STRIKING THE RIGHT BALANCE

• Strong economic performance in 2001:

• Employment grew by 3.3% to a record high of 211,300.

• Unemployment rate of 16.1%, the lowest since 1989.

• Retail trade grew by 8.5%, to more than $4.9 billion, the fourth year since 1996 that growth exceeded 7%.

• Real GDP growth of 1.3%.

• Strong economic performance expected in 2002:

• Employment expected to grow 1.4% to 214,200.

• Unemployment rate to decline to 15.7%.

• Retail sales are expected to grow by 3.3% to over $5 billion.

• Real GDP forecast to be 3.7%, the strongest of all provinces.

 

Fiscal Performance 2001-2002

• Projected deficit will be $63.5 million versus $30.5 million budgeted.

• $4 billion Budget.
  
  

• Responsible financial management allows us to forecast a deficit of $93.3 million.

 

Greater Priority On Youth

K to 12 System

• 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.
  
  

• $8.4 million in savings from school reorganization and declining enrolment will remain in school board grants.
  
  

• $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.
  
  

• $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.
  
  

• The budget for professional development is maintained at $4.4 million.
  
  

• An additional $1million has been allocated to the Provincial Information and Library Resources Board for the purchase of new library books.

• $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.
  
  

• $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.
  
  

• $3 million is provided to the MUN Opportunity Fund, bringing our total contribution to date to $24.3 million.
  
  

• $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

• Total funding allocated for the Department of Health and Community Services is approximately $1.5 billion.
  
  

• 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.
  
  

• $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.
  
  

• 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.
  
  

• 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 

• Total value committed for capital spending for new health facilities, renovations of existing facilities and equipment is $51 million:

• $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.
  
  

• $5 million will assist with renovations and repairs to existing facilities.
  
  

• $15 million will be spent on new diagnostic, clinical and related equipment.

• $800,000 is provided for a psychiatric assessment/short stay unit in St. John�s.

 

Supporting Our Families

• Funding of $2 million is provided to continue initiatives under the Strategic Social Plan.
  
  

• 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.
  
  

• $2 million has been allocated to assist low income homeowners offset the cost of fuel tank replacement.
  
  

• An additional $1.3 million has been allocated to enhance compliance, monitoring and enforcement of the Occupational Health and Safety Act.
  
  

• 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

• Municipal Operating Grants are maintained at $21.5 million.
  
  

• Several multi-year capital works programs have been budgeted, including:

• $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. 
  
  

• $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. 
  
  

• $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.

• $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.
  
   

• $1.5 million in additional funding has been provided to the Safe Drinking Water Initiative.
  
  

• $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.

• $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.
  
  

• $3 million is allocated for forest access and agriculture roads, an increase of $600,000 over last year.
  
  

• $1.8 million will be spent on wharf and ferry terminal upgrades on the island.

• New funding of $3.3 million is provided for consumer contact centres.
  
  

• $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.
  
  

• $10 million has been allocated to continue work on the environmental reclamation of the former Hope Brook mine site.
  
  

• An additional $2 million is allocated for the insect spray program, bringing the total to $6.5 million annually.
  
  

• $2.2 million is allocated to continue the mineral exploration assistance program.
  
  

• $2.8 million annually has been allocated for the newly established natural heritage initiative.
  
  

• The tourism marketing budget will be increased by $1 million, bring the total budget to $4.9 million.

 

Acting On Labrador Priorities

• 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.
  
  

• $17 million will be spent this year to complete construction on Phase II of the Trans Labrador Highway from Red Bay to Cartwright.
  
  

• $3 million is budgeted to begin construction of a road to connect Pinsent�s Arm to the Trans Labrador Highway.
  
  

• $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.
  
  

• 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.
  
  

• $2.2 million is provided for improvements to marine infrastructure in Postville, Norman Bay, Black Tickle and Cartwright.
  
  

• $700,000 is provided for the Labrador 2002 Celebrations, which when combined with other funding sources totals $1.8 million.
  
  

• Funding for the Labrador Travel Subsidy will be maintained at $427,000.
  
  

• $250,000 in additional funding is provided for the Transition House Program, a significant portion of which will enhance services in Labrador.
  
  

• $100,000 is committed for snowmobile trails in Labrador for communities not connected by road.