New Pleasant Point chief tackles tough financial challenges

An unemployment rate over 50% and a lack of any revenue for the tribal government are among the severe challenges facing the new Passamaquoddy chief at Pleasant Point. To tackle those long-term issues, Clayton Cleaves, who was sworn in as the new chief on October 1, taking over from Rick Phillips-Doyle, will have to make good use of the considerable experience he brings to the position. Cleaves has served for six terms on the Sipayik Tribal Council, once as state representative for the tribe, and a combined 19 years as executive director of the Pleasant Point Passamaquoddy Housing Authority.
"I will try my best to change things around economically," Cleaves says, noting that the unemployment rate at Pleasant Point fluctuates seasonally from 48% to 67%. "Economic development would replace the welfare form of lifestyle. Welfare is the root of all evil. It perpetuates drugs and alcohol. That's true for any community."
The new chief would like to see the tribe be financially independent and believes that the tribal government needs to work on a limited number of economic development projects. They might include wind power, tidal power, aquaculture or textile projects. The Pleasant Point Reservation has an agreement with the Indian Township Reservation that it can retain the revenues from smaller businesses that it develops, but the tribe's two reservations will proceed jointly on larger projects. "The two reservations are back to being one," says Cleaves, alluding to the disagreements that have existed between Pleasant Point and Indian Township. "My initial start-up is to unite with our own tribe at Indian Township and to utilize the services of the networks for economic development that I established over the past 30 years."

No tribal funds for tribal government
Pointing to the Pleasant Point tribal government's financial difficulties, he notes that the tribe no longer is able to fund a tribal planner or a grant-writer. In early 2009, the tribal government had to lay off over 25 people, most of whom were paid through tribal funds, including all of the emergency dispatchers. The tribal government also does not have funds to subsidize education, the tribal museum, the youth center, public safety, the wastewater treatment plant or elderly projects, although some of those programs do receive federal funding. "We can't put any money into these now."
Cleaves observes that the tribal government used to have a number of sources of revenue, including from its forestry and blueberry operations. The forestry funds are now used to cover outstanding debts, and the operations are "recovering from certain management issues," he says. The income from the tribe's blueberry operations now are used to cover the tribe's taxes on its fee lands around the state. The tribe's sale of Dragon Cement Company in Thomaston for about $80 million in 1988 had provided annual revenue for the Pleasant Point and Indian Township tribal governments, with annual payments of $800,000 to $1 million to each reservation. A lump sum payment of the remaining funds, though, was made several years ago, and now that funding is gone.
"We used to have $600,000 to $900,000 to operate our community adequately." With the loss of businesses that provided revenue, such as Gates Formed Fiber and the Wabanaki Mall, Cleaves says, "We don't have any tribal government monies. At the moment, we're completely reliant on state and federal funding." He notes that the tribe doesn't have any funds to even leverage federal funding.
Cleaves says he has been reaching out to the Eastern Maine Development Corporation to assist with developing some funding sources.

Casino hypocrisy
Concerning the tribe's ongoing efforts to establish a casino, Cleaves says the tribe "never will turn away from that opportunity." He is disturbed by what he calls the state's hypocrisy in not permitting the tribes to have a casino while the state runs its own gambling operation with the state lottery. "The state has a casino around every corner," he says, adding, "There's no difference between a scratch-off ticket and a machine you see at Hollywood Slots. The only thing is the machine at Hollywood Slots will sing you a song as it takes your money."
Noting that the Passamaquoddy Tribe was the first to propose a casino in Maine, and now a racino and a casino have been approved, but the tribal proposals have been rejected, Cleaves suggests that racism may have been involved in the referendum votes. He comments that opponents of casinos appeared to be more restrained in their opposition to the Oxford County proposal than they were to the tribal proposals. And he adds that, unlike the two gaming operations that were approved, the tribes would use casino proceeds to operate the tribal governments and serve their communities.
Under the referendum that passed in the November 2 election for the Oxford County casino, the Passamaquoddy Tribe and Penobscot Nation will receive four percent of the casino's net income, or perhaps $4 million annually. Cleaves says he has not yet met with any representatives of the Oxford County casino, but he hopes to meet with other tribal chiefs so they can work with the state on developing a way to monitor the proceeds taken in at the casino.

Local, state and federal relations
Commenting on the difficulties in tribal-state relations, Cleaves says he wants to work with the state and federal governments. "I will try to be as polite as I possibly can be to everybody," he says. "I want to work with the congressional delegation to change things around for Pleasant Point."
Both the state and federal governments have invested significant funding in infrastructure at Pleasant Point, and Cleaves says those investments need to be protected. He points out that the youth center will need major renovations soon, and if funding is not found, then the state and federal funding for the earlier renovation "will be wasted." Also, erosion into the bay near the wastewater treatment facility needs to be addressed.
Concerning sovereignty issues, the new chief says the tribal government will research existing documents and then will work to inform tribal and state leaders on its position. He wants an "Indian initiatives act" that would "adjust the powers of the state" and help the tribe to become economically independent.
Cleaves also would like the tribal government "to continue with positive relationships" with area communities. "We have always shared our assets with the other local communities," by providing jobs in the past at businesses ranging from Passamaquoddy Homes to Creative Apparel and Gates. He would be willing to meet with area municipal leaders, as long as the meetings are productive.
As for his relationship with the tribal council, Cleaves says that there "are positive relations now" and he plans to comply with all budget restrictions. In January 2009, the tribal council had relieved then Chief Rick Phillips-Doyle of his duties as chief administrator of the tribal government and had raised concerns about overspending in certain tribal programs. A tribal manager position had been created, with Ken Poynter hired to oversee the day-to-day operations of the tribal government. Cleaves says there is no longer a tribal manager, since there is no funding, and Poynter was elected in September as the new lieutenant governor.