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TAHLEQUAH, OK - The Cherokee Nation Tribal Council voted to approve the nation’s new cash management plan in a special Council meeting Monday night. The legislation provides for an operating cash reserve for the Cherokee Nation’s General Fund, pays off negative fund balances that have accumulated over several years and addresses the tribe’s under-recovery of support costs from the federal government.

"This is sound business practice", said Chad Smith, Principal Chief of the Cherokee Nation. "The legislation is based on a model used by many major governments. It’s part of our ongoing improvement of our financial systems."

The plan leaves $4 million in a cash reserve to be used to cover any cash flow shortages. It also sets forth a plan to prevent future cash flow shortages by increasing the rate that the federal government reimburses the tribe, applying an accurate cost to all programs for employee benefits and reducing the General Fund budget by $500,000.

"I think it is a good plan,” said Barbara Starr-Scott, Co-Chair of the Cherokee Nation’s Executive and Finance Committee. “What really made me comfortable with it is I can go to the administration and get the numbers I need to make the decision. Four years ago, I couldn’t do that."

The Council consulted with their own certified public accountants before approving the proposed legislation, and administrative staff incorporated their proposed changes into the final proposal.

"Our staff and the administration’s staff worked together to come up with this plan, and I think they’ve done a good job", said John Ketcher, Tribal Council member.

The new legislation also has a provision that automatically calls for budget cuts if revenues do not come within 10 percent of projections, ensuring that future under-recoveries or other revenue shortfalls do not cause a permanent problem for the Cherokee Nation’s bottom line.

"We have an obligation to do this for the employees and the Cherokee people", said Jackie Bob Martin, Tribal Council member.

In other action, the Tribal Council also voted to approve Wayne Dunham as a member of the Housing Authority of the Cherokee Nation’s Board of Commissioners. Dunham is the Mayor of Jay.