100-plus job cuts proposed in N.W.T.'s $1.2B budget

More than 100 cuts to the territorial civil service are being proposed in the Northwest Territories' 2008-09 budget, which Premier and Finance Minister Floyd Roland delivered Thursday afternoon.

The $1.22-billion budget — the first by Roland since he became premier last fall — proposes to redirect a total of $72 million in government spending to five priority areas, including creating more job opportunities and addressing the high cost of living in the territory.

According to a government news release, the budget also aims to "refocus government," in part by setting up a new $424,000 office to review government programs.

The budget also proposes to spend $180 million on public infrastructure in the coming year.

One controversial aspect of the document for many in the territory were job cuts that the government first announced in February. On top of those cuts, the budget seeks to eliminate 88 vacant positions in the territorial civil service.

Roland said he fully realizes the impact the proposed job cuts will have on people and communities, but said he wants to build a balanced budget that will benefit the territory in the long term.

"We have limited revenues in the Northwest Territories, and although they are growing, without changes, our expenditures will grow faster," Roland said during his budget address.

"We face a situation where our operating expenditures have continued to eat into our revenue base, eroding our ability to fund important priorities like roads, schools and water treatment plants. If this isn't addressed, it will hurt our long-term financial position, and our ability to invest in our strategic priorities towards building a better future will be compromised."

The union representing territorial government employees had opposed the budget before it was released. Approximately 50 to 60 people held a demonstration outside the N.W.T. legislature before Roland's budget speech, calling on MLAs to vote against the budget.

"Those are program cuts — this is more than just jobs. I mean, those public servants provide those services to residents in the Northwest Territories," Todd Parsons, president of the Union of Northern Workers, told CBC News.

"And what's really concerning is that the MLAs were not a part of this vision, of this visionary document. So where is consensus government in this? Because the voice of the people have not been heard in this budget."

Justice hit hard

According to budget documents, the area of government set to be hit hardest, with 33 job cuts, is the executive, which includes the executive office, the Financial Management Board Secretariat and the departments of Human Resources and Aboriginal Affairs and Intergovernmental Relations.

The Justice Department will have a net loss of 31 jobs, about 20 of which will come from the Arctic Tern Young Offender Facility in Inuvik, N.W.T., which the government wants to close. Cuts are also slated for legal aid, but the government wants to add 10 workers to the court system.

As well, the government proposes spending an extra $1.5 million for the RCMP to add police detachments in Sachs Harbour, Whati and Gameti, as well as bring in a third officer from other detachments to provide backfill in communities that have two-person RCMP detachments.

"For safety in the communities, more RCMP does make sense because the communities have been screaming for that for a long time — which would naturally lead, I suspect, logically, to more people appearing in court as more charges are laid through having more police officers," said Lydia Bardak, executive director of the John Howard Society.

"But then when you reduce legal aid, close down the law library, you will likely have people not adequately defended, more likely ending up in custody, where we've cut down programs in custody so that we can later on release people from jail without the benefit of healing or wellness or programs."

Other departments facing job cuts under the proposed budget include:

• Municipal and Community Affairs — 20.
• Health and Social Services —15.
• Environment and Natural Resources —14.
• Industry, Tourism and Investment — four.
• Transportation — three.
• Finance — one.

Meanwhile, the departments of Education and Public Works could have small increases in staffing if the budget passes.

Sports and recreation programs spared

The government was also expected to make cuts to community sports and recreation programs. Roland said those proposed cuts have now been shelved, thanks to an outcry from MLAs and the public.

"An active and vibrant recreation program is a key component of a sustainable community, and promoting physical activity in all segments of society helps prevent lifestyle-related diseases and reduces health costs," Roland said during his budget address.

"I am pleased to announce that the government is committed to maintaining a stable level of investment in this key area."

Among the $72 million in new spending proposed in the budget are:

• $18.6 million for numerous health and cultural initiatives, such as improving early childhood programs, supporting minority language instruction, and giving on-the-job training to community health nurses.
• $17.1 million from the Northern Housing Trust to build more affordable housing.
• $6 million to improve the income security program.
• $3 million to the N.W.T. Energy Corp. to work on the proposed expansion of the Talston hydroelectric project.
• $2.8 million for more teachers in trades training programs, in order to bring down the student-teacher ratios in those programs.
• $1.4 million to continue work on the N.W.T.'s barren-ground caribou strategy, as well as to implement a wood bison strategy.
• $1.6 million towards a tourism fund.
• $650,000 to continue devolution and resource-revenue sharing negotiations with the federal government.
• $610,000 to help various departments that are involved in the proposed Mackenzie Valley natural gas pipeline project.

Roland said the proposed new spending will be covered by a total of $35 million in program spending cuts and $32 million from programs that are ending.

Surplus down from last year

The budget contains total operating expenditures of $1.22 billion. That is $64 million, or 5.5 per cent, more than last year's original budget estimate but $19 million less than last year's revised estimate.

Government revenue for the coming year is forecast to be around $1.23 billion, which is slightly down from last year due to the loss of one-time federal funding, less revenue from corporate taxes, and less revenue from the territory's diamond mines.

The budget also forecasts a $13-million operating surplus, which is much less than the $69-million surplus in the 2007-08 revised estimates and $44.5 million in that year's main estimates. The territory's surplus in 2006-07 was slightly less than $88 million.

No tax changes are proposed in Roland's budget, but he said the government will study ways to boost revenue by at least $10 million a year.