Investing in our Youth, Investing in our Future
BUDGET PRIORITIES |
Youth |
Education |
Health Care |
Jobs and Growth |
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Fiscal Performance 2000- 01
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Projected deficit of $32.7 million versus $34.7 million
budgeted
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Fifth consecutive year the Government has met or
bettered its fiscal target
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A stronger year end position will allow the Province to
defer certain revenues to 2001-02 and to make strategic investments of
$31 million before year-end with $15 million targeted to health care,
$14.6 million for education and youth initiatives and $1.4 million for
other priorities
Budget Outlook 2001-02
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Responsible financial management allows us to run a
modest deficit of $30.5 million
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$10 million contingency reserve is included
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No new taxes in this Budget
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Personal Income Tax reduction strategy continues. $30
million tax cut in 2001 taxation year, in addition to $30 million in
2000 ($60 million to date)
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Fourth consecutive year of Payroll Tax reductions
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tax free threshold increases from $400,000 to
$500,000, effective April 1, 2001
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200 more businesses removed from tax roll in 2001-02
(2,025 since 1998-99)
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$2 million reduction in tax burden in 2001-02 ($8.6
million since 1998-99)
Economic Performance
K to 12 System
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The current method for allocating teachers could have
resulted in a loss of an additional 218 teaching positions. Almost $11
million is maintained to fund all these positions
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$3.5 million is allocated to address increased utility
costs incurred by school boards over the past two years
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School board budgets will be maintained at last year�s
level despite enrolment declines and school closures. $5.6 million will be
retained in operating grants in 2001-02
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An additional $23 million is announced today to address
priority capital needs in our schools. The total investment planned in
school buildings since educational reorganization is $160 million
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$5 million is allocated to implement the recommendations
of the Sparkes/Williams Ministerial Panel on Educational Delivery in the
Classroom
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$4.4 million is provided for teacher professional
development, which includes a continuation of the increased funding of
$900,000 provided in 2000-01
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$800,000 is provided for school busing for Grade 7 to 12
in St. John�s
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$800,000 is provided for a recruitment and retention bonus
for teachers who work in isolated coastal communities in Labrador
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In addition to regular annual funding, $1.0 million is
provided for new library books in the public libraries system
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$500,000 is provided to support the Strategic Literacy
Plan
Post Secondary
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$3.3 million is provided to implement a 10% reduction in
tuition for MUN students for the academic year commencing in September
2001
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The tuition freeze for students attending the College of
the North Atlantic and the Marine Institute will continue for the coming
academic year
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$4.0 million is allocated to create a new Student
Investment and Opportunity Corporation to aid post-secondary students gain
work experience and employment and help defray the cost of their education
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$8.1 million has been allocated for renovations at the
College of the North Atlantic
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$500,000 is provided to permit MUN and other post
secondary facilities to access funding for research and development from
the Canada Foundation for Innovation
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In keeping with the commitment to match private sector
donations, $3 million will be paid to the MUN Opportunity Fund. This will
bring the total provincial contribution to date to $21.3 million
A Top Priority
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$1.4 billion allocated to operate the health care system
in 2001-02, an increase of $114 million over last year and a cumulative
increase in the health care budget over the past six years of $381 million
or 38%
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Total value committed by this government in 2001-02 for
capital spending for new health facilities, renovations of existing
facilities and equipment is $82 million
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Overall, this Budget commits an additional $196 million to
health care in the Province
Stabilizing Health Board Budgets
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$50 million added to the base budgets of health care
boards in 2001-02. This does not include salary increases and
reclassification costs that may arise in 2001-02
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$7 million has been added to the base budgets of the
health and community services boards
Health Facilities
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$50 million will be spent on capital projects underway
throughout the Province, including $7.5 million to be spent on renovations
to existing facilities
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The Janeway Children�s Health and Rehabilitation Centre,
Old Perlican and Grand Falls-Windsor will open in 2001
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Work continues on construction of facilities in Gander,
Fogo, Bonne Bay, Stephenville and Grand Bank
Equipment
Health Care Workers
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$11 million is allocated to continue efforts to recruit and
retain physicians
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$4.8 million is allocated on an annual basis to increase the
wages of home support workers from $5.84 per hour to $7.01 per hour, a 20%
increase. On June 1, 2001, the rate will increase to $6.66 with a further
$0.35 per hour increase on December 1, 2001
High Priority Programs
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$3.1 million in new funding to increase the level of
service in the Province�s cardiac care program. $2.4 million allocated
to increase the cardiac surgery program to 20 cases per week and $710,000
is provided to increase the level of cardiac catheterization
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$1.3 million is provided to increase funding to personal
care homes and clients
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$5.2 million will be spent on programs and services to
ensure young children get a good start in life through the Early Childhood
Development initiative
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The pharmacist dispensing fees for income support clients
will be increased to $6.50, fully restoring it to the level prior to the
1996 budget. This measure will cost $2.1 million
INVESTING IN OUR
FAMILIES |
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Funding of $2.0 million is provided to continue
initiatives under the Strategic Social Plan
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$1.8 million is provided to the Department of Human
Resources and Employment for the development of a new computerized pay
system to enhance service delivery to clients
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$500,000 is provided to continue the successful Single
Parent Employment Support Program to assist single parents find meaningful
employment and become financially independent
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Effective July 1, 2001, the income threshold for the
Newfoundland and Labrador Child benefit will be adjusted upward. The full
benefit will be available to eligible families with income up to $16,744,
as compared to the current $15,921. Full phase out of benefits will occur
at an income of $21,744, rather than the current $20,921
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Annual funding for seven Women�s Centres across the
Province will be increased by two-thirds to $50,000 each
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The annual Newfoundland and Labrador Seniors� Benefit is
increased by 50% from $200 to $300
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$140,000 is allocated for seven Newfoundland and Labrador
Housing Corporation community centres to offset the cost of program co-ordinators
INVESTING IN OUR COMMUNITIES |
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$30 million to be cost shared between the federal,
provincial and municipal governments on green municipal projects.
One-third will be contributed by the federal government with the
province and municipalities sharing the remaining two-thirds
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$20 million will be cost shared between the Province and
municipalities for the municipal capital works program
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Municipal Operating Grants maintained at $21.5 million
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$11 million is allocated for a multi-year safe drinking
water initiative. $10 million of the initiative is funded under the three
year Federal, Provincial and Municipal Infrastructure/Capital works
program and $1.0 million is provided to various departments to ensure safe
drinking water
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$10 million will be available in 2001-02 for the Municipal
Debt Relief Program
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$800,000 is provided to continue environmental remediation
of contaminated sites
INVESTING IN OUR INFRASTRUCTURE |
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$121.8 million is committed for improvements to the Trans
Canada Highway, major trunk roads and provincial roads
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$6 million in additional provincial funding is allocated
to the provincial capital roads budget to address priority improvements
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$5 million is allocated for improvements to ferry
terminals and wharf renovations
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$500,000 additional funding provided for ferry vessel
maintenance and refit
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$200,000 additional funding for forest access roads. Total
funding of $2.2 million is provided for the 2001 program
Renewal Strategy for Jobs and Growth
Rural Revitalization
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$60 million committed to support economic and rural
development initiatives in the new Department of Industry, Trade and Rural
Development
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Resources are available from the recently signed $44.8
million extension to the Canada-Newfoundland Comprehensive Economic
Development Agreement, as well as, from continued activity under the $81
million "FRAM-ED" post-TAGS agreement
Other Initiatives
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$300,000 is allocated for a natural gas study to determine
the economic potential of offshore gas
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$3.2 million is provided for Receiving the World:
Celebrating Communications
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Heritage grants, which help fund 200 community museums
throughout Newfoundland and Labrador, are increased by $80,000 to $161,700
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In recognition of the 50th anniversary of the
Arts and Letters Program in 2002, additional funding of $40,000 is
allocated, increasing the total funding to $76,000
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Funding of $100,000 for the Community Fisheries
Infrastructure Program and $254,000 to maintain the Quality Assurance and
Inspection Program
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$300,000 for four additional highway patrol positions to
improve safety on our highways
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$2.5 million in additional funding is provided for the
2001 forest insect control program
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$1.3 million is allocated to prepare the House of Assembly
for televising proceedings by the Fall 2001 sitting
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$390,000 is provided to renovate the Buchans Core Storage
Facility
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Labrador travel subsidy of $427,000 is provided to permit
students living in Labrador to increase their participation in athletic
tournaments throughout the Province
Back to Budget 2001
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