While the Yukon government will decrease overall capital spending for the 2006-07 fiscal year, money allotted for some specific items like land development has skyrocketed.

Premier Dennis Fentie delivered the $793-million budget this afternoon in the Yukon Legislative Assembly.

Annual operations and maintenance of the different departments accounts for $601 million, while $191 million is set aside for capital expenditures.

The capital budget identified for the 2006-07 fiscal year represents a 14 per cent decrease from last year's record of $223 million in capital expenditures.

Of the 18 individual departments, 14 lost ground in their capital budgets, most noteably a $16.2-million decrease for highways and public works.

While the Department of Community Service witnesses an 11 per cent decrease, the department's budget for residential land development ballooned by 37 per cent from $9.1 million that was forecast for this fiscal year to $12.5 million for the 2006-07 fiscal year that will begin Saturday.

'Mr. Speaker, our government has been working hard to revitalize, diversify and expand Yukon's economy,' Fentie said this afternoon in his fourth annual budget address to the legislative assembly. 'That hard work is paying off.'

Fentie predicted that mineral exploration in the Yukon this year will hit a record $100 million.

The unemployment rate is amongst the lowest in the country and the economy is perched on a blooming horizon, Fentie told his legislative colleagues.

'Our government has met the challenges of the past and is prepared to take on the future.'

Capital budget highlights range from $1 million to advance the planning and design for a new jail, to $360,000 for a new speed skating rink at the F.H. Collins Secondary School, as part of the 2007 Canada Winter Games preparation.

The Department of Education has earmarked $6.8 million for completion of the new Tantalus School in Carmacks, and a further $1.4 million to finish the cafeteria renovation at Porter Creek Secondary School.

While nothing has been set aside for a new school in Burwash Landing, $200,000 has been set aside for a Burwash Landing learning centre.

The final $2.4 million has been budgeted for completion of the $5.2 million multi-level care facility in Watson Lake, while $100,000 has been set aside for planning a similar $5-million facility for Dawson City, a project that was taken off the books last year.

There has been a further $1.8 million set aside to study the Yukon-Alaska railway proposal.

Mount Sima will receive $700,000 through the Municipal Rural Infrastructure Fund to help with construction of a new chalet, while $2.6 million has been set aside under the same fund for completion of the Mayo community centre, as well as $980,000 to finish off the Marsh Lake community centre.

The Whitehorse waterfront will receive $3.5 million in financing toward its waterfront development project from the Canadian Strategic Infrastructure Fund, while $1 million has been identified from the same fund for the Carcross waterfront.

There's been $2.5 million earmarked from that fund for work on Dawson's sewage treatment project, and another $4.4 million to cover the cost of replacing the Carmacks waste water treatment system.

Capital expenditures by department are:

• The Department of Highways and Public Works again has the heftiest budget for capital expenditures at $72.4 million, though a full $16.2 million less of last year's $88.6 million, representing a decrease of 18 per cent. The Shakwak reconstruction project on the North Alaska Highway tops highways expenditures at $34.8 million, all of which is paid by the U.S. federal government as its contribution to the highway improvement project.

• Capital spending for the Department of Community Services in this coming fiscal year is pegged at $49.6 million, $6.2 million less than last year's $55.8 million, representing an 11 per cent decrease

• The Department of Education is budgeted for $17.6 million for capital expenditures, representing a four per cent decrease from the $18.4 million forecast for the 2005-06 year that will end tomorrow.

• The Yukon Housing Corp. is one of only four departments receiving more money for capital spending, with a six per cent increase of $920,000, for a total of $15.9 million.

The vast majority of the money $13.7 million is recoverable, as most of the capital budget is used to finance low-interest homeowner loans for energy efficiency programs and such.

• Capital spending for the Department of Economic Development will fall 14 per cent to $10.4 million from $12.1 million forecast for the 2005-06.

• Health and Social Services has taken the largest decrease in its capital budget, with expenditures estimated at $8 million, representing a $3.4-million or 30 per cent decrease from the $11.4 million budgeted for this fiscal year.

• The Department of Tourism and Culture will receive a modest two per cent increase in its capital budget, up from $5.8 million to $5.9 million.

• Capital expenditures for the Department of Energy, Mines and Resources for this coming fiscal year is estimated at $5.5 million, representing a $1.3-million or 20 per cent decrease from last year.

• The Department of the Environment will receive a 17 per cent boost for capital expenditures, up from $2.5 million for this fiscal year to just shy of $3 million for the 2006-07 fiscal year.

• Capital funding for the Department of Justice has been set at $1.5 million for 2006-07, down 30 per cent from the $2.2 million forecast for this fiscal year.

• The Executive Council Office has taken the largest of all drops, with its capital budget for 2006-2007 set at $794,000, down a whopping 80 per cent from the $4 million budgeted for this fiscal year.

The decrease is due solely to a transfers of land to first nations that have received developed lots as part of their land sections.

• In what is a step out of normal practice, the Yukon Development Corp. has been allotted a capital budget by the Yukon government. The Crown corporation has been given $450,000 to plan a new power transmission line between Carmacks and Stewart Crossing.

• Capital funding for the Department of Finance has slid down two per cent to $297,000; the capital spending for the Public Service Commission is up 33 per cent to $69,000; expenditures of the Yukon Legislative Assembly remain at $40,000; the Elections office remains the same at $5,000 while capital spending for the Office of the Ombudsman has fallen to $6,000, from $14,000.