Premier Darrell Pasloski used his first pre-election budget today to deliver another record spending plan totalling $1.39 billion for the Yukon over the 2016-17 fiscal year.

With $1.09 billion identified for operation and maintenance and $306.6 million earmarked for capital projects, the total of $1.39 billion represents the eighth straight year for a billion-plus annual budget, and an increase of $24 million over last year.

Most of the money will come from the federal transfer of $946 million.

That includes the $38 million under the Canada Health Transfer and the $14 million under the Canada Social Transfer.

Another $126 million will be recovered from Ottawa for specific initiatives, such as the provision of $30 million for infrastructure funding and $35 million to support abandoned mine sites. An example is the $28.2 million for ongoing care and maintenance of the Faro mine site.

The Yukon will raise an estimated $153.7 million through territorial taxes and other revenue streams coming from the sale of liquor, driver’s licences and hunting licences, for example.

As members of the Yukon Chamber of Commerce heard Wednesday at the annual pre-budget luncheon address by the premier (see p. 4), there are no tax increases included in the 2016-17 fiscal budget.

“Mr. Speaker, all Yukoners should be incredibly proud to know that we have money in the bank, our investment income exceeds any interest charges we face, meaning that no money is diverted from serving Yukoners to servicing debt,” Pasloski said in his budget address to the legislative assembly this afternoon.

“Because we have a focused, principled long-term fiscal plan, we are extremely well-positioned for the years to come.”

The territorial budget announced today includes $47 million carried over from the 2015-16 fiscal year, which ended last Thursday.

Last year’s initial budget estimate of $1.37 billion forecast a surplus of $23 million, though the the surplus forecast has been reduced to $1.2 million.

That leaves the territory with $57 million in net financial resources – or money in the bank – as of April 1. The bank account has fallen from $132 million at this time last year.

The anticipated surplus for this budget has been estimated at $9.5 million.

The premier reiterated his commitment to fight climate change without imposing a carbon tax on Yukoners.

“We have a climate plan that is working,” he told the legislature.

“By focusing on more efficient energy systems, reducing emissions in government, and providing incentives to individuals, we are protecting the environment while supporting the economy.”

Pasloski said his first pre-election budget includes another $2 million for the Next Generation Hydro project to continue consultation with First Nations and the public in search of a major river suitable for the territory’s next major hydro dam.

The Yukon Party government, said Pasloski, is committed to a strong relationship with the First Nations.

“I am beyond proud to live in this great territory,” he told the legislature. “And I’m honoured to have the privilege of tabling a budget that reflects our values and helps shape the future.”

As usual, the operations and maintenance budget for the Department of Health and Social Services is again topping the scales at $348 million followed by the Department of Education at $160 million.

The Department of Highways and Public Works is ranking third in operational and maintenance spending with a budget estimate of $134 million for the 2016-17 fiscal year.

Community Services is in fourth with an O & M budget of $88 million.

This fiscal year’s O & M budget represents a slight increase of $31 million over last year’s original estimate of $1.05 billion.

The capital budget of $306.6 million is down $6.5 million for the 2015-16 fiscal year, and includes $47 million being carried over from last year.

For the second year in a row, the Department of Health and Social Services has the largest capital budget at $112 million.

That includes $67 million for the extended care facility in Whistle Bend and another $22 million for the emergency room expansion at the Whitehorse General Hospital.

Normally the leader in capital funding, the Department of Highways and Public Works is coming in second again with a budget of $79 million, including $37 million for highway construction, such as the $11.4 million for the Robert Campbell upgrade.

The $52 million in capital funding allotted to the Department of Community Services is third-highest on the list, ahead of the $26.5 million for the Yukon Housing Corp.

The continuing care facility in Whistle Bend is the largest capital project in the budget.

Nearly $67 million is estimated to go toward the first phase of construction of the care facility, which includes offices, kitchens, common areas and space for 150 beds.

Meanwhile, the MRI and Emergency Department expansion at Whitehorse General Hospital will get the second-largest estimated investment at almost $22 million.

About $12 million is budgeted for the Alaska Highway-Shakwak project, which will be used to repair road damaged from thawing permafrost.

The operation and maintenance budget covers the day-to-day running of offices and the delivery of services in the territory. It includes things like salaries, computers and vehicles. 

This year’s estimated operation and maintenance budget comes in at just under $1.09 billion, which is about $31.2 million more than the last fiscal year’s estimate. The 2015-16 operations and managing budget was an estimated $1.05 billion.

Here is a list of the estimates for the 10 largest investments under the operation and maintenance budget for 2016-17, and how these compare to last year’s estimates.

1) Health and Social Services – $348 million, up from last year’s $327.5 million;

2) Education – $160 million, up from last year’s $155 million; 

3) Highways and Public Works – $134 million, up from last year’s $132.5 million;

4) Community Services – $87.6 million, up from last year’s $84.5 million;

5) Energy, Mines and Resources – $78.4 million, down from last year’s $85.3 million;

6) Justice – $68 million, up from last year’s $67 million;

7) Public Service Commission – $46 million, up from last year’s $43.7 million;

8) Environment – $35.9 million, down from last year’s $39.4 million;

9) Executive Council Office – $27.8 million, up from last year’s $23 million.

10) Tourism and Culture – $25.6 million, down slightly from last year’s $26.1 million;

The capital works budget covers building and infrastructure projects, like the construction of homes, paving of roads and upgrades to water treatment facilities.

This year’s total proposed budget for capital projects is $306.6 million.

This is down about $6.6 million from last year, when the estimated capital budget was $313.2 million, the largest ever.

Estimates for the 10 largest budgets under the capital works budget for 2016-17, and how they measure up to last year, are as follows:

1) Health and Social Services – $112 million, up from last year’s $94.8 million

2) Highways and Public Works – $78.7 million, down from last year’s $83.4 million;

3) Community Services – $51.7 million, down from last year’s $54.3 million;

4) Yukon Housing Corp. – $2.6 million, down from last year’s $28 million;

5) Education – $13.3 million, down from last year’s $26.5 million;  

6) Tourism and Culture – $7.9 million, up from last year’s $3 million;

7) Yukon Development Corp. – $5.3 million, down from last year’s $6.3 million;

8) Energy, Mines and Resources – $5.1 million, down from last year’s $7.4 million;

9) Justice – $1.9 million, down from last year’s $5.2 million; and

10) Economic Development – $1.25 million, down from last year’s $1.27 million.