Backgrounder - Budget 2013: Investing in Key
Priorities for Communities and Residents

Budget 2013 delivers responsible investments which are designed to create a safer, more balanced and prosperous society. These investments will benefit communities, a broad range of groups and organizations, and will support a cleaner and safer environment for future generations.

Increased Funding for Community Operations and Infrastructure
The delivery of municipal services to the people of Newfoundland and Labrador is a shared responsibility, and the Provincial Government works closely with municipalities and their leaders in the development of strong and sustainable communities. An investment of $49 million in Budget 2013 will continue this work by delivering an efficient suite of programs and services that meet the needs of communities regardless of their size or location.
These include:

• A commitment to maintain Municipal Operating Grants at existing funding levels for communities under 11,000 residents for the remainder of 2013;
• $22 million to support a new Municipal Operating Grant formula for communities under 11,000 residents effective January 1, 2014. This formula will ensure that no municipality will receive less funding than their current level and most will see an increase; and,
• $25 million committed to support the development of a new Capital Works Program for the seven municipalities in the province with populations greater than 11,000 which will no longer receive municipal operating grants. These are St. John’s, Conception Bay South, Mount Pearl, Paradise, Corner Brook, Gander, and Grand Falls-Windsor.

The Provincial Government will also begin discussions with key stakeholders including Municipalities Newfoundland and Labrador on a review of the provincial-municipal fiscal framework to ensure that it is sustainable and fair for all municipalities in the province.

The new Municipal Operating Grants and capital works programs complement ongoing funding for the second year of a $130 million Capital Works Program. This investment will continue to fund important infrastructure projects across the province.

As the province continues to experience unprecedented growth and development, it is recognized that housing prices have grown substantially, and populations in some remote areas of the province have declined rapidly. The Provincial Government continues to support a voluntary relocation program in municipalities where at least 90 per cent of residents vote to relocate. In recognition of this, under Budget 2013, the Department of Municipal Affairs is implementing an increase in the maximum payout per household in the provincial Relocation Policy from the current $100,000 to $270,000. This increase will provide individuals considering relocation with more realistic funding to facilitate a move should their community vote to do so.

In addition to these initiatives, Budget 2013 will also allocate $7.6 million in sport and recreation opportunities that play a key role in achieving the Provincial Government’s vision of healthier and more prosperous communities across Newfoundland and Labrador. Since the launch of the Provincial Government’s strategic plan Active, Healthy Newfoundland and Labrador in 2007, approximately $172 million has been committed to recreational and sport infrastructure, programming, and athlete development throughout the province.

Safeguarding Our People
The Provincial Government recognizes the importance of fostering safe communities for all residents and ensuring programs are expanded and modernized to keep pace with the needs of residents.

A number of key initiatives are being undertaken in this area:

• $750,000 allocated to further advance the work underway on the development and implementation of a province-wide basic 911 system. A modern and effective 911 system is of great importance to both residents and municipal governments throughout Newfoundland and Labrador. In the interest of public safety and sustaining a secure future for emergency services, the Provincial Government has committed to expand basic 911 service throughout the province by the end of 2014; and,
• $612,000 to provide Fish and Wildlife Enforcement Officers with a new tool to combat illegal conservation activities. Providing equipment and software for 40 mobile work stations, will allow officers to more effectively perform their duties.

The Provincial Government is committed to keeping communities safe and protecting children in this province. As announced on March 22, Budget 2013 will provide $1 million to form a Task Force on Child Exploitation and Drugs. The task force will combine resources of the RNC and RCMP and will investigate organized and serious crimes such as illegal drug activity and child exploitation.

It is anticipated that the new unit will consist of crime analysts, investigators, computer forensic specialists and other specialized members of the RCMP and the RNC. The team will be located in a dedicated facility in which they can closely collaborate.

Reducing Poverty
The provincial Poverty Reduction Strategy is a comprehensive, integrated and long-term approach to the prevention, reduction and alleviation of poverty. As a result of the strategy the incidence of poverty in Newfoundland and Labrador is now below the national average and the strategy is considered a model for others to follow. Newfoundland and Labrador is now widely regarded as a national leader in this area.

Budget 2013 will see nearly $149 million invested in continuing initiatives which include:

• $6.5 million for board and lodging supplements for adults with disabilities who live with family;
• $4.8 million for Newfoundland and Labrador Housing’s Supportive Living Program to advance the work of community partners and stakeholders;
• $1.2 million to enhance health benefits for income support recipients; and,
• $1.1 million for the Kids Eat Smart Foundation.

Supporting Women
The Provincial Government understands the positive impact strong social supports have in communities across the province. Budget 2013 allocates:

• $1.8 million to violence prevention, including $820,000 this year to 10 Regional
  Co-ordinating Committees Against Violence;
• Approximately $1 million to the province’s eight Status of Women Centres;
• $200,000 for the Aboriginal Women’s Violence Prevention Grants Program;
• $125,000 through the Poverty Reduction Strategy for continued support of the Inuit Women’s Capacity Building Project;
• $110,000 annual funding to the Newfoundland and Labrador Sexual Assault Crisis and Prevention Centre;
• $105,000 annual funding to the Transition House Association of Newfoundland and Labrador;
• $100,000 annual funding to the Multicultural Women’s Organization of Newfoundland and Labrador; and,
• $100,000 continued support to the Newfoundland and Labrador Aboriginal Women’s Network.

Protecting Our Environment
The Provincial Government continues to invest in key priority areas to build secure and healthy communities and to protect the natural environment. Budget 2013 investments include:

• $2.5 million to remediate the soil in the public and residential areas of Buchans that were impacted by the former mine in Buchans. This is part of a two-year $5 million program;
• $2 million to complete necessary repairs on the Gullbridge Tailings Dam, secure its integrity and mitigate future environmental and safety issues;
• $1.2 million for the continuation of the Newfoundland and Labrador Green Fund which will allow the Provincial Government to continue to enhance efforts in the area of environmental protection and help ensure a sustainable and healthy environment in the future;
• $224,000 to allow the continuation of real-time water quality monitoring in order to minimize environmental damages, reassure the public of the Provincial Government’s commitment to protect the environment, and initiate timely corrective measures to minimize environmental damages associated with many industrial mega-projects; and,
• $170,000 to allow for two additional hydrometric stations established for Vale Newfoundland and Labrador Inc. to explore potential alternative energy sources for the expansion to the Voisey’s Bay project, and three additional hydrometric stations established for NL Hydro to explore potential alternative energy sources along coastal Labrador.

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2013 03 26             3:25 p.m.