Budget 2001-2002: Investing in Youth, Investing in Our Future

Finance Minister and President of Treasury Board Joan Marie Aylward today delivered Budget 2001-2002 which focused on youth, education, health care and Jobs and Growth.

"The key to our future is an educated, healthy population, and Budget 2001-2002 focuses on just that," said Minister Aylward. "By investing in our youth, and in our education and health care systems, we are responding to the priorities that have been highlighted by the people of Newfoundland and Labrador."

Some of the key investments in youth and education include:

• $11 million to retain all teaching positions that would otherwise have been eliminated in 2001-2002 due to declining enrolments;
• $23 million to address priority capital needs in our schools;
• $5 million to implement recommendations of the Sparkes/Williams Ministerial Panel on Education Delivery in the Classroom;
• $3.3 million to provide a 10 per cent tuition reduction for MUN students for the academic year starting September 2001;
• Marine Institute and College of the North Atlantic tuition freeze will continue for the coming academic year;
• $4 million to create a new Student Investment and Opportunity Corporation to assist post-secondary students to gain work experience and employment and help defray educational costs;
• and, $800,000 for school busing for Grade 7 to 12 in St. John�s.

Budget 2001-2002 contains no new taxes and continues the personal income tax reduction strategy which began in 2000. For the fourth consecutive year, government has also provided payroll tax reductions. Effective April 1, 2001, the exemption threshold increases to $500,000 from $400,000. Since 1998-1999, 2,025 businesses have been removed from the roll, reducing the tax burden to business by $8.6 million.

Changes were also made to the Newfoundland and Labrador Seniors� Benefit. "I am pleased that we are able to assist seniors by raising the maximum payment under the Newfoundland and Labrador Seniors� Benefit to $300 from $200," said Minister Aylward. "As well, seniors - including eligible pensioners - with an annual family income of $14,000 or less will receive the full benefit, compared to the previous $12,000. The benefit will phase out as family income increases to $20,000."

Other highlights of Budget 2001-2002 include:

• An additional $196 million has been committed to the health care system, of which $82 million is committed for new health facilities, renovations to existing facilities and for equipment;
• $50 million added to the base budgets of health care boards to stabilize their budgets;
• $7 million added to the base budgets of health and community services boards;
• $11 million to continue to recruit and retain physicians;
• $4.8 million is allocated on an annual basis to increase the wages of most home support workers by approximately 20 per cent;
• $3.1 million to increase the level of service in the province�s cardiac care program;
• $50 million for municipal infrastructure and capital works;
• $121.8 million for road construction and repair;
• $11 million for a multi-year safe drinking water initiative;
• $10 million for municipal debt relief; and,
• $2 million for initiatives under the Strategic Social Plan.

"In any budget, choices must be made," noted Minister Aylward. "Budget 2001-2002 is a careful plan of prudent spending which also addresses priority needs."

Media contact: Paula Dyke, Communications, (709) 729-0329.

2001 03 22                                      3:00 p.m.