Federal funding changes for Aboriginal Representative Organizations and Tribal Councils could mean budget cuts for the Federation of Saskatchewan Indian Nations (FSIN).

According to Morley Watson, interim chief of the FSIN, the changes will reduce the annual budget from $1.6 million to roughly $500,000 by the 2014-15 fiscal year.

Under the new funding formula, all national and regional AROs that received funding in 2012 and 2013 will have their funding reduced.

Core funding for national AROs will be reduced by 10 per cent. While regional AROs will either have funding reduced by 10 per cent, or have a ceiling of up to $ 500,000 applied to their core funding.

There will also be a reduction in project funding.

These changes will be implemented over two fiscal years; with reductions in project funding staring in 2013-2014 and reductions to core funding starting in 2014-2015.