March 08, 2005
New investments to further modernize health-care facilities and other infrastructure, reductions in personal income, property and business taxes, and an increased debt and pension liability payment are among the highlights of Budget 2005.
The budget recognizes the setback that producers of cattle and other ruminants are experiencing following the U.S. District Court decision to keep the U.S. border closed. It pledges to continue to support producers and the livestock industry, and continue to work closely with provincial and federal counterparts and the U.S. government to normalize trade and push for outcomes based on science.
The province’s financial blueprint is called ‘Budget 2005: Balancing Priorities. Building Opportunities. Investing in Tomorrow.’ It focuses on four main pillars: reducing the province’s debt and pension liabilities, making strategic investments, following through on promised tax cuts and saving for the future.
To meet these goals, Budget 2005:
reduces property, business and personal income taxes by more than $130 million;
increases the annual debt and pension liability payment to $110 million;
announces the deposit of $314 million in the Fiscal Stabilization Fund, the second largest in history;
contains a plan to increase hip and knee surgeries, and funding to train more doctors and technologists;
shares the equivalent of three cents a litre in fuel taxes with municipalities through the new Building Manitoba Fund;
increases funding for highways by $16 million to $145 million; and
provides funding for major infrastructure projects such as the expanded floodway, and water and sewer system upgrades throughout Manitoba.
Budget 2005 recognizes that infrastructure is an important priority for Manitobans. For the past five years, the province has concentrated heavily on modernizing infrastructure in the areas of health care, education, water and flood protection, roads and highways, and municipal infrastructure.
The budget notes this approach has resulted in a series of significant, strategic infrastructure investments including the over $100-million redevelopment of Winnipeg’s Health Sciences Centre, the historic Red River College downtown campus and the recently-opened MTS Centre.
Budget 2005 continues this progress with funding for other important infrastructure projects now underway including the upgrade of Winnipeg’s waste water system, expansion of the Red River Floodway, construction of the Kenaston underpass and ongoing capital upgrades at the University of Manitoba.
Other commitments to Winnipeg include:
the first significant transit operating grant increase in a decade through the new Building Manitoba Fund;
20 additional police officers through the sharing of casino revenues for the first time in Manitoba history;
funding for housing renewal programs, adding to the 2,000 units built or rehabilitated since 2000;
expansion of the Lighthouses and Neighborhoods Alive! programs; and
investment of more than $500 million in Winnipeg infrastructure renewal over the next six years.
Budget 2005 recognizes that supporting Manitoba’s cities is important, which is why Brandon, Thompson and Flin Flon will also receive the first significant increases in their transit grants as a result of the new Building Manitoba Fund. Municipalities throughout Manitoba will see an average funding increase of eight per cent in 2005, targeted for improving roads and water infrastructure.
Specific commitments to Brandon include:
support for the new wellness centre at Brandon University;
expanded capacity at Brandon’s new and upgraded Regional Health Centre;
$1.1 million to operate Brandon’s new MRI, the first outside of Winnipeg;
funding for the expansion of the Keystone Centre; and
further support for Assiniboine Community College and Brandon University.
Continuing to renew the health-care system is a priority of Budget 2005. The budget pledges to continue to upgrade hospital emergency rooms and diagnostic equipment while also focusing on disease prevention and healthy living initiatives.
Budget 2005 includes:
funding for 20 new ambulances, mostly in rural Manitoba, bringing the total number of new ambulances to 120 since 2001;
new medical school spaces as well as more training for technologists;
$9.7 million more for home care;
an implementation plan for the Diabetes Prevention Strategy; and
additional capital funding to continue upgrades at facilities throughout Manitoba.
Creating new opportunities for young people is also a priority of Budget 2005. The budget notes the province’s focus on youth is paying dividends. In 2004, Manitoba recorded the strongest population growth in more than 20 years with net youth migration up over 1,100 people.
In addition to major capital investments at public schools, universities and colleges, the budget also contains more supports for students. Budget 2005 features:
continuing the 10 per cent tuition reduction for the fifth straight year;
expanding the student loan and bursary program;
providing additional investments in technical, vocational training; and
increasing funding for apprenticeship training and the College Expansion Initiative.
One important part of Manitoba’s economic plan is to continue developing clean energy resources. Construction has begun on Manitoba’s first wind farm in St. Leon and planning continues on the proposed Wuskwatim and Conawapa dams in northern Manitoba.
Budget 2005 recognizes the recent federal government commitment to an east-west power grid provides Manitoba with an opportunity to tap into new markets and provide energy security for Canadians. Manitoba will continue to work with Ottawa and other provinces on the proposed grid and on developing opportunities to provide clean energy to Canadians.
Budget 2005 also focuses on water quality and the environment. Upgrades to waste water treatment plants are underway across the province including Winnipeg, Garson/Tyndall and Gimli. The budget supports plans to revitalize the province’s great lakes, Lake Winnipeg and Lake Manitoba. It also contains more resources for sustainable forest management and plans to maintain and enhance protected areas.
Today’s budget invests in the province’s future—in infrastructure, in communities and in citizens. Budget 2005 pledges to put people first by:
continuing with Manitoba’s five-year child care plan;
providing over $17 million to expand community-living supports for adults with mental disabilities;
increasing funding for the arts;
providing a new integrated shelter benefit to help make housing more affordable for low-income Manitobans; and
providing more resources to help immigrants settle in Manitoba.
Budget 2005 also includes an update of the province’s seven-point Action Strategy for Economic Growth as recommended by the Premier’s Economic Advisory Council. Manitoba is committed to continuing actions on all seven fronts: education first, building through research and innovation, raising and retaining investment, affordable government, growing through immigration, building Manitoba’s communities, and building on the province’s clean energy advantage.
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