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December 9, 1999 MEMORANDUM FOR BRUCE REED GENE SPERLING ERIC LIU THOMAS FREEDMAN FROM: MARY SMITH SUBJECT: NATIVE AMERICAN FY2001 BUDGET IDEAS This the President's last budget, and his last opportunity to assist Native American communities and to fulfull the government's trust responsibility to Indian tribes. The President has indicated that he would like to have a significant initiative for Native Americans in the FY2001 budget. The following package of initiatives would provide an additional $638 million above passback levels for Native Americans in the critical areas of health care, education, economic development, and law enforcement. TOTAL REQUEST: $638 MILLION PROVIDING FOR THE HEALTH AND WELFARE OF INDIAN FAMILIES Agency request Additional amount Passback amount Additional amount sent to OMB sought or new sought above proposal not sent passback to OMB $ 649 million 0 $100 million $75 million Indian Health Service. This budget request represents the first incremental step necessary to eliminate the health disparities that prevail in the American Indian/Alaska Native population. The Indian Health Service proposed an increase of $649 million in FY 2001 above the FY 2000 President's Budget request. This budget would provide an additional $410 million to restore access to basic health care by funding pay costs, inflation, contract support costs, and health care facilities construction; and $239 million in program increases to reverse recent declines in certain health status indicators. The request targets the health problems identified as highest priorities by the local IHS Service Units, Tribes, and Urban Indian programs and responsible for much of the disparity in health status for the American Indian/Alaska Native population. These include alcoholism and substance abuse, 1