Yes, Madam Chair. The interim appropriation requests authority for appropriation of $404.121 million for operations expenditures in the 2012-13 fiscal year.

This interim budget provides the necessary resources for the government to operate in the first three months of the 2012-2013 fiscal year. As discussed with committees previously, the 2012-2013 Main Estimates, or full budget, will be presented during the May/June sitting of the Legislative Assembly.

I will explain the methodology of the interim appropriation development and clarify that the interim provides for only a portion of the full year requirements in operations.

As directed, departments were required to develop their 2012-2013 interim appropriation requirements using the following parameters:

•

Funding is to be included only for the six pay

periods that fall within the time frame of the interim appropriation;

•

Contribution funding is only to be included for

those recipients that require the funding within the time frame of the interim appropriation;

•

Other expenses should only include the

minimum requirement during the interim time frame. However, where it is absolutely necessary to enter into contracts for the full year, the full year requirements have been included.

The $404.121 million in operations expenditures represents 30 percent of the total expenditures included in the 2011-2012 Main Estimates. This exceeds one-quarter of the 2011-2012 Main Estimates budget due to funding requests to cover expenditures that require sufficient funding at the beginning of the fiscal year. Committee members will also note that a number of departments are requesting funding that exceeds the average 30 percent. This is due to the operational requirements, the need to put in place contracts for specific work at the beginning of a fiscal year and for funding for items approved in 2011-12 Supplementary Appropriations No. 1 and No. 2. These departments include:

1. The Department of Executive offices requests

an appropriation of $5.6 million or 37 percent of the 2011-12 Main Estimates amount. One point seven million dollars of the $5.12 million approved in the supplementary appropriation process for devolution activities is being requested for the interim period.

2. The Department of Human Resources requests

an appropriation of $13.1 million or 31 percent of the 2011-12 Main Estimates amount. Human Resources provides funding up front for various activities associated with collective bargaining, PeopleSoft upgrades and other various programs and training in the first quarter of each fiscal year.

3. The Department of Finance requests an

appropriation of $29.4 million or 29 percent of the previous year’s main estimates. The department requires the full $2.3 million for insurance premiums which are paid in April.

4. The Department of Municipal and Community

Affairs requests an appropriation of $31.7 million or 34 percent of the 2011-12 Main Estimates appropriation. The department requirement includes upfront contribution funding to communities of $14.6 million, grants in lieu of taxes of $4.2 million, $1.5 million for youth centres and corps and $825,000 for community recreation funding.

5. The Department of Education, Culture and

Employment requests an appropriation of $89.9 million or 31 percent of the 2011-12 Main Estimates appropriation. The department requires 38 percent of the contribution to education authorities in the interim period and has a number of contracts in place for homeless shelters and other community offices.

6. The Department of Health and Social Services

requires an appropriation of $103 million or 30 percent of the 2011-12 Main Estimates. The increased requirement is a result of the need to provide 33 percent of contribution funding to health and social services authorities in the interim period.

7. The Department of Environment and Natural

Resources requests an appropriation of $33 million or 49 percent of the 2011-12 Main Estimates appropriation. At the beginning of the fiscal year, in anticipation that the fire season will start in early summer, the department puts in place contracts for fire suppression estimated at $14 million.

I would like to point out that this does not include any new funding that has not been approved by the 17th Legislative Assembly. Thank you, Madam

Chair.