Goggleye delivers Leech Lake State of the Band address

By Michelle Ruckdaschel

Pioneer Staff Writer

CASS LAKE - When George Goggleye Jr. took office as Leech Lake’s tribal chairman in July, he was met with a $6.5 million shortfall in the band’s budget.

But since then, he said, there’s been a tremendous turnaround with the effort of the new administration.

During his first State of the Band address Friday morning, Goggleye outlined in his report the past, present and future of the Leech Lake Band of Ojibwe.

“Whether it’s good, bad or ugly, we’re all here together,” Goggleye told the nearly 150 people who gathered in the Palace Casino Bingo Hall.

During the past two years, the Tribal Council needed more money for operations because fewer grants were being used and more expenses were being charged to the general fund, Goggleye said. At the same time, he said, the Business Corporation was formed and incurred expenses, along with losses by tribal small businesses.

Meanwhile, Goggleye added, there was a tremendous increase in Tribal Council spending, primarily due to a large increase in tribal referral spending.

“The spending was outrageous,” he said.

He said the combination put a strain on the Gaming Division, causing the band to go out of compliance with two of the loan covenants that Leech Lake had with the Bremer Bank and the Shakopee MdeWakanton Sioux Community.

The failed Shingobee Casino project, a housing project and questionable disbursements through the Tribal Referral Program contributed to Leech Lake falling out of compliance with the loan covenants, he said.

Goggleye called Tribal Council spending during the previous administration “uncontrolled,” and said it was pushing the band toward bankruptcy.

“Because of their lack of concern and refusal to listen to other council members and staff, they jeopardized the band’s ability to take care of itself and our people,” he said.

Stepping up to a microphone, Arthur “Archie” LaRose, former secretary/treasurer of the Tribal Council, defended his work on the previous administration.

Last fall, LaRose was removed from his position following charges of malfeasance in handling tribal affairs, dereliction or neglect of duty and refusal to comply with any provisions of the Minnesota Chippewa Tribe Constitution and Bylaws. Despite his removal, LaRose received the most votes in a special primary election in December to narrow down the list of candidates for the vacant secretary/treasurer position. A special election will be held Feb. 15.

LaRose said he walked into the same “financial mess” when he was elected two years ago. When he took office, the 2002-03 budget had not been approved and LaRose put a moratorium on everything. He said the Tribal Council then came together to work through and approve the budget.

“We have no approved budget for ’04-’05,” he noted.

He said that means the Tribal Council doesn’t have to be fiscally accountable. LaRose then requested that the Tribal Council table the quarterly financial report it was scheduled to consider at the band’s quarterly meeting following the State of the Band address.

Goggleye, however, noted that the band’s 2003-04 budget has not yet been approved. This budget, he added, was the responsibility of the previous administration.

“The band was headed toward financial destruction,” Goggleye said.

Since he took office, Goggleye said he has worked with the other council members and the staff to recognize and cut excess expenditures out of the programs, reduce spending and minimize Tribal Council expenses.

The turnaround is a positive $3.77 million for the first four months of the new administration, when compared to the same period in 2002, he added.

“We are now on a positive journey, one that will require due diligence and attention in order to stay on the right road,” Goggleye said.

He said band leadership and division directors have completed a three-day strategic planning retreat. The purpose, he said, was to set priorities for the needs of the band.

“That’s where past councils have failed,” Goggleye said. He said they tried to do too much, too fast.

Among the other topics Goggleye addressed was the proposed Minnesota Gaming Equity Act. If approved, the act would allow three northern Minnesota tribal nations – Leech Lake, Red Lake and White Earth--and the state to jointly operate an off-reservation casino and resort in the Twin Cities area.

He said the band needed to look at other ways of drawing in resources to address the growing needs of its members.

“Right now, it is estimated that we have about $40 million of un-met needs,” he said. It includes housing, land, natural resources and infrastructure.

The band, which operates three casinos, generates about $10 million to $12 million per year. He said the proposed Twin Cities-area casino is projected to draw in about $30 million to $40 million per year for Leech Lake alone.

During his report, Goggleye also addressed the Nelson Act settlement, the Leech Lake Medical Benefit Program and constitutional reform.

In closing, Goggleye restated part of his July 2 inaugural address, saying the next two years will be the most challenging in the band’s history.

“It is important that we come together, united in our efforts to fight those who will seek to destroy our sovereignty, our way of life and our future generations,” he said.