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Budget Highlights


Investing in our Youth, Investing in our Future

BUDGET PRIORITIES
Youth Education
Health Care Jobs and Growth

Fiscal Performance 2000- 01

  • Projected deficit of $32.7 million versus $34.7 million budgeted

  • Fifth consecutive year the Government has met or bettered its fiscal target

  • 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

  • Responsible financial management allows us to run a modest deficit of $30.5 million

  • $10 million contingency reserve is included

  • No new taxes in this Budget

  • 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)

  • Fourth consecutive year of Payroll Tax reductions

  • tax free threshold increases from $400,000 to $500,000, effective April 1, 2001

  • 200 more businesses removed from tax roll in 2001-02 (2,025 since 1998-99)

  • $2 million reduction in tax burden in 2001-02 ($8.6 million since 1998-99)

Economic Performance

  • Real GDP growth in 2000 was 5.3%. Newfoundland and Labrador has one of the fastest growing economies in the country for the third straight year

  • Real GDP growth of 2% forecast for 2001

 

INVESTING IN OUR YOUTH

K to 12 System

  • 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

  • $3.5 million is allocated to address increased utility costs incurred by school boards over the past two years

  • 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

  • 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

  • $5 million is allocated to implement the recommendations of the Sparkes/Williams Ministerial Panel on Educational Delivery in the Classroom

  • $4.4 million is provided for teacher professional development, which includes a continuation of the increased funding of $900,000 provided in 2000-01

  • $800,000 is provided for school busing for Grade 7 to 12 in St. John�s

  • $800,000 is provided for a recruitment and retention bonus for teachers who work in isolated coastal communities in Labrador

  • In addition to regular annual funding, $1.0 million is provided for new library books in the public libraries system

  • $500,000 is provided to support the Strategic Literacy Plan

Post Secondary

  • $3.3 million is provided to implement a 10% reduction in tuition for MUN students for the academic year commencing in September 2001

  • The tuition freeze for students attending the College of the North Atlantic and the Marine Institute will continue for the coming academic year

  • $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

  • $8.1 million has been allocated for renovations at the College of the North Atlantic

  • $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

  • 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


INVESTING IN HEALTH CARE 

A Top Priority

  • $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%

  • 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

  • Overall, this Budget commits an additional $196 million to health care in the Province 

Stabilizing Health Board Budgets

  • $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

  • $7 million has been added to the base budgets of the health and community services boards 

Health Facilities

  • $50 million will be spent on capital projects underway throughout the Province, including $7.5 million to be spent on renovations to existing facilities

  • The Janeway Children�s Health and Rehabilitation Centre, Old Perlican and Grand Falls-Windsor will open in 2001

  • Work continues on construction of facilities in Gander, Fogo, Bonne Bay, Stephenville and Grand Bank 

Equipment

  • $32.4 million for new and improved health care technologies

Health Care Workers

  • $11 million is allocated to continue efforts to recruit and retain physicians

  • $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

  • $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

  • $1.3 million is provided to increase funding to personal care homes and clients

  • $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

  • 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

  •  Funding of $2.0 million is provided to continue initiatives under the Strategic Social Plan

  • $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

  • $500,000 is provided to continue the successful Single Parent Employment Support Program to assist single parents find meaningful employment and become financially independent

  • 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

  • Annual funding for seven Women�s Centres across the Province will be increased by two-thirds to $50,000 each

  • The annual Newfoundland and Labrador Seniors� Benefit is increased by 50% from $200 to $300

  • $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 

  • $50 million to be spent in 2001-02 for municipal infrastructure and capital works

  • $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

  • $20 million will be cost shared between the Province and municipalities for the municipal capital works program 

  • Municipal Operating Grants maintained at $21.5 million

  • $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

  • $10 million will be available in 2001-02 for the Municipal Debt Relief Program

  • $800,000 is provided to continue environmental remediation of contaminated sites

 

INVESTING IN OUR INFRASTRUCTURE

  • $121.8 million is committed for improvements to the Trans Canada Highway, major trunk roads and provincial roads

  • $6 million in additional provincial funding is allocated to the provincial capital roads budget to address priority improvements

  • $5 million is allocated for improvements to ferry terminals and wharf renovations

  • $500,000 additional funding provided for ferry vessel maintenance and refit

  • $200,000 additional funding for forest access roads. Total funding of $2.2 million is provided for the 2001 program

 

 INVESTING IN OUR ECONOMY 

Renewal Strategy for Jobs and Growth

  • Final Report of the Renewal Strategy for Jobs and Growth released

  • $1.3 million to continue with initiatives arising from the Jobs and Growth Strategy 

Rural Revitalization

  • $60 million committed to support economic and rural development initiatives in the new Department of Industry, Trade and Rural Development

  • 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

  • $300,000 is allocated for a natural gas study to determine the economic potential of offshore gas

  • $3.2 million is provided for Receiving the World: Celebrating Communications

  • Heritage grants, which help fund 200 community museums throughout Newfoundland and Labrador, are increased by $80,000 to $161,700

  • 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

  • Funding of $100,000 for the Community Fisheries Infrastructure Program and $254,000 to maintain the Quality Assurance and Inspection Program

  • $300,000 for four additional highway patrol positions to improve safety on our highways

  • $2.5 million in additional funding is provided for the 2001 forest insect control program

  • $1.3 million is allocated to prepare the House of Assembly for televising proceedings by the Fall 2001 sitting

  • $390,000 is provided to renovate the Buchans Core Storage Facility

  • 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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