Wednesday, January 29, 1997
Balancing on the backs of the people
Minister of Finance John Todd has delivered another budget and it isn't pretty. Territorial revenues are down. Expenditures are being cut back to lower levels than last year and the result is a surplus of about $9 million.
Driven by the Deficit Elimination Act, Todd is charging full steam toward a balanced budget by 1998-99. That piece of legislation, combined with the GNWT's reliance on the federal purse, doesn't give Todd much room to manoeuvre.
With both federal funding and tax-based revenue declining, Todd has two choices. He can either reduce expenditures or increase taxes. Or both.
With this budget he has chosen to cut spending -- again, and leave taxes alone. That includes corporate taxes, which are currently among the lowest in the country. Those cuts will cost Yellowknife 240 jobs. That's on top of the 200 we lost last time.
The job cuts and the reduction in services delivered by the GNWT are all in the name of meeting the balanced budget required by law.
Legislating a balanced budget is like legislating good weather; it's a nice thought, and easy to do, but not very realistic.
Responsible governing is the art of making hard decisions in the face of changing realities.
The economic reality of the territories is one of declining revenues from both the public and private sectors, massive changes in the administration of services and a population trying to cope with diminished social services.
But for a government to sit back and say that there is no flexibility because the law says the budget has to balance by 1999 isn't good enough.
Who passed the law in the first place?
Across the country, political leaders' current fascination with budget-balancing is being played out on the backs of those who can afford it least. John Todd said that he won't leave a deficit for the next generation to deal with. What about looking after the generation that elected him? (1/29/97)
Yellowknife's city administration got a pat on the back the other day from Municipal and Community Affairs. Curiously, a few questions still nag.
The report card didn't comment on the legal battle over houseboat taxes or of the preservation of the Woodyard. The mess surrounding City Square wasn't mentioned, either.
As well, the questionable practice of time limits on property tax refunds wasn't included in the report. Nor was the subject of secret meetings.
No matter. The final report on the city's administration will come in the next municipal election, when the people of Yellowknife will pass judgment. (1/29/97)
The Yellowknife public school board has made a wise choice in selecting lawyer Garth Wallbridge to fill a vacancy created by the retirement of trustee Dave Turner.
In the past Wallbridge has demonstrated his keenness on education by writing to the newspaper.
Wallbridge is not one to sit idly by and watch a good thing die either. He took the bull by the horns to keep First Night alive this past New Year's Eve by organizing -- some would call it dragooning -- people to make it work.
Wallbridge will decide at the end of the boards's term of office whether he will run. Let's hope he does. (1/29/97)