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3TuesdayFebruary122013AuroraCollegeWeekFebruary11-152013CelebratingEXCELLENCEineducationGNWTstaysthecourseinyeartwobudgetByMEAGANWOHLBERGNWTFinanceMinisterMi-chaelMiltenbergerissport-ingthesametrustybudgetbroguesaslastyear.Thefinanceministersshoeshavecometosymbolizethegovernmentsscalstrat-egyfortheyearandMilten-bergerssturdyleatherfoot-wearindicatesanothertermofscaldisciplinefortheNWTmeaningcontrolledspendingandafocusonshort-termdebtshrinkagein2013-14.Thedepartmentisforecast-inga113millionoperatingsurplusforthisyear.Thatsur-plusisthankstoa2.6percentincreaseinrevenuesoverlastyeartoppingoutat1.6billion.Itwillallowfora56-millionincreaseinexpenditurescom-paredto2012-13.Thisbudgets113mil-lionoperatingsurplusdem-onstratesourcommitmenttolivingwithinourmeansandgeneratesthecashrequiredtofundhalfofthecapitalbudgetweapprovedlastfallMilt-enbergersaidinhisbudgetaddressThursday.Atleast70millionoftheoperatingsurpluswillgototheGNWTstargeted139millioninvestmentinpublicinfrastructureovertheyearconsistentwiththeterritorialgovernmentspolicythatatleasthalfofcapitalinvestmentsmustbepaidincashfromsurpluses.Thedepartmentexpectstoreducetheamountborrowedfromthefederalgovernmentwhichcurrentlysitsat609mil-lionby28millionbyMar.31ofnextyearallthewhilemain-tainingarmcommitmenttokeepinga100millioncushionunderthe800millionfederalborrowinglimit.RevenuegrowthmodestMiltenbergersannounce-mentstaysinlinewiththeguaranteemadelastyearthatthersttwoyearsofthe17thAssemblywouldbededicatedtoreplenishingthegovern-mentcoffersandwhittlingawayattheterritorysmas-siveinfrastructuredebtwhilenotcuttingexistingprogramsandservices.Withtheterritorystilllargelydependentonper-capitaTerritorialFormulaFinancingTFFgrantsfromthefederalgovern-mentwhichaccountfor70percentoftheGNWTsrev-enuequickergrowthwith-outmassivedebtisjustnotpossibleMiltenbergersaid.TheNWTsoutlookforrevenuegrowthovertheme-diumtermismodestMilt-enbergersaid.Overallweexpectlessthantwopercentgrowthinrevenuesoverthenextthreeyearsafractionofthesixpercentannualgrowthweveexperiencedoverthepastdecade.TheprimaryreasonisthatTerritorialFormulaFi-nancingisnotexpectedtogrowoverthenexttwoyearsasourpopulationgrowthre-mainsstagnantandprovincesreducespending.Thatcoupledwiththewan-ingproductionoftheNWTsdiamondminesposesachal-lengeforthegovernmenttomakemoneyintheshort-term.OurrealityisthatrevenuegrowthisslowingmakingbudgetingchoicesevenmoredifcultMiltenbergersaid.DevolutionwillboostgrowthInthelongtermresourcerevenuesgainedfromdevo-lutionandthedevelopmentofanattractiveinvestmentclimatewillweantheNWTpartiallyoffoffederalnanc-ingMiltenbergersaid.Theauthorityandcontrolofourresourcesisoneofthemostimmediateandtangiblewayswecangrowourreve-nuesandeconomyinthecom-ingyearshesaid.Sevenprospectiveminesand600millionininvestmentsinoilandgasexplorationintheSahtuoverthenextveyearsshinealightattheendoftheterritoryseconomictunnel.Thebestwaytoweanour-selvesoffisthroughastrongeconomyMiltenbergertoldTheJournalduringapressconferencebeforethebudgetannouncement.TheGNWThasmadeacommitmentthatrevenuesfromnon-renewablere-sourceswillnotbeusedtofundgovernmentprogramsandservicesbutinsteadwillgotowardpayingdowndebtinfrastructureandHeritageFundsavings.Thoughhesaidresourcedevelopmentisthebigticketitemfortheter-ritoryMiltenbergersaidknowledge-basedprojectsliketheMackenzieValleyFibre-OpticLinkwillalsocreatemajoreconomicac-tivityintheNorth.Ifwelooktothefuturethatcouldcreateupto150millionayear.Itwillopenupeconomicopportunitiesallthewaydowntheval-leySowerelookingatdiversication.Stillcappingexpendi-turegrowthinexistingprogramsandservicesat25millionaroundtwopercentthisyearandthenat1.5percentgrowthintheforeseeablefuturewillallowanadditional50milliontobeaddedtonextyearsoperatingfundsfol-lowedbyanother50mil-lioninyearfourMilten-bergersaid.Thatextracashcanbeusedforbadly-neededin-frastructureandterritorygrowingprojectsliketheInuvik-Tukhighwayandthebre-opticline.Nextyearwellstarttoreapthebenetsofourla-bourourdisciplineMilten-bergersaid.Inthemeantimewereontrackandmakingeverydollarcount.Thisyearincreasedreve-nuesmeanthepursestringshaveloosenedalittlebitwithmoreinvestmentsinseveralpriorityareasidentiedbyMLAsandthepublicduringarecentBudgetDialogueexer-cisewhichtookMiltenbergeracrosstheNWTtohearwhatpeoplethoughtshouldbedonewiththelimitedamountofmoneyavailable.Areaschosenastargetswerepreventionandwell-beinginrelationtoaddic-tionslong-termcaremid-wiferyandresourcesforRCMPandvictimservicestowhichanadditional3.3millionhasbeenallocated.Thepublicalsopriori-tizedinvestmentsintour-ismtelecommunicationsanddecentralizationofgovern-mentinordertodiversifytheeconomy.PoliticsFinanceBudgethighlightsNonewtaxesbutadjustmentsforinationoncertainfeesincludingbusinesslicencesandmotorvehiclefees1.2milliontohelpNorthernersbenetfromSahtuoildevelopmentandmitigateimpacts1.15millionformentalhealthandaddictionspreventionincluding339000forapilottreatmentprogramattheSouthMackenzieCorrectionalCentreand200000toexpandon-the-landprograms1.13milliontoincreasestafngatlong-termcarefacilities449000tobegintheexpansionoftheMidwiferyProgramfortwomidwivesinHayRiver600000toincreasetourismmarketing2milliontoimproveNWTparksandtrails250000todeveloparegulatoryapplicationforatransmissionlineconnectingWhatitotheSnarehydrosystem700000toinstallwoodpelletboilersinmulti-unitpublichousing472000toimprovemedevacservices29positionswillbemovedorcreatedoutsideofYellowknifeinanattempttodecentral-izegovernmentincluding14-15HealthandSocialServicesemployeestoallregionsvetosixsuperintendentswithinMunicipalandCommunityAffairstoallregionsoneFinancepositiontoHayRiverandfourIndustryTourismandInvestmentpositionstoHayRiver.Closeto60percentofeverydollarinthenewNWTbudgetgoestowardsocialprogramslikehealthjusticeandeducation.ImageGNWTExpendituresbyDepartment