In response to your June 1, 1989, letter and subsequent discussions with your offices, this report provides the results of our review of the Bureau of Indian Affairs' Indian Priority System budget formulation process. The report discusses the evolution of the Indian Priority System process, its current implementation, and the extent to which tribes influence the budgeting for selected Bureau of Indian Affairs' programs through the process. We are making a recommendation to improve the way in which the process is implemented. We are sending copies of this report to the Secretary of the Interior; the Assistant Secretary for Indian Affairs, Bureau of Indian Affairs; the Director, Office of Management and Budget; and interested congressional offices. This work was performed under the general direction of James Duffus III, Director, Natural Resources Management Issues, who may be reached at (202) 275-7756. Other major contributors are listed in appendix I. Executive Summary Purpose In recent years controversy has arisen concerning the determination of Background In the early 1970S BIA implemented a budget formulation process designed to give Indian tribes a substantial role in setting priorities among programs and their levels of funding. Following passage of the Indian Self-Determination and Education Assistance Act of 1975, BIA characterized its budget formulation process-now referred to as the IPS process as a means of fulfilling the Congress' commitment to effective and meaningful participation by Indian tribes in planning, conducting, and administering Indian programs. Under the IPS process, BIA area and agency offices, in conjunction with Indian tribes, are to develop proposed budgets for selected programs under the Operation of Indian Programs budget component. This process generally involves BIA'S Central Office providing the area and agency offices and tribes with base budget amounts. The BIA Offices and the tribes then identify program priorities and associated funding levels within the base amounts. Their input is consolidated into BIA's annual budget. Programs subject to the IPS process include some that Indian tribes have |