members. (Obviously, that leaves the other 33% with somewhere between 501 and 1,999 members.)
Again for the sake of argument, let’s say that the 500 members figure exists for all First Nations. This is a very ‘generous’ proposition, as it means fewer people splitting the same pot, so they’d each receive more funding on a per person basis ($500,000 / 500 = $1,000 a person, whereas $500,000 / 2,000 = $250 a person).
Accordingly:
$200,000 / 500 people
= $400 per person each year
And don’t forget, that $400 has to be stretched over the full year:
$400 / 12 months
= $33 per month
Thirty-three dollars a month: about a buck a day.
Furthermore, none of this factors in having to pay somebody in the community to actually deliver this program. (Never mind that each layer of INAC bureaucracy will inevitably take out their slice in administrative costs, thereby reducing the actual money available for communities.)
And so, the next time the Government of Canada announces it’s given $600,000,000 in funding over 5 years to some nation-wide Indian program and you find yourself either angry or impressed with that figure, remember to first do the math.
[Image via bgilliard]
That sir, is some very interesting math.
A buck a day, eh. Can't even get a crap computer for that price anymore. Why don't we just outsource to India or China to run Indian Affairs? Might make a whole lotta sense. and they couldn't do any worse than INAC and the feds in Ottawa. They might actually even be able to pronounce our nations and place names. Say… I might be onto something .
Yes, and where does that money come from?
It comes from First Nations money that Canada holds “In Trust”.
Canada has held First Nations money “In Trust” for hundreds of years. Yet, before the 1960s First Nations had no programs or services.
Canada is not accountable in any way to First Nations for their money. All though INAC reports it has this money nowhere on INAC's website is there an Audit report showing the holdings. Nor is there any documentation on how that money is managed. First Nations have no access to that money and only Canada dictates the expenditures.
As compensation for surrendering the land, treaty annuity payments were to be made by Canada. Canada pays the annuities out of First Nations money. In effect First Nations compensate themselves.
INDIAN MONEYS PROGRAM
Indian Moneys means all moneys collected, received or held by Her Majesty for the use and benefit of Indians and/or bands. There are two types of Indian moneys: capital and revenue.
http://www.ainc-inac.gc.ca/br/bm/imp-eng.asp
In addition Canada also hold Band Moneys in trust.
BAND MONEYS
In some cases, Indian and Northern Affairs Canada (INAC) has specific responsibilities for managing moneys that belong to First Nations bands. These moneys are generated through band-owned resources such as oil and gas.
First Nation Management of Band Moneys
http://www.ainc-inac.gc.ca/br/bm/index-eng.as
=======
The question is when will First Nations leadership ensure that Canada is accountable for that money such as was done in the United States. The US has the same system as in Canada, whereby the US holds Native American money “In Trust”.
In the US it was found that billions of dollars of Native American money was missing or unaccounted for.
When the share holders of money have no control then the system is open to abuse. It's naive to believe that situation is any different in Canada.
===========
INDIVIDUAL INDIAN MONIES PROGRAM
The Interior Department's Bureau of Indian Affairs is responsible for managing financial agreements with tribes and tribal members on reservations. The Bureau of Indian Affairs collects more than $300 million annually from agricultural and oil leases, mining and water rights, rights-of-way and timber sales on Indian lands held in trust.
The “Individual Indian Monies (IIM) program” holds this money “IN TRUST” on behalf of “INDIVIDUAL” Native Americans. An audit of the “Individual Indians Monies” program revealed “BILLIONS” of dollars are missing or otherwise unaccounted for.
Native American Trust Fund: Massive Mismanagement
http://www.fcnl.org/issues/issue.php?issue_id=112
TRIBAL TRUST ACCOUNTS
In addition to IIM are some 3000 “Tribal Trust Accounts”, which includes per capita annual payments, compensation for rights-of-way and court settlements. As with IIM, however, waste, fraud and abuse are rampant.
2008 – Nez Perce v. Kempthorne (2nd huge suit filed over use of Indian money)
NARF represents forty-two plaintiffs – in an action in the federal district court for the District of Columbia seeking full and complete accountings of their trust funds, which never have been provided by the federal government which is the trustee for the funds.
http://www.narf.org/cases/tribaltrust.html
.
Yes, and where does that money come from?
It comes from First Nations money that Canada holds “In Trust”.
Canada has held First Nations money “In Trust” for hundreds of years. Yet, before the 1960s First Nations had no programs or services.
Canada is not accountable in any way to First Nations for their money. All though INAC reports it has this money nowhere on INAC's website is there an Audit report showing the holdings. Nor is there any documentation on how that money is managed. First Nations have no access to that money and only Canada dictates the expenditures.
As compensation for surrendering the land, treaty annuity payments were to be made by Canada. Canada pays the annuities out of First Nations money. In effect First Nations compensate themselves.
INDIAN MONEYS PROGRAM
Indian Moneys means all moneys collected, received or held by Her Majesty for the use and benefit of Indians and/or bands. There are two types of Indian moneys: capital and revenue.
http://www.ainc-inac.gc.ca/br/bm/imp-eng.asp
In addition Canada also hold Band Moneys in trust.
BAND MONEYS
In some cases, Indian and Northern Affairs Canada (INAC) has specific responsibilities for managing moneys that belong to First Nations bands. These moneys are generated through band-owned resources such as oil and gas.
First Nation Management of Band Moneys
http://www.ainc-inac.gc.ca/br/bm/index-eng.as
=======
The question is when will First Nations leadership ensure that Canada is accountable for that money such as was done in the United States. The US has the same system as in Canada, whereby the US holds Native American money “In Trust”.
In the US it was found that billions of dollars of Native American money was missing or unaccounted for.
When the share holders of money have no control then the system is open to abuse. It's naive to believe that situation is any different in Canada.
===========
INDIVIDUAL INDIAN MONIES PROGRAM
The Interior Department's Bureau of Indian Affairs is responsible for managing financial agreements with tribes and tribal members on reservations. The Bureau of Indian Affairs collects more than $300 million annually from agricultural and oil leases, mining and water rights, rights-of-way and timber sales on Indian lands held in trust.
The “Individual Indian Monies (IIM) program” holds this money “IN TRUST” on behalf of “INDIVIDUAL” Native Americans. An audit of the “Individual Indians Monies” program revealed “BILLIONS” of dollars are missing or otherwise unaccounted for.
Native American Trust Fund: Massive Mismanagement
http://www.fcnl.org/issues/issue.php?issue_id=112
TRIBAL TRUST ACCOUNTS
In addition to IIM are some 3000 “Tribal Trust Accounts”, which includes per capita annual payments, compensation for rights-of-way and court settlements. As with IIM, however, waste, fraud and abuse are rampant.
2008 – Nez Perce v. Kempthorne (2nd huge suit filed over use of Indian money)
NARF represents forty-two plaintiffs – in an action in the federal district court for the District of Columbia seeking full and complete accountings of their trust funds, which never have been provided by the federal government which is the trustee for the funds.
http://www.narf.org/cases/tribaltrust.html
.
boy that was explicit, now i know why I can’t pay for my clothing and food and all.. got a good math lesson but to tell you the truth, I thought we had something, now I know we have nothing and will get less than nothing and the future isn’t ours..unless we get rid of these sold out buffoons chiefs who lick the gov’t s feet and else. Fed up to see their faces on the news as they walk on the RED carpet,, hum… I mean ” WHITE CARPET”….