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TuesdayOctober2820147POLITICSFINANCEFortSmithSkiClubAGMFortSmithSkiClubAGMTuesdayNovember4730p.m.SeniorsRoom-Rec.CentreAgendaincludeselectionofnewexecutiveandAWG.ContactDonTrue872-4420ByMEAGANWOHLBERGForthesecondyearinarowtheterritorialgovernmentisbudgetinganadditional50millionforinfrastructureprojectsaspartofitscapitalestimatesfor2015-16.NWTFinanceMinisterMichaelMilten-bergerreleasedthebudgetonthefirstdayoffallsessionremainingtruetothefis-calobjectivesofthe17thAssemblywhichheldtoadoctrineoffiscaldisciplineforthefirsttwoyearsinordertorampupcapi-talspendingby50millionayearinthefinaltwoyears.Thisyearscapitalplanbudgetsatotalof314milliontowardsinfrastructurewithmostofthatmoneygoingtoroads.Atotalof108millionisallocatedtowardshighwaysandwinterroadsincludingfundingfortheInuvik-TuktoyaktukHighway.Anadditional84millionissetasideforhealthfacilityreplacementsrenovationsandsystemupgradesincludingtheongoingStantonTerritorialHospitalrenos.Some28millionwillgotowardscommu-nityinfrastructureneedswhile15millionwillgotosmallcapitalprojectsacrossallde-partments.Theairtankereetsupportingforestreoperationswillreceive7millionforreplacementwhile6millionwillgotoinformationtechnologyprojects.Another3millionisforenergyefciencyupgradestoGNWTbuildingsand2.5milliontoim-proveparks.Includedinthe314-millionplanisalsoa36-millioninvestmentinhousingfortheNWTHousingCorp.Thoughtheshort-termincreaseof50mil-lionwilladdresssomecriticalinfrastructureMiltenbergersaidtheGNWTwillcontinuetohaveasignicantinfrastructuredecitgoingforward.TheGNWTisfacingthedifcultchal-lengeofmaintainingexistingassetsimprov-inghousingstockandmeetinglegislativere-quirementswithlimitedscalresourceshesaid.Ourabilitytomeettheseneedsisfur-therconstrainedbyaborrowinglimitwhosedenitionwasbroadenedwhilethelimitremainsrestrictiveanddoesnotreectthedebt-carryingcapacityofthegovernment.Miltenbergerhasbeeninmeetingswiththefederalgovernmentforoverayearonraisingtheterritorysborrowinglimitfrom800millionto1.8billioninordertomakesignicantinvestmentsinhydroandhigh-wayprojects.Accordingtotheministerthegovernmenthasbeenabletomaintainacushionof100millionbetweenitsspendingandthedebtceilingbutwantstoseethatlimitliftedalongwiththelimitforshort-termborrow-ingraisedfrom275millionto300million.FiscalchallengesThecapitalestimatesemergeastheter-ritoryattemptstocopewithanumberoffiscalchallengesincurredinthe2014-15fiscalyearaccordingtoMiltenberger.Thoseincludea55-millionfireseasona20-millionbailouttotheNTPowerCorp.duetolowwaterlevelsandadismalfore-castforgrossrevenuegrowthoverthenextfewyearsestimatedatlessthanonepercentannually.ResourcerevenuesinparticularareexpectedtobelowerthanestimatedlastDecemberaveraging113millionannu-allyoverthenextveyearsinsteadofthepreviouslythought120million.ThoughaslightdifferenceMiltenbergerispreparingfortheworst.Resourcerevenuesareextremelyvola-tileinthattheexpectedrevenuestreamcoulductuatebyasmuch30millionfromtheexpectedannualaveragehetoldtheHouseinhisscalupdate.GNWTbudgetsadditional50MforinfrastructureResourceroyaltiesfromdevolutioneven-tuallyanticipatedtobringin120millionperyeararecurrentlyat80million.Onaver-agetheGNWTisexpectingtopullin113millionannuallyoverthenextveyearshalfofwhichgoestothefederalgovernment.HalfoftheNWTsshareissplitbetweentheHeritageFundandAboriginalgovernmentsleavingaround30millionforinfrastructureanddebtrepayment.OntopofathatMiltenbergersaidtheNWTisstrugglingwithadecliningpopulation.NWTeconomicactivityisonlythree-quartersofwhatitwaseightyearsagobe-causeresourceproductionisdecliningandbusinesscapitalinvestmentissignicantlylower.Thelowerlevelsofeconomicactiv-ityareoneimportantreasonwhytheNWTpopulationisdeclininghesaid.TheGNWTlaunchedacampaignearlierthisyeartoattract2000newresidentstotheterritoryoverthenextveyears.Infrastructurevs.programsSeveralMLAsraisedconcernswiththebudgetwhichplacesemphasisoneconomicinfrastructureprojectsratherthanmoremoneyforprogramming.Iguessmyconcernshaverampedupan-nuallybasedonthetrackwevetakenthefocusoninfrastructureandmoneyratherthanpeoplewheretherealpotentialforgainsaresaidWeledehMLABobBromleynotingthateducationreceivesjusttwopercentofthecapitalbudgetdespiteconsumingaquarterofoperationalfunds.Northernershavearecordofachieve-mentintheabsenceofinfrastructureaslongastheyaregivenappropriatesup-portsandthisgovernmentsapproachistothrowmoneyatinfrastructureparticu-larlytotryandattractmegadevelopmentwhenweknowtheglobaleconomyisnotthereBromleysaid.FrameLakeMLAWendyBisaromadesimilarcommentsstatingthatthebudgetisweightedtooheavilyoneconomicdevel-opmentandroads.Ibelievethatweputtoomuchmoneyintoprojectswhichpresumablyaregoingtoassistuswitheconomicdevelopmentandweveputnotenoughmoneyintoinfrastructurewhichisgoingtoassistourpeopleshesaid.ImthinkingaboutschoolsImthinkingabouthealthstruc-tureandIknowtheressomemoneyintherebutIdontthinkthesameemphasisisonthosekindsofinfrastructureinvest-mentsasitisinhighwaysandeconomicdevelopment.AbreakdownoftheGNWTs2015-16capitalbudgetbydepartment.The314-millionplanfocusesmainlyoneconomicinfrastructure.ImageGNWTFinance