FRANCAIS

April 19, 2004

Budget 2004 builds on a long-term plan that earned two credit rating upgrades:

• The budget is balanced under balanced budget legislation (BBL) and commits to paying down debt with no projected draw from the Fiscal Stabilization Fund (FSF).
• It is the first budget in the history of BBL projected to balance and pay down debt with no FSF draw.
• $96 million more to pay down the debt and pension liability—bringing the total payment to $480 million since 1999-00.
• Personal income, business and property tax cuts continue as promised.
• Real economic growth forecast at 2.9% for 2004, rebounding from a difficult year.
• Capital investment to hit a record $6.3 billion—with 70 per cent from the private sector.

• The agriculture and rural economy devastated by the BSE crisis and drought.
• Overall growth of 1.9% in 2003, below earlier projections but above the Canadian average.
• The 2^{nd worst forest fire season in Manitoba history.}
• Federal health care funding for Manitoba reduced by $104 million for 2004.
• Federal equalization payments to Manitoba down from projections.

• The elimination of 400 civil service positions through attrition for a saving of over $30 million.
• The majority—12 departments—to reduce spending or hold the line below inflation.
• Manitoba’s per capita spending 3rd lowest among provinces.
• A further $32.5 million reduction in the province’s borrowing costs—among the lowest in the country.
• New efficiencies sought through the merger of driver and vehicle licensing with Manitoba Public Insurance and the creation of a new Crown Lands agency.
• A second credit rating upgrade received in 2003.

• Population growth of 7,584 persons—the highest since 1986.
• 1,055 more young people came to Manitoba than left—the best performance in almost 20 years.
• Number of doctors at a 10-year high; number of nurses graduating has tripled since 1999.
• Housing prices up 24% since 1999.
• Personal disposable income up 3.1% last year, outpacing the national increase.
• The lowest inflation rate in Canada, with low hydro and auto insurance rates.

• Twinning the northeast section of Winnipeg’s Perimeter Highway.
• $72 million tri-level agreement to upgrade sewage and water treatment in Winnipeg.
• New tri-level agreement to develop rapid transit and build the Kenaston underpass.
• Red River Floodway expansion begins—one of the largest construction projects in history.
• Phase 3, the final phase, of downtown Red River College just completed.
• A new, energy efficient downtown building for Manitoba Hydro.
• Private-public projects boosting downtown: MTS Centre, Millennium Library, International Centre of Research Excellence at the Health Sciences Centre (HSC) and the Canadian Museum of Human Rights.
• A major $100 million redevelopment of HSC underway.
• More than $140 million in revenue sharing and grants provided to the City of Winnipeg in 2004.

• $250,000 to support efforts to locate the Canadian Centre for Disease Control in Winnipeg.
• Biotech sector to expand 50% by 2007 and two new incubation facilities established by 2005.
• Wuskwatim hydroelectric project currently before the Clean Environment Commission.
• Pursuing opportunities to the east in Ontario and to the south in the U.S. to facilitate power sales that could lead to significant hydroelectric development.
• Venture capital to double by 2007.
• New support for the strategy to help Manitoba reach a target of 10,000 immigrants annually.
• Continuing to work in partnership with the Premier’s Economic Advisory Council (PEAC).
• Economic summit on Aboriginal entrepreneurship in 2004, hosted by PEAC.

• A further $10 million cut in the residential education support levy—bringing property tax relief to $92 million annually since 1999.
• Education property tax credit delivery to change—starting in 2005, $100 million in credits will flow directly to school divisions in lieu of taxes paid by homeowners, resulting in more timely payments to divisions and providing better transparency and accountability in provincial education funding.
• $39 million reduction in personal income taxes for 2004 provided in budget—bringing personal and property tax cuts to more than $311 million annually.
• Education tax credit extended to employees who pursue career-related studies.
• New tax deduction for employment and education costs for persons with disabilities.
• Improved tax deductions for caregivers of persons with disabilities for medical and disability related costs.
• New tax breaks for military and police personnel deployed to high-risk areas outside Canada.

• Film and Video Production Tax Credit extended for another three years.
• Film and Video Production Tax Credit enhanced to include frequent film, and rural and northern incentives.
• Small business taxes decrease again—the threshold will rise again for the third straight year to $400,000 in 2005. The small business rate, reduced from 8% to 5% since 1999, will be reduced to 4.5% after 2005.
• Four-year plan to cut general corporation income tax rate continued—falling from 17% in 2001 to 15.5% in 2004 and 15% in 2005. It will fall to 14.5% after 2005.
• The non-capital loss and business tax credit carry-forward provisions extended to 10 years from seven.
• Research and development tax credit maintained—$77 million returned to local companies.
• Depreciation rates for computer and data network equipment for businesses increased by 50% for income tax purposes.
• The temporary mineral exploration tax credit extended for a year.
• Retail sales tax applied to legal, accounting, engineering, architectural and security services—bringing Manitoba in line with most other provinces; capital tax base for banking, trust and loan companies more closely aligned with neighbouring provinces and the federal government. Both tax shifts to help finance broad-based business tax reductions.

• A new graduate scholarship program for post-secondary students.
• University and college tuition to stay 10% lower than 1999.
• Expansion of vocational education in high schools.
• $200,000 to train Manitobans for employment opportunities related to the floodway expansion.
• Support for colleges and universities up 3.5%.
• Further expansion of college, university and ACCESS programs.
• Funding for public schools up $17.6 million—the 5th straight year funding has been increased at or above the rate of economic growth.
• New support for Aboriginal education, English as a second language, special needs, libraries and counselling.
• Historic levels of funding for rebuilding and renovating public schools—$288 million since 1999 resulting in eight new schools, 11 replacement schools and 33 renovations/additions.

• New resources for Manitoba’s wait time reduction plan.
• More support to improve hospital and emergency room service.
• Additional funds to expand nurse education.
• New resources for diagnostic education.
• The family doctor connection line expanding to include all regions in Manitoba.
• $5.6 million more for Pharmacare, plus a 5% deductible increase and a strategy to sustain Pharmacare in the face of spiralling drug costs.
• A plan to meet the need for an increased number of heart surgeries.

• New task force on youth fitness and health.
• Expanding the use of vaccines to prevent serious childhood illnesses.
• Tobacco tax increase to encourage individuals, particularly children and youth, not to smoke.
• Manitoba liquor mark-ups adjusted.
• New support for Healthy Child including Baby First and Early Start.

• Manitoba’s five-year $600 million highways program now in its third construction season.
• Highways program boosted by $10 million in 2004 and a further $10 million in 2005.
• New highways funding will allow for twinning of the Trans-Canada Highway a year earlier, extension of the twinning of Highway 59 south and a major resurfacing of Highway 6.
• Major health care projects just completed or underway in centres throughout Manitoba, including Brandon, Steinbach, Neepawa, Selkirk, Gimli, Lac du Bonnet and Pinawa.
• More than 50 public school capital projects including new schools in Winkler, Mitchell, Gimli and East Selkirk.
• Continued support for upgrades to community facilities and rec centres throughout the province.
• A new infrastructure agreement under negotiation with Ottawa with focus on rural and northern Manitoba.
• The rate on diesel fuel will be synchronized with gasoline; vehicle registration fees will increase by $23 effective July 1; and an additional levy will be applied for land transfers in excess of $200,000. These measures will help finance infrastructure projects.

• The new, state-of-the-art Brandon Regional Health Centre recently opened to provide enhanced services to the Westman region.
• Brandon to receive first-ever MRI outside of Winnipeg.
• Education opportunities expanding at Assiniboine Community College and Brandon University.
• Continuing to work with the community on options for the Brandon Mental Health Centre site.
• More support for affordable housing, adding to the 565 units renovated or built since 1999.
• Additional funding for the Keystone Centre.

• In 2005, farm education property taxes will be reduced by five per cent as the first step in following through on the commitment to reduce education taxes on farm land by 20 per cent.
• Manitoba’s ethanol industry expanded in partnership with rural communities and entrepreneurs.
• Wind energy developing, including a proposed St. Leon wind farm that could trigger a $190 million investment in rural Manitoba.
• Film and Video Production Tax Credit enhanced to include a rural and northern incentive to encourage film activity outside of Winnipeg.
• More than $180 million available to agricultural producers—with $93 million flowing to date to those affected by the BSE crisis.
• Resources for the Prairie Grain Roads program.
• $50.3 million for the Canadian Agricultural Income Stabilization Program.

• Significant health care projects just completed or underway in northern centres including The Pas, Thompson, Swan River, Garden Hill and Churchill.
• Dialysis treatment closer to home for northern residents.
• Additional resources for University College of the North.
• New hydro training initiative to improve training and employment opportunities.
• New northern healthy foods initiative.
• $6 million for housing in remote communities.
• New resources to improve drinking water and waste water treatment, with upgrades in more than 45 northern communities since 1999.
• Further investments in winter roads, airports and other vital transportation infrastructure.

• More resources for Turnabout, a program for offenders under age 12.
• Neighbourhoods Alive! to continue to revitalize Brandon, Thompson and Winnipeg.
• Affordable Housing Initiative investing $50 million over five years, supporting commitments made since 1999 to build, renovate or repair 2,100 homes throughout Manitoba since 1999.
• Support doubled for the Residential Rehabilitation Assistance Program to $2 million.
• Added funding for libraries in rural, northern and urban centres.
• Continued support for crime-fighting initiatives such as the new joint forces organized crime task force.

• New support for the Lake Winnipeg Stewardship Board to work towards reducing harmful nutrients in the lake.
• Further funding for livestock management to address inspection and enforcement.
• A new 10% tax credit to encourage businesses to invest in odour control equipment.
• $225,000 more for beach safety.
• $100,000 to further support Manitoba’s network of protected areas.
• MOU signed to lead to the creation of Lowlands, Canada’s newest national park—adding to the five new provincial parks created since 1999.
• Continuing Manitoba’s riparian tax credit.
• $350,000 for cottage lot and campsite development initiative.

• New children’s initiative to improve access to such services as speech and language therapy.
• Further support for the United Way—ensuring every dollar donated is spent on services. Manitoba is the only province in Canada to cover the organization’s administration costs.
• $4 million more for child care—funding for child care is up 51% since 1999, with 3,500 additional funded spaces.
• The National Child Benefit is fully restored in 2004, fulfilling a promise made in 1999 and returning almost $14 million annually to low-income families.
• 11% increase for the Supported Living Program to help persons with mental disabilities live in the community.
• Continuing support for Lighthouses, an after-hours program for youth in Manitoba.

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