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Politics & Legal > Tax Dollars at Work: Indian Settlement
 

Tax Dollars at Work: Indian Settlement

I can remember back in the 1950s when some of the Indians in southwestern Colorado received a large government settlement. Many of them purchased large motor homes, drove them into the ground, and abandoned them.

This most recent settlement is the result of the tribes' successful lawsuit against the Department of the Interior for mismanaging funds and national resources that the government holds in trust.

More details: U.S. Will Pay a Settlement of $1 Billion to 41 Tribes

Here is the result:

"Millions of dollars flood local economy

By Emery Cowan

Durango (Colorado) Herald

Lino Padilla switched from phone call to phone call, negotiating new car deals by the minute. Outside strands of red white and blue fringe were strung across the parking lot filled with used cars for sale.

The sales Padilla is making now are nothing compared to a few months ago in July when adult members of the Ute Mountain Ute tribe received $12,500 each from the distribution of $42.5 million in federal settlement money.

Padilla sold 17 cars in one day after the settlement money was distributed, he said. The most he usually sells is six or eight.

Like Padilla, business owners throughout Cortez reported seeing a noticeable uptick in business when Ute Mountain Ute members received their portion of the multimillion-dollar settlement with the Department of the Interior. A total of 41 tribes received money from the $1 billion settlement that resolved numerous lawsuits alleging federal mismanagement of tribal money and trust lands.

The tribe grappled with what to do with the money, considering proposals to invest the money on behalf of the tribe, invest some in tribal programs or distribute the money in designated chunks.

But under pressure by many vocal members, tribal councilors decided to distribute the majority of the money directly to the people. Members received a total of almost $19,000 each in three payments made in May, July and September.

The distribution translated into a major and almost immediate infusion of business into the Cortez community, local business owners said.

Tribal members came straight to his car dealership after receiving their checks, Padilla said. Some simply signed over their checks to him instead of going through the step of cashing them. He organized barbecues, car washes and live radio promotions to advertise his offerings in the days after the settlement distribution.

Restaurants and car accessory shops were some of the other businesses that saw a boom in demand. Rimco saw a huge influx of people looking for new tires and rims, said Chris Alvarez, general manager of the wheel and rim store.

“They are reaching for the stars because they have extra money,” he said.

It had been a slow couple of years at Audiobox until tribal members received their distributions, said Page Bane, owner of the car sound-system store.

Stacks of speaker systems in the middle of the store dwindled, and he had a major backup on work to install sound systems.

“We couldn’t do it quick enough,” he said. “We got a lot of the same customers, just new toys.”

Firearms were also on many tribal members lists.

Shooters World, a firearms and accessories store, saw increases “across the board” when the settlement money was distributed, owner Ken Banks said.

“We felt it like every restaurant, car dealer and ATV dealer,” Banks said.

Younger tribal members who couldn’t buy guns and can’t drive cars opted for something else.

“It seemed like every young person ended up with a four wheeler,” said Dena Guttridge, executive director of the Cortez Chamber of Commerce.

Furniture and appliance rental stores said some customers used the money to pay off their items still on loan.

But the Ute Mountain Ute’s spending spree had its downsides, some tribal members said. Many people quickly spent most of their money and have found themselves in the same cash-strapped situation as before the settlement, one tribal member said.

Business owners confirmed that tribal spending has died down now. Meanwhile, four-wheelers driven by children and teens too young to get a license have proliferated on the reservation, cutting a growing web of dirt roads across the landscape.

“It’s unbelievable,” another tribal member said."

posted on Nov 14, 2012 7:35 PM ()

Comments:

Too bad they don't save a little but I sympathize with them. Of course they
want better cars. The Pottowatamie tribe spends it's money wisely on health
care, senior care and housing. Then they build casinos and take it away
from white eyes. They are a very wealthy tribe.
comment by elderjane on Nov 15, 2012 6:28 PM ()
I don't know if the Utes will ever grow up and make better decisions. Their work ethic is so bad, they have to hire white people to run their businesses, including their casinos and pottery factories. All these spendthrifts know that when they run out of money, the federal government will provide welfare money, food stamps, and free health care through the federally-funded Indian Health Service because it has always been that way.
reply by troutbend on Nov 15, 2012 6:58 PM ()
A sad commentary on the human condition. Reminds me of these suddenly rich professional ball players who have so much money they end up spending it on expensive crapola like ornate jewelry ("bling") and multiple over-priced vehicles.
comment by steve on Nov 15, 2012 7:41 AM ()
It is like that, on a smaller level. I'm sorry to envision the desert being desecrated by 4 wheeler tracks that will never go away.
reply by troutbend on Nov 15, 2012 6:54 PM ()
Whiskey and booze sales must have gone through the roof.
comment by jondude on Nov 15, 2012 3:18 AM ()
No doubt. In a way, the ones who signed their check over to the car dealer were better off because it all got spent in one place.
reply by troutbend on Nov 15, 2012 6:52 PM ()
I'm all for reparations, but they should be given to the tribes as a whole for college scholarships, reseravtion improvements, hospitals, schools etc. Not to individuals. True it gives a temporary blast to the local economy but I think the tribes would be better served by using the funds to improve the lots of all members as a whole.

reguards
yer practical pal
bugg
comment by honeybugg on Nov 15, 2012 12:45 AM ()
Definitely. Near my uncle's trading post, tribal members still don't electricity or phones (not even cell phones).
reply by troutbend on Nov 15, 2012 6:50 PM ()
I really don't follow it but I understand the Seminole tribe here--due to the Hard Rock and other big casinos are the richest Indians in the USA--fine with me--I made my 'donations' when they were poor!
comment by greatmartin on Nov 14, 2012 8:17 PM ()
Some of the tribes have done really well, particularly some of the eastern ones, which probably have more intelligent leadership. There are western tribes who have struggled to take on the white man's values. As my grandmother would say, for many of them, their highest aspiration was to sit on the edge of the rimrock and beat on a tom-tom. So when someone hands them a wad of cash, they run out and buy large toys that last a few years, and then back to poverty and deprivation and food stamps.
reply by troutbend on Nov 15, 2012 6:49 PM ()
It's like that everywhere that tribal people get a bonus, including Oregon and Alaska. The check goes for cars and very little else. Oh well. It's their prerogative. Hawaii has a deal where native people get land and houses. A better deal if you ask me.
comment by maggiemae on Nov 14, 2012 8:07 PM ()
The tribal members don't have a good record when it comes to fiscal responsibility. Many of the tribal members in our area live in third-world conditions, and when they get their hands on some cash, they've got all these pent-up wants.
reply by troutbend on Nov 14, 2012 8:21 PM ()

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