In the red
Education priority in Nunavut bugdet
Kerry McCluskey
Northern News Services
Iqaluit (Mar 05/01) - There's going to be almost twice as much money for building schools in this year's budget but the Nunavut territory stands to ring up its first debt to do it.
As for the rest of the budget unveiled last Tuesday, finance minister Kelvin Ng said the government's biggest challenge is paying for programs they have now.
"Never mind any enhancements to the existing programs," said Ng.
Projected revenue is $670 million, an increase of 4.9 per cent from last year. The majority of the money, $615.4 million, comes from federal transfers.
Ng announced the government plans to spend $679.5 million for fiscal 2001-02. Expenditures carried over from the previous year and another $10 million for a contingency fund to cover the unexpected drive the deficit up to $50 million.
However, various savings on operations and maintenance and capital budgets bring the final deficit in at $34.8 million.
That deficit will be further reduced by last year's operating surplus of $22.8, which leaves the new government's first debt standing at $12 million.
As promised when the formula financing agreement was originally signed in the fall of 1998, federal Finance Minister Paul Martin has agreed to review Nunavut's share of the pie. Ng said that would likely get under way sometime over the next few months.
"It is prudent to undertake such a review before longer-term problems surface that could threaten the fiscal and political stability of Nunavut," he said.
Symbolizing the government's commitment not to forget the non-decentralized communities, Ng sported a pair of kamiks given to him by Uqqummiut MLA Davidee Iqaqrialu. Iqaqrialu represents Nunavummiut in Clyde River and Qikiqtarjuaq.
The president of Nunavut Tunngavik Inc. said the land claims organization expected the government to build more than 50 social housing units this year. He is also concerned that funding for Inuit language and culture programs was cut.
"We hear a lot from this government that they want to see the social well-being of Nunavummiut, but it doesn't seem to be implied in this budget," said Quassa. He realizes the government is stuck between a rock and a hard place and needs to renegotiate the formula financing agreement with the federal government.
"The funding formula is a grave concern for us," said Quassa.
"The current arrangement provides 25 per cent less money than the GN needs to fully service the needs of the territory," he said.
Quassa was pleased with Ng's emphasis on government partnerships with NTI, the commitment they showed in training Inuit and the funding they gave to the Akitsiraq Law School.
Not entirely pleased
While most of the MLAs realize the financial constraints facing Ng, many are criticial his financial plan.
"For the second year in a row, the housing budget has dropped. It's rather disappointing to see something like that," said Iqaluit Centre MLA Hunter Tootoo.
Only 50 new social housing units will be constructed this year, compared to 100 built in the last fiscal year.
Tootoo was pleased at the amount of money budgeted for the Department of Education, which will receive $174.7 million, or 26 per cent of the territory's total budget.
"Education is very high on the agenda. We put a lot of money there. It's a priority and it has to be reflected," said Premier Paul Okalik.
Nattilik MLA Uriash Puqiqnak said the boost in education dollars, particularly the funds to improve Nunavut Arctic College facilities, will benefit his communities of Gjoa Haven and Taloyoak.
"Back home, a lot of students drop out. The key is upgrading," he said.
Quttiktuq MLA Rebekah Uqi Williams said she was examining the budget closely to ensure her High Arctic communities got what they wanted, while Kugluktuk's Donald Havioyak said he was disappointed The Department of Culture, Language, Elders and Youth received only one per cent of the budget.
Budget highlights
Nunavut has to renegotiate the formula financing agreement with the federal government if they are to continue to operate in a fiscally responsible manner, he added.
Kelvin Ng
The government will spend $71 million on capital projects, which means most communities will continue to clamour for additional funding for programs and services.
Budget reaction
Paul Quassa has concerns and praise for the latest budget
