Committee members noted that a number of communities are running operating deficits. One explanation may be that these communities do not have sufficient means to raise their own revenues. The committee further added that the current funding formula is too broad-based. Communities must be addressed on an individual basis, acknowledging their unique circumstances and operating requirements. For example, fuel costs have greatly contributed to increased operating costs in the communities. The committee encourages the department to proactively work with communities which may have encountered financial difficulties.
This was also a committee concern in its review of the department's 2001-2004 business plan that if programs, services and facilities are transferred to communities, adequate levels of funding, technical information and support should accompany those additional responsibilities. In some cases, communities did not have access to essential operating information and/or were excluded from decision-making processes that affected them. The committee reiterated that a community should be fully involved in any process that may affect their community and funding levels should realistically reflect higher operating costs such as fuel in smaller and remote communities. The standing committee is aware the department is reviewing and proceeding with proposed legislative changes in this matter and the committee encourages the department to complete these changes in a timely and responsive manner.