MLAs float idea of raising taxes to boost low N.W.T. revenues

There's mixed reaction to the N.W.T.'s proposed 2018-19 budget tabled Thursday in the legislative assembly.

While some people are pleased to see investments in things like mental health resources and education, others are wondering how the territorial government will raise declining revenues in the future.

"We have to develop new streamsof revenue," said Yellowknife Centre MLA Julie Green on Friday. "At this point, we are earning more from tobacco sales than mining, oil and gas royalties."

Thursday's proposed budget projects$1.749 billion in revenues in the next fiscal year, while spending $1.713 billion.

That leaves an operating surplus of $23 million the lowest in seven years. After accounting for capital investments, the government is expected to be left with a cash surplus of just $2 million.

• Declining revenues lead to small surplus as N.W.T. gov't releases budget

Green said the territorial government isn't expecting the legalization of cannabis later this year, or carbon pricing, to bring a big boost to the N.W.T.'s finances.

"So we have to figure out how to increase our revenues through the resources we have now," she said.

"So adding another tax bracket for personal tax, increasing corporate income tax, increasing royalty rates. We need to start that conversation."

Frame Lake MLA Kevin O'Reilly agrees.

For years, he's been talking about the importance of economic diversification, and he says it's time the government starts looking seriously at other ways it can make money, outside of mining.

"All you have to do is look at the budget address itself," said O'Reilly. "There's four paragraphs on mining and one paragraph on economic diversification. I think that shows that the sort of inherent emphasis or focus of our cabinet is largely to promote mining."

O'Reilly said the slump in revenues this year which are largely due to lower mining royalties means there isn't money to invest in things like the arts or economic diversification.

• Low royalty rates, lax oversight mean N.W.T.'s missing out on mining revenues: report

"We don't have enough money to do it and our government is not willing to go out and get it," O'Reilly said.

He suggested a resource tax as one option the government could pursue to raise more stable revenues.

• N.W.T. gov't to spend $236K sending officials en masse, again, to Vancouver mining show

Dollars for mental health welcomed

However, the budget isn't all bad news.

The government is investing $2.1 million in funding for junior kindergarten, plus an additional $881,000 for inclusive schooling for children at that grade level. That's something MLAs, school boards and parents were asking for last year, that never came to fruition.

Jiah Marlowe, a former student at the Dechinta Centre for Research and Learning, said she was excited to see $1.5 million in the proposed budget for mental health and wellness resources for young people. The new money is expected to put counsellorsin schools and communities.

Marlowe, who also works with youth through Dechinta's Kids U program, said it's important to have full-time counsellorsyear round.

"Mental health doesn't wait."

Set more$ aside for gov't transparency: community member

But there are some additions people would have liked to see in the budget.

"The big ones, I guess, are Aurora College about the social work program [and Teacher Education Program]," said Shane Thompson, MLA for Nahendeh. "Again, we're not hearing about any intakes. So that's a big challenge."

New enrolment into the two programs was put on hold around budget time last year, after the government stepped back from its original plan to cut funding to the college by $1.9 million. The cuts were put on hold until a review of the entire college could be completed by this March.

• Aurora College's teacher, social worker programs targeted by budget cuts

Other people were hoping to see more support for government transparency.

David Wasylciw, who runs Open NWT a website where residents can get information about legislative assembly debates, bills and committees attended thebudget address Thursday.

"There's a lot done right now to fix up [government] websites," he said, adding that it would be nice to see more investment in publishing government information online.

Thursday's budget, however, is only a proposal right now.

MLAs will review the document over the coming weeks before passing a final version.

Green says MLAs still have a number of asks, but they realize there is only so much that can be done given this year's low revenues.

"We have been negotiating since November," said Green. "And we'll be negotiating up until the last minute."

• RioTintosays it paid $38Min royalties to N.W.T., butgov'tcan't confirm
• 'It can be frustrating': Problems linger at N.W.T. public guardian's office
• N.W.T. tops Canada for per capita healthcare spending, report says