Navajo Nation leaders propose $24.6 million in relief after layoffs
Navajo Nation leaders on Thursday will continue discussions about proposed expenditure plans for the tribe’s remaining federal COVID-19 aid, which could include allocating more than $20 million to its four casinos following mass layoffs.
This week, the Navajo Nation Gaming Enterprise, which oversees the tribe’s casinos, laid off about 900 of its more than 1,000 employees, according to the enterprise’s Interim Chief Executive Officer Brian Parrish. He said another 140 employees could face layoffs early next week as the enterprise was running low on cash reserves due to casino closures during the COVID-19 pandemic.
The 24th Navajo Nation Council during a special session on Tuesday discussed legislation that proposed expenditures from the tribe’s remaining $652 million in federal COVID-19 aid. The Council voted in favor of including an amendment in the bill that would allocate $24.6 million to the enterprise.
After about 14 hours in session, further discussions and voting related to the bill were ultimately tabled for 10 a.m.Thursday.
About 900 casino employees laid off, more likely to follow
The Navajo Nation’s four casinos — one east of Flagstaff and three in New Mexico — have been closed since March 17, the same day the tribe identified its first COVID-19 case. As of Wednesday, the Navajo Nation had 8,968 identified COVID-19 cases and 453 confirmed deaths.
While unable to generate income during the closure, the enterprise continued to keep a majority of its 1,180 employees on paid administrative leave, including benefits, said Parrish.
Loans from the federal Paycheck Protection Program helped cover employee payroll for about 10 weeks of the enterprise’s 19-week closure, Parrish said. The enterprise received approximately $11 million in aid, Navajo Nation Controller Pearline Kirk told the Council on Tuesday.
The enterprise’s cash reserves were now running low, leading to the layoffs of about 900 employees and likely more in the coming days, according to Parrish.
Any laid off employees will continue receiving health benefits, according to Parrish. A skeleton crew that includes security, engineers and some management would remain working, he said.
He told the Council on Tuesday that an allocation from the tribe’s federal COVID-19 aid would allow the enterprise to return its employees to paid administrative leave while the casinos remain closed for several more weeks. The enterprise’s closure appears to fall in line with the Navajo Nation’s government closures, which were recently extended to Aug. 16.
“This CARES Act money will be a bridge that helps us get open in a phased-in approach so that we can manage our expenses, phase our opening carefully, protect our team members, the Diné and our patrons and then slowly rebuild the businesses,” Parrish said.
The announcement of the enterprise’s layoffs followed a news release about two weeks ago in which Navajo Nation Gaming Enterprise boasted about its ability to keep its staff employed while casinos across the country experienced layoffs.
“The financial strain on the Gaming Enterprise has been severe, but we continue to believe taking care of our employees must be our focus,” Chairman of the Navajo Nation Gaming Enterprise Board Quincy Natay stated in the news release at the time. “The pressures and worries from the pandemic are already affecting our people, we couldn’t add to their burden by instituting layoffs, unless there was no other option.”
What else is being proposed for tribe’s $652 million in federal aid
The legislation discussed by the Council on Tuesday proposed an expenditure plan for the tribe’s remaining $652 million in federal COVID-19 aid, including more than $64.2 million for water projects and at least $30 million apiece for powerline and broadband projects.
Several amendments, including allocating funds to the Navajo Nation Gaming Enterprise, were discussed and approved during the session. Discussions about the legislation would continue on Thursday.
President Jonathan Nez and Vice President Myron Lizer attended the first half of Tuesday’s session to propose a separate expenditure plan for the tribe’s remaining federal COVID-19 relief funds. At the top of their list were expenditures for water, powerline and broadband projects, as well as more than $22 million for the enterprise.
To date, the Navajo Nation has received more than $714 million from a portion of funds promised to tribal governments under the federal coronavirus relief bill.
The tribe more than two weeks ago approved its first expenditures from the aid, totaling more than $62 million. It included “special duty pay” and personal protective equipment for frontline and essential employees.
Tribes across the country have until the end of the year to spend all federal COVID-19 aid and complete whichever projects the funds were allocated toward, according to officials. Rep. Tom O’Halleran, D-Ariz., earlier this month introduced legislation to extend the deadline to tribal governments to Dec. 30, 2022.