Thank you, Mr. Chair. Your committee would like to consider Tabled Document 2-18(3), Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018; Tabled Document 3-18(3), Supplementary Estimates (Infrastructure Expenditures), No. 1, 2018-2019; and Committee Report 1-18, Standing Committee on Rules and Procedures Report on the Review of the Chief Electoral Officer's Report on the Administration of the 2015 Territorial General Elections, Supplementary Recommendations, and the White Paper on the Independence and Accountability of Election Administration in the Northwest Territories. Thank you, Mr. Chair.

Thank you, Mr. Testart. Does committee agree?

Thank you, committee. We will consider the documents after a brief recess.

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I will now call the Committee of the Whole back to order. Committee, we have agreed to begin our consideration with Tabled Document 2-18(3), Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018. I will go to the Minister of Finance for any opening comments. Minister McLeod.

Thank you, Mr. Chair. Mr. Chair, I am here to present Supplementary Estimates (Operations Expenditures) No. 3, 2017-2018. This document provides for an increase of $5.9 million to the operations budget.

Major items in these supplementary estimates include:

• $3.6 million for projected fire suppression costs; and

• $2.3 million for costs associated with increased student enrolment and implementation of junior kindergarten in NWT schools.

That concludes my opening remarks. I am prepared to respond to the committee's questions. Thank you.

Thank you, Minister. I understand you have witnesses. Would the Sergeant-at-Arms please escort the witnesses into the Chamber. Minister, please introduce your witnesses for the record.

Thank you, Mr. Chair. Mr. Chair, to my right, I have Mr. David Stewart, who is the deputy minister of the Department of Finance. To my left, I have Mr. Sandy Kalgutkar, deputy secretary to the FMB. Thank you, Mr. Chair.

Thank you, Minister. I will open the floor to general comments on Tabled Document 2-18(3). This is the time to ask any questions the Members might have about the supplementary reserve or any such matters. I'll give committee a moment to gather their thoughts. Mr. Thompson.

Thank you, Mr. Chair. It's the No. 3, 2017-2018 document; is that correct?

That is correct: Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018. Any general comments? I see none. We will move directly to consideration of the document. Please turn to page 4. Department of Education, Culture and Employment. Comments or questions? Mr. O'Reilly.

Thank you, Mr. Chair. Can someone explain to me the figure of $2,283,000 for junior kindergarten? What does that cover? Is this additional, unanticipated enrolment, or are there additional things that are covered in there? Thank you, Mr. Chair.

Thank you. Minister McLeod.

Thank you, Mr. Chair. The $2.3 million is made up of $741,000 for increased school enrolment, and full funding for JK in 2017-2018 of $1.542 million. Thank you, Mr. Chair.

Thank you. Mr. O'Reilly.

Thanks, Mr. Chair. So yes, some of it's for unanticipated enrolment, but the $1.542 million for JK, how is that calculated and what does it actually get us? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister McLeod.

Thank you, Mr. Chair. Mr. Chair, I would like to refer to Minister Moses.

Thank you, Minister. Minister Moses.

Yes, and it's based on the funding formula of 12:1 that we have mentioned when we were rolling junior kindergarten in terms of pupil-teacher ratios. That goes directly to the education authorities based on their enrolments. We are still finalizing some of the enrolment numbers for junior kindergarten at the moment, so that's how it is rolled out. Thank you, Mr. Chair.

Thank you. Mr. O'Reilly.

Thanks, Mr. Chair. Just to be clear here, that $1.542 million, that's based on the current formula funding for district education authorities; is that correct? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister McLeod.

Yes, thank you, Mr. Chair. Mr. Chair, the Member is correct. That is for the enrolment of 12:1, I believe. Thank you, Mr. Chair.

Thank you, Minister. Mr. O'Reilly.

Thanks, Mr. Chair. Earlier, I guess, in the last session, I had asked the department to calculate the additional costs -- I shouldn't say "additional costs." What would be the additional costs if junior kindergarten was included in all the formulae that are used to help fund our district education facilities? That additional cost came to about $1.7 million. Just to be clear, that shortfall in funding for the district education authority, that is not covered in the supplementary appropriation. Is that the case, Mr. Chair? Thank you.

Thank you, Mr. O'Reilly. Minister.

Yes. Thank you, Mr. Chair. No, it is not.

Thank you, Minister. Mr. O'Reilly.

Thanks, Mr. Chair. I appreciate the very clear answer from the Minister there. I don't really expect a response here. It is more of a comment that we are still underfunding our district education authorities for 2017-2018 by about $1.7 million, asking them to deliver programs and services within their authority for JK students and it is not fully funded. No matter what the Minister has said on this topic, or his Cabinet colleagues, junior kindergarten is not fully funded. Our district education authorities have to make up this shortfall themselves in some way to provide programming for our junior kindergarten students. Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Comment noted. Anything further from committee? Mr. Thompson.

Thank you, Mr. Chair. The Minister talked about 12:1. That 12:1, that is territorial? That is just not schools. It is not jurisdictions. It is 12:1 average across the Northwest Territories. Correct? Thank you, Mr. Speaker.

Thank you, Mr. Thompson. Minister McLeod.

It is for junior kindergarten. Thank you.

Thank you, Minister. Mr. Thompson.

Thank you. I apologize. Yes, 12:1 for junior kindergarten. I guess, my concern is: have we looked at how it is having an impact on some of the larger schools that - in my riding, I have a number of schools that are smaller that are calculated into this 12:1. Has this increase of money here, the $1.542 million, is that actually coming to address some of those concerns, as well, with the larger classroom sizes instead of the 12:1? Thank you, Mr. Chair.

Thank you, Mr. Thompson. I will direct this to Minister Moses.

Thank you, Mr. Chair. As I mentioned in previous communications with standing committee members, we are still early on in the implementation of junior kindergarten in all of our communities across the Northwest Territories. We did commit to continue to monitor and evaluate this implementation. Previously, we had 20 communities in the Northwest Territories that were successful in half-a-day, full-day junior kindergarten. We are going to continue to monitor and make any adjustments that need to be done as we roll out junior kindergarten throughout the Territories. It is still pretty early on in the process. The school year just started. Thanks.

Thank you, Minister Moses. Mr. Thompson.

I thank Minister Moses for that answer. When can the schools that have these larger classroom sizes expect the department to come back with additional funds if that is what is required? Thank you, Mr. Chair.

Thank you. Once again, Minister Moses.

Yes. We are keeping in close communications with the education authorities. Through this process of implementation at junior kindergarten, we have also provided additional funding so that schools can hire additional education assistants to support the implementation of junior kindergarten. We are continuing to work with our education authorities. Usually, midpoints of the school year, if there are deficiencies as I mentioned in the standing committee, we can look at adjusting some of those budgets with the education authorities.

Thank you, Minister Moses. I see nothing further from Mr. Thompson. I will call this page. Mr. O'Reilly, you have already spoken to this. I will let you speak briefly, if you would like.

Thanks, Mr. Chair. I appreciate that. My colleague's questions made me think of one additional one. I spoke earlier about the $1.7 million shortfall of funding to the district education authorities. If they were fully funded for all the JK students using the formula that the department now uses, is there a commitment on the part of this government to actually make up that shortfall at any point or to change the formulae themselves? Thanks, Mr. Chair.

Thank you. Minister McLeod.

Thank you, Mr. Chair. I think the Minister of Education made a commitment on the evaluation of the process. We are also willing to work with committee to see if anything needs to change. We will go through the regular process as we do that. Thank you.

Thank you. Anything further, Mr. O'Reilly?

Thanks, Mr. Chair. I am not sure that was a really clear commitment. If there was an effort to try to make up that shortfall, I think it would only be in the best interest of our children. Thank you, Mr. Chair. Nothing further.

Thank you, Mr. O'Reilly. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Education, Culture and Employment, education and culture not previously authorized, $2,383,000. Does committee agree?

Thank you. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Education, Culture and Employment, total department not previously authorized, $2,383,000. Does committee agree?

Thank you, committee. Moving on to page 5, Environment and Natural Resources. Comments or questions? Mr. Thompson.

In regards to this allocation, is this the final number, or are we looking at another supplement further on? Thank you, Mr. Chair.

Thank you, Mr. Thompson. Minister.

Thank you, Mr. Chair. My understanding is this is the final number.

Thank you. Nothing further from Mr. Thompson. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Environment and Natural Resources, operations expenditures, forest management not previously authorized, $3,623,000. Does committee agree?

Thank you. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Environment and Natural Resources, operations expenditures, total department not previously authorized, $3,623,000. Does committee agree?

Thank you, committee. Please turn to page 6, Executive and Indigenous Affairs. Comments or questions? Mr. O'Reilly.

Thanks, Mr. Chair. Earlier this week, actually, the Minister of Industry, Tourism and Investment made a statement about the Inuvik to Tuktoyaktuk Highway. In there, he said that ITI was working to position residents and business in the Beaufort Delta region to capitalize on economic opportunities from year-round road access. That led me to believe that ITI was sort of in charge of this part of this project and that they would be funding tourism-related activities and capacity building and so on. Why is this $100,000 amount appearing in the Executive and Indigenous Affairs Department? It seems highly unusual that it would come through that department rather than either ITI or Department of Infrastructure. Can someone explain why this is coming through the Executive? Thanks, Mr. Chair.

Thank you. Minister.

Thank you, Mr. Chair. Mr. Chair, my understanding is this is cross-departmental money. The place we decided to put it through was Executive and Indigenous Affairs. Thank you.

Thank you. Mr. O'Reilly.

Thanks, Mr. Chair. Okay. Are there additional funds that are coming from this government to assist with community capacity building and getting ready for tourism and so on, or is this it? Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Minister.

Thank you, Mr. Chair. Mr. Chair, this funding is to provide Tuktoyaktuk Community Corporation to use to help prepare for the impacts and take advantage of opportunity as a result of the opening of the Inuvik to Tuktoyaktuk Highway. As far as other investments on the road itself, I believe those would be infrastructure investments. I would have to confirm with the infrastructure Minister to see if there was any other investment going towards that. I know the money has been allocated for the construction of the road, and that is the Department of Infrastructure's responsibility. This money is to help the community corporation get ready. As far as the tourism side of it goes, I really cannot answer that. I may have to refer to the Premier.

Thank you, Mr. McLeod. Would the Premier like to answer?

Yes, thank you. This is a request from the community corporation, who was seeking matching money from the federal government as well. This will be to give them the capacity to access additional funding to get ready for the opening of the highway and anticipated increase in activities in the community. Thank you, Mr. Chair.

Thank you, Premier. Mr. O Reilly.

Thanks, Mr. Chair. That is helpful information. I am just wondering if someone can explain, then, to me why this is not really in the O and M budget, and why this is not really part of the regular project planning for something like a new highway. Can someone explain why this is not part of the regular project funding and in the O and M budget? Thanks, Mr. Chair.

Thank you, Mr. Chair. The request came from the community leadership in Tuktoyaktuk. Had we received the request in time, I am sure it would have made its way into the operations budget for 2017-2018, but because we had received it after we had debated the budget, we decided to put it into the supplementary. Thank you.

Mr. O'Reilly.

Thanks, Mr. Chair. Just before somebody tries to say that I don't support the road or that I don't support tourism or that I don't support communities, which I am sure somebody is going to try to accuse me of at some point, I do believe that the community needs to be supported in getting ready for this project. I just question the very highly unusual way of doing this through the Executive, through a supplementary appropriation, rather than as part of proper project planning. This sort of one-off request, I think, opens the door for other kinds of one-off requests that may come forward. Can we expect that there is going to be a similar application for funding, say, from the Inuvik Community Corporation or the Town of Inuvik to help them get prepared for this highway and the benefits that it could bring? Thanks, Mr. Chair.

Thank you. Minister McLeod.

Thank you, Mr. Chair. Mr. Chair, no, I recognize that the Member supports this project and the benefit that it is going to bring, and we appreciate that very much. As far as anticipating any requests coming from Inuvik, I cannot speak for the leadership of Inuvik, but Inuvik has been at the end of a major highway for a long time. They have had opportunities to prepare and be ready for any influx of visitors that they have, and I think they have demonstrated this in the past. I do not anticipate a request coming from them, but I cannot speak for them as well. They have had experience being at the end of a road. Thank you, Mr. Chair.

Thank you. Mr. O'Reilly.

Thanks. I have spoken about the unusual nature of this funding coming through the Executive and not part of the O and M budget, not part of the regular project planning. What kind of assurance can I get from the Minister that, when it comes to other road projects, whether it is Whati or whatever, that these sorts of costs and proper project planning are going to become part of the normal cycle of developing a plan for similar projects in the future, like the Whati or the Tlicho all-season road? Thank you, Mr. Chair.

Thank you. Minister McLeod.

Thank you, Mr. Chair. Mr. Chair, I would think that, with the new projects, we would do some consultation with the community, and we will make them aware that, if they have any initiatives that they want to put forward for consideration as the road opens or as they experience a lot of visitors, we will inform them to get their requests in early, and that way we can go through the regular planning process. Thank you.

Thank you. Mr. O'Reilly.

Thank you. I appreciate that commitment from the Minister to look at how we can better build community capacity with regard to these sorts of projects as part of the regular project planning cycle. I still maintain and want to go on the record as being concerned about the one-off nature of this appropriation, the very highly unusual way that it is coming through the Executive, through a supplementary appropriation, rather than as regular O and M, and I think this opens the door to other interests coming forward to our government for special requests for money.

I will give one example: the Northern Frontier Visitors Centre has been closed in Yellowknife, and this is the sort of support that could have been offered or been made available to keep that facility open, but when I tried to get the Minister to look at this, he would not do it. I will just leave it at that. Thanks, Mr. Chair.

Thank you, Mr. O'Reilly. Mr. McNeely, I believe.

Yes, thank you, Mr. Chair. For the record, I have to agree with the approval of the requests for this I'll call it a celebration request, knowing these smaller communities, and I am just picturing if it may happen that the Community of Tulita gets the funding required for the Bear River Bridge, which they have longed for for several decades, it is very highly unusual to have a celebration fund put in in the form of the contract tender when the contractor says, "No, I am not into the business of providing cake and cookies here. I am just here to build this bridge."

In the spirit of working with local governments and chapter 12, in our case, of the land claim, would be avenues for requests such as this to build the capacity of socialization in the community and welcoming the children, or the whole community for that matter, to have a barbecue and celebration that they have longed for. I think it is a real form of a normal request. I have made similar requests throughout the years in my private life, and I do not see any unusual circumstances of the request and the support from this government to the local submitter, be it a land corporation or a band. I just point that out for the record there, Mr. Chair. I agree with the approval and request process.

Thank you, Mr. McNeely. Your comment is noted. Seeing nothing further, I will call this section. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Executive and Indigenous Affairs, operations expenditures, indigenous and intergovernmental affairs, not previously authorized, $100,000. Does committee agree?

Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Executive and Indigenous Affairs, operations expenditures, total department, not previously authorized, $100,000. Does committee agree?

Thank you, committee. Please turn to page 7, Health and Social Services. Comments or questions? Seeing none, Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Health and Social Services, operations expenditures, community health programs not previously authorized, $290,000. Does committee agree?

Thank you, committee. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Health and Social Services, total department not previously authorized, $298,000. Does committee agree?

Thank you, committee. Please turn to page 8. Industry, Tourism and Investment. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018. Industry, Tourism and Investment, operations expenditures, economic diversification and business support not previously authorized, $1,410,000. Does committee agree?

I apologize, committee. Let me redo that. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018. Industry, Tourism and Investment, operations expenditures, economic diversification and business support not previously authorized, negative $1,410,000. Does committee agree?

Thank you, committee. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Industry, Tourism and Investment, operations expenditures, total department not previously authorized, negative $1,410,000. Does committee agree?

Thank you. Please turn to page 9, Infrastructure. Comments or questions? Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Infrastructure, operations expenditures, regional operations not previously authorized, $70,000. Does committee agree?

Thank you. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Infrastructure, operations expenditures, total department not previously authorized, $70,000. Does committee agree?

Thank you, committee. Page 10, Justice. Comments or questions? Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Justice operations, expenditures, community justice and policing not previously authorized, $316,000. Does committee agree?

Thank you. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Justice operations, expenditures, legal aid services not previously authorized, $266,000. Does committee agree?

Thank you. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Justice operations, expenditures, total department not previously authorized, $582,000. Does committee agree?

Thank you, committee. Page 11, Municipal and Community Affairs. Comments or questions? I see none. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Municipal and Community Affairs, operations expenditures, regional operations not previously authorized, $264,000. Does committee agree?

Thank you. Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018, Municipal and Community Affairs, operations expenditures, total department not previously authorized, $264,000. Does committee agree?

Committee, do you agree that this concludes our consideration of Tabled Document 2-18(3), Supplementary Estimates (Operations Expenditures), No. 3, 2017-2018?

Thank you, committee. Mr. Testart.