Manitoba Budget 2012: Core Spending Decreases 3.9 %

Summary

As expected the NDP delivered a provincial budget Tuesday afternoon that included cuts and rollbacks as it continues to reign in Manitoba’s deficit and get the province back in the black. Finance Minister Stan Struthers announced core government spending is decreasing by 3.9 per cent this year, highlighting the following initiatives:

• A reduction in the number of regional health authorities to five from eleven (a new Southern Health Region will be created by merging the Central and South Eastman RHAs)
• Cutting the number of Crown corporations by merging the Manitoba Liquor Control Commission and Manitoba Lotteries Corporation
• Reducing the number of government-appointed agencies, boards and commissions by 20 per cent
• Continuing a 20 per cent roll-back on salaries for ministers and freezing wage increases for MLAs as some of those cuts.

A number of taxes are also being increased:

• Increase the gasoline tax by 2.5 cents to support road and highway improvements, including repairing flood damages.
• Increase the tobacco tax by 2.5 cents per cigarette to reduce smoking rates.

The minister also noted that more than half of the government’s departments will see a freeze or reduction in their budgets. This year, the provincial government will find the equivalent of an additional one per cent reduction in program spending. Struthers also noted the province is on track to return to balanced budgets by 2014.

It wasn’t all bad news and belt tightening with the following initiatives announced in Budget 2012:

• Loosen the restrictions on Sunday shopping in consultation with labour and business.
• Introduce legislation to guarantee Manitoba families will pay the lowest combined bills in the country for electricity, home-heating and auto insurance.
• Meet the commitment to fund 6,500 child care spaces this year.
• Build or expand 54 child care centres.
• Increase funding for affordable and social housing.
• Increase funding to hire more firefighters, police officers and cadets to keep families safe.
• Invest in new parks, community centres and municipal infrastructure.
• Renew over 2,400 kilometres of roads.
• Improve excess moisture insurance, forage establishment insurance and the forage restoration benefit.

What Budget 2012 Means For Manitoba Families and Businesses

With practical solutions that are focused on the priorities of families, Manitoba has kept moving forward through a global economic downturn and record flooding.  There remains, however, uncertainty in economies everywhere and many Manitobans affected by the flood still cannot return home.  Budget 2012 is spending less money, spending it more wisely, and raising revenues modestly and fairly to protect the things that matter most to families and keep the economy growing.

Keeping the economy strong and growing

When the global downturn hit, the provincial government took action to protect jobs and the services families count on.  The results have been steady economic growth, an unemployment rate that’s among the lowest in Canada and a strong growth in the population.

Budget 2012 is taking new steps to keep the economy strong and growing:

• increasing the number of apprenticeships and creating more rural and northern training opportunities closer to home to meet the growing demand for skilled workers;
• providing strong, predictable funding to universities and additional funding for colleges;
• creating an Energy Opportunities office and fund to help Manitoba businesses take advantage of Manitoba Hydro’s growth;
• loosening restrictions on Sunday shopping by working with business and labour to keep Manitoba businesses strong and competitive; and
• cutting red tape for businesses by reducing how often small businesses have to file sales tax and creating a one-stop shop for liquor and gaming regulation.

Renewing and improving strategic infrastructure

Record-breaking flooding last year affected thousands of Manitobans.  It washed away homes and businesses, and damaged roads, bridges and overpasses.  Rebuilding will take time.   The most important source of funding for infrastructure is fuel taxes.  A 2.5-cent increase in the gasoline tax – the first increase in two decades – will support rebuilding and provide stable funding for roads and highways, and will be guaranteed in law.  Provincial taxes on gasoline will remain the second-lowest in Canada.   A maximum increase of $35 to the vehicle registration fee will further support these long-term strategic investments that are essential to a strong economy and a good quality of life.

Budget 2012 will renew and improve the province’s infrastructure by:

• rebuilding flood-damaged roads, bridges and other infrastructure;
• making investments to improve flood mitigation and protection to prevent future damage and hardship for families; and
• building and renewing thousands of kilometres of roads, and many bridges and overpasses.

Protecting the front lines of health care

There’s nothing more important than the health of a loved one.  The provincial government has increased efficiencies in the health-care system and capped corporate costs for regional health authorities (RHAs) to ensure more money is going directly into the front lines of health care.  The provincial government will reduce the number of RHAs to five from 11 to streamline services.

Budget 2012 will protect and improve the care that Manitoba families receive by:

• providing faster cancer testing and treatment, and providing free cancer drugs for all patients, allowing more patients to remain at home during treatment;
• training and hiring even more doctors, nurses, physician assistants, nurse practitioners and health technologists; and
• taking steps forward to ensure every Manitoban can access a family doctor by 2015.

Focusing on the priorities of families

Manitoba will tackle the challenges ahead the way it always has with a balanced approach that protects the things that matter most to families.

Budget 2012 will make Manitoba an even better place to live, work and raise a family by:

• ensuring Manitoba families will pay the lowest combined bills in Canada for electricity, home heating and auto insurance;
• reducing income taxes for families by delivering on a commitment to increase the basic personal exemption by $250 this year and increasing the seniors’ maximum property tax credit by $75 to $1,025;
• starting to reduce class sizes to 20 students in kindergarten to Grade 3 and providing children with stronger programming to improve reading and math skills;
• providing new funding for firefighters, police officers and cadets on the streets and in communities;
• taking new steps toward increasing the supply of rental and affordable housing; and
• increasing the minimum wage by 25 cents on Oct. 1.

The Reductions

REDUCING SPENDING, PROTECTING SERVICES

In uncertain times, families look for creative ways to cut expenses.  Budget 2012 offers responsible, innovative ways to reduce administrative spending to protect the things that matter most to Manitoba families.

Core government spending is decreasing by 3.9 per cent this year.  Budget 2012 reduces or freezes the budgets of 10 departments and, where there are spending increases, they are focused on key front-line services for families including health, education and training, infrastructure and public safety.

This year, the provincial government will find the equivalent of an additional one per cent reduction in program spending.

There remains uncertainty in economies everywhere but, with practical solutions that put the priorities of families first, Budget 2012 will keep Manitoba moving forward.

Reducing the number of regional health authorities (RHAs)

Ensuring every Manitoban can get the care they need when they need it is a priority, as is getting the best possible value from health-care funding.  That’s why the government has worked to eliminate unnecessary spending, streamline administration costs and find efficiencies, to ensure more money is going directly into the front lines of care.  Today, Manitoba has among the lowest hospital administration costs in the country and the Winnipeg Regional Healthy Authority, Manitoba’s largest, has reduced corporate spending costs to less than 2.99 per cent.

There’s been a lot of progress, but more needs to be done.  This year, the provincial government will reduce the number of RHAs by more than half, to five from 11, as part of a plan to protect the front lines of health care and ensure there will be a sustainable public system for generations to come.

By merging RHAs, the government expects to eliminate 30 to 35 executive positions and more than half of the RHA boards, directing more money into supporting Manitoba’s hospitals, QuickCare Clinics and access centres.

The new health regions will include:

• a new Western Health Region will be created by merging the Assiniboine, Brandon and Parkland RHAs;
• a new Northern Health Region will be created by merging the Burntwood and NOR-MAN RHAs;
• a new Southern Health Region will be created by merging the Central and South Eastman RHAs;
• a new Eastern Health Region will be created by merging the Interlake and North Eastman RHAs; and
• the Winnipeg and Churchill RHAs will also be merged as the regions are already closely connected.

Merging Crown corporations

Manitoba families expect good services from the province’s Crown corporations and value for their tax dollars.  Budget 2012 merges Manitoba Liquor Control Commission and the Manitoba Lotteries Corporation to create a single streamlined Crown corporation.

The new Manitoba Liquor and Lotteries Corporation will eliminate one full board of directors and deliver more efficient administration under a single president/CEO.  Once the merger is complete, purchasing procedures and office-space consolidations will help realize further savings.

Liquor regulation will also be combined with gaming regulation, creating the new Manitoba Gaming and Liquor Control Commission.  This will reduce red tape for Manitoba businesses by bringing inspection and other regulatory services into a one-stop shop.

Reducing the cost of government

Reducing the cost of government means making more money available to go directly into schools, hospitals and roads.  Government departments, ministers and all MLAs will do their part to help manage spending and protect the things that matter most to families.

Budget 2012 will:

• work with municipal governments to encourage more regional co-operation;
• continue a 20 per cent rollback on salaries for government ministers;
• defer wage increases and reduce office expenses for members of the legislative assembly;
• reduce travel costs in all government departments; and
• reduce the number of government-appointed agencies, boards and commissions by 20 per cent.