Budget additions don't impress MLAs
Finance minister announces money for 911, junior kindergarten, sobering centre; Leaders threaten to block budget unless funding demands are met
Kirsten Fenn
Northern News Services
Friday, February 3, 2017
SOMBA K'E/YELLOWKNIFE
The territorial government will boost funding for junior kindergarten and implement 911 across the territory this year while cutting positions across departments as part of a 2017-18 budget aimed at reducing debt.
Finance Minister Robert C. McLeod answers questions from media about the 2017-18 budget Wednesday - Kirsten Fenn/NNSL photo |
Finance Minister Robert C. McLeod delivered his annual budget address at the legislative assembly to a full public gallery on Wednesday, where he announced the government will spend $1.7 billion on operations this year.
"Every year we have needed to borrow more and our debt continues to rise," McLeod said, adding the NWT's short-term debt is expected to grow to $320 million by the end of 2016-17.
The new budget forecasts $27 million in cuts and $41 million in "sunsets" - funding for projects with a set time period that are set to end.
On Tuesday afternoon, regular MLAs held a news conference to voice their opposition to job and program cuts, saying the current government has put debt management over the need to grow the economy and invest in Northerners.
As of Thursday afternoon, Kam Lake MLA Kieron Testart said he and his colleagues remained united in opposition to the budget.
Tu Nedhe-Wiilideh MLA Tom Beaulieu said he believes there are enough MLAs to reject the budget, although he said they are hoping to work with cabinet to see their requests met. Those requests include $20 to $30 million dollars, he said, that would support small businesses and community governments, and more money for mental health services.
This year's operational spending represents a 0.4 per cent decrease in spending from last year. At the same time, revenues are expected to climb by 0.7 per cent from last year to $1.9 billion.
McLeod said the government will be left with a small overall cash surplus of about $15 million, the second time this has happened in a decade.
The government will provide $1.5 million for junior kindergarten this year and has committed an additional $2.7 million for the program over the life of the assembly, which ends in 2019-20.
That adds up to $4.2 million. McLeod told media on Wednesday that the Department of Education, Culture and Employment also has some funding for the program in its budget that will bring the overall funds to $5.1 million - the total cost needed to implement junior kindergarten.
It is unclear when all of those funds would be rolled out, although McLeod said some of the $2.7 million could be used earlier in the life of the assembly if all schools decide to implement junior kindergarten right away.
"I think that is great news that they're going to put in $2.7 million more," said Yellowknife Catholic Schools superintendent Claudia Parker, who was in the public gallery for the minister's address. "The questions now are when is that going to come into effect."
The territory will also spend $616,000 in one-time funding to implement a basic 911 service for fire, medical and police services across the territory.
That funding would go toward staff training and retrofitting infrastructure, McLeod said.
No decisions have been made yet about where a central call centre would be located.
Other priorities include $750,000 for homelessness - $520,000 of which will go toward opening a sobering centre in Yellowknife.
But the government is scaling back government jobs and will amalgamate several departments in order to curb costs.
A total of 65 GNWT positions will be eliminated, although not all of them are currently occupied.
Six departments will also be altered. The government will merge the transportation and public works departments, as well as the executive, aboriginal affairs and intergovernmental relations. Human resources and finance will also be combined.
The government says it will try to minimize the impact of job cuts by helping people find different roles within the GNWT.
But regular MLAs are still dissatisfied with the budget and believe their constituents are too.
"One thing we heard is very clear," said Testart. "They do not support the government's priorities towards fiscal restraint."
He said residents want their government to invest in the economy and their lives.
"This budget is not going to do that," Testart said. "It skims the surface of job creation, it skims the surface of supporting a mining industry ... the thrust of it was debt reduction."
Yellowknife North MLA Cory Vanthuyne said he was pleased there will be funding to get 911 off the ground, but there are still many "bumps in the road" to figuring out how junior kindergarten will be rolled out.
"I'll admit we're at an impasse," he said.
The Tuesday news conference revealed a divide between cabinet and MLAs on their stance on the budget, but Vanthuyne said members are still working on getting both sides to agree.
While he was hopeful that could happen before session reconvened, MLAs will now have to "publicly have it out" on the floor of the house, he said.
The budget session will continue through to March 10.
