Manitoba 's Provincial Budget 2005

Announced March 8, 2005

Yesterday's Provincial Budget for 2005 focused on four prerogatives made priority by Manitoba's NDP government. They include: 1) Paying down the province's debt, 2) Making strategic investments, 3) Cutting taxes and 4) Saving for the future.

The following translates how this Budget affects the construction industry: two initiatives, one new and one renewed will carry our industry into 2005.

The new Building Manitoba Fund, announced in yesterday's Budget, projects an investment of over $600 million over five years into local roads, water and transit - including the equivalent of a three cent per litre share of provincial fuels taxes. This is the first transit funding increase in a decade, as well as more money for roads. Provincial funding for highways will get $16 million more this year, bringing this year's investment to $145 million. Northern winter roads will also receive more funding. Municipalities will receive the equivalent of $165 million in provincial fuel-tax revenues over the next 5 years. In total, municipalities will receive $119 million in 2005, an 8% increase over 2004 through the new Building Manitoba Fund. Funding for the City of Winnipeg is also up eight per cent through the new Building Manitoba Fund.

Budget 2005 renewed the province's commitment to Manitoba's Infrastructure Renewal. Provincial funding for highways will receive $16 million more this year, bringing this year's investment to $145 million. The provincial drainage system, flood proofing and protection, and initiatives to deal with shoreline erosion and ice jams will also receive more funding this year. There is a 4.6% increase in funding for municipal water projects, building on the $80 million invested since 1999 in clean water projects in 81 communities and wastewater treatment projects in 43 communities. The Canada-Manitoba Infrastructure Program, the Rural Infrastructure Program and the new Canada Strategic Infrastructure Fund will also receive increased funding.

This budget has increased resources to $1.1 million for Water Quality Initiatives. Water treatment plants will be upgraded in Garson/Tyndall, Winnipeg and Gimli. Provincial Park facilities will be upgraded, including more support for Birds Hill Provincial Park and funding has been put toward supporting actions to clean up and protect Lake Winnipeg. Additionally, the province has kicked in $56 million to support Red River Floodway construction – the largest infrastructure project in Winnipeg's history.

The province has committed its efforts to continue to work for the construction of an east-west power grid in Canada, building on the federal government's recent commitment. In preparing for the potential Wuskwatim development in northern Manitoba, the provincial government will also be pursuing other opportunities such as the proposed Conawapa dam. The Province is also examining biodiesel as another clean, alternative energy source for future development and supporting new energy developments such as the new wind farm in St. Leon which is currently under construction. This budget also provides $3 million more in funding to enhance slaughter capacity in Manitoba.

Health Care in Manitoba will see expanded services in rural communities to increase surgical procedures and expansion of northern health-care facilities to bring them closer to home. An expanded surgical program at Selkirk General Hospital and an expanded orthopedic surgery program at the Boundary Trails Health Centre are planned along with new or expanded community cancer-care programs in Deloraine, Pinawa and Steinbach. This budget also promises additional support for health capital projects throughout Manitoba including upgrades to emergency rooms, and major projects like the redevelopment of Health Sciences Centre.

For Education, additional capital support for the University of Manitoba has been allocated, along with $135 million over three years to modernize public schools. This brings the total capital investment to $333 million since 2000. Also promised is increased funding for technical vocational training and apprenticeship programs. New resources will be put aside for further development of the University College of the North. Other Northern project funding includes pre-project training for the proposed hydro projects in the North. Resources have also been approved to improve public libraries in rural Manitoba.

To support New Housing Initiatives, an increase to the 15-year exemption from rent controls on new construction to 20 years has been implemented in order to encourage development. Programs that support building, renovating and repairing homes across the province, with an emphasis on increasing affordable housing, will be expanded.

For the City of Winnipeg, a six-year plan to invest $500 million in renewing Winnipeg infrastructure was announced in Budget 2005. This includes support for tripartite programs that help fund such infrastructure projects as upgrading Winnipeg's wastewater treatment system and building the Kenaston underpass. Funding for the twinning of the northeast section of Winnipeg's Perimeter Highway is planned and beginning in 2006, the province will begin to share assessment costs with Winnipeg as it does with other municipalities.

The City of Brandon will receive an increase in total support from the province of nearly eight per cent in 2005. Significant support for the proposed Wellness Centre at Brandon University has been agreed upon along with increased funding for Brandon University and Assiniboine Community College. The Keystone Centre will also be expanded with a $15-million commitment from the federal and provincial governments.

Budget 2005 sees an increased debt payment and no draw from the province's Rainy Day Fund. The five year tax reduction plan continues with personal income tax deductions reduced again, effective January 2006, ($30 million) and Manitoba's business tax reductions continue with decreases in both the general corporate and small business taxes.

For full Provincial Budget 2005 details, see the Manitoba Government website at: www.gov.mb.ca.

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