Thank you, Mr. Speaker. Today, my reply to the budget will be a bit different than the one I did last year. We are still working behind the scenes to get us closer to a final agreement on the budget. It has been a long process, from closely reviewing the business plans to finding common ground, and finally getting closer to a budget that we can agree to pass. Unfortunately, since we started the process, a number of issues have come to my attention and need to be addressed. I realize some of these concerns are not in the budget, but, if we work together, they can be added via supplementary appropriation later in this session. This being the last O and M budget of the 18th Assembly, I think we are getting better at listening to one another. For a $1.87-billion budget, I believe we are only a few million dollars apart. Don't get me wrong, we still have work to do.
Even so, Mr. Speaker, this year's business plans were a bit challenging, especially when you consider we will spend more than $1.873 billion in public funds. Some departments' plans still lacked details. There were some inconsistencies, typographical errors, and wholesale repetition of sections from previous business plans. I would like to have the departments provide more detailed descriptions of all planned activities, as identified by Members from this side. We need to be better informed so we can make better decisions.
Mr. Speaker, the Finance Minister said the 2019-2020 budget proposes operating expenditures of about $1.8713 billion. As we worked through the business plans, we came up with small additional requests. Some were increases in funding, others were reinstatement of planned cuts, and others were re-investments. I have to say we are getting closer each year.
As the Minister said in his budget address, the projected operating surplus of $60 million is going directly to the 2019-2020 infrastructure budget. However, we still need a realistic plan for how the GNWT intends to proceed with major projects within its existing borrowing capacity, and what circumstances might trigger the GNWT to seek an increase to its current federally imposed borrowing limit.
I am happy to see the government is investing $70 million for new initiatives and $17 million to enhance or maintain existing programs. However, some of these new allocations may not get spent, and this saddens me. As a government, we have to do better to deliver the services we promise and budget for.
Mr. Speaker, I realize that most of the regions face hardships, and I empathize with them. In the Nahendeh riding, we have been experiencing this for a long period of time. All you need to do is visit the six communities, especially the small ones, to realize the hardships residents face. We have communities that have to do job sharing so people can survive. This is hugely disappointing.
Mr. Speaker, like I said last year, we need to continue to diversify our economy. I believe tourism can play an important role in our economy, especially in the Nahendeh riding. We see a number of tourists coming into our region during the summer months, but few or none during the winter. In our ridings, we can see the investments that the government is making and hope to increase the number of visitors coming to our region. This will lead to future employment and business opportunities.
Finance
Ombud
Mr. Speaker, I am pleased to see the budget sets aside for the establishment of the Office of the Ombudsperson, but I want to remind the Finance Minister that he or she is now called the "Ombud," not the Ombudsman.
The Ombud is like a "commissioner for fairness." He or she will be available to take complaints and to help people who feel that they have been unfairly treated by the government. I think this is a very good thing.
I think it will also be good for government because sometimes the Ombud will investigate a complaint and find out the government did do the right thing. In that case, the Ombud will be able to help explain to the public how the government properly follows the process.
I know that some MLAs have said that the Northwest Territories does not need an Ombud because that is what we are here for, but the Ombud will have powers to investigate matters in a way that the MLAs cannot. I look forward to hearing the update in this House about when we can expect the Office of the Ombud to be open.
Summer Students
Mr. Speaker, I am again asking the government to work on setting up a budget line for summer student jobs. I firmly believe that these positions are very important in all our regions and particularly in Nahendeh. I would like to see a concrete plan for hiring summer students, and to see a budget for it.
Carbon Tax
Mr. Speaker, I realize that the government didn't have any choice about implementing a carbon tax. If the GNWT didn't come up with its own, it would have been stuck with the federal backstop.
With that said, however, I don't think the GNWT is going about it the right way. In this case, I don't feel that the Department of Finance is doing a very good job listening to input from the Regular Members. I understand that the government intends to implement the carbon tax by making changes to the Petroleum Products Tax Act and the Income Tax Act. I look forward to the introduction of that legislation and its debate in this House.
Executive - Government Service Officers
One of the good things the government has done is to hire government service officers, or GSOs, in many communities to help residents in their dealings with the government. This program is working, and Regular Members have pushed hard to expand the GSO network. I am pleased to point out that this coming year there are four GSO positions in Nahendeh, plus one in Fort Providence. On the other hand, there are still communities left out.
Again and again, Regular Members have urged the government to complete the GSO network and expand it to all communities. The government has resisted, especially to create positions in the larger centres. I will not rest until all Nahendeh communities have a GSO and the territorial network is complete.
Health - Child and Family Services Program
Mr. Speaker, I am very happy to see the additional $3.3 million to add 21 new positions. I agree with the GNWT that this investment will improve our services to children and family. However, I still see a number of vacancies in my riding. This makes me worry that we will not see the boots hit the ground with this new investment. I hope that we can find ways to get these positions filled.
Mr. Speaker, I am happy to see the Department of Health and Social Services provide a $1.9 million to continue the implementation of the Child and Youth Care Counsellors program in Beaufort Delta and Sahtu. Unfortunately, I still see vacancies in Fort Liard and the regional office. Now we may not see those positions filled for a long time. Again, this is a big loss for our youth and adds more stress on the staff that have to cover. We need to do a better job in getting these positions filled.
I am happy to see the Department of Health and Social Services provide $400,000 for the land-based mobile addictions treatment and aftercare, increased contribution funding, an investment of $1 million to continue implementation of the Mental Health Act. This is a very positive step forward in these two areas.
Mr. Speaker, in the 2018-2019 Business Plan, $653,000 was invested in new positions for the Beaufort Delta rehabilitation team as follows. One occupational therapist, one speech and language pathologist, one audiologist, and one program assistant were added to meet the need for audiology services so that children and adults will have access to the services closer to home.
In 2019-2020, the business plan proposes $485,000 for additional positions to the Stanton Rehabilitation Team: one occupational therapist, one speech and language pathologist, one speech and language pathologist program assistant, and one administrative support position.
Unfortunately, this does not help the Nahendeh or Deh Cho communities. I have heard from many parents and leaders that we need our own speech and language pathologist and occupational therapist in the Deh Cho. It is my understanding that, in Nahendeh alone, there are over 70 people waiting service from the speech and language pathologist and over 50 waiting for the occupational therapist. The frustrating thing is that this has to be done in 11 service days. If there is one day of bad weather, the assessment gets cancelled for another six months. This tells me that the services are lacking for our youth in the Nahendeh and Deh Cho region. This also explains why some of our Early Child Development (EDI) scores are bad. I will be adding this issue further during this session.
Municipal and Community Affairs
Non-Governmental Stabilization Fund
Mr. Speaker, the Department of Municipal and Community Affairs is responsible for administering an application-based program known as the Non-Governmental Organization or NGO Stabilization Fund. This fund provides special funding to help NGOs stabilize to develop their capacity to manage programs and services.
According to the government's own policy, NGOs deliver critical programs or service funded by the GNWT. The policy recognizes that if the NGO wasn't available to deliver these programs or services, the government would either have to do the work itself or hire a third party to do it.
The NGOs are often staffed or assisted by hard-working, dedicated volunteers who give their time and energy, putting in long hours to help others in the communities. They do everything from providing services and support to the most vulnerable members of our communities to advocate for literacy, sober driving, sports and recreation activities, and countless other activities that enhance the lives of our people.
In the first year, 2009-2010, $247,000 was allocated for NGO Stabilization Fund. It was increased to $350,000 the following year and has not been increased since, despite the fact that there are always far more requests than there is funding available.
This year, in his budget address, the Finance Minister announced the government's intent to double the funding made available through the NGO Stabilization Fund. I know that every penny of this money will be put to good use, and I want to thank my Cabinet colleagues for this important contribution.
Games
Mr. Speaker, this year we are seeing a third year of cuts to funding for multi-sport games. This is totally unacceptable. Two years ago, the government cut $150,000. Last year, they cut $250,000, and like I said last year, they were going to cut another $250,000 from the budget. True to form, this happened. It is very frustrating because these games are government responsibility. It has either Sport North or the Aboriginal Sports Circle of the NWT looking after them.
Presently, the shortfall is coming from within the department, which really means it is being taking from other programs that may lapse funding. This is not a reliable source of funding, and it is not transparent budgeting. We have heard worst-case scenarios. The Department of Municipal and Community Affairs could use the lotteries to fund multi-sport games. In my opinion, these games belong to the government, and they need to be a budget line within the department's budget. To see cuts in this area is very sad, to say the least.
911 Emergency Services
Mr. Speaker, I am pleased to see the budget identified funding for the implementation of 911 emergency services in the Northwest Territories, which is supposed to go live this summer. I believe that the 911 to the North is a positive thing. 911 is a simple number, so easy to remember that even a small child could dial it and potentially save someone's life.
911 will help those of us who travel frequently in the North and who may see an emergency unfolding in another community without immediately knowing which prefix to use for the current, seven-digit emergency number in that community. It will also help visitors to the North to quickly access emergency dispatch if they need it.
Mr. Speaker, the Minister of Finance pointed out the budget proposes a $1.3-million investment for the rollout of 911 in the upcoming year. What he neglected to point out, however, is that the government intends to implement a user fee for 911, meaning that the $1.3 million is intended to be paid by every phone subscriber in the Northwest Territories.
Some of my Regular Member colleagues are currently reviewing Bill 31, which is the legislation the government needs to put in place in order to change the 911 user fee. I will have more to say about this when the legislation is debated in the House. For now, I just want to point out that the funding for 911 will be paid by the people of the Northwest Territories, not the GNWT.
I would urge the GNWT, as part of the 911 implementation, to match the funding raised through user fees and use the funding to ensure that the NWT has 100 percent cellular coverage. As the government works harder to bring more roads and highways to the Northwest Territories, ensuring full cellular coverage will undoubtedly save lives of countless motor vehicle drivers who drive those new highways in the future.
Municipal Gap Funding
Mr. Speaker, for me, one of the biggest oversights in the budget is the lack of new funding to close the municipal gap.
In 2014-2015, the Department of Municipal and Community Affairs knew that it had problems with the way it was providing funding to the municipal governments, so the department undertook a review of their funding approach. This review found that the funding formulas were overly complicated and based on outdated information. It also found that they didn't respond to needs and didn't result in fair distribution of funding.
Governments providing municipal services in the Northwest Territories rely on funding from the GNWT to pay for capital investments, operations, maintenance, and environmental services, including water and service functions. Failure to provide funding to community governments appropriately can have serious consequences for all communities in the Northwest Territories. It can result in premature failure of community infrastructure and the need for earlier replacement. As conditions worsen over time, it can result in loss of program functionality. This, in turn, can lead to public health-and-safety risks and environmental liabilities.
When the study was done, MACA indicated an operation and maintenance funding shortfall of $7.7 million, a water and sewer funding shortfall of $8.3 million, and a capital shortfall of $23.4 million, for a total shortfall of $39.4 million. In 2017-2018, the department reported in its annual MACA update that the gap had been reduced to $32.5 million: $5 million in operation and maintenance, $4.8 million in water and sewer, and $22.4 million in capital funding. This represents a reduction in the funding gap of $6.5 million since 2014. This year, I understand that MACA proposes to increase operation and maintenance funding by $750,000 and water and sewer funding by $650,000. While this is good news, there remains a great deal of work to be done. MACA appears to be making progress on O and M and water and sewer funding but not so much on capital.
The Department of Municipal and Community Affairs has promised a strategy to close this funding gap, and we have yet to see it. In response to an oral question I posed in this House at the end of October 2018, the Minister advised that MACA will be in a position to table the municipal funding strategy by the end of this sitting. I look forward to this work with a great deal of anticipation. I question why it has taken so long to put this strategy in place. As well, I have concerns about how funding needs may have grown since the initial data was collected in 2014-2015, and I am worried that failure to account for the growth may mean that the actual funding gap is greater than what is being reported. I will have questions for the Minister when we review the department's budget. I would urge the Minister to do his best to table the municipal funding strategy early in the sitting so that we can consider it at the same time that we consider the department's budget.
Education, Culture and Employment
Student Financial Assistance
Mr. Speaker, I appreciate that the Department of Education, Culture and Employment proposes $104,000 to increase the Student Financial Assistance course reimbursement rates from $500 to $800 and a lifetime limit on course reimbursements from $5,000 to $8,800. This will help to ensure NWT students have more opportunities to meet the demands of our territorial labour market. This increased reimbursement will promote continued learning and support NWT residents in getting the education they need to get good jobs.
With the rising cost of post-secondary education, an increase to course reimbursement will make programs more accessible and affordable for NWT students, thus encouraging NWT students to advance their education.
Small Community Employment Program
Mr. Speaker, I was happy to see the changes to the Small Community Employment Program last year. The Government of the Northwest Territories, especially the Department of Education, Culture and Employment and ordinary MLAs, was able to make some positive changes to it. However, we still need to do more in this area.
As I stated last year, the small communities of Nahendeh need more employment opportunities. People want to work, and unfortunately, the lack of jobs in our smallest communities is a persistent, high-impact problem. The changes last year to this program resulted in a bit more work in the communities. However, I believe the government needs to increase the funds available to small communities by $1.2 million.
Mr. Speaker, I believe the continuation and enhancement of this fund and its policies are necessary to support its mandate for job creation in small communities. This funding should be specifically for direct use in small communities and not regional centres.
Funding for Divisional Education Board Office
Mr. Speaker, I noticed that the Divisional Education Board Office has two fewer staff supporting the schools than in the Sahtu region. In the Deh Cho proper, eight communities, we have two support staff for nine schools, whereas the Sahtu has four support staff for five schools. It is also my understanding that the Sahtu board has two information technology support staff, while the Deh Cho has one. This doesn't seem right. We need to address this, or we are going to see more vulnerable children and ongoing decline in the developmental test results for the Deh Cho.
This supports my position that funding based strictly on the number of students does not work. I would like to suggest a new basic formula that guarantees a minimum staffing, regardless of the number of students. This would be based on the understanding that it does not matter how many students you have in a school; you still need a part-time custodian, principal, secretary, program support teacher, and teachers. Later on in this session, I will be speaking about this issue further, and I hope to see much needed changes.
Mr. Speaker, in closing, I have to say that we still have some challenges facing us, and we only have a six months left in our term to address them. Let's do it right. Thank you, Mr. Speaker.