Health sees increases in balanced budget
Nunavut braces for future with less federal funding, despite sustained need
Beth Brown
Northern News Services
Saturday, February 25, 2017
IQALUIT
The Department of Health will see a $12 million increase towards support programs for Nunavummiut this year.
Finance minister Keith Peterson gives an address for the 2017-2018 budget during a Feb. 22 sitting of the legislative assembly in Iqaluit. - Beth Brown/NNSL photo
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Minister of Finance Keith Peterson announced the increase in his address for the 2017-2018 budget during a Feb. 22 sitting of the legislative assembly. Peterson called his ninth budget 'balanced'.
Health care accounts for the largest portion of Nunavut's budget, at 23 per cent. The added health funding is a 3.5 per cent increase from last year, providing the department with $353 million for the coming fiscal year.
"Our focus remains on healthy living, injury prevention, and helping people to overcome substance abuse and addictions," said Peterson.
Of the $12 million increase, $6.6 million is slotted for the Quality of Life Secretariat. Funding will support the Embrace Life Council, run mobile trauma response units, aid community and wellness organizations, and help fund a 24-hour crisis help line.
The budget also provides $1.6 million for nursing support, including a nursing mentorship program, and $2.5 million to expand mental health and addictions services in communities. Peterson said funding for addictions services is made especially pressing given the impending opening of a beer and wine store in Iqaluit.
A balanced budget
The government expects to see a total revenue of $1.981 billion. With spending following not far behind, the GN expects a $2 million surplus. Peterson has a $40 million contingency fund.
The 2016-17 fiscal year will end with an operating surplus of $4 million and a forecasted deficit of $11 million, which Peterson called "relatively small", as it equates to 0.5 per cent of all GN spending for the year.
As of Dec. 31, the GN had borrowed around $380 million, well below its $650 million debt cap. This debt is largely related to loan guarantees for the Quilliq Energy Corporation and the Nunavut Housing Corporation, as well as capital leases and financing of the Iqaluit airport.
"Essentially we will end the year with the books in balance," said Peterson.
Slow in federal funding
The budget reflects an expected decrease in federal funding for health care in the coming years.
"The federal government is cutting the growth rate in the Canada Health Transfer from the current six per cent down to three per cent. For Nunavut, this slower growth reduces our flexibility, and our ability to deliver the programs and services that Nunavummiut need," said Peterson.
"As we develop our territory, and give full meaning to self-government, we will reduce our dependence on the federal government," he said. "We will find our own way. But we are not there today."
The GN is also keeping an eye on future projects that will strengthen and diversify economic activity in the territory, such as a proposed road and port at Grays Bay that Peterson said would act as an Arctic gateway.
"At nearly $500 million, this would be a record investment in the Kitikmeot," Peterson said. "A road from Yellowknife to the coast of Nunavut would cost nearly $2 billion. But it would also lead to nearly $40 billion in development projects."
Such projects can only be realized with federal support, but ongoing projects, such as a $68 million investment in water systems and waste treatment in the territory, show the federal government is open to financing large-scale initiatives. Besides Grays Bay, a road project is being proposed to connect Churchill to Arviat, Whale Cove and Rankin Inlet.
Peterson took a moment to point out concern for the federal government's ban on new licensing in Arctic waters for oil and gas development that left Northern territories blindsided.
"We cannot afford to have more surprises, like this ban on developing resources we consider to be our own," said Peterson. "It is critical that Nunavummiut are part of the discussions about our economic future."
A cycle of poverty
The GN plans to build 90 public housing units in the coming year and an additional 95 in the following year.
"But clearly we need many more," he said. Three in ten of Nunavut's housing units are overcrowded, he said.
Income support is up 60 per cent, despite the fact the unemployment rate fell by a full percentage point and almost all of the 800 new jobs in the territory are occupied by Inuit.
"Today nearly two in five Nunavummiut use some form of income support. We need to break these chains of poverty."
The budget notes education as a top priority for combating poverty. At 13 per cent, education accounts for the third largest portion of the overall budget, tied with the Nunavut Housing Corporation.
A new law program opening at Nunavut Arctic College this fall will receive $1.6 million, and the GN is also providing the college with $1.3 million to help fund social worker and early childhood education programs.
NTI President Aluki Kotierk was disappointed with how the budget addresses education, saying funding should go towards training teachers as well as students.
"The minister states education is his top priority, yet the Government of Nunavut's proposed budget will not significantly increase the number of available Inuit educators nor will it increase the amount of Inuktut language instruction."
She called this shortcoming "appalling."
Meanwhile, community policing will get a boost, with the RCMP getting three new constables in Iqaluit, and one new constable in each of Cape Dorset, Pangnirtung, Baker Lake, Arviat, Rankin Inlet, and Gjoa Haven.
