February 3, 2011 - Today, Finance Minister J. Michael Miltenberger presented the territorial Government’s 2011-12 Budget.

The Budget, the last to be presented to the 16th Legislative Assembly, focuses on consolidating the investments and achievements made over the past three years. Since 2008-09, the Government of the NWT has invested close to $200 million in its strategic and energy initiatives. The 2011-12 Budget includes over $85 million to continue work already underway and proposes an additional $16.9 million in new investments toward realizing the 16th Assembly’s vision for the NWT.

“Over the long term, the investments we have made will improve the lives of NWT residents, foster economic development, and unlock the tremendous opportunities our territory holds,” said Minister Miltenberger. “Now, in the final year of our mandate, this Budget looks to consolidate the gains we have made, and finish and deliver what we have begun.”

The aggressive policy of capital investment, adopted by the GNWT two years ago in response to the global economic downturn, will result in a record $1.1 billion investment in roads, bridges, schools, health centres, housing, and other critical infrastructure by the end of 2011-12.

“Not only have we managed our way through the most serious economic downturn since the Great Depression, we have made investments and initiated policy changes in key areas that will benefit the NWT for years to come,” the Finance Minister stated.

The Budget projects 2011-12 revenues of $1.36 billion and operating expenditures of $1.34 billion, an increase of 3.4 per cent from the current year. An operating surplus of $17 million is forecast for 2011-12. The GNWT expects to borrow $155 million at the end of 2011-12 to cover short term cash shortfalls. This debt will be paid off early in the following fiscal year. The Budget is in line with the plan laid out by Minister Miltenberger last year which will put the GNWT on a sustainable fiscal path.

“Two years ago, economic conditions required fiscal policies that supported businesses and created employment in the NWT, but these policies are not sustainable over the long-term. While we were, and are, prepared to incur some debt to address the downturn, we do not want to mortgage our future. This means keeping spending growth under control,” added Minister Miltenberger.

He emphasized that achieving this will require significant effort in the years ahead. “It will mean setting clear priorities, focussing on finding efficiencies and putting our dollars where they will be most effective. It will mean continuing to seek creative new ways of doing things, being open to new ideas and being willing to challenge the status quo.”

The Finance Minister forecasts growth in the NWT economy in 2011, noting positive trends in employment, population, and resource activity. The recently signed devolution agreement-in-principle, according to Minister Miltenberger, brings the people of the NWT one step closer to being in charge of how resources are developed and providing a share of the revenues from that development.

2011-12 represents the third year of the Government’s four-year $60 million Energy Priorities Investment Plan. The Budget includes $17.5 million in energy investments designed to reduce the cost of living, to reduce the NWT’s reliance on imported fossil fuels and to reduce the territory’s greenhouse gas emissions.

The Budget includes no new taxes. However, effective April 1, 2011, property tax rates, tobacco tax rates, liquor mark-ups and a number of fees will be adjusted to reflect inflation.

Highlights of specific initiatives of the 2011-12 Budget are located below.

• Budget Address


• Budget Address and Papers


• Main Estimates


• Capital Estimates

 

For more information, contact:

Press Secretary
Office of the Premier/Cabinet
Government of the Northwest Territories
Phone: (867) 669-2302

Budget 2011-12 Highlights

• The final Budget of the 16th Legislative Assembly highlights the strategic investments made in priority areas over the past three years and outlines the fiscal approach taken by the GNWT to allow it to make the investments while maintaining fiscal sustainability.


• The NWT economy is showing signs of recovery from the global downturn but there are still risks to that recovery. The NWT economy is forecast to grow by 1.2 per cent in 2011-12.


• The 2011-12 Budget proposes operating expenditures of $1.34 billion. This represents an operating expenditure increase of $44 million, or 3.4 per cent from the 2010-11 Budget. Excluding compensation increases, spending growth is budgeted at 2 per cent.


• Total revenues are forecast to increase 2.9 per cent from a projected $1.32 billion in 2010-11 to $1.36 billion in 2011-12.


• The Government plans to invest $171 million in 2011-12 in public infrastructure and housing. This investment will be financed through the $17 million operating surplus budgeted in 2011 12, short-term debt, and non-cash items such as depreciation.


• The GNWT expects to borrow $64 million at the end of 2010-11 and $155 million at the end of 2011-12 to cover the short-term cash shortfalls needed to finance the Government’s investments in infrastructure. This short-term debt will be paid off early in the following fiscal year.


• Total GNWT debt is forecast to reach a high of $515 million at March 31, 2012, but will decrease thereafter as the fiscal strategy is implemented. Fully $344 million, or 67 per cent, of the projected debt at the end of the 2011-12 fiscal year will largely be self-financing – that is the costs of servicing the debt are financed by a dedicated stream of revenues from tolls and customers, and not by other government revenues.

 

2011-12 Expenditure Initiatives

The 2011-12 Budget proposes to invest $16.9 million in new initiatives.

• Supporting our Economy – From 2008-09 to 2010-11, the GNWT has invested a total of $47 million in economic initiatives that supported economic diversification, gave NWT residents opportunities for training and skill development, and promoted the NWT as a great place to visit and live. This Budget includes $15.3 million to continue initiatives started in the past three years and proposes $3.2 million in additional investments including:
  
  
  • $350,000 in additional funding for the Support to Entrepreneurs and Economic Development (SEED) Program to support the development of sustainable local economies.
  
  
  • $1 million in annual support to extend the Tourism 2010 program (expires 2010-11) to 2015. The extended program, Tourism 2015, will continue ongoing programs from Tourism 2010 and will support outfitters as they adapt the tourism products and services they offer to new types of tourists.
  
  
  • $145,000 to build on work in progress under the NWT Growth Strategy to stimulate growth in the NWT population.
  
  
  • $925,000 to create the Small Community Employment Program to support short-term job creation projects and skill development in communities where incomes are among the lowest and labour markets conditions are the weakest.
  
   


• Reducing the Cost of Living – Over the past three years, the GNWT has invested $39 million in initiatives to reduce the cost of living, especially for those in the smallest and most remote communities. In addition to the $17 million in the 2011-12 Budget to continue funding initiatives from prior years, there is $2 million in additional funding including:
  
  
  • $475,000 to expand the Community Harvesters Assistance Program for a total investment of $1 million in 2011-12.
  
  
  • $100,000 in investments to support a cost-effective and efficient food processing sector for the commercial harvesting, processing and marketing of fish and meat in the NWT.
  
  
  • $50,000 to support the development of agriculture infrastructure in NWT communities in order to increase the availability of locally produced food.
  
  
  • $490,000 in additional funding to build ice crossings faster on the Mackenzie Valley winter road, to extend the ferry operating season on the Dempster Highway and to operate airport runways that have been extended in some communities.
  
  
  • $300,000 to perform a full review of the GNWT’s policies for the provision of adequate, suitable and affordable housing in the NWT.
  
  
  • $150,000 in one-time funding to review the NWT Student Financial Assistance Benefits program.
  
   


• Investments in People – From 2008-09 to 2010-11, the GNWT invested $29 million in initiatives designed to enhance programs directed at education, health care, housing and policing services. Almost two-thirds of the GNWT’s total operating budget funds programs in these areas. In addition to $17 million to continue previous initiatives, the 2011-12 Budget provides $2.5 million in new funds including:
  
  
  • $300,000 to increase access to Aurora College School of Education programs in communities by directing more funds to Community Based Teacher Education programs. Programs funded under this initiative will allow the College to train more Aboriginal teachers and language and cultural instructors.
  
  
  • $500,000 to implement further measures under the Aboriginal Student Achievement programs.
  
  
  • $150,000 to implement a permanent Youth Ambassador program. This builds on the success of six pilot Youth Ambassador programs that recruited, trained and provided youths from most NWT communities with significant volunteer leadership development opportunities.
  
  
  • $500,000 to further implement the Healthy Choices Framework, an investment to improve the health and wellness of NWT residents.
  
  
  • $650,000 of ongoing funding to increase the availability of home care for seniors and other patients needing home care, which will allow these NWT residents to stay in their homes as long as possible and alleviate the higher costs associated with facility living and care.
  
  
  • $75,000 for a pilot program to expand respite services and enhance caregiver support and training for families of children and youth with special needs outside of Yellowknife.
  
  
  • $150,000 to establish an Office of the Children’s lawyer to provide legal services and representation for children in matters where a judge determines that a child needs independent legal representation.
  
  
  • $118,000 to fund a Fetal Alcohol Spectrum Disorder (FASD) Consultant position to support effective strategies and program modifications for individuals affected by FASD and other cognitive disabilities who come into contact with the justice system.
  
   


• Supporting Sustainable Communities – The GNWT remains committed to the goal of achieving sustainable, vibrant and safe communities. By the end of 2011-12, the GNWT will have invested $30 million in strategic new initiatives to increase safety and security, strengthen government program service delivery in NWT communities and improve small community employment opportunities. In addition to these territory-wide initiatives, by the end of the 2011-12 fiscal year the GNWT will have provided $247 million in operating contributions to community governments and $192 million for community infrastructure - funding that provides communities with reliable financial resources enabling them to make their own choices. The 2011-12 Budget proposes $2.3 million in new investments, including:
  
  
  • $300,000 of ongoing funding to increase fire protection and public safety by providing all community governments with fire fighter and emergency management training.
  
  
  • $100,000 to develop and implement a Community Safety Strategy that will identify community safety issues and the options available to communities to complement police work and help make communities safer.
  
  
  • $150,000 to help community governments implement their Integrated Community Sustainability Plans that were developed as part of the Federal/NWT Gas Tax Agreement.
  
   


• Protecting our Environment – Over the past three years, the GNWT has made $26 million in new direct investments in protecting the environment and is committing $12 million in this Budget for 2011-12 to continue these initiatives. The Budget proposes $4.7 million in new initiatives including:
  
  
  • $343,000 to implement the NWT Water Stewardship Strategy.
  
  
  • $100,000 to develop and implement the new Wildlife Act to better protect and manage wildlife in the NWT.
  
  
  • $1 million to carry out management action plans under the Caribou Management Strategy.
  
  
  • $350,000 to establish an Aboriginal Consultation Unit to provide policy advice and legal support to ensure that GNWT consultation practices remain effective and current.
  
  
  • $200,000 to establish critical wildlife protected areas under the Protected Areas Strategy.
  
  
  • $2.7 million to continue energy initiatives designed to replace diesel-generated electrical power.
  
   


• Affordable Government – The GNWT seeks to deliver programs and services in the most efficient way. Work is ongoing to improve the way the GNWT plans and delivers infrastructure, improve human resource management, ensure effective service delivery in smaller NWT communities, and stabilize the GNWT’s relationship with non-government organizations. New initiatives proposed in 2011-12 to improve the way the GNWT does business include:
  
  
  • $1 million to implement strategies to attract and retain employees under the NWT Public Service Strategic Plan.
  
  
  • $300,000 for implementation of the Financial Shared Services Model, which will consolidate government financial processing activities.
  
  
  • $1.15 million to improve Government communications and service delivery to the public in French.
  
  
  • $300,000 to expand the number of courses in the Aboriginal Language Summer Institute to allow more participants in the program.
  
   

Revenue Initiatives

Budget 2011-12 contains no new taxes; however, effective April 1, 2011 property tax rates, tobacco tax rates, liquor mark-ups and some fees will be increased by the rate of inflation since their last increase.

Looking Forward

The 2011-12 Budget looks to consolidate the gains made, and to finish and deliver initiatives started in the 16th Legislative Assembly. Priorities going forward include:

• Working towards a final devolution agreement with the Government of Canada and NWT Aboriginal governments.


• Beginning a discussion about the choices that lie ahead to ensure the GNWT can continue to deliver quality programs and services, including health care, to the residents of the NWT.


• Continuing to address the NWT’s significant infrastructure deficit by supporting critical transportation and energy projects.