Tulsa World: Osage see economic growth

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Osage see economic growth
Officials credit increased revenues and tribal governing.

By CLIFTON ADCOCK World Staff Writer
Published: 5/29/2008 2:06 AM
Last Modified: 5/29/2008 3:04 AM

View the entire report on the Osage Nation economy.

www.tulsawworld.com/osageimpact

Officials credit increased revenues and tribal governing.

Over the past two years, the Osage Nation has seen high economic growth, according to an independent economic impact study released Wednesday.

Tribal officials and Florida-based economist Jonathan Taylor said the economic boom is driven by three main factors: changes in the Osage government, tribally owned enterprises and increasing headright revenue.

According to a mineral rights council Web site a "headright" is the right to receive a quarterly distribution of funds derived from the Osage Mineral Estate and is fairly unique among most Indian tribes.

An example of the growth can be seen in the number of people hired by the tribe, said Principal Chief Jim Gray. The Osage Nation has gone from 200 employees in 2002 to 1,500 this year.

"From a standing start, we've increased employment nearly seven-fold in five years," Gray said.

The tribe also has expanded on the gaming front, starting with fewer than 500 machines in 2003 and expanding to 3,139 machines last year.

Among the main factors in facilitating growth were changes in government made in 2005 and 2006, Gray said. Those included writing a constitution, forming three branches of government, and allowing all tribal citizens to vote and run for office, rather than only those who have headrights.

"The message I think this report sends is that the perception people had about the Osage Nation is going to be shattered," Gray said. "Oklahoma people haven't really had a chance to see what happens when a tribe is allowed to flourish."

According to the data, the Osage Nation gathered nearly $222 million in gross revenue during 2007, $25.7 million of which came from program revenues and federal funding, $139.6 million from commercial ventures, and $56.3 million from mineral interests.

Although no numbers were available in the report showing how much the tribe took in during previous years, Gray said the strong employment numbers, increased oil prices leading to increased headright payments, and an increase in slot machines and casino operations show that the tribe has grown since the government reformation.

The report is a starting point to gauge future growth, said Lucinda Rojas, account executive for Schnake Turnbo Frank Public Relations Consultants, which is representing the tribe.

The Osage Nation, headquartered in Pawhuska, is the 25th-largest tribe in the United States, with around 10,000 members, the majority of whom live outside of Oklahoma.

Prior to the creation of the constitution and expansion of the tribal rolls, only about 30 to 35 percent of the population — those with headrights — were allowed to vote, and the tribal government was weak and controlled heavily by the federal government prior to an act of Congress that allowed the tribe to engage in self-governance, Gray said.

As part of the growth, Gray said the tribe is diversifying its industrial endeavors beyond gaming. He said it is going through a second renaissance similar to the days of the oil boom in Osage County.

"We want to be successful at the thing we're doing well, but try to diversify so we're not a one-industry tribe," Gray said.

The tribe's economic growth helps surrounding communities, the state and state businesses, Gray said.

"We've always said that nobody benefits from a weak tribal government, and everybody benefits from a positive one," Gray said. "This proves it. Our success has spilled over into the non-Indian community, making life better for many. We're building a better community and a better state."

Clifton Adcock 581-8462
clifton.adcock@tulsaworld.com
By CLIFTON ADCOCK World Staff Writer

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Diana D, madill (5/29/2008 10:32:47 AM)

When the trailer houses with tin on the roofs held on by rubber are tires are gone and decent housing is on ALL that land then I can say the PEOPLE are flourishing.

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