The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
A balanced budget in Manitoba Why have a balanced provincial budget? The obvious answers are that it frees up tax money for spending needs or tax relief as interest doesn't have to be paid on the debt. Also credit-granting institutions will increase the credit rating of provinces with balanced books, which means a lower interest rate for loans. Unlike Saskatchewan, which must only balance the budget every four years (usually at election time), Manitoba's budget must be balanced each year under legislation passed by the Filmon government in the mid-90s. Penalties for not balancing (except in times of severe economic recession) are an immediate 20% reduction in the salaries of the Premier and his cabinet, therefore it is in the government's interest to stay out of debt Ð or is it? Back in early January, Manitoba's auditor general, Jon Singleton, released his audit of the public accounts and stated categorically that Manitoba has run deficits for the past three years, last year $200 million and $100 million this year, even though the government proudly announced the books were balanced. Singleton called for a plan to stop running deficits and urged that the NDP start following generally accepted accounting principles, known in the financial world as GAAP. He also explained that the balanced budget laws allow the government to use two sets of books Ð they are not forced to include pension liability, the losses of crown corporations and some capital spending. He also warned that things may be getting worse and noted that until three years ago the balanced budget and real budget were the same, saying in effect it was the fault of the Doer administration. Manitoba's finance minister Greg Sellinger rejected the criticism explaining he does disclose the total costs, but at different times, and that as they are following the Filmon legislation, no changes are needed. Stuart Murray and the Tory opposition jumped on the issue like a dog on a bone. Murray called for Doer and his cabinet to take the 20% cut and stop talking favourably about balancing the books every four years like Saskatchewan. He urged Doer not to weaken Manitoba's laws and allow governments to return to the days of deficit budgets. Well, before the opening of the 10 day March session, called to debate water/floodway legislation, and the all-party report on smoking, Murray again called on the NDP to stop fudging the books and adopt GAAP. He didn't mince words claiming that the Doer team has increased spending by 26% ($1.45 billion) since being elected in 1999, while still poorly managing the health system. "Gary Doer doesn't have a revenue problem, he has a spending habit," Murray said, "while we still have long waiting lists and acute nursing shortages." Like his finance minister, Doer rejected the criticism, claiming he is following the balanced budget legislation. Does the public care? He is banking on a short public memory, and a lack of the public's concern unless they are personally affected. Also in the short session, health critic, nurse Myrna Dreidger called on the health minister to stop wasting $20 million health dollars on a government laundromat and sandwich factory and set up an emergency room patient tracking system similar to those in Toronto hospitals. The next day health minister Chomiak agreed that the province would pay for a tracking system if the Winnipeg Health Authority's task force recommends one. Chomiak, who has a penchant for coughing up money to try to solve health system problems, did add that the cost in Calgary for four hospitals was $2,000,000. The ten day session was a busy time for the MLAs. Apart from the debates mentioned, members considered improving the cross-border policing act, setting up a Manitoba Immigration Council, allowing the police to seize property gained from crime and such things as not allowing MPIC to be privatized without a vote of the people (not likely to happen given the fiasco in other province's car insurance), and a few other minor bills and amendments. MLAs will return in mid-April to hear the NDP's new budget. At present they are a reported $98 million short which will no doubt come from the rainy day fund. Watch for a return of the fireworks over balanced budgets and "When is a balanced budget not a balanced budget?"
