The Sault Ste. Marie Tribe of Chippewa Indians is restructuring its finances and cutting costs to reduce a projected deficit of millions of dollars for this year and next year. The chairman and tribal board of directors met for three days last week in Sault Ste. Marie to consider cost-cutting measures at the tribe's casinos, governmental and membership services, and internal services. Decisions made at the September 15 through 17 meeting have not yet been released by the tribe. Board member Keith Massaway of St. Ignace also declined to comment on the matter.

A projected deficit of $15 million for 2008 had already been reduced to $7.9 million through cost-cutting measures implemented September 11, Mr. Joe McCoy announced on that date. Bringing the budget in line with actual available revenue is the top priority, he said.

The tribe operates five casinos and 22 businesses in the Upper Peninsula and provides health care, housing, and other services to its members in the eastern and central U.P. The top three tribal membership priorities are health, education, and services for elders, Mr. McCoy has said.

Even before last week's meeting, the tribe cut some jobs and decided to close two health clinics.

Approximately 50 jobs, including 17 middle-management and supervisory positions in Upper Peninsula casinos, were cut by the tribe in early August. The layoffs represented 2% of the Tribe's 2,500 employees. In announcing the layoffs, Mr. McCoy reported that, "over the years, millions in tribal reserves has been dwindled down to nothing. According to our financial analysts, if changes are not made, the tribe will not recover."

As of October 1, the tribe will close two satellite health clinics in DeTour Village and Kinross to cut costs.

The tribe recently took out a $5 million line of credit needed to meet payroll and provide membership services, Mr. McCoy announced September 11, using a land claims fund as collateral for the loan.

"This collateral arrangement is temporary, and we are working with the bank to replace the collateral with approximately $6 million in real estate," he said. "Getting approval from the bank to use real estate as collateral is a lengthier process. As soon as we are approved, we will make the change and replace the collateralization of our land claims fund."

Mr. McCoy pledged to update tribal membership on changes that are being made, in his September 11 news release.

"We want to stress to members and employees, many of the changes that are being made we consider to be temporary in nature," Mr. McCoy said. "When we are able to balance our deficit, we will look at those services and benefits that have been eliminated to reevaluate what we are able to reinstitute, based on need and available resources....There is a possibility that we may be forced to shut down operations and services if we do not balance our budgets, and limit our spending to what we can afford. We do see a light at the end of this tunnel, and it is our intent to get this balanced and begin our recovery phase early next year."

Mr. McCoy, a Sault Ste. Marie businessman, was elected June 26 to the tribal chairmanship. He replaced former chairman Aaron Payment.

In early May, the tribe sold a 40% interest in its Greektown Casino for $100 million, to reduce its debt. The tribe remains the majority owner of the casino in Detroit. Greektown Casino filed for Chapter 11 bankruptcy May 29. The tribe announced plans to reorganize under the protection at that time, and reported its plans to seek $150 million in additional financing for operations and to complete the construction of a new 400-room hotel and gaming floor expansion.