Whitehorse Daily Star

Opposition parties critical of spending warrants

Just two weeks ahead of the legislature resuming, the Yukon’s Liberal government has committed to spending millions of dollars outside of the official budget.

By T.S. Giilck on February 23, 2024

Just two weeks ahead of the legislature resuming, the Yukon’s Liberal government has committed to spending millions of dollars outside of the official budget.

In a news release issued Thursday, the government announced it is adding up to $65.9 million in spending.

That comes via the government’s special warrant powers, allowing it to spend beyond the formal budget.

“Delivering patient-centred health care continues to be a top priority for the Government of Yukon,” the release reads.

“At the same time, the Government of Yukon has made significant progress in advancing major capital infrastructure projects like the Dempster fibre line and Nisutlin Bay Bridge replacement.

“To support continued progress on both priorities, the Government of Yukon is issuing a special warrant under the Financial Administration Act to provide budgetary authorization for up to $65.9 million in funding for the Departments of Health and Social Services and Highways and Public Works.”

The announcement goes on to explain that $25 million is being allocated to meet financial commitments related to the growth of insured health costs.

“Within the Department of Highways and Public Works, $40.9 million in capital is needed to continue capital infrastructure projects as they progress faster than anticipated.

“Last summer, despite facing challenges like road washouts, wildfires, smoke and blizzards, the team working on the Dempster Fibre Line installed over 405 kilometres of conduit and 702 kilometres of fibre, progressing the project ahead of schedule.

“A warmer winter made it possible for contractors working on the Nisutlin Bay Bridge replacement project to extend their work season.”

Finance Minister Sandy Silver said, “This special warrant ensures we have the spending authority needed to continue providing health care services which Yukoners expect.

“It also supports the progress we have made towards key infrastructure, including the Dempster fibre line and the Nisutlin Bay Bridge replacement.”

Spending included as part of the special warrant is reviewed and debated during the spring sitting of the Yukon Legislative Assembly.

Speaker Jeremy Harper announced Thursday that MLAs will reconvene on the afternoon of March 7. The 2024-25 fiscal year budget will be tabled that day.

It didn’t take long for the Yukon Party, the official Opposition, to weigh in.

The party blasted both the Liberals and the NDP – which is keeping the government in power through the Confidence and Supply Agreement.

“On Thursday, the eve of a long weekend for many Yukoners, the Liberal government issued a special warrant to cover unbudgeted spending in the Departments of Health and Social Services and Highways and Public Works for the rest of the 2023-2024 fiscal year,” the Yukon Party noted in an email.

“Special warrants are issued by the cabinet as an order-in-council, and are done without any legislative oversight.

“In 2016, when he was an opposition MLA, Finance Minister Sandy Silver called the use of special warrants undemocratic, and stated that governments who use them disrespect democracy,” the party pointed out.

“This unbudgeted spending comes with just over a month left in the fiscal year, and shows that despite all their empty rhetoric about budgeting more accurately, the Liberal government is again using a special warrant to cover tens of millions of dollars in cost overruns,” said Brad Cathers, the official Opposition Finance critic.

“Under Premier (Ranj) Pillai’s watch, the Liberals have issued two large special warrants, broken the Financial Administration Act by failing to meet the legal deadline for releasing the public accounts, and left Yukon Hospitals so chronically short of money they diverted millions of dollars in capital funding to cover employee payroll costs.”

Cathers continued to bash 
the government.

He said the use of a special warrant is a further example of the Liberals’ “irresponsible financial management.

“Over successive budgets, the Liberals have spent down the net financial assets of the Yukon. Last year’s budget documents project the territory will have $374.8 million in net debt. This is a sharp decline from the $274 million in net financial assets the Yukon had on March 31, 2017.”

Cathers didn’t stop there, either.

“From chronically underfunding our hospitals and failing to respond to the needs of our health care system, to delays in housing lot development, to the neglect of rural Yukon, the Liberals are continuing to show they are unfit to govern,” added Cathers.

“Despite these and many other issues, Kate White and the NDP continue to support this unpopular Liberal government that has completely lost the confidence of the majority of Yukoners.

“In return for supporting the government, the NDP caucus benefits from over a quarter-million dollars of direct funding from Liberal cabinet to their caucus annually.”

White and the Yukon NDP also had something to say about the issue.

“Today’s funding announcement is the latest example of how the Liberals can’t meet or plan for Yukoners’ infrastructure and health care needs,” the New Democrats said in a statement.

“The ‘special warrant’ meets funding commitments the Liberals should’ve included in their fall budget.

“Instead, they carved out $21 million for an ore dock in Alaska. That money could’ve gone to finishing the Dempster fibre project that the Liberals have been promising since 2016,” the NDP added.

“After seven years in government, you’d think they’d do a better job forecasting predictable trends like population growth and aging.”

A cabinet communications spokeswoman said Thursday the government released its special warrants measure “immediately following the cabinet meeting where the special warrant was approved.

“This was the earliest this information could be made public,” she said.

“While they were in office, the Yukon Party used special warrants at least 27 times. Our government has used them nine times in eight years.”

The warrants, she added, “are one of many budgetary tools allowing governments to ensure that spending authority is in place for the delivery of government programs and services.

“Spending under special warrants is still debated in the legislative assembly.”

Comments (3)

Up 14 Down 5

Jake on Feb 25, 2024 at 11:38 am

This is concerning. Making the cushion very skinny, making it difficult if something goes sideways . Don’t think the feds will come to the rescue, because of mismanagement.

Up 27 Down 7

Groucho d'North on Feb 24, 2024 at 10:37 am

I suggest that before YG assumes more debt on behalf of we taxpayers, an election be called to confirm what the electorate desires and what their priorities are. Its no secret there is a growing desire for an election and the incumbent government is looking to appeal to voters by spending our money to advance their agenda. We're still a democracy despite backroom deals to support a government desperate to hold onto power.

Up 24 Down 10

YT on Feb 23, 2024 at 4:31 pm

Oh come on Brad and Currie, don’t focus on what Ranj and the Libs didn’t do, look at what they have done!
There’s, well, there’s the, um..
I’m sure they’ve done something.

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