Yellowknife (Oct 09/06) - The population in the Northwest Territories has declined by 768 according to a Statistics Canada estimate released in July, which pegged the number of residents at 41,861.

However, the department of finance said that the population has not affected territorial formula financing dollars for the past three years.

"It's possible these numbers could be used in new arrangements but those are under discussion," said Margaret Melhorn, deputy finance minister. "The current interim arrangements will be in place until March 2007."

With transfer payments not tied to population, the GNWT will receive $751 million for 2006/2007; more money than was received under the per capita arrangement according to Melhorn. The deputy minister also noted that per capita funding was put on hold in 2004 so the federal government could revisit equalization and formula financing for the provinces and territories.

Last summer the Expert Panel on Equalization and Formula Financing released its report. Among its recommendations, the panel suggested scrapping the per capita funding arrangement between the territories and Ottawa, and allowing the territories to keep a larger chunk of its own-source-revenue.

Following a major census oversight in 2001, in which more than eight per cent of the territories' population growth was missed, the GNWT conducted its own census; the results of which convinced StatsCan to review its numbers.

The cost of the NWT survey was $250,000 but worth it according to Premier Joe Handley. "It was money we shouldn't have had to spend," said Handley. "But it was a good investment as it moved our numbers up considerably."

Prior to the interim formula financing arrangement, each man, woman and child in the NWT accounted for $17,951 transfer payments.

What these new population statistics will mean in terms of future funding for the territories depends on a new formula financing deal the territories hopes to reach with Ottawa in the near future.

Melhorn said a new deal could revert back to per capita funding, or not.

"It's just speculation at this point," she said.