BOIS FORTE RESERVATION—The tribal government here is facing a significant budget gap this year, and that’s before the ongoing financial challenge posed by the federal government shutdown.
“Right now, if we were not to get any cash in going forward, and we kept everything where we’re at, we have about four months to operate with cash on hand,” said Kim Greiner while presenting a quarterly financial report to the council at their Oct. 2 meeting. “It’s a lot different than the last time we had a shutdown in 2019,” Greiner said.
The quarterly report showed revenues of $68.5 million, falling short of the anticipated $74.4 million in expenditures. Despite total assets exceeding $108 million and liabilities of $13 million, the situation threatens the Band’s ability to maintain current service levels.
Four-phase response plan
The tribal council approved a contingency plan, establishing a four-phase approach based on the severity and duration of funding cuts. Phase I, categorized as “Minor,” addresses cuts of 10 percent or less and disruptions lasting 30 days or less.
Beginning Oct. 20, Phase I measures include a hiring freeze on non-critical vacant positions, with senior management determining which vacancies are essential. The tribe will also halt creation of new positions funded through indirect costs or tribal funds, eliminate non-essential business travel and training, and implement strict overtime policies requiring employees to use flex-time whenever possible. Capital projects funded with tribal money will be reviewed and potentially delayed, and grant employees will be cross-trained to fill vacancies and staffing needs.
If the shutdown continues, progressively more severe phases would trigger additional measures. Phase II, addressing moderate cuts of 10-25 percent, could include reduced work hours, deferred capital projects, potential layoffs, and service consolidations. Phase III would reduce services to core life and safety programs and close non-revenue producing off-reservation sites. The most severe phase, Phase IV, would suspend all discretionary programs and redirect unrestricted funds exclusively to life and safety services.
Priorities and process
Throughout any reductions, the tribe will prioritize critical services including health care, public safety encompassing law enforcement, ambulance, and fire services, utilities, housing, enterprises, and core administration.
Senior management teams are meeting daily with available council members to review their budgets and determine how each department will absorb reductions. An all-staff meeting was scheduled for Oct. 13 to present department-specific responses to the cost containment measures.
“It’s a work in progress, and we want to keep our transparency open,” Chairman Carlos Hernandez said.
The plan acknowledges that implementation will vary significantly across departments based on their specific reliance on federal funding.
Development corporation
The Bois Forte Development Corporation, which operates the Band’s casino, resort, golf course, and cannabis businesses, has also implemented protective measures despite not directly relying on federal funding.
The corporation recognizes that an extended shutdown could affect customer spending habits, tourism flow, and vendor payments in the remote northern Minnesota region.
Protective measures include a hiring freeze, a zero percent salary increase for salaried employees and a modest 2-percent increase for hourly workers, and a hold on non-essential spending. The corporation is launching joint promotions across its businesses and redirecting marketing efforts toward regional audiences less likely to be affected by federal payroll disruptions.
“Our team is on board to be doing more with less moving forward,” the corporation stated in its plan.
Communication and recovery
The tribal government will provide updates every two weeks or sooner if significant changes occur. All official communications will come from the Tribal Chair or designated representatives through various channels including the Bois Forte YouTube Channel, social media, and radio station KBFT.
The plan also includes provisions for post-shutdown recovery, including a comprehensive review of impacts, replenishment of emergency reserves, and evaluation of the Tribe’s vulnerabilities to strengthen future emergency preparedness.
Tentative start dates for subsequent phases have been established, with Phase II scheduled for Nov. 17, Phase III for Dec. 15, and Phase IV for Jan. 12, 2026, though officials hope the shutdown will be resolved before more severe measures become necessary.
The full Financial Contingency Plan is available on the Tribe’s website at www.boisforte.com.