Staff Reports
WINDOW ROCK, Ariz. — The Budget and Finance Committee received a report from the Office of the Controller outlining projected revenues for Fiscal Year 2027 on March 31. The Committee previously extended an invitation to each of the three Branch Chiefs to discuss the revenue projections and budget outlook.
The report brought together the Branch Chiefs from the Judicial and Legislative Branches to review the anticipated revenues, discuss fiscal challenges, and identify priorities for the coming fiscal year.
BFC Chair Shaandiin Parrish said it’s the committee’s responsibility to ensure responsible and realistic budgeting.
“The BFC is committed to using sound fiscal practices grounded in actual spending and available revenues, not just projections,” she said. “We will continue working closely with all three branches to address FY2027 revenue projections through careful analysis, ongoing communication, and a focus on meeting the needs of our people while maintaining financial stability.”
Controller Sean McCabe reported that the FY2027 revenue projection is estimated at approximately $301 million. After the mandated annual set-asides totaling $83.3 million, OOC anticipates approximately $218 million to be available for general fund budgeting.
The revenue projection is based on anticipated tax revenues of $64.9 million, coal revenues of $39.6 million, and investment income totaling approximately $84.7 million including grant fund earnings. Notable contributions also include the Forest Carbon Enterprise Fund, which is expected to generate over $5.5 million in FY2027, with a portion allocated to the general fund.
McCabe emphasized that these figures are estimates based on current market conditions and may fluctuate due to economic trends, including global instability and ongoing war conflicts involving the U.S., which continues to impact energy markets, interest rates, and overall economic conditions that impact Navajo Nation’s investments.
The report also highlighted the Nation’s broader financial position, including approximately $630.8 million in in-house investments and $306 million in long-term investments, along with a $1.38 billion grant fund portfolio.
McCabe also recommended quarterly reviews of actual revenues to better respond to changes in oil and gas prices, coal prices, and financial markets.
Speaker Crystalyne Curley raised concerns about year-to-year differences in projected revenues and their impact on planning.
“When we look at the projections, we’re seeing about a $14 million difference from last year, including nearly a $9 million change in investment income,” she said. “My concern is whether we could face similar gaps moving forward and how that affects our ability to plan, especially as set-asides continue to grow while programs face reductions. We need to make sure our revenue projections and policies are balanced in a way that supports all programs and services.”
McCabe explained that projections are based on the best available data from multiple sources, including the Navajo Tax Commission, Minerals Department, and investment managers. Variations from year to year are expected due to changing market conditions, particularly in the energy and investment sectors. He noted that coal revenue alone is projected to increase, while investment income projections also saw a significant rise compared to the previous year.
Interim Chief Justice Eleanor Shirley highlighted ongoing challenges within the Judicial Branch, particularly related to budget accuracy and operational needs.
“The Judicial Branch continues to face challenges with payroll system disruptions that have affected staff compensation and our ability to track expenditures accurately,” she said. “The Judicial Branch must still address critical needs such as maintaining safe court facilities, improving access to justice, and investing in technology like case management and e-filing systems. These are essential services for our people, and they require stable and responsive funding.”
In addition to operational concerns, the BFC discussed broader budgeting strategies, including the importance of basing funding decisions on actual expenditures rather than projections alone.
The Budget and Finance Committee voted to accept the report with four in favor and none opposed. The BFC will continue working with the Office of the Controller, the Office of Management and Budget, and branch leadership in the coming weeks to refine budget priorities and address identified challenges ahead of the FY2027 budget process.
