Manitoba’s Finance Minister Stan Struthers brought down the Provincial Budget this afternoon, the 13th budget tabled by the Provincial NDP government since being elected in 1999.

There were a number of announcements in today’s budget that will be of interest to Manitoba public employees:

- An overall spending decrease of 3.9% is forecast;
- The Province maintains it is on track to return Manitoba to balanced budgets by 2014;
- Regional health authorities (RHAs) in the province will be whittled down from 11 to five;
- Wage freezes for public employees were conspicuously absent from much of today’s budget discussion;
- Only a handful of government departments will see increases in this year’s budget, while the rest will see their budgets frozen or reduced;
- No changes were announced to personal income tax rates in Manitoba, including no new taxes to Manitoba’s wealthiest one percent;
- The gas tax is being increased across Manitoba, but revenue from the change will result in additional investment in improving or maintaining provincial infrastructure (roads, bridges, and public transit);
- Tax credits for apprenticeships will enhance training opportunities, particularly in rural Manitoba;
- The Provincial Sales Tax will encompass more things and generate additional revenue for the Province;
- Manitoba Lotteries and the Manitoba Liquor Commission will be merged into one Crown Corporation; and
- Few specific capital projects were announced today, most specifically there was no mention of setting money aside toward the construction of a new provincial jail or jails;

“Our concern when we look at today’s budget is the 3.9% decrease on the expenditures side,” said MGEU President Lois Wales. “There has been a program review announced today that will be seeking approximately $128 million in savings and certainly those savings need to come from somewhere. Our fear is that we’re going to see what we’ve seen in the past: not filling job vacancies when they arise and not replacing workers when they retire.”

It is people who deliver the public services Manitoba children, families, and communities depend on, and in the past the MGEU has seen more and more being asked of public employees in terms of taking on more work to ensure those services can be delivered.

The MGEU was successful in securing a no lay-off clause in the last round of bargaining for government employees, ensuring a measure of security for workers asked by government to accept zero percent wage increases for two years.

“Without significant sources of new revenue, through initiatives like progressive changes to the personal income taxes paid by the wealthiest in Manitoba, I think it’s reasonable to assume that we may see further cuts to services in different ways,” Wales said. “After a billion dollars in tax cuts over the last several years, we think it’s time to look at the revenue side of the ledger. That’s especially true of corporations and high income earners who’ve enjoyed significant tax cuts that we probably can’t afford anymore.”

Wales indicated MGEU is in favour of reducing management and increasing savings at the RHA level through amalgamation, but added she hoped those savings would find their way to strengthening front-line services. There is no indication at this time that the RHA changes will result in job losses for workers represented by MGEU but union staff will continue examining the budget documents in more detail in the days to come. If MGEU members hear of any changes or irregularities as part of the budget roll-out in the days to come, please contact the MGEU Resource Centre and ask to speak with your staff representative.