Budget Highlights 2000

BUDGET PRIORITIES

Fiscal Performance 1999-00

• Fourth consecutive year the Government has met or bettered its fiscal target
• Projected deficit at $32.8 million
• A stronger year end position will allow the province to defer certain revenues to 2000-01 and to make strategic investments of $70 million before year-end - $48 million targeted to health care

Budget Outlook 2000-01

• Responsible financial management allows us to run a modest deficit of $34.7 million
• $30 million contingency reserve is maintained
• No new taxes in this Budget
• Three Year Personal Income Tax reduction strategy commences. $42 million tax cut in 2000 taxation year - $175 million over three years
• Third consecutive year of Payroll Tax reductions
  •  tax free threshold increases from $150,000 to $400,000, effective April 1, 2000
  • tax rate for renewable resource sector increases to 2%, effective April 1, 2000
  • $4.1 million overall reduction in tax burden in 2000-01
  • 1,300 businesses removed from tax roll in 2000-01 - 1,825 since 1998-99

Economic Performance

• 5.3% real GDP growth in 1999 - Newfoundland and Labrador has fastest growing economy for the 2^nd straight year
• 5.5% employment growth in 1999 is double the national pace
• Real GDP growth of 4.7% in 2000 expected to lead all provinces - 3^rd consecutive year

FOR THE GOOD OF OUR PEOPLE

Our Record of Putting Health Care First 

• $1.2 billion allocated to operate the health care system in 2000-01 - an increase of $233 million (25%) over five years. The cumulative increase in the health care budget over the past five years is $516 million
• Total value committed by this government for capital spending for new health facilities, renovations of existing facilities and equipment is $434 million
• In this budget alone, $136 million in new spending is committed by this government to health care in the Province

• $17 million added to base budgets of health care boards this year
• Special review team in place to work with boards to identify core services, priorities, new directions and efficiencies

• 14 major construction projects underway in all regions of the Province
• Three facilities to be open in 2000 - Janeway Children�s Health and Rehabilitation Centre, Happy Valley-Goose Bay Health Centre and Harbour Breton Health Centre
• Work continues on construction of facilities in Gander, Old Perlican, Fogo, Bonne Bay, Stephenville, Grand Falls-Windsor and Grand Bank
• $8.7 million to be spent in 2000-01 on renovations to existing facilities

• $54 million committed over three years for new and improved health care technologies
• New equipment will be purchased for all regions of the Province

• $600,000 to provide incentives to graduating nurses who commit to work in the Province
• $2.1 million budgeted for new salaried physicians in priority areas

• $6.2 million allocated to enhance cardiac surgery program
• $575,000 for two new community based dialysis programs in St. Anthony and Clarenville
• $2.0 million to create a Comprehensive Breast Health Centre at St. Clare�s Hospital
• $3.3 million in increased funding to improve the road ambulance program
• $6.0 million approved for the purchase of a more modern air ambulance

• The current method for allocating teachers could have resulted in a loss of 408 teaching positions. In excess of 300 teaching positions will be reinstated for September 2000 at an annual cost of more than $15 million
• School Board grant budgets will be maintained at last year�s level despite enrolment declines and school closures. $3.0 million will be retained in School Board operating grants in 2000-01 - $7.6 million annually has been retained since education reform began
• Government�s $125 million investment in school construction and upgrades will continue. $38 million will be spent in 2000-01 on 11 new school construction projects in all areas of Newfoundland and Labrador
• $12 million, over three years, is allocated to address priority repairs and maintenance for existing schools - primarily roof repairs and air quality issues
• $5.2 million is provided for teacher professional development, an increase of $900,000
• $1.5 million is being allocated for the implementation of new curriculum in September 2000
• $1.0 million is provided to develop and implement a new Newfoundland and Labrador history course
• $1.0 million has been allocated by the Province, in partnership with the National Literacy Secretariat, to create a $2.0 million Literacy Endowment Fund
• $1.0 million is provided for new library books in the public libraries system

• The two year tuition freeze at Memorial University of Newfoundland and the College of the North Atlantic announced last year will be extended an additional year. The cost of this freeze over the three year period is $36 million
• $2.1 million to refurbish and upgrade the exterior of the Sir Wilfred Grenfell College
• $6.5 million is allocated for renovations and equipment to relocate the Medical Sciences Program to the Prince Philip Drive campus of the College of the North Atlantic

• Funding of $2.0 million is provided to continue initiatives under the Strategic Social Plan
• An additional $1.0 million is provided to expand the NewfoundJobs Initiative
• $500,000 is provided to continue the successful project, in partnership with the Single Parent Association, to assist single parents on social assistance increase their employability skills
• An additional $200,000 will be provided in 2000-01 to support sport in the Province
• An additional $1.0 million has been allocated as an endowment to the School Children�s Food Foundation

• Municipal Operating Grants maintained at $21.5 million
• $20 million Municipal Capital Works program is approved for 2000-2001, along with the continuation of projects approved under the $106.4 million Multi-Year Municipal Capital Works Program cost shared 50/50 with Municipal partners
• An additional $5.0 million is provided for the Debt Relief Program to assist municipalities achieve financial stability
• $4.3 million is set aside for Disaster Relief for those communities on the south and southwest coasts affected by the tidal surge in late January
• Government will provide $800,000 for environmental remediation of contaminated sites
• $495,000 is provided to expand services in the areas of toxicology, environmental monitoring, waste management and investigation of THM levels in municipal water supplies.

• $72 million will be spent on improvements to the Trans Canada Highway, major trunk roads and provincial roads
• $3.3 million is allocated for improvements to ferry terminals
• $2.3 million additional funding provided for ferry vessel maintenance and refit

Northern Coastal Labrador Strategic Initiative

• $23 million in additional funding will be provided for initiatives in the five northern coastal Labrador communities of Nain, Hopedale, Rigolet, Makkovik and Postville
• $7.7 million will be provided over three years to improve housing conditions on the northern Labrador coast. Together with the current plans of the Torngat Regional Housing Co-operative and the Newfoundland and Labrador Housing Corporation, this initiative will meet existing needs with the construction of 125 new homes and renovation of 280 others
• $9.0 million will be provided through the Inuit Communities Agreement, over the next three years, for water and sewer projects in the five communities
• $6.0 million, over two years, is allocated for community road upgrading
• $280,000 is committed for reconstruction of community wharves in Hopedale and Postville
• Enhanced policing services will be provided in the coastal Labrador communities of Makkovik, Postville and Rigolet

• This year, Government will spend $57.5 million on the construction of the Trans Labrador Highway and two highway depots in the region
• Funding of $500,000 is provided for the next Labrador Winter Games

FOR THE PROSPERITY OF OUR ECONOMY

Renewal Strategy for Jobs and Growth

• Interim report released on major themes that emerged from the Jobs and Growth consultations and the priorities that government intends to pursue
• In response to concerns expressed over the lack of access to capital and markets, $3.5 million has been allocated for a number of initiatives to address these concerns - a new Seed Capital Equity Program; a Venture Capital Tax Credit Program; and a Business and Market Development Program
• Payroll tax exempt threshold increased from $150,000 to $400,000
• Government will maintain competitive business tax climate and will not increase corporate income tax rate for manufacturing and processing

Rural Revitalization

• $40 million committed for economic development initiatives under the post-Tags economic development programs and other cost shared programs

Other Initiatives

• Funding of $500,000 is provided to fund the Ports of Call activities as part of the Viking 1000 celebrations.
• An increase of $250,000 is included in the operating grant to the Newfoundland and Labrador Arts Council.
• $250,000 in addition to the ongoing allocation of $2.0 million has been provided to the Department of Mines and Energy to enhance the Junior Company Exploration Assistance Program, Prospectors Assistance Program and a Dimension Stone Incentive Program.
• Funding of $150,000 for community-based fisheries infrastructure and $250,000 for a fisheries Quality Assurance Program

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