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Indian Government Support Programs ~Communique~ May 27, 2009

The Government of Canada is currently engaging with First Nations regarding a “redesign” of 5 programs commonly referred to as Indian Government Support Programs (IGSP).

These include:

• Band Support Funding;
• Band Employee Benefits;
• Tribal Council Funding;
• Band Advisory Services; and
• Professional and Institutional Development.

In order for federal departments to fund programs, they must obtain “authority” to do so from Cabinet and Cabinet committees (such as the Treasury Board). Generally, two kinds of authorities are required:

• “policy authorities” which outline the goals and objectives of a program
• “funding authorities” which establish the parameters under which funds can be spent (e.g., eligible recipients, activities to be funded), including reporting and accountability requirements.

The authorities for IGSP expire on March 31, 2010, and will likely be renewed for 5 years.

These programs were initiated as part of the devolution of technical and advisory services from Indian and Northern Affairs Canada (INAC) directly to Bands and Tribal councils in the mid-1980s, and put in place to assist band councils in meeting the costs of local government and administration of departmentally funded services.

INAC is proposing to change the way these programs are described – in particular Band Support Funding (BSF) – but not necessarily how they are funded. INAC plans to update the policy framework to reflect a change from devolution of administration to a focus on the functions of government carried out by First Nations. As BSF is provided via a grant, these changes may not necessarily affect First Nations in their allocation of funds at the community level.

Key Issues

Funding

The most critical issue with regards to IGSP is chronic under-funding. For example, INAC’s own studies have identified that Band Support Funding does not provide adequate funds to support essential government functions, including the costs of audits, elections, information management / technology, and legal costs.

While INAC has committed to reviewing the BSF funding formula and recommending changes to streamline it, officials do not have a mandate to discuss funding levels. The Assembly of First Nations (AFN) is concerned that there is not a full and evidencebased understanding of the true costs of modern First Nations governance. AFN has called upon INAC to conduct a joint costing study with First Nations. However this has not yet taken place.

AFN is also concerned that re-describing the program without a commitment to examining resources could have longer term implications regarding expectations placed upon First Nation governments, as well as reporting and accountability to INAC.

Advisory Panel

INAC has created an advisory panel to support this work, which includes representation from the AFN. To-date there have been three meetings of the panel: March 10 (via teleconference), April 30 and May 13, 2009. Discussions have focused on:

• the proposed changes to ISGP;
• the way information is being communicated to First Nations;
• the requirement for empirical analysis with regards to costing and the environment in which First Nation governments function; and
• the critical need for additional resources for these programs.

Process and Timing

INAC will continue engagement regarding IGSP into early summer 2009. In order to meet their timelines, and to ensure new terms and conditions are in place by April 1, 2010, officials must have a recommendation regarding the policy redesign reviewed by Cabinet in Fall 2009.

Band Support Funding acts as the foundation upon with First Nation governments conduct their business. While INAC is meeting with First Nations during this period of engagement, and seeking specific input from First Nation administrations, they have not yet committed to providing First Nation leadership with an opportunity to review the recommendations to ensure that these meet the needs of their communities. Simply providing input – with no concrete ability to affect the outcome of the process – is not enough.

Next Steps

First Nations need to be fully involved in all stages of the process – from developing options to reviewing and validating recommendations. INAC officials have said they want the IGSP policy underpinnings to be “transformed” through this process. First Nations need to be equal participants in a joint-process in order for true transformation to occur – the voices of First Nations must be listened to and respected.

AFN encourages First Nations to inform INAC that:

1. Funding provided to First Nation governments to support their core functions needs to be linked to the actual costs of governing and not to a decades-old administrative devolution exercise. Proper consultation and analysis must take place so that officials, leaders, Ministers can make informed decisions.
2. First Nation leaders need to be provided an opportunity to review and reflect upon recommendations before they go to Cabinet for approval. Anything less places the interests and aspirations of First Nation citizens and governments at risk.

Updates regarding developments with respect to this process will be posted on the AFN’s website at www.afn.ca, or please contact Karen Campbell at 613-241-6789 (ext. 263) or via email at kcampbell@afn.ca