CLASSIFIEDSADVERTISINGSPECIAL ISSUESONLINE SPORTSOBITUARIESNORTHERN JOBSTENDERS

NNSL Photo/Graphic


http://www.linkcounter.com/go.php?linkid=347767
Home page text size buttonsbigger textsmall textText size
Budget calls for $53 million in cuts
19 layoffs to be offset by 28 new hires, according to GNWT

John McFadden
Northern News Services
Wednesday, June 1, 2016

SOMBA K'E/YELLOWKNIFE
The Government of the Northwest Territories plans to cut $53 million from its programs and services over the 2016-17 fiscal year but that still won't stop the GNWT from running a huge deficit in the tens of millions.

NNSL photo/graphic

Robert C. McLeod, the territory's finance minister, takes questions from reporters Wednesday ahead of his budget delivery speech in the legislative assembly. Behind McLeod is the territory's deputy finance minister Mike Aumond. The government is slashing $53 million from its programs and services as it commits to a financial management plan that aim to raiser and/or cut $150 million from its spending over the life of the 18th assembly - John McFadden/NNSL photo

The cuts amount to three percent of overall operational spending. Finance Minister Robert C. McLeod unveiled the financial blueprint in the legislative assembly on Wednesday afternoon. It calls for $1.66 billion to be spent over the next fiscal year on government operations while running a $54 million deficit.

Last fall, prior to the territorial election, MLAs in the 17th legislative assembly passed a $320 million capital budget. This has led to spending commitments made in the two budgets that exceeds $1.8 billion in revenue the government is taking in which is forcing the government to increase its borrowing, according to deputy finance minister Mike Aumond. The budget also calls for some layoffs, likely less than 20, a number whittled down from an estimated 58 job losses indicated by the government last week.

McLeod said although the budget calls for the removal of millions of dollars in funding for various programs and services ­ he insists it is not an austerity budget.

"I looked it up this morning. An austerity measures budget is one where there are a lot of job loss and raising taxes to try to offset some of your expenditures," McLeod said. "We're down to 19 positions that still haven't been accommodated."

McLeod pointed out that those job losses will be offset by about 28 new positions being created. He said austerity measures generally include severe layoffs and that is not the case here.

It is the first budget delivered by the veteran politician. McLeod was named finance minister by Premier Bob McLeod after last fall's election. He had already announced, earlier this year, that the GNWT has set a target of $150 million in savings or new revenues to establish a short term cash surplus position by the end of the 18th legislative assembly.

McLeod said his budget falls in line with that priority. The combination of expenditure management and increased revenue totals almost $68 million or 45 per cent of that $150 million target.

The legislative assembly will now discuss and debate the budget over the next month with input from the various departments. It will need at least three regular MLAs to join cabinet in supporting it in order for the budget to pass. There are no new taxes in the budget but there is an increase in some user fees.

If the budget is approved, air travellers will have to pay an airport improvement fee in order to fly out of the Yellowknife airport. It will be $10 per passenger on planes flying to destinations north of Yellowknife and $20 to fly south.

E-mailWe welcome your opinions. Click here to e-mail a letter to the editor.