Will State Borrow More Money to Complete Indian Cultural Center?
Last May, a measure was working its way through the Legislature to approve another $40 million in state bond money. The Oklahoma House approved the bill and the Senate Democrat Leader, Sen. Andrew Rice (D-Oklahoma City), challenged Senate Republicans to bring the issue to a vote. Rice said all 16 Senate Democrats were ready to vote for the bond proposal. But, against the wishes of Gov. Mary Fallin, Senate leaders blocked the proposal. Senate President Pro Tem Brian Bingman (R-Sapulpa), said the bill would not be heard because of questions about the project's finances and concern among Republican senators about increasing the state's debt load. If more bond money is needed, Bingman said, he wants to be sure the next state investment in the project is its last one.
Oklahoma's fiscal year 2012 bond debt payment on the project is $5,459,118. An additional $40 million bond issue would increase debt payments on the project by approximately $3.5 million, pushing annual obligations for debt service to nerly $9 million.
Supporters argue that the state has put so much money into the project that it is too late to stop. Because of the heavy prior commitment to the Oklahoma City project, legislative leaders and Gov. Mary Fallin have committed to fund it ahead of the Oklahoma Museum of Music and Popular Culture proposed for downtown Tulsa. The Oklahoma Historical Society is promoting a $40 million bond issue for that project.
Legislative opponents of the AICCM say the state passed three previous bond issues, and each time it was promised that no more state money would be needed for the project. A 2008 press release after the last $25 million bond issue was approved declared: "The remaining $75 million will come from private sources including American Indian tribes."
In 1994 the Oklahoma Legislature and Gov. Frank Keating approved legislation creating the Native American Cultural and Educational Authority (NACEA) which was authorized to design, construct, and operate the AICCM. At that time, the cost estimate was $100 million, about $70 million less than the current estimate. The AICCM is to communicate the story of the 67 tribes that have a historic relationship to Indian Territory and the state of Oklahoma. The City of Oklahoma City donated the 250-acre site for the development in 1998. The following year, the state approved a $5 million bond issue to get the project started. In May 2005, the state approved another $33 million in bonds to begin construction. When funds started running out in 2008, the Legislature passed another $25 million bond issue. In addition to the land, the city of Oklahoma City has contributed $4.9 million. Indian tribes and private sources have contributed another $6.7 million.
Federal grants for the project amount to $16 million, including stimulus money. In October of 2010, Gov. Brad Henry allocated $6 million in federal stimulus money from the governor's discretionary fund despite complaints from some lawmakers that it was a misuse of the fund. NACEA Officials were concerned the project would run out of money and sit idle after lawmakers failed to consider a $43 million bond issue during the 2010 legislative session.
The AICCM includes a 125,000 square foot museum, a landscaped Park and Trails System, a privately developed Commercial Enterprise/Arts Marketplace, and a Visitor Center. Much of the landscaping and the shell of the project's main building have been completed. If the bonds are approved, the group's hopes to have the facility open in 2015.
Last fall, the NACEA named Blake Wade as its Executive Director. Bill Anoutubby, NACEA Chairman, said "Blake Wade is uniquely qualified to serve as NACEA Executive Director because of his experience leading Oklahoma's Centennial Commemoration and also his service as Executive Director of the Oklahoma Historical Society. His willingness to assume this important position is a vote of confidence for The American Indian Cultural Center and Museum." Wade served as Director of the Oklahoma Capitol Complex and Centennial Commemoration Commission where he organized and led Oklahoma's Centennial Commemoration, which included funding and completion of the State Capitol Dome. He previously served as Executive Director of the Oklahoma Historical Society. Wade's main focus is to raise the remaining private funds needed to match another bond issue.
In addition to the money to finance the construction, the state annually appropriates $1.5 million to support NACEA's 14-member staff. Once construction is complete, the agency has plans to expand to as many as 60 employees.
Proponents of another bond issue could again fail as they did in the last two legislative sessions. House Appropriations and Budget Committee Chairman Earl Sears (R-Bartlesville) recently said that if it were up to him, the FY2013 budget which begins July 1, 2012, will not include any bonding except for improvements to the State Capitol building, and that bond issue should be sent to a vote of the people. The State Capitol building, which is approaching its 100th birthday, needs to be renovated in time for its centennial in 2017. He says the cost estimate for that project is around $150-million. Sears says that while the state has ample bonding capacity, there is a belief that we need to start living within our means until the economy turns around.
State Sen. Greg Treat (R-Oklahoma City) has filed legislation that would have Oklahoma voters to decide whether the state should take on the additional $40 million in debt. "If the Legislature is going to consider obligating Oklahomans to another $40 million in debt on a non-essential function of state government, the taxpayers of this state should at the very least be given an opportunity to have their voices heard," said Treat. "While I'm personally opposed to the state going further into debt, I think it would be wise for state leaders to make a decision on this issue as early as possible in the upcoming legislative session."
Meanwhile, individual tribes have built their own cultural centers. The Chickasaw Nation opened a $40 million cultural center in Sulphur in July 2010. Previously, the Potawatomi Nation opened its cultural center in Shawnee in 2006, and the Comanche Nation opened its center in the Lawton area in 2007. Other Oklahoma tribes also have cultural centers or museums. So, some wonder why it was necessary for the state to also build one.
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