"Building Our Future Together"
K to 12 System
- Despite declining enrolment, we are reinvesting a further $12 million
in the education system to retain 218 teaching positions in the new school
year. This will ensure that our province maintains the best pupil-teacher
ratio in Canada.
- $8.5 million in savings from school reorganization and consolidation
will be reinvested back into the education system in 2003-04.
- Funding of $6.8 million is provided for capital construction projects
and school maintenance and repairs. $3.3 million has been designated for
capital construction and $3.5 million for school maintenance and repairs.
With this funding, we have invested almost $177 million in these
initiatives since education reform.
- $2.5 million is earmarked to phase in recommendations contained in the
Warren Report, "Facing the Challenge", respecting secretarial, janitorial
and maintenance staff services.
- Over the next two years, we are prepared to contribute $5 million
towards a Broadband Internet connectivity project in partnership with the
federal government and the private sector.
- $1.8 million has been allocated for the Community Access Program. This
program puts computers into schools, libraries and community facilities,
providing free Internet access to all residents in more than 96
communities throughout the Province.
- An additional $1.7 million has been allocated for school busing to
ensure dependable and safe transportation for our students. This brings
total funding for school busing this year to $31 million.
- For the fourth consecutive year, an additional $1 million has been
allocated for the purchase of new library books.
Youth and Post Secondary Education
- $2 million has been allocated to Memorial University to provide a 5%
reduction in tuition fees for most students, bringing total reductions to
25% over the last three years. Tuition rates at Memorial are the lowest
Canadian rates in the country. As well, tuition fees will remain frozen
for those attending Marine Institute, College of the North Atlantic and
Memorial�s graduate program and medical school.
- A new Student Loan Tax Credit program is being proposed at an annual
cost of $3 million. An income tax credit of up to 20% of the amount paid
on the principal portion of the Newfoundland and Labrador student loan
would be available to residents of the province. This credit would be
unique in Canada and would be designed to assist students who choose to
live and work in the province repay their debt. This proposal will be
taken to a roundtable of stakeholders in the near future to get their
input before proceeding.
- $9.2 million has been allocated for the Student Investment and
Opportunities Corporation, including $3 million for a new program known as
Youth Opportunities Newfoundland and Labrador. This funding will provide
for continued support of youth employment and career development through a
broad range of programs designed to assist students and graduates obtain
employment and work experience.
- $2.1 million is committed to the Memorial University Opportunities
Fund to facilitate innovative teaching, research and scholarships. This
brings our total commitment to date to $26.4 million.
A Plan For A Healthier Future |
- The health care budget will increase by approximately $71.6 million,
bringing our total health care budget, exclusive of funding for physician
salary increases, to $1.6 billion.
Facilities and Equipment
- $19.4 million is committed for continued work on existing capital
projects and renovations and repairs:
- $5 million for the new Grand Bank Health Facility.
- $7.5 million for the Fogo Health Centre.
- $3.5 million for the Sir Thomas Roddick Hospital in Stephenville.
- $3.4 million is allocated for renovations and repair work at health
facilities.
- $26 million is allocated for health care equipment:
- $20 million is
provided for medical and diagnostic equipment such as x-ray units,
ultrasound units and nuclear medicine equipment. A second MRI will be
purchased after Government consults with the medical community and health
boards respecting the type (fixed or mobile) and location for this
equipment.
- $5 million will be set aside for Picture Archiving and Communications
System (PACS) implementation.
- $1 million is being allocated to equip ambulances with defibrillators and
other patient care equipment.
Operating
- $4.5 million is provided to health boards to help manage growth and
inflationary pressures.
- An additional $1.3 million will be invested in the personal home care
sector. This funding will be used to increase rates to personal care homes
and the number of subsidies for individuals.
A Future Of Jobs And Growth |
- This budget contains new measures to strengthen the overall small business
environment, including:
-
Payroll Tax
Effective January 1, 2003, employers with payroll between $500,000 and
$600,000 will be removed from the tax rolls and employers whose payroll is
between $600,000 and $700,000 will receive a reduction in their payroll
tax burden.
Corporate Income Tax
The small business corporate income tax threshold will increase to
$300,000 over the next four years.
A corporate income tax holiday will be provided for new small business
start-ups over the next three years in designated growth sectors of the
economy. This will include a three year tax holiday for eligible
businesses located on the Northeast Avalon and a five year tax holiday for
eligible companies outside the Northeast area.
- Venture Capital
Effective April 1, 2003, the Direct Equity Tax Credit Program will be
enhanced to provide a tax credit to arm�s length corporations that make
investments in eligible businesses.
Within 60 days, a call for proposals will be issued for the establishment
of a Venture Capital Corporation in the province. As an incentive to set
up a fund, a provincial tax credit will be offered.
Starting in 2003, venture capital corporations may be eligible for a 10 or
15 year corporate income tax holiday.
- $9 million has been budgeted to make significant investments in regional
economical development by implementing a number of industry and community
initiatives that have been approved under the Canada-Newfoundland and
Labrador Comprehensive Economic Development Agreement (CEDA).
- Another $5.5 million is available for new economic development initiatives
as a contribution towards Government�s proposed one year, $20 million,
extension of CEDA.
- $5 million will be invested in a new Industrial Research and Innovation
Fund to foster greater research and innovation in high growth �cluster of
excellence� areas such as marine technology, pharmaceutical research,
biotechnology and the oil and gas industry. This fund will help ensure the
province remains competitive in the global economy.
- A new Business Attraction Agency will be established to entice new
investment, companies and industries to the province in strategic growth
sectors of the economy. $1.5 million will be committed to this initiative
in 2003-04 and we will also seek financial participation from the private
sector.
- The Science Division of the Department of Tourism will receive $2.8
million. This funding will help protect and conserve our natural heritage
by ensuring that our wildlife is managed responsibly.
- This budget contains a number of programs that are critical to sustainable
forest management, including: $6.5 million for the insect control program,
$7.3 million for silviculture initiatives and $2.8 million for forest fire
suppression.
- A new five-year Agriculture Policy Framework Agreement, valued at $32.5
million, will replace the Safety Nets Agreement which expires on March 31,
2003. $6.5 million in federal-provincial funding is available in the first
year of this new agreement.
A Prosperous Future For Labrador
|
- $26.2 million has been allocated for the Trans Labrador Highway as
follows:
- $17 million has been earmarked to begin construction of Phase III of the
highway between Happy Valley - Goose Bay and Cartwright, pending approval
under the environmental assessment process.
- Funding of approximately $4.65 million has been provided to complete work
on Phase II of the highway.
- $4.5 million will be spent to complete the road to Pinsent�s Arm.
- Approximately $10.5 million will be spent on water and sewer servicing in
Labrador.
- $4.7 million will be spent on summer and winter maintenance on the Trans
Labrador Highway, which includes $250,000 for maintenance on the newly
opened sections of the highway between Charlottetown and Cartwright.
- $2.75 million will be spent to upgrade wharfs and terminals in Labrador.
Work will be carried out at Cartwright, Postville, Black Tickle and Norman
Bay. Improvements will also be made at the facilities in St. Barbe to
enhance the Strait of Belle Isle ferry service.
A Brighter Future For Those In Need
|
- An additional $1.1 million is provided to enhance the Newfoundland and
Labrador Seniors� Benefit, bringing the total amount paid to our seniors�
under this program to $7.7 million annually. Benefit amounts for 2003 will
increase to $350 per year for eligible single seniors and $700 per year
for eligible married seniors.
- Beginning in the 2003 taxation year, the provincial non-refundable credit
for persons with disabilities will be increased from $4,233 to $5,000 and
a new disability supplement of $2,353 will be introduced for people under
18 years of age.
- In an effort to encourage a reduction in the use of tobacco products,
tobacco tax on cigarettes and fine cut tobacco will increase to 15 cents
per cigarette and gram of tobacco.
- $500,000 will be contributed to the Kids Eat Smart Foundation to assist
them in providing breakfast, lunch and snack programs in schools and
community centres throughout our province.
- To enhance public safety, funding is provided to the Royal Newfoundland
Constabulary to hire an additional 15 permanent officers.
- $11.5 million will be spent under the Provincial Home Repair Program to
assist low-income homeowners maintain their homes. It is estimated that
approximately 2,000 homeowners will receive assistance in 2003-04 under
this program that is cost shared with Canada Mortgage and Housing
Corporation.
- $4 million will be spent on a cost shared Affordable Housing Agreement
with the federal government. This program will assist in meeting specific
housing needs including independent living housing for seniors, supportive
housing for the mentally and physically challenged, specific housing needs
in Labrador and affordable housing for low income earners.
Infrastructure
for the Future
|
- Under the Canada-Newfoundland Infrastructure Program, approximately $24
million will be invested in water and sewer projects in 2003-04. This is
part of a three year $90 million program that began last year. Projects
will be cost shared between federal, provincial and municipal governments.
- $22 million will be invested through the Municipal Capital Works Program
for short term projects such as municipal road and buildings, recreation,
and firefighting equipment, in rural areas of the province. This is part
of a multi year plan that will see total expenditures exceed $60 million
over a three year period.
- $23 million has been allocated under the Provincial Roads Program to carry
out repairs to local roads.
- $15 million is available under the Strategic Highway Infrastructure
Program for improvements to the Trans Canada Highway.
- $9.6 million remains in the Roads for Rail Agreement to complete the Outer
Ring Road, Veterans Memorial Highway and the Queen Elizabeth Bridge,
Glenwood.
- $3.6 million has been allocated for the 2003-04 cash flow requirements for
harbour cleanup in St. John�s.
- $3 million is committed to assist the residents of Badger who were
devastated by recent flooding.
- An additional $700,000 is provided over last years allocation, for
resource access roads and land development, bringing the total budget to
$4 million.
Economic Performance
- Strong economic performance in 2002:
- Real GDP grew by 8.2%. This is the third time in the last five years that
the province led the country in economic growth.
- Offshore oil production grew to104.3 million barrels with a full year of
production at Terra Nova.
- Employment grew by 1.2% to a record 213,900.
- Retail trade grew by 3.2% to $5.1 billion.
- Housing starts reached the highest level since 1991 at 2,419 units.
- Strong performance expected to continue in 2003:
- Real GDP is forecast to increase 5.4%, among the strongest in Canada.
- Employment is expected to grow 1.8% to 217,800.
- Offshore oil production is expected to grow by 31%.
- Retail sales are expected to grow by 3.2% to almost $5.3 billion.
- Housing starts are expected to match the 2002 level, at just over 2,400
units.
- Capital investment is projected to increase by 8.3% to $3.5 billion, the
second highest level ever.
Fiscal Performance 2002-2003
- Projected deficit of $61.7 million versus $93.3 million budgeted.
Budget Outlook 2003-2004
- Responsible financial management allows us to run an affordable cash
deficit of $212.7 million.
- Government has significantly enhanced its budget reporting by providing
information relevant to the borrowing requirements of its entities and by
providing an accrual schedule.
- No cuts to social programs or other public services.
Back to Budget
2003
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