Yukon government delivers surplus budget as election looms

The Yukon government is posting a $9.4 million surplus and promising no major new projects or tax increases in its latest budget, tabled in the legislature this afternoon.

The $1.39 billion budget is the largest in the territory's history, and the last before the next election. The overall capital budget is down slightly, to $306 million. Last year, the government budgeted $312 million for capital projects.

Most of the territorial budget is covered by Ottawa, in the form of federal transfer payments and other funding programs. This year, 85 per cent of all of Yukon's revenues are coming from the federal government.

Finance Minister and Premier Darrell Pasloski touted new spending on education, infrastructure, First Nations, and a "major boost to health care funding" — roughly 9 per cent more for the department of health and social services.

Mental health strategy, police, and highways

Big-ticket budget items include $67 million to begin construction of the new Whistle Bend continuing care facility, $15 million for continued development of the Whistle Bend subdivision, $25 million for improvements to the Robert Campbell and Alaska Highways, $8.3 million for the new Salvation Army shelter, and $7 million to replace the Sarah Steele treatment facility.

Other highlights:

• $4.2 million for "reconciliation with First Nations," including implementing and negotiating agreements, and activities to address the legacy of residential schools.
• $1 million to implement a new mental health strategy.
• $2 million for new alcohol and drug services programming at the Sarah Steele facility.
• $21 million for MRI and emergency department expansion project at Whitehorse General hospital.
• $385,000 to hire new police officers in Whitehorse, and $21,000 to re-establish CrimeStoppers in Yukon.
• $271,000 over three years to support a new legal advocate for women, to be based at the Skookum Jim Friendship Centre.
• $2.8 million for improvements at community airports, including those in Dawson, Faro, Burwash and Old Crow.
• $4.7 million to develop an electronic health records system.
• $520,000 to school councils and boards for school supplies, at $100 per student.
• $3 million for the F.H. Collins technical education wing, and $3 million to develop the site of the old F.H. Collins site.
• $1.8 million for museums and First Nations cultural centres.
• $50,000 to buy two ancient Arctic camel skeletons.

No carbon tax

The budget also sets asides millions of dollars to plan for initiatives that may outlive this government, depending on the election later this year.

Planning money has been set aside for the Dawson City airport ($400,000), a new francophone high school ($400,000), development of a second fibre optic link ($500,000), and to develop the oil and gas sector ($370,000).

In his budget speech to the Legislative Assembly, Pasloski took pains to denounce any sort of carbon tax, saying the implications for Yukoners are much different than for those who live in "downtown Toronto."

A carbon tax "doesn't work for the northern way of life," the premier said.

He said Yukon's climate plan, focused on reducing government emissions and providing incentives to individuals, is working. He also pointed to a $2 million investment in this budget to develop new sources of hydroelectricity.

'Vote-buying tactics,' says NDP 

The opposition NDP was quick to react to the budget, saying it shows "desperation" in a government fearing an election.

In a statement, NDP leader Liz Hanson took specific aim at funding for oil and gas development planning, saying the government should instead be focused on green jobs and a sustainable energy plan.

Hanson also criticized the $100 per student to school boards for school supplies, calling it a cynical attempt to buy votes.

"I find it insulting that the Yukon Party government is adopting Harper-style vote-buying tactics ahead of this fall's election," Hanson's statement says.  

Liberal leader Sandy Silver also accused the government of trying to "buy Yukoner's hearts and minds with their own money."

Silver also said the heavy reliance on federal money shows Yukon is no closer to "standing on our own two feet" than when the Yukon Party took power 14 years ago.