Tribal members protest prospect of no `per cap' this year
Ho-Chunk Inc. says individual dividend not its responsibility
By Michele Linck, Journal staff writer | Posted: Saturday, November 12, 2005
Broke or rolling in dough?
That's the question that had some Winnebago Tribe members protesting Friday outside the Winnebago, Neb., headquarters of Ho-Chunk Inc., the tribe's quasi-independent economic development arm. They were looking for their annual "per cap," or payment, which has previously come from the tribal government, not Ho-Chunk Inc. More than one person said they should have protested in front of the tribal offices instead.
Neither the tribe nor the company is broke, but neither is rolling in dough, either, spokesmen say. But that answer doesn't solve the problem of funding the per cap, actually a dividend from the tribe's earnings.
Since the advent of the Indian tribe's casinos, each enrolled member has received a portion of the profits annually. For each of 4,200 enrolled Nebraska Winnebagos, that check has been $599 in recent years, taking about $2.5 million a year from the tribe's coffers. But, casino and other revenues are down for a variety of reasons and tribal members have not seen their "per cap" yet this year. Chances are they won't.
Edith Casaday, 63, a full-blooded Winnebago from Sioux City, said about 75 people came to the rally and about 45 actually marched. She said they targeted Ho-Chunk Inc., rather than the tribal offices because of unspecified "documents" that say the development company is supposed to pay the per cap if the tribal government can't.
She accused Ho-Chunk Inc. CEO Lance Morgan of borrowing against the tribe's portfolio. "We're telling him we want HCI to pay our cap," Casaday said. She said HCI employs many non-Indians and pays high wages.
Willie Lowry, also of Sioux City, said he was protesting because some tribal members are living paycheck to paycheck and need the $599; others rely on it for Christmas for their children. "A lot of people are feeling disenfranchised," he said, adding that Ho-Chunk Inc. was started to employ Winnebagos who couldn't find other jobs.
Ho-Chunk never involved
In a statement Friday, Morgan said, "Ho-Chunk Inc. has no involvement and never has had involvement in any per capita distribution."
The statement further said that Ho-Chunk's long-term mission is to provide the tribe with a large enough income stream to make it economically self-sufficient. "This does not mean payments to individual tribal members, but rather investments in the tribe's infrastructure and future," Morgan said.
Joy Long, executive assistant to Morgan said the protesters were invited into the headquarters for coffee and donuts and to talk about the problem, but refused, demanding the refreshments be brought outside to them. She said the corporation is well-run and its books are audited each year by a respected outside certified public accounting firm prior to writing the annual report.
Compounded problems
Tribal Chairman John Blackhawk said, that, because of falling casino revenue and a $500,000 deficit two years ago in the tribe's human service programs -- brought on by the failure to mention some program components in the narrative for a federal grant -- the per cap money just isn't there.
Last year the Tribal Council borrowed money to make the payments and has decided it can't borrow again this year since it hasn't paid off the 2004 loan. He admits that after four meetings on the per cap issue, the latest on Thursday, no council member has had the guts to make the motion. It would be political suicide.
Word of that eventuality, however, is what turned protesting tribal members to look to Ho-Chunk Inc., which owns nearly a dozen companies, including HCI Construction; Heritage Express gas stations and convenience stores; AllNative.com, the online gift catalogue and stores; and Dynamic Homes, a modular home manufacturer in Minnesota.
Blackhawk said there is much misunderstanding. He said those looking for a per cap from the company see gross revenues of nearly $100 million listed in the annual report of Ho-Chunk Inc. The corporation is run by a board appointed by the Tribal Council; but, unlike the casinos, not directly controlled by it. Blackhawk said while revenues are high, the companies' net profits are not.
He said Ho-Chunk Inc. has already returned over $1 million to the tribe since it was created 10 years ago. This year, it will give 12 percent of its profit back to the tribe, or about $200,000, Blackhawk said -- far short of $2.5 million per cap.
That's the question that had some Winnebago Tribe members protesting Friday outside the Winnebago, Neb., headquarters of Ho-Chunk Inc., the tribe's quasi-independent economic development arm. They were looking for their annual "per cap," or payment, which has previously come from the tribal government, not Ho-Chunk Inc. More than one person said they should have protested in front of the tribal offices instead.
Neither the tribe nor the company is broke, but neither is rolling in dough, either, spokesmen say. But that answer doesn't solve the problem of funding the per cap, actually a dividend from the tribe's earnings.
Since the advent of the Indian tribe's casinos, each enrolled member has received a portion of the profits annually. For each of 4,200 enrolled Nebraska Winnebagos, that check has been $599 in recent years, taking about $2.5 million a year from the tribe's coffers. But, casino and other revenues are down for a variety of reasons and tribal members have not seen their "per cap" yet this year. Chances are they won't.
Edith Casaday, 63, a full-blooded Winnebago from Sioux City, said about 75 people came to the rally and about 45 actually marched. She said they targeted Ho-Chunk Inc., rather than the tribal offices because of unspecified "documents" that say the development company is supposed to pay the per cap if the tribal government can't.
She accused Ho-Chunk Inc. CEO Lance Morgan of borrowing against the tribe's portfolio. "We're telling him we want HCI to pay our cap," Casaday said. She said HCI employs many non-Indians and pays high wages.
Willie Lowry, also of Sioux City, said he was protesting because some tribal members are living paycheck to paycheck and need the $599; others rely on it for Christmas for their children. "A lot of people are feeling disenfranchised," he said, adding that Ho-Chunk Inc. was started to employ Winnebagos who couldn't find other jobs.
Ho-Chunk never involved
In a statement Friday, Morgan said, "Ho-Chunk Inc. has no involvement and never has had involvement in any per capita distribution."
The statement further said that Ho-Chunk's long-term mission is to provide the tribe with a large enough income stream to make it economically self-sufficient. "This does not mean payments to individual tribal members, but rather investments in the tribe's infrastructure and future," Morgan said.
Joy Long, executive assistant to Morgan said the protesters were invited into the headquarters for coffee and donuts and to talk about the problem, but refused, demanding the refreshments be brought outside to them. She said the corporation is well-run and its books are audited each year by a respected outside certified public accounting firm prior to writing the annual report.
Compounded problems
Tribal Chairman John Blackhawk said, that, because of falling casino revenue and a $500,000 deficit two years ago in the tribe's human service programs -- brought on by the failure to mention some program components in the narrative for a federal grant -- the per cap money just isn't there.
Last year the Tribal Council borrowed money to make the payments and has decided it can't borrow again this year since it hasn't paid off the 2004 loan. He admits that after four meetings on the per cap issue, the latest on Thursday, no council member has had the guts to make the motion. It would be political suicide.
Word of that eventuality, however, is what turned protesting tribal members to look to Ho-Chunk Inc., which owns nearly a dozen companies, including HCI Construction; Heritage Express gas stations and convenience stores; AllNative.com, the online gift catalogue and stores; and Dynamic Homes, a modular home manufacturer in Minnesota.
Blackhawk said there is much misunderstanding. He said those looking for a per cap from the company see gross revenues of nearly $100 million listed in the annual report of Ho-Chunk Inc. The corporation is run by a board appointed by the Tribal Council; but, unlike the casinos, not directly controlled by it. Blackhawk said while revenues are high, the companies' net profits are not.
He said Ho-Chunk Inc. has already returned over $1 million to the tribe since it was created 10 years ago. This year, it will give 12 percent of its profit back to the tribe, or about $200,000, Blackhawk said -- far short of $2.5 million per cap.
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