This capital budget for the 2010-2011 fiscal year is going up by one per cent, from $260.5 million forecast for the existing fiscal year ending next week to $263.5 million.

That was made clear when Premier Dennis Fentie rose in the legislature this afternoon to deliver his government's new spending blueprint.

Various federal programs, including everything from the economic stimulus fund to its Building Canada program, account for $102.3 million, or 39 per cent of the upcoming fiscal budget.

Covered by federal program funding, for instance, is the new seniors' housing complex to replace the Alexander Street facility and spending on two new cultural centres.

While spending is up for housing initiatives, however, budget forecasts for highways are down, particularly with the loss of $15 million for the Alaska Highway Shakwak project funded by the U.S. government.

There's a mere $400,000 allotted for completion of the new terminal at the Whitehorse airport, compared to $12 million forecast for this fiscal year.

But almost $3 million has been budgeted to plan for the replacement of the F.H. Collins Secondary School.

The capital budget, however, does not include any money for the Mayo B hydro expansion nor the phase two extension of the Whitehorse-Aishihik-Faro electrical grid from Pelly Crossing to Stewart Crossing. That's because the funding is being arranged through the Yukon Development Corp., an arm's-length Crown corporation.

Nor is there any mention of the budget of the new hospitals for Watson Lake and Dawson City, as they are being managed by the Yukon Hospital Corp., and will be paid for through a contribution agreement with the Yukon government yet to be finalized.

"Despite the difficult global economic times, we have a growing, diversified private sector economy that year by year is supplanting the "old” economy dependent upon federal transfer payments and government spending,” Premier Dennis Fentie said in his budget speech to the legislature this afternoon.

"Clearly, the Yukon is on the pathway to prosperity.”

In other budget highlights:

• The Department of Community Services is seeing the biggest increase, rising 29 per cent to $77 million, or $17.6 million from $59.4 million forecast for this fiscal year.

Among the lead items for the department are the $10 million for the Kwanlin Dun Cultural Centre on the Whitehorse waterfront, $6.6 million for the Champagne and Aishihik Cultural Centre in southwest Yukon and $16.8 million for the Dawson City sewage treatment facility.

• In stark contrast to the increase for community services, the capital budget for the Departmenet of Highways and Public Works has been slashed by 27 per cent, sinking by $28 million, from $105.7 million for the current fiscal year to $77.5 million for 2010-11.

The end of the Erik Nielsen Whitehorse International Airport terminal project accounts for a substantial reduction in the budget, and U.S. Shakwak money has fallen to $10 million from $25.2 million for construction last season.

But $5 million has been allocated for improvements to the Atlin Road and money from the Campbell Highway is up to $16 million from $11.3 million

• Capital funding for the Yukon Housing Corp. has risen 35 per cent to $48.9 million, up from $36.1 million.

Leading the spending charge for the Crown corporation is the $11.2 million allotted for the replacement of the Alexander Street seniors' complex and $7 million for the replace of the Dawson Korbo Apartments.

Money for home repair programs, however, have been cut to $2.5 million from $5.3 million.

• The $28.7-million capital budget for the Department of Justice is due almost entirely to the $28 million allotted for continued work on the new correctional centre.

• Capital funding for the Department of Education is up 22.5 per cent to $11.9 million from $9.7 in this fiscal year.

Funding includes the $2.7 million to plan F.H. Collins' replacement, $2.3 million for a new Yukon College campus in Dawson City and $1.2 million for the Yukon College campus in Pelly Crossing.

• Capital funding for the Department of Energy, Mines and Resources is up 37.7 per cent to $6.4 million from $4.6 million.

• Capital funding for the Department of Health and Social Services is down 21 per cent to $5 million, from $6.4 million.

• Capital funding for Tourism and Culture is up 10 per cent to $2.8 million.

• Capital funding for the Department of Economic Development is down 21.3 per cent to $2.3 million from $2.9 million.

• And the capital budget for the Department of the Environment is down 16 per cent to $2.1 million from $2.5 million.