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SOMBA K'E/YELLOWKNIFE
For the second year running, Finance Minister Michael Miltenberger presented a status-quo budget, which aims to ensure the government continues to live within its means and gives the territory a chance to recover from the lingering global recession.

Finance Minister Michael Miltenberger displays his old, trusty budget shoes during a press conference at the Arthur Laing Building Thursday, where he explained his second status-quo budget in two years. Miltenberger promises to splurge on a new pair of shoes next year, when infrastructure spending is expected to increase by $50 million. - Laura Busch/NNSL photo

"We may feel far away from the turmoil in global markets, but shifts in the global economy impact us directly and swiftly," said Miltenberger, during his budget address in the legislative assembly yesterday.

True to his word, the 2013-14 budget forecasts increased spending by just $20.7 million over revised estimated spending for the current fiscal year.

As the second budget in a four-year cycle, it is part of a larger fiscal strategy set by cabinet at the beginning of the 17th legislative assembly, which is to rein in spending for two years and then increase funding for the final two years of this government.

This budget estimates total expenditures for the year will be $1.47 billion while revenues for the year are expected to total $1.61 billion. A $112.5-million operating surplus will allow the GNWT to reduce its debt to an estimated $581 million, said Miltenberger.

The operating surplus must also provide at least 50 per cent of the infrastructure budget, as part of the fiscal strategy of this government, said Miltenberger.

"Our reality is that revenue growth is slowing, making budgeting choices even more difficult," said Miltenberger, explaining why this government must continue to tighten its belt.

For the next three years, revenue growth is expected to increase by less than two per cent annually, significantly less than the six per cent annual growth experienced over the last decade, said Miltenberger. This is mainly due to the fact that Territorial Formula Financing from the federal government, which provides 70 per cent of the GNWT's revenues, is not expected to increase over the next two years although the population is expected to grow because the GNWT anticipates seven new mines opening in the next five years.

Highlights in this budget include $22 million in what the finance minister is calling "priority initiatives" for the coming year.

"This budget directly reflects the input we received from the standing committees and budget dialogue 2012 with investments in mental health and addictions prevention, midwifery services, support for economic development, energy efficiency and innovation in health service delivery," said Miltenberger.

One priority from the Yellowknife budget session that did not make it into this budget was increasing funding for arts in the territory, Miltenberger said during a press conference at the Arthur Laing Building, adding more arts funding could be included in next year's budget.

Following long-standing budget day tradition, Miltenberger carefully selected his footwear for the day, opting to wear his "trusty old budget brogues" - the same pair of leather loafers he wore to budget day last year.

Miltenberger promises to splurge on a new pair of shoes next year, when infrastructure spending is expected to increase by $50 million.

The gallery at the legislative assembly was full nearly to capacity as onlookers scrutinized Miltenberger's budget, and not all bystanders were happy with what they saw.

As a parent of a child with special needs, Mira Hall is unhappy the government did not reverse budget cuts to the inclusive schooling program last year.

"The cuts that they made were quite significant and I know the district where my child attends school had a surplus and were able to maintain services," said Hall. "I'm worried that parents of children in other districts that did not have a surplus would see a reduction in services.

"I think it's important to note that providing education to kids with a disability is a human rights issue. Those kids have a right to education, particularly at the elementary level."

Even though she is one week away from giving birth, Jennifer Young attended the budget address at the legislature. As an advocate for restoring midwifery services across the territory, Young had mixed feelings about the budget.

"We're happy we were acknowledged in the budget," said Young. "For us, it's a start, but not enough."

The budget earmarks $449,000 for midwifery, the bulk of which ($309,000) is going to the Fort Smith Health Authority to pay for salaries for one full-time midwife and one part-time administrative assistant. One full-time position is being funded for Yellowknife, but this is not a midwife position - it is a full-time consultant position which will cover mainly administrative tasks.

"Ideally, and it's my own biased opinion, I would have liked to see the money dedicated to two midwives in Yellowknife," Young said.

GNWT 2013-2014 Budget

• Total operations expenditures: $1,466,824,000
• Forecasted revenues: $1,609,354,000
• Forecasted operating surplus: $112,599,000
• Total debt: estimated $581 million on March 31, 2014, down from an estimated $609 million as of March 31, 2013

Expenditures by department 2013-14 main estimates (2012-13 revised estimates)

• Legislative assembly: $18.239 million ($18.549 million)
• Executive: $20.464 million ($22.961 million)
• Human Resources: $42.099 million ($42.994 million)
• Aboriginal Affairs and Intergovernmental Relations: $7.416 million ($7.354 million)
• Finance: $156.278 million ($143.988 million)
• Municipal and Community Affairs: $98.786 million ($95.826 million)
• Public Works and Services: $104.505 million ($97.767 million)
• Health and Social Services: $363.856 million ($355.794 million)
• Justice: $116.759 million ($114.534 million)
• Education, Culture and Employment: $299.611 million ($290.209 million)
• Transportation: $117.011 million ($120.641 million)
• Industry, Tourism and Investment: $50.235 million ($50.134 million)
• Environment and Natural Resources: $71.565 million ($85.390 million)

Source: GNWT Department of Finance

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