YELLOWKNIFE - Executives on the 2008 Arctic Winter Games committee say the games have overshot their original budget by about $2 million.

The Arctic Winter Games attended by these NWT participants in Alaska last year cost a whopping $7.1 million to put on. The Yellowknife Arctic Winter Games Committee expects next year's games to cost around $5.6 million. - NNSL file photo Cost of the Games: 1998 Yellowknife -- $2.7 million 2000 Whitehorse -- $2.5 million 2002 Iqaluit/Nuuk -- $3.2 million (U.S.) 2004 Fort McMurray -- $6.2 million 2006 Kenai Peninsula -- $7.1 million 2008 Yellowknife -- $5.6 million

However, they said they are not panicking because they're confident they can make up the shortfall in the revamped budget.

"Our budget is significantly larger than the original bid from the city in 2003," said Cathie Bolstad, president of the 2008 Arctic Winter Games Committee, last Monday. "We'll just have to make that up through fundraising."

So far volunteers and staff have been able to raise $1.7 million, and are working on raising an additional $1.8 million.

The federal government is on tap to contribute $500,000; the territorial government $700,000; and the city $300,000. About $370,000 is expected to be made through merchandizing, plus $85,000 through admissions.

The total cost of the games is now tagged at $5.6 million. It was around $3.5 million before. The last time the games were held in Yellowknife, in 1998, the price tag was $2.74 million. The budget for the games held last year on the Alaskan Kenai Peninsula, was $7.1 million.

Bolstad said because the 2008 games will be the 20th time the games have been held, the committee wants to make the event extra spectacular, which means spending more money.

Also boosting the price tag is inflation since the game bid was made in 2003.

Games fundraiser Dave Gilday later said that food costs for the games are also significantly more than anticipated.

"We're going to make sure that people are going to eat a very healthy diet while they're at the games," said Gilday.

"It's just the cost of business. Other things are inflated. The early estimates were done on the '98 games.

"I guess you can say that it's a bunch of us that are somewhat amateurs that caused the budget to come in a little low."

Gilday said the business community, particularly mining companies, have been very generous, and expects that will continue.

Dave Hurley, general manager for the 2008 Arctic Winter Games, said he believes they'll raise the funds.

"I think by June we'll be close," he said. "You may be surprised."

Hurley added that the funds will come from sponsorships, mainly from local businesses, and some additional grants they're applying for through the GNWT and federal government.

Bolstad said she is pleased with how the city has helped with fundraising for the games.

She added that she hopes the city and other sponsors will be able to allow their staff time off to volunteer next year when the games come to the city.

City councillor Kevin Kennedy said he is impressed with the effort that the committee has put towards fundraising for the games, but is still a little nervous about the deficit it is running.

"($1.8 million) is a huge sum of money, and I'm having trouble imagining where it all will come from," he said.

"As a city we just had a tax increase. Also, staff time does have significance on our budget.

"But we are committed to doing this, so we have no choice but to go forward."

Bolstad said the committee is not asking for more funds from the city. She said that on March 31 the group will have a "One year to go" ceremony where she hopes they can get more businesses to sponsor the games.

At that time, they'll look at where they are with fundraising and make a decision.

"Come June of this year, we'll do a pause and say, ‘Are we going to achieve our goals, or are we going to have to rearrange them,'" she said.

The first Arctic Winter Games were held in Yellowknife in 1970. Beginning with 500 athletes and coaches from the NWT, Yukon and Alaska, the event has grown to more than 2,000 participants from regions as far away as Finland and Russia.

Organizers expect the 2008 games will inject an extra $5 million into the city's economy.

- with files from Mike W. Bryant