A Plan to Live Within Our Means.
- The 1996-97 deficit is less
than predicted. At $29.2 million it is the lowest deficit
since 1965-66 other than for 1995-96 which benefited from
one-time revenues.
- A three year financial plan,
with a balanced budget forecast at the end of this
period.
- A modest budgetary
requirement of $20.3 million in 1997-98.
- A contingency of $30
million provided as a reserve against unforeseen
variances which may arise during the year.
- Current account expenditures
have been decreased by $69.2 million from 1996-97 levels
through operational efficiencies achieved in Government
restructuring and other measures.
- There are no tax increases
in this budget.
- Harmonization of the
provincial and federal sales tax systems will reduce
taxes by more than $100 million a year.
- $7.6 million has been
allocated to implement a provincial sales tax credit of
$40 per adult and $60 per child. This will be phased out
as family income exceeds $15,000 per annum.
- This Budget makes a
significant investment towards addressing Government's pension obligations by
committing payments of $196 million, $113 million and
$123 million respectively in each of the next three
years as one element in a pension reform strategy which
will require the cooperation of our employees.
- The size of the Public
Service will be reduced by 1100 full time equivalent
positions over the next three years as a result of
budgetary actions. A $2 million Labour Force Adjustment
Fund has been created to assist displaced workers and a
$10 million voluntary departure program has been
introduced.
- Total capital spending in
1997-98 will be $285 million including Municipal Capital
Works, the Canada-Newfoundland Infrastructure Program,
Phase II and the St. John's Health Care Corporation. $77
million for roads construction is also included in this
total. This is expected to create well in excess of 3000
person years of employment.
Putting Social Programs First
Health Care - Our First Priority
- The existing three year
commitment to stabilize funding in the health care
sector is extended to 1999-00. Enhanced funding is
provided for a number of new initiatives.
- $2.6 million has been
allocated to retain and attract physicians to rural
areas.
- Construction will begin
on the new Janeway Child Health Care Centre. Major
renovations will go ahead at St. Clare=s Hospital as part of a three
year, $100 million construction program.
- $7.8 million is
allocated over the next three years for a new
hospital at Harbour Breton.
- In cooperation with
Voisey's Bay Nickel Company and INCO,
construction and equipping of a new Lake Melville
Hospital, at a total investment of about $30 million.
- $4.5 million for the
James Paton Memorial Hospital, for redesign and
construction in 1997-98. The next phase of
construction will start in 1998-99.
- $2.5 million will be
provided in addition to the annual allocation of $4.5
million for hospital equipment.
- $500,000 contribution to
establish a neurotrauma research fund.
- Preliminary planning
will be undertaken for health care facilities at
Bonne Bay and Stephenville as part of a western
region health care needs assessment.
- Renal dialysis services
will be provided at the Central Newfoundland Regional
Health Care Centre in Grand Falls - Windsor.
Education - A New Beginning
- Grants to school boards for
administrative costs are being adjusted, consistent with
the restructuring of the education sector and declining
enrollment.
- Expenditures will more than
double to $38 million on school construction and
renovations over the next three years, compared to $18
million over the past three years. Three schools will be
built in Labrador at Nain, Rigolet and Hopedale. The
balance will be spent on renovations and needed
maintenance across the system.
- In order to put the 10 new
school boards on a solid financial footing $24 million
was invested in 1996-97 to repay all school board debt,
and a further $2.5 million was invested in the purchasing
of new computers. This will ensure greater financial
stability of school boards for years to come.
- Government will match a $6.3
million contribution by the private sector to Memorial
University's Opportunity Fund.
Social Services and Employment - Renewing the Social
Safety Net
- A new Department of Human
Resources and Employment will be established. The
existing programs of the Department of Social Services
and some from the Department of Development and Rural
Renewal will be incorporated into the new Department.
- High school students will be
able to earn money to assist them to attend
post-secondary institutions by tutoring other students in
a new "Tutoring for Tuition" program being introduced in
1997-98. $500,000 is allocated.
- A special emphasis on those
most in need - children, youth and families.
- A new $200,000 initiative
will provide a day care subsidy so social assistance
recipients, particularly single parents, can afford
licenced child care providers.
- The Province will
participate with the Federal Government in the new
National Child Benefit program.
- An educational program to
provide training for foster parents is being established,
at a investment of $70,000.
- A new $175,000 initiative to
eliminate the long waiting list for post-adoption
services will be introduced in 1997-98.
- Students with dependents
will be required to access the maximum available student
aid.
- For 1997-98 $2.5 million
will be invested in a new student employment program,
available to all students, in celebration of the Cabot
500 Year. This will be matched by $2.0 million from the
Federal Government and create summer employment for 3000
students.
- Parent's resources will be
taken into account in determining eligibility for Social
Assistance for single able-bodied clients between the
ages of 18 and 21.
- Government will continue its
efforts to downsize and close group homes with a view to
further integration into the community.
- $4 million has been
allocated to provide Worker=s Compensation coverage and to
provide for a wage adjustment for home support workers.
Local Services
- Local Government must be
financed by the public it serves. To this end the
Province will promote greater self-determination and
self-reliance for municipalities by working in
partnership with them rather than for them.
- Municipal Operating Grants
(MOG's) will be reduced by 20% in each
of the next three years.
- The municipal share of debt
servicing costs for municipal water and sewer debt will
be increased from its present level of $343 per household
to $400, and by a further $50 per household in each of
the next two years.
- $9 million has been paid to
the Newfoundland Municipal Financing Corporation to allow
selected municipalities to restructure their debt and
assume more responsibility for local services.
- Transition funding of $4
million has been provided to St. John's and Corner Brook as compensation
for the elimination of firefighting grants.
- A new agency will be
established to provide municipal assessment services to
be run by a new Board made up of municipalities and the
Province.
- The Province will
participate with the Federal Government and
municipalities in a new Infrastructure Program valued at
$30 million.
- The Municipal Capital Works
Program will be continued at $25 million for 1997-98.
- The Province will
participate with the Cities of St. John's and Mount Pearl and the Town of
Paradise, in the St. John's Harbour Clean-Up.
- $5 million is provided to
assist with the construction of a new civic center for
the St. John's area.
Partnering for Development
- Government is refocusing its
assistance to business to ensure a proper role for the
public sector in facilitating economic growth.
- A new five year
comprehensive economic development agreement with the
Government of Canada, valued at over $50 million, will be
operational in 1997-98.
- Government remains fully
committed to working with the Regional Economic
Development Boards in the 20 economic zones.
- There is provision for a $17
million Strategic Enterprise Development Fund targeted at
investment prospecting activities and to economic sectors
with growth potential.
- Government will move to
dispose of its interests in Newfoundland Farm Products
Corporation.
- Government will consider
public/private partnering and privatization options for
the Bull Arm Site, Marystown Shipyard Ltd. and Marble
Mountain.
Other Important Initiatives
- The Government is working
with the Federal Government on the devolution of social
housing to the Province from Canada Mortgage and Housing
Corporation.
- The rent-geared-to-income
scale for Newfoundland and Labrador Housing will range
from 25% to 30%, to bring it more in line with standard
practices in the country.
- The Government is actively
and aggressively pursuing, with the Federal Government,
an agreement on the Labrador Transportation Initiative to
improve roads infrastructure in Labrador.
- The Province will continue
to be policed by the RNC and the RCMP.
- The mining tax system will
be reformed in 1997-98.
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