Today the Province of Manitoba introduced its 2010 Budget, with a five-year economic plan that Finance Minister Rosann Wowchuk said “will tackle the budget shortfall while at the same time continue to invest in front-line services.”
Approximately 90 per cent of all new spending will go to health care, education and training, family services and justice. But this spending comes at an expense, as half of all other government departments – including Agriculture (-4.2 per cent), Conservation (-5.4 per cent) and Innovation, Energy and Mines (-7.1 per cent) – will see their budgets cut. This is one area that MGEU President Peter Olfert says needs further explanation.
“We know in any budget that there will be key areas that governments will choose to spend more heavily on than others,” says Olfert. “But it’s concerning for our members who work in these other departments facing shortfalls. What will happen to the services they deliver? I think we need to see some additional details on how the government plans to maintain services in those departments, while cutting their budgets.”
The Budget also projects a $545-million deficit and, as the MGEU and its members have lamented over the past few weeks, the Province still expects its workers to pay for most of that deficit. In the Legislature today, Wowchuk reiterated that the government will be seeking a two-year wage freeze, or “pause” as she called it, for all of its public sector workers, including approximately 13,000 MGEU members.
“I’ve said time and again that managing the deficit by putting the burden solely on the backs of public sector workers is not the answer. It appears this government believes it is,” said Olfert. “This doesn’t change our plans as we enter into negotiations for our members. We will be seeking increases to wages and benefits as we always have and we’ll let the negotiation process determine what happens.”
Amidst the cutbacks were a few small new spending announcements, including the introduction of a pension plan for early childhood educators and additional funding to help curb underage alcohol and tobacco abuse. On that particular issue, Olfert has asked the Premier to look at new ways to fund the Addictions Foundation of Manitoba (AFM).
“Similar to the way Manitoba Lotteries helps fund AFM programs,” says Olfert, “we believe the Manitoba Liquor Control Commission could direct some of its profits to help fund the foundation’s counseling and addictions services.”
The government also said it would provide more resources for corrections and expand inmate capacity across the system; however the budget was vague on details of where such expansion would take place.
Budget highlights
According to the 2010 Budget announced March 23rd, the Province will:
• Seek a two-year wage freeze from all public sector workers;
• Invest 90 per cent of all new spending in health care, education and training, family services and justice
• Reduce spending in half of government departments;
• Spend $1.8 billion on infrastructure projects;
• Amend the balanced budget law, allowing it to run deficits for four years before returning to a surplus in 2014;
• Run a deficit of $545 million in the fiscal year beginning April 1;
• Boost public school funding by nearly three per cent and post-secondary institutions by 4.5 per cent;
• Allow tuition fee increases of five per cent for universities and $150 a year at colleges;
• Delay planned cuts to corporate and personal income taxes;
• Add 1,500 new social housing units over the next five years; and
• Boost funding for Winnipeg’s police force by $2.2 million to $11.7 million.