Nunavut's $2.3B budget is 'people oriented,' finance minister says

The bulk of new money in the government of Nunavut's $2.35-billion budget for 2020-21 is slated to help the territory's health-care system "keep up," Finance Minister George Hickes told the assembly Wednesday in a 45-minute address.   

The budget earmarks $37.9 million in added funds for the Nunavut Health Department. Of that, $17.6 million will go toward the growing cost of medical travel for patients and escorts. 

That money is the largest single item increase for this year, and Hickes wasn't happy to share it. 

"Instead of investing this money to improve the health of Nunavummiut, we are forced to spend it just to get Nunavummiut to medical treatment that cannot be provided in Nunavut," he said. 

In Nunavut, federal transfers account for nine per cent of health-care costs. He said these transfers are lower than other jurisdictions in Canada, and don't take into account the cost of offering adequate service delivery in the territory. 

"This is unacceptable," he said. Hickes said around one of every five dollars spent by Health is for medical travel. 

Last year, around $102 million was spent on medical travel. That's over 10 million more than was budgeted. 

Of these new health funds, $5.1 million will also go toward out-of-territory mental health care, $4 million is for employee medical travel and $6.3 million is for employing more doctors. 

Here's what the government projects in deficit, debt 

Government spending is down this year by one per cent per capita, and tax revenues are up by three per cent. 

Despite this, the territory will run what it called a "modest deficit" of $30 million in the next fiscal year. That's if a $50-million contingency fund set aside for unforeseen expenses is used. This deficit amounts for one per cent of government revenue. 

We are able to stand on our own two feet.- George Hickes, Nunavut finance minister

Outstanding loan debt sits at $452 million as of the end of 2019. This is the highest the government has come to its allowable debt ceiling of $650 million. The bulk of that debt is for lines of credit for the Qulliq Energy Corporation. Previous debt from the Iqaluit airport has slowed.  

The money for the $2.35-billion budget comes from $1.84 billion in federal transfers, $262 million from third parties, and $249 million in government dollars from sources like the Petroleum Products Division and the Nunavut Liquor and Cannabis Commission.

Funding for shelters, Inuktut dispatchers 

Hickes called this third-annual operations and maintenance budget from the current assembly "people oriented." 

It puts $6.4 million toward the maintenance of public and staff housing, and $900,000 to hire more community-based staff for tuberculosis treatment and prevention. 

Hickes said federal funding for tuberculosis that flows through the national and territorial Inuit organizations is being rolled out slower than expected. 

"We remain firm in our determination to tackle the underlying social conditions like poverty and residential overcrowding that negatively influence health outcomes in Nunavut," he said, adding that those changes will require a "real commitment" from the Canadian government over a housing crisis connected to rates of tuberculosis in the territory. 

To reduce family violence, the budget has $8.4 million in new funding for the Department of Family Services. 

That will include:

• $2.1 million toward low-barrier and homeless shelter plans in Kugluktuk, Rankin Inlet and Iqaluit.
• $1 million for family violence shelters in Gjoa Haven, Baker Lake, Pangnirtung and Pond Inlet.
• $1.3 million to increase per diems for foster care, which haven't gone up since 2004.
• $645,000 to staff women's safety programs in communities.
• $300,000 for overnight safe spaces for youth in crisis.

The government is also planning to fund four civilian positions for Inuktut speakers at RCMP headquarters in Iqaluit. Those staff will work with dispatchers and be accessible to everyone in the territory. 

The budget also has $1.5 million for six new RCMP positions for this coming fiscal year and for six more over the next two years.

The students funding program known as FANS, or Financial Assistance for Nunavut Students, is being moved from the Department of Family Services to the Department of Education.

That program will see $1.9 million in new money.

It's customary for finance ministers to wear new or special shoes for the address. Hickes chose to rewear a pair of work boots he donned last year for his first address, where he said he was ready to get to work. 

"We are no longer young," Hickes said. "We are able to stand on our own two feet ... We have much left to accomplish by working together with our chief funder, the government of Canada."