More money for communities in budget
Finance Minister calls for $1-billion increase to debt ceiling as first devolution budget unveiled
Cody Punter
Northern News Services
Updated Monday, February 10, 2014
NORTHWEST TERRITORIES
Publicly-funded junior kindergarten and more public housing for smaller communities are some of the budget goodies announced by Finance Minister Michael Miltenberger during Thursday's budget announcement.
Minister of Finance Michael Miltenberger shows off his shoes ahead of Wednesday's budget speech. Miltenberger purchased a pair of new shoes for the announcement of the budget, which included a request to raise the debt ceiling by $1 billion. - Cody Punter/NNSL photo |
In total, the $1.6 billion budget called for $146 million in increased spending with an expected surplus of $200 million. Sporting new shoes to symbolize the occasion, as is customary during budget announcements, Miltenberger said the government was able to spend more this year as a result of its fiscal restraint during the two previous budgets.
"Two years ago this assembly set out to restore fiscal balance, protect programs and services, and responsibly fund infrastructure investment. We achieved this in the last two budgets," said Miltenberger, during his budget address at the legislative assembly.
"Thanks to that discipline, we are in a strong fiscal situation to embrace new program responsibilities."
The junior kindergarten initiative, which would allow pre-schoolers to enter school a year earlier, will begin with an allocation of $1.8 million toward setting up the program in the territory's smallest communities.
"Looking at this budget here, the communities are finally being listened to," said Sahtu MLA Norman Yakeleya.
"Aboriginal students fall behind far more than non-aboriginal students so I'm really supportive of the minister finally saying we're going to do something."
The budget also dedicated $7.5 million as part of a three-year $22.6 million plan to add 169 public housing units in smaller communities.
An additional $2.6 million was allocated to mental health and addictions programs, including $900,000 to establish on-the-land healing programs.
"This is the first time in 10 years that I see a significant amount of money going to on-the-land treatments programs," said Yakelaya.
"The communities need help and they need to do it in their own manner and their own cultural way."
Miltenberger also called for the debt ceiling to be more than doubled, increasing it by $1 billion to $1.8 billion in order to address territory's $3-billion infrastructure shortfall.
The territory's debt ceiling was increased to $800 million from $575 million in 2012. The current budget is expected to bring the territory's total debt to $658 million, up from $624 million.
MLAs from ridings across the territory said the call to raise the debt ceiling is a cause for concern, especially with the government reporting a $200-million surplus for the current budget.
However, some MLAs pointed out that raising the debt ceiling was necessary in order for the government to be able to meet the infrastructure needs of the territory in the coming years.
"There's good debt and there's bad debt, and I call this good debt," said Yakelaya.
"I don't think we need to spend an extra billion dollars but I do think that we have an infrastructure deficit," added Hay River South MLA Jane Groenewegen,
The expansion of the GNWT'S responsibilities as a result of devolution comes with $67 million in new federal money, of which $59 million will cover the cost of a new Department of Lands, as well as beefing up existing ones. The remaining $9 million will be held in reserve in the event of unforeseen expenses.
The creation of the new department and the expansion of existing ones will lead to the creation of 102 new jobs outside of Yellowknife.
The government will also be receiving another $60 million from the federal government at the end of 2015 as a percentage of shared resource royalty revenues after devolution, with 25 per cent of that money being earmarked for aboriginal governments.
As expected, the GNWT plans to transfer only five per cent of the remaining funding to the territory's newly established heritage fund, much to the dismay of several MLAs, who called for the figure to be closer to 25.
"These resources are being taken by the government and they won't be there for future generations," said Hay River North MLA Robert Bouchard.
Miltenberger said money being received from the federal government is being used to pay down the territory's debt as well as to pay for large infrastructure projects, both of which will benefit the territory for generations to come.
Despite the boost, the government will receive from the transfer of funds from the federal government, Miltenberger said the government is anticipating a $30-million shortfall in personal and corporate income tax revenue as a result of the territory's declining populations.
Instead of raising taxes, the minister announced an initiative to attract 2,000 people to the territory to increase the tax base over the next five years.
Among some of the measures proposed by the minister to achieve this goal are: addressing the continued high rate of fly-in, fly-out workers, improving the immigrant nominee program and developing incentives to return to the territory after graduating.
Groenewegen, who said she will make a point to address the territory's declining population during the current session of the assembly, called the target ambitious but worthwhile if it can be achieved.
The budget will continue to be debated throughout the fifth session of the 17th legislative assembly.
