Whitehorse Daily Star

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THE BREAKDOWN - The pie chart represents the portion by source of each dollar of locally raised revenue. Approximately 10 per cent of the annual budget is raised through taxes and other revenue generated in the Yukon. Federal money accounts for about 75 per cent of the budget. From 2009-2010 Budget Address

Details of record capital spending emerge

For weeks now, the Yukon government has been touting a record capital budget of $240 million for the 2009-10 fiscal year.

By Chuck Tobin on March 19, 2009

For weeks now, the Yukon government has been touting a record capital budget of $240 million for the 2009-10 fiscal year.

As is the case in most budgets, the Department of Highways and Public Works is leading the charge with anticipated expenditures of $91.3 million, of which $65 million is earmarked for roads and bridges, and $18.3 million for information and communications technology.

There is, for example, the final $12.3 million to complete the replacement of the territory's mobile radio system used by the RCMP, other emergency services and the Yukon government highway trucks and such.

And as is the case in most territorial budgets, the Department of Community Services has the second-largest capital budget, with spending expecting to reach $60.1 million, including $3.4 million for the Whitehorse waterfront and $27 million for residential land development.

There's also been $7.4 million budgeted to begin the two-year project to expand the Erik Nielsen Whitehorse International Airport terminal.

"This budget received a great deal of input from Yukon economic stakeholders and Yukoners generally," Premier Dennis Fentie told the legislature this afternoon, shortly after rising to deliver his budget address.

"It is designed to stimulate Yukon's private sector economy by investing in economic, social and public infrastructure that will keep Yukon's economy primed for the near term, while contributing to the territory's longer-term economic prosperity."

Together with the $763 million the premier announced for regular operation and maintenance, the total territorial budget broke the billion-dollar mark for the first time - $1.003 billion.

On the capital side, of the $240 million, the Yukon will recover $90 million from a variety of sources, including $23.6 million from the U.S. for the ongoing road and bridge work on the north Alaska Highway; $8.5 million from the federal government as its contribution to

this year's $10.6-million reconstruction of the Robert Campbell Highway, and a good chunk from the sale of land developed by the government.

Of the $27 million identified for residential land development this year, for instance, there is $10 million to kickstart construction of the city's new Whistlebend subdivision; $8 million has been identified to cover the cost of the 140-lot Arkell subdivision expansion; $4.7 million for continued work on the Grizzly Valley rural subdivision project and $2.8 million for residential land development in Haines Junction.

  • The $91.3 million for Highways and Public Works represents an increase of six per cent over the $86.5-million budget for this fiscal year.

  • The $60.1 million allotted to Community Services represents a four per cent increase over this year's $57.5 million.

  • Capital expenditures by the Yukon Housing Corp. are expected to fall to $24.4 million, down 11 per cent from the $27.3 million for this 2008-09 fiscal year.

All in all, $11.2 million is earmarked for social housing, including $6.2 million to begin construction of the 30-unit housing complex on Nisutlin Drive for single parents.

  • Expenditures of $21.6 million on the first phase of the new correctional centre, expected to cost a total of $60 million over four or five years, takes almost the entire budget of $22.9 million for the Department of Justice.

By comparison, last year's capital budget for Justice was $3.9 million, including $2 million for planning the correctional centre.

  • Capital expenditures of $9 million budgeted for the Department of Economic Development represents a decrease of 20 per cent from the $11.4 million budgeted for this fiscal year.

While funding for the the Community Development Fund is pegged to fall to $3 million from $3.4 million, funding for the film and sound industry is expected to climb to $1.3 million, almost double the amount budgeted for this fiscal year.

  • The Department of Health and Social Services is expected to spend $8.7 million on capital projects, representing an eight per cent increase from the 2008-09 fiscal year budget, with most of the money - $2.5 million - allotted for the new hospital in Watson Lake, though the government has not announced its decision on whether to proceed.

It issued a $200,000 contract late last year to investigate the cost of using the boarded-up shell of what was originally scheduled to be a multi-level care facility for the new hospital.

  • The 2009-2010 for the Department of Education has been set at $8.4 million. That is down 16 per cent from the $10 million in the current capital budget, including the previously announced $400,000 to plan a new F.H. Collins Secondary School to replace the current 46-year-old building, and another $350,000 for a new roof for the high school.

  • Capital funding in 2009-10 for Energy, Mines and Resources has been set at $5 million, up from $4.6 million, including $450,000 for agricultural land development in the Haines Junction area.

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