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NORTHWEST TERRITORIES
Finance Minister Michael Miltenberger released the 2012-13 operations and maintenance budget May 24.

Focusing on programs, services and jobs, the upcoming budget for 2012-2013 is $1.4 billion.

Traditionally, finance ministers wear the budget trends on their feet and Miltenberger was no different. Wearing sturdy, worn-in yet shined dress shoes, Miltenberger called it a "status-quo" budget.

This is the first budget in a four-year cycle. Miltenberger said this budget — and the next one — will focus on maintaining the programs and services currently offered by the government.

With a surplus of $74 million, this is the first surplus budget in five years.

Miltenberger said the GNWT has plans for surpluses planned in this year's and next year's budget.

Using the surpluses to rebuild cash reserves, the government plans to address serious infrastructure deficits in the third- and fourth-year budgets. Miltenberger said the plan is to then start focusing on expanding roads, schools, airports and other public services and facilities.

Despite the surplus, total debt is expected to reach $656 million by March 2013 - up $140.2 million from last year.

While the borrowing limit has been raised to $800 million, up from $600 million, Miltenberger said the GNWT is not in the position to borrow funds for operations and expenditures.

"We use the borrowing limit to make strategic investments," he said. "The watchwords for this year and next are fiscal responsibility."

He referred to the budget as part of a strategic long-term plan. For the first two years, the GNWT will be focusing on replenishing cash reserves.

"Year three and four we're fully planning to come out with a budget that will allow us to enjoy the hard work of year one and two," said Miltenberger.

The budget shows an increase of spending at just under four per cent.

The major spending in the 2012-2013 budget is for social programs - $818 million is budgeted for education, health care, social services, housing, policing and corrections.

Another $1.2 million is going into a program to support the transition between public and market rentals. Another $1 million is going to fund the previously announced new public housing rent scale

Comparing numbers from the 2011-12 budget to the recent 2012-13 budget, funding has been cut from the Health and Social Services, Industry, Tourism and Investment and Environment and Natural Resources departments.

Health and Social Services is seeing its funding drop by nearly $10 million, from $358.79 million to $349.92 million.

However, Miltenberger said the funding from the GNWT hasn't been cut, the decreases are due to sunset funding - special funding that is not being renewed. For example, in terms of the Department of Environment and Natural Resources. spending from federal government spending for energy programs has expired;

In the question period following the budget address, MLA for Hay River, Robert Bouchard, criticized the ongoing lack of a midwifery program in the NWT.

"Hay River is one of the communities where a lot of births originate but few, if any, actually take place within the community," he said. Bouchard wanted to know when midwife positions would start being offered in communities.

Minister of Health and Social Services Tom Beaulieu said there are plans to submit a business plan for the 2013-14 fiscal year.

"Midwifery would be an important part of the health system," he said.

Jennifer Young, an advocate for the midwifery program, said she was disappointed to see no funds allocated for the program.

"Why spend that time doing a review if there's no money for it," she said.

"It's kind of disheartening, but I'm happy to see that at least there appears to be a commitment."

Young said now that there are plans for it to be added in the 2013-14 fiscal year, this year can be spent educating residents and garnering support.

Gayla Thunstrom, vice-president of the Union of Northern Workers praised the budget for its job protection.

"We're back to the 2008 numbers for jobs," she said. "Yes, it's a cautious budget but it's protecting the current jobs and services and we aren't seeing any new taxes."

2012 Budget

Budget by the numbers

• Total expenditures: Up to $1.4 billion from $1.34 billion last year
• Forecasted revenues: Up to $1.52 billion from $1.36 billion last year
• Total debt: Estimated to reach $656 million at March 31, 2013 up from $515.8 million last year

• Legislative assembly: $18.5 million ($19.76 million)
• Executive: $22.86 million ($19.13 million)
• Human Resources: $42.79 million ($43.22 million)
• Aboriginal Affairs and Intergovernmental Relations: $7.3 million ($7.88 million)
• Finance: $142.12 million ($128.01 million)
• Municipal and Community Affairs: $95.53 million ($93.57 million)
• Public Works and Services: $93.68 million ($93.08 million)
• Health and Social Service: $349.92 million ($358.79 million)
• Justice: $113.67 million ($108.465 million)
• Education, Culture and Employment: $289.1 million ($288.17 million)
• Transportation: $120.41 million ($111.57 million)
• Industry, Tourism and Investment: $49.56 million ($53.91 million)
• Environment and Natural Resources: $65.693 million ($74.5 Million)

Source: Department of Finance

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