NLIS 8
March 30, 2006
(Human Resources, Labour and Employment)
(Health and Community Services)
(Education)
The Right Choices:
Reducing Poverty; Increasing Self Reliance
The Williams government is removing
barriers to employment and providing assistance to those who need it
most through a sweeping investment in initiatives designed to combat
poverty, announced Paul Shelley, Minister of Human Resources, Labour and
Employment, and the lead minister for government�s poverty reduction
strategy.
Budget 2006 outlines government�s
integrated approach to poverty reduction, unveiling investments of over
$30.5 million in 2006-07 and $62 million annually to support an expanded
eligibility for the prescription drug program, the elimination of school
fees, increases to income support programs, and enhanced Adult Basic
Education (ABE) offerings. This initial phase of the poverty reduction
strategy is a strong basis for meeting government�s pledge to
significantly reduce poverty in Newfoundland and Labrador.
"These investments will help people with
low incomes move ahead and break the cycle of poverty. This initial
phase to reducing poverty is not just about improving the quality of
life of people who struggle to afford basic necessities. Poverty
reduction is also about ensuring a strong and prosperous future for
everyone," said Minister Shelley. "Departments throughout government are
working together to deliver programs and services towards reducing
poverty. This integrated approach will help achieve our goal of everyone
participating in our province�s social and economic benefits."
Expanded Drug Coverage
To remove one of the biggest financial barriers to employment for
individuals who work for low wages, government will invest $8.3 million
this year and $32.8 million annually to expand the eligibility of the
current Newfoundland and Labrador Prescription Drug Program (NLPDP) to
include more low income families and individuals. The eligibility
threshold for the program will extend to families with children with
annual household incomes up to $30,000, to couples earning up to
$21,000, and to singles earning up to $19,000 a year. The program will
also include a co-payment ranging from 20 to 70 per cent. This marks the
first expansion of the program since 1980 and will provide prescription
drug coverage to approximately 97,000 additional people at co-pay rates
between 20 and 70 per cent.
Eliminating School Fees
Budget 2006 allocates $6.3 million to increase instructional grants to
school boards and to cover prescribed workbooks and other consumable
materials currently charged to parents. With this investment, government
will reduce the burden of education-related costs to parents and
eliminate school fees. This includes:
School materials, such as student
agendas, locks (including locker rental), school calendars,
photocopying, handbooks, accident insurance, student IDs,
administrative/library software, and internet/e-mail access;
All consumable course materials
associated with the prescribed curriculum, such as workbooks,
photocopied resources, exam stationery, computer paper, CDs, disks,
magazine/newspaper subscriptions, scrapbooks, along with supplies
associated with classroom-based work in art, technology, language
arts, science, home economics, and industrial arts; and,
Specific items required by all
students to participate fully in classroom instruction, such as
recorders required for elementary music curriculum, and "preferred"
resources chosen by individual teachers to deliver the prescribed
curriculum.
"Eliminating school fees will especially
assist low-income families and keep money in the hands of parents who
need it most," said Joan Burke, Minister of Education. "We are extremely
pleased to be in a position to eliminate this burden on parents, which
has become such a contentious issue over the past several years as
education-related costs have increased. This investment will ensure that
parents will no longer have to pay for school-provided items that
students need in order to participate fully in classroom instruction."
Increasing Income Supports
Budget 2006 increases income support rates by five per cent (effective
July 1), beginning with $5.6 million this year and $7.4 million
annually. Starting in 2007, an additional $3 million (estimated)
annually will further increase these rates by indexing them, which will
help offset future increases in the cost of living.
There will also be an additional $2.1
million this year and $2.78 million annually to enable staff to respond
on a case-by-case basis to income support clients who have unique
accommodation needs and require additional assistance.
Parents who look after children with
physical and intellectual disabilities require additional supports and
services. To help more low-income families offset some of the associated
cost, a $2.25 million increase to the Special Child Welfare Allowance
this year will remove RRSPs and RESPs from the financial assessment
process, making the program more accessible to more families who need
it.
"Since forming the government, we have
increased the minimum wage, reduced the tax paid by low-income families,
and made reforms to encourage skills development and participation in
the workforce," explained Minister Shelley. "Budget 2006 builds on these
initiatives with major investments in a broad range of programs and
services will help low-income workers, youth-at-risk, and families with
low incomes."
Budget 2006 also dedicates more than
$700,000 this year and $1.9 million annually towards more legal and
counselling support services for people with low incomes, with a focus
on the following areas:
$250,000 to improve access to civil
legal aid;
Expand Unified Family Court services
to provide more family law resources throughout the province;
$80,000 to increase the annual
grants for the province�s eight women�s centres (Corner Brook,
Gander, Grand Falls-Windsor, Happy Valley-Goose Bay, Labrador City,
Port aux Basques, St. John�s, Stephenville) so that clients can have
improved access to information, support and education services; and,
$23,500 for offender employment
skills training at correctional facilities across the province.
Encouraging Self-Reliance
Recognizing higher learning is critical in achieving self-sufficiency,
Budget 2006 provides $1.45 million to improve the education levels and
literacy skills of adults. This will expand Adult Basic Education (ABE)
programming, particularly Level I (Literacy), at College of the North
Atlantic campuses, along with the provision of post-secondary awards and
grants. This complements the new Futures in Skilled Trades and
Technology career path for students in grades 10-12.
A further $500,000 in new funding will
create an incentive for Newfoundland and Labrador Housing Corporation (NLHC)
tenants to remain in school. NLHC tenants will now qualify for a monthly
$25 rental rebate for every adult studying full-time at a post-secondary
institution and for every dependent in high school Levels 2-4.
Program funding will also assist
low-income earners who are entering the workforce. This includes a new
Job Start payment of $250 per family or $125 per single for Income
Support clients who start work to assist in the transition while they
wait for their first pay cheque. Budget 2006 allocates $430,000 this
year and $570,000 annually towards these one-time payments. As well,
NLHC tenants with employment income will now qualify for a rent
reduction of approximately $50 per month, at a cost of $750,000
annually.
Supporting Healthy Living
Budget 2006 promotes healthy living through recreation and good
nutrition. This includes:
An increase of $100,000 for the air
food lift subsidy program that is paid to grocery retailers in
coastal Labrador to offset the cost of flying perishable foods and
helps residents purchase nutritious food at a more reasonable price;
$250,000 for the province�s
partnership with the Canadian Tire Foundation for Families on the
Jumpstart program, which supports children in low income families
participating in sports and recreational activities; and,
$250,000 towards the implementation
of school food guidelines in support of the Provincial Wellness
Plan.
Province-wide consultations on poverty
reduction were conducted in mid-2005 and a fully developed poverty
reduction strategy will be released in late spring 2006.
Media contact:
Alex Marland, Human Resources, Labour and Employment, (709) 729-4062,
690-6047
Tansy Mundon, Health and Community Services, (709) 729-1377, 685-1741
Jacquelyn Howard, Education, (709) 729-0048, 689-2624
BACKGROUNDER
Reducing Poverty and Increasing Self-Reliance
Poverty Reduction Strategy
Newfoundland and Labrador has one of the highest levels of poverty in
Canada, with approximately 66,000 individuals in 33,000 families living
in poverty in the province. Based on broad consultations and research, a
comprehensive package of initiatives has been developed which focuses on
early intervention and prevention to break the cycle of poverty.
Budget 2006 furthers government�s poverty
reduction strategy with investments of $30.5 million in 2006-07 and $62
million annually to support initiatives such as an expanded eligibility
of the prescription drug program, the elimination of school fees,
increases to income support programs, and more Adult Basic Education
(ABE) offerings. Budget 2006 provides more money directly to all low
income earners in the province, including the approximately 45,700
income support recipients. A fully-developed poverty reduction strategy
will be released in late spring 2006, including measurable targets,
initiatives for future years, and a plan for areas requiring further
research, development or community involvement.
Expanded Eligibility of the Prescription
Drug Program
There are residents of Newfoundland and Labrador who are faced with
prescription drug costs they cannot afford, resulting in both financial
hardship and negative implications for their health. Moreover, the
current loss of prescription drug benefits is a major barrier to
employment for many income support clients.
This expansion will provide prescription
drug coverage, with a contribution as low as 20 per cent, for
approximately 37,000 individuals, and gradually increasing for an
additional 60,000 individuals, all of whom currently do not have access
to public or private drug coverage in Newfoundland and Labrador. There
will be no changes to the program for client groups who are currently
eligible (e.g., income support clients and senior citizens who are
eligible for the Guaranteed Income Supplement).
|
Singles |
Families � with No Children |
Families - with Children |
|
Family Income
Amount ($) |
Co-Pay Amount |
Family Income
Amount ($) |
Co-Pay Amount |
Family Income
Amount ($) |
Co-Pay Amount |
|
Under 13,000 |
20.0% |
Under 15,000 |
20.0% |
Under 21,000 |
20.0% |
|
14,000 |
28.3% |
16,000 |
28.3% |
22,000 |
25.6% |
|
15,000 |
36.7% |
17,000 |
36.7% |
23,000 |
31.1% |
|
16,000 |
45.0% |
18,000 |
45.0% |
24,000 |
36.7% |
|
17,000 |
53.3% |
19,000 |
53.3% |
25,000 |
42.2% |
|
18,000 |
61.7% |
20,000 |
61.7% |
26,000 |
47.8% |
|
19,000 |
70.0% |
21,000 |
70.0% |
27,000 |
53.3% |
| |
|
|
|
28,000 |
58.9% |
| |
|
|
|
29,000 |
64.4% |
| |
|
|
|
30,000 |
70.0% |
The program design includes a 20 per cent
co-pay for individuals whose family net income is below $13,000 (single
persons), $15,000 (couples without children) and $21,000 (single or
couple parents with children). Phase out of the program, with the
clients co-pay increasing up to 70 per cent, covers single persons from
$13,001 to $19,000; couples from $15,001 to $21,000; and families from
$21,001 to $30,000. It is expected that implementation of this expanded
program will occur early in 2007.
Elimination of School Fees � Overview
School fees, as defined by the Schools Act, 1997, are costs for
items purchased by a school or school board and which are provided to
students for use in the school and classroom.
Currently, boards get an instructional
grant of between $7,500 and $9,500 per school (depending on enrolment)
and $80 per pupil. This initiative increases the $80 amount to $150 per
pupil and provides an additional investment of $1M for essential
workbooks, prescribed by the Department of Education, to deliver the
K-12 mathematics, French and music curriculum, as well as novels
required at the K-8 level.
Elimination of School Fees � Items
covered
Essentially, fees charged for "consumable" items currently purchased by
schools/school boards and charged back to parents will be covered. These
include, but are not limited to:
Fees for school materials such as
student agendas, locks (including locker rental), school calendars,
photocopying, handbooks, accident insurance, student IDs,
administrative/library software, Internet/e-mail access;
Fees for course materials associated
with the prescribed curriculum such as workbooks, photocopied
resources, exam paper, computer paper, CDs, disks,
magazine/newspaper subscriptions, scrapbooks, along with supplies
associated with classroom-based work in art, technology, language
arts, science, home economics, industrial arts;
Fees for participation in band and
choir; and
Fees for specific items required by
all students to participate fully in classroom instruction (e.g.,
recorders required for music curriculum; novels at K-8).
Elimination of School Fees � Items Not
Covered
Basic schools supplies parents have
always been expected to provide their children. Some examples are
pencils, pens, paper, exercise books, folders, markers, crayons,
glue, scissors, geometry sets, calculators, book bags, pencil cases,
gym clothing;
Textbooks for Grade 9 to Level III
(prescribed workbooks will be covered);
Costs associated with enrichment
programs and materials required for local courses which are not
prescribed by the Department of Education (e.g., local courses in
aquaculture, musical theatre, web design, marine technology, or
workplace health and safety);
Travel associated with
co-curricular/extra-curricular activities, field trips, pizza days,
book fairs, etc. (The nature and frequency of these activities is
determined at the school level. School boards will be asked to
establish an approval process for any fees associated with these
activities);
School clothing, graduation
ceremonies, school rings, school photos, etc., which are considered
optional items.
Rental of musical instruments.
Voluntary fundraising activities,
approved by the school council (as required by current legislation),
for a specific purpose - such as student travel, sports uniforms,
playground equipment, etc.
2006 03 30
2:20 p.m. |
