Richard Gleeson
Northern News Services

Yellowknife (Feb 02/00) - A looming financial crisis will be one of the hot topics at a gathering of MLAs in Fort Providence next week.

"Probably the one we need to get specific on is the immediate fiscal crisis this government faces," said caucus chairman Bill Braden when asked what specific issues will be discussed at the meeting.

"We need to identify what steps government can take on its own immediately and in the short-term," said Braden.

The impending cash crunch comes as no surprise.

In his budget address last year, then Finance Minister Charles Dent said that while revenues were increasing slightly, costs were increasing far more quickly, largely due to population growth.

"Without revenue increases we face the prospect of either large annual deficits and a large accumulated debt in the next two to three fiscal years or significant cuts to services or, in the worst case scenario, both."

Financial Management Board comptroller general Lew Voytilla said something has to be done soon.

"Toward the end of this fiscal year (the NWT debt) will be over $200 million. If we don't balance our budget ... we're going to get closer and closer to our limit," said Voytilla.

The federal government has placed a limit of $300 million on territorial debt. Voytilla said that debt includes $135 million owed on NWT Power Corporation projects and about $30 million borrowed by the NWT Housing Corporation projects. A fluctuating line of credit makes up the bulk of the balance.

Voytilla said if nothing is done to either increase revenues or reduce spending, it's anticipated the government will spend $60 million more than it takes in, in the next fiscal year, and $90 million the following year.

This year government expenditures are budgeted to exceed revenues by $34 million.

Dent said the key to escaping the fiscal crunch is getting Ottawa to hand over more of the resource royalties it collects from operating mines here.

Indian Affairs and Northern Development Minister Robert Nault recently said he is willing to move toward giving territorial governments (including aboriginal governments) a share of resource royalties.

The next step in that direction is an intergovernmental forum planned for spring.

Territorial finances will be just one of the items on the agenda for the Feb. 8-11 planning workshop. Braden said the purpose of the workshop is to set priorities and goals for the next four years.

"With the consensus style of government, there is a need for everybody to get together early, compare agendas and priorities and determine the general direction for government," said the Yellowknife MLA.

Braden said the starting point for the discussion will be Agenda for the New North, a document produced last year by then premier Jim Antoine.