STRIKING
THE RIGHT BALANCE
Economic Performance
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Employment
grew by 3.3% to a record high of 211,300.
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Unemployment
rate of 16.1%, the lowest since 1989.
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Retail trade
grew by 8.5%, to more than $4.9 billion, the fourth year since 1996
that growth exceeded 7%.
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Real GDP growth
of 1.3%.
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Employment expected
to grow 1.4% to 214,200.
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Unemployment rate to
decline to 15.7%.
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Retail sales are
expected to grow by 3.3% to over $5 billion.
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Real GDP forecast to
be 3.7%, the strongest of all provinces.
Fiscal Performance 2001-2002
Budget Outlook 2002-2003
Greater
Priority On Youth |
K to 12 System
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The current method of
allocating teachers, consistent with the report of the Ministerial Panel,
would have removed 426 teaching positions over the past two years. However,
despite a decline in student enrolment in the last two years, more than one
half of the teacher positions (218) scheduled for reduction will stay in the
system for the benefit of students. This is an investment of $11 million.
Given that there will be more retirements than position reductions, school
boards will have to hire new teachers to replace many of the retirees.
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$8.4 million in savings from
school reorganization and declining enrolment will remain in school board
grants.
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$10 million has been
allocated to address priority construction and renovations in the province�s
school system. Total investment in school construction and renovations since
education reform is $170 million.
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$4 million is allocated to
address priority repairs and maintenance for existing schools, primarily
roof repairs and air quality issues, completing a three year commitment of
$12 million.
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The budget for professional
development is maintained at $4.4 million.
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An additional $1million has
been allocated to the Provincial Information and Library Resources Board for
the purchase of new library books.
Youth and Post Secondary
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$3.5 million has been
earmarked for MUN to make university education more affordable. Student
leaders and administrators will be invited to participate in a roundtable
discussion to provide advice on how best to invest this money, by a further
10% tuition reduction or other actions to reduce student debt.
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$4.8 million is allocated for
the Student Investment and Opportunity Corporation to give our youth more
opportunities to gain work experience and employment to offset the cost of
their education.
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$3 million is provided to the
MUN Opportunity Fund, bringing our total contribution to date to $24.3
million.
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$500,000 is provided to permit post secondary
institutions to lever additional support from the Canada Foundation for
Innovation.
Maintaining
Priority On Health |
A Top Priority
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Total funding allocated for
the Department of Health and Community Services is approximately $1.5
billion.
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Government is committing $2.7
million annually to provide a 4% wage increase to home support workers,
beginning with a 2% increase on June 1, 2002 and a further 2% increase on
December 1, 2002.
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$1.1 million is provided to
implement a Wellness Strategy which will include expansion of the breast and
cervical screening programs and a renewed commitment to the provincial
tobacco strategy.
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Government is committing an
additional $1.3 million to increase rates to personal care homes and the
number of subsidies for individuals, bringing the total to $13 million
annually.
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In response to anticipated
retirements in the nursing profession, $300,000 is allocated to increase the
number of students admitted into the nursing program.
Health Facilities
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$31 million will be
spent on planning and construction of capital projects currently underway
in all regions of the Province including major projects in Gander, Fogo,
Stephenville and Grand Bank.
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$5 million will assist
with renovations and repairs to existing facilities.
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$15 million will be spent on
new diagnostic, clinical and related equipment.
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Funding of $2 million is provided to continue
initiatives under the Strategic Social Plan.
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For the second consecutive year, the income
threshold for the Newfoundland and Labrador Child Benefit (NLCB) will
increase. This change will benefit about 4,000 families receiving the NLCB,
and also mean that families near the top of the income threshold will not
lose partial benefits as quickly.
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$2 million has been allocated to assist low
income homeowners offset the cost of fuel tank replacement.
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An additional $1.3 million
has been allocated to enhance compliance, monitoring and enforcement of the
Occupational Health and Safety Act.
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As part of its continuing
efforts to address the problem of violence against women, children, the
elderly and others, $500,000 is provided to the Violence Prevention
Initiative.
Supporting
Our Communities |
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Municipal Operating Grants are maintained at
$21.5 million.
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Several multi-year capital
works programs have been budgeted, including:
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$108 million multi-year
Municipal Capital Works Program, to be cost-shared 50/50 with municipalities
over a three year period, designed to fund larger scale infrastructure
projects, such as water and sewer, in larger communities.
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$90 million
Canada-Newfoundland Infrastructure Program to be cost-shared over the next three
years between federal, provincial and municipal governments that will focus on
green projects and water quality initiatives.
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$63 million Municipal
Capital Works Program to be cost-shared between the province and municipalities
over a three year period that will focus primarily on short term projects, such
as paving and recreation, in rural areas of the province.
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$12 million has been allocated to
the Municipal Debt Relief Program, bringing the total allocated since 1997-98 to
$47 million. This program helps municipalities develop sound financial plans and
restructure long-term debt.
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$1.5 million in additional
funding has been provided to the Safe Drinking Water Initiative.
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$600,000 has been allocated to continue with
environmental remediation work at abandoned sites at Northwest Point in
Labrador, Jerry�s Nose/West Bay on the Port au Port Peninsula and in St.
Anthony.
Priorities
In Infrastructure |
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$82.2 million will be spent on improvements to
the Trans Canada Highway, major trunk roads and provincial roads, and
continued construction of the Trans Labrador Highway.
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$3 million is allocated for forest access and
agriculture roads, an increase of $600,000 over last year.
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$1.8 million will be spent on wharf and ferry
terminal upgrades on the island.
Always
A Priority - Jobs And Growth |
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New funding of $3.3 million is provided for
consumer contact centres.
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$2.8 million is provided for implementation of
Jobs and Growth Strategy initiatives including supporting the Strategic
Partnership Initiative between business, labour and government that was
launched earlier this year, establishing a new Small Business Advisory
Council and funding the New International Business Attraction Initiative.
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$10 million has been allocated to continue
work on the environmental reclamation of the former Hope Brook mine site.
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An additional $2 million is
allocated for the insect spray program, bringing the total to $6.5 million
annually.
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$2.2 million is allocated to continue the
mineral exploration assistance program.
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$2.8 million annually has been allocated for
the newly established natural heritage initiative.
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The tourism marketing budget will be increased
by $1 million, bring the total budget to $4.9 million.
Acting
On Labrador Priorities |
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A six year, $100 million commitment has been
made for construction of Phase III of the Trans Labrador Highway from
Cartwright to Happy Valley-Goose Bay. This initiative will commence
following completion of the environmental impact study.
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$17 million will be
spent this year to complete construction on Phase II of the Trans Labrador
Highway from Red Bay to Cartwright.
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$3 million is budgeted to
begin construction of a road to connect Pinsent�s Arm to the Trans
Labrador Highway.
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$2.6 million has been
allocated for other road projects including, upgrading of roads in Rigolet,
Northwest River, Port Hope Simpson, Cartwright, Charlottetown and Mary�s
Harbour.
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An increase of $394,000 is
provided for winter maintenance of the newly opened sections of the Trans
Labrador Highway, bringing the total maintenance budget for the highway to
$4.5 million.
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$2.2 million is provided for
improvements to marine infrastructure in Postville, Norman Bay, Black Tickle
and Cartwright.
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$700,000 is provided for the
Labrador 2002 Celebrations, which when combined with other funding sources
totals $1.8 million.
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Funding for the Labrador
Travel Subsidy will be maintained at $427,000.
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$250,000 in additional
funding is provided for the Transition House Program, a significant portion
of which will enhance services in Labrador.
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$100,000 is committed for
snowmobile trails in Labrador for communities not connected by road.
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