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Brad Cathers

Surplus was forecast when vote was called: YP

Something’s not adding up

By Chuck Tobin on January 25, 2017

Something’s not adding up – but it’s not the Yukon Party’s math, insists opposition Finance critic Brad Cathers.

Cathers said Tuesday afternoon when the election writ was dropped in October 2016, the party’s spending forecast was still calling for a surplus by the end of the 2016-17 fiscal year on March 31.

It was less than the $9.5-million surplus the Yukon Party anticipated when it delivered its last annual budget in April 2016, but a surplus was still being forecast, he said in an interview.

Cathers emphasized that once the writ was dropped, spending decisions by the governing party were essentially put on hold through the election process and through the transition period to the swearing-in of a new government on Dec. 3.

Whatever pushed the annual budget into a deficit of $8 million is something Liberal Premier Sandy Silver will have to account for, because it wasn’t anything the Yukon Party did, Cathers said.

He emphasized how the Auditor General of Canada praised the Yukon’s financial position management in the annual audit of the public accounts delivered last October.

“Overall, the key thing is we would stand on our record of prudent financial management,” said the Finance critic. “It is not just us saying that, the Auditor General said the same.”

The premier, who also serves as the Finance minister, said Monday the deficit position for this annual budget was the result of decisions made by the Yukon Party.

“Coming into office, we understood that Yukon had a surplus budget,” Silver said in announcing a special warrant approving $29.4 in additional spending.

“There is no surplus; there is a deficit.

“Today’s warrant represents spending done by the previous government in advance of the election. The warrant reflects the financial costs approved by the last government but not accounted for in the previous budget.”

Cathers, however, suggested the real answer lies within the Liberal decision to avoid a legislative sitting to introduce supplementary budget bills.

Supplementary budget bills, unlike special warrants, have to be explained and debated in the legislature, he noted.

He said he doesn’t buy Silver’s “ridiculous” explanation that he didn’t want to hold a brief session beyond the one day he used Jan. 12 to appoint legislative committees because he didn’t want to have to defend a budget that was introduced by the Yukon Party.

Silver, said Cathers, has always spoke out against using unchallenged special warrants to introduce new spending – yet he chose to use one right out of the gate.

Communications officer Eric Clement of the Department of Finance confirmed today the annual territorial budget is currently in a deficit position of $8 million – though there are still two months to go where there may be additional savings.

How the budget was put into a deficit is something of a political discussion that department officials will leave to the elected members, preferring to wait until the end of the fiscal year to explain the territory’s financial position, Clement said.

The additional $29.4 million in spending approved by the Liberal government raised the total territorial budget for 2016-17 to $1.42 billion, up from the $1.39 billion in spending introduced last April.

On a per capita basis, the new $1.42 billion budget represents $37,173 in spending for every resident of the Yukon, given Tuesday’s most recent population estimate of 38,200 released by the Yukon Bureau of Statistics.

Monday’s announcement notes that 12 government departments need additional money, with more than half of the special warrant or $15.4 million going to the Department of Education: $12.1 million for operations and maintenance and $3.2 million for capital.

Comments (8)

Up 3 Down 0

We can all trust Brad, on Jan 31, 2017 at 8:07 am

He's never led anyone astray before. (tongue poking through cheek) !

Up 5 Down 3

Just Say'in on Jan 29, 2017 at 8:40 pm

Announcement by the Federal Libs. to Tax Healthcare benefits. Aprox 1500.00 per year per Gov. employee. That should help with the deficit. Haha I bet you guys are glad you voted Liberal. LOL

Up 8 Down 2

Look at liberals lying to Canada's on Jan 27, 2017 at 12:57 pm

on the deficit, of no more than $10 billion a year. First year, over $30 billion and nothing, socially or economically, to show for it.

Up 4 Down 1

yourdollars on Jan 26, 2017 at 10:25 pm

Can’t get over this budget flap. When Silver is counting his beans is he still including the Dawson sewage plant (he railed against it being counted as a $25 million asset while in opposition and it still remains worthless – how did he count it in his budget).
What about the Hospital Corporation and other corps. The liberals complained loud and long about it when the responsibility lay with the YP?
What’s the story on FH Collins demolition this is taking longer than building a school and rumor has it, it’s costing more?

Up 7 Down 7

liberals step into quick sand on Jan 26, 2017 at 10:02 am

Anyone, who held senior position, in public office, can create a deficit.
Transfer payment cuts, creates the biggest deficits for the Yukon. Pot and carbon tax, will more, than make up the difference. Federal Liberals, will introduce, a whole list, of new taxes, in the next budget.
This will further take down Canada economy and harm the Yukon.
With Canada increasing taxes and regulations, and the United States lowering and removing regulations, we will see large and medium companies, moving to the United States. Group for accountable government.
Plus, the liberals, already know this and their major debt program, has already gone through the roof and it is out of control.
This new will destroy the next three generation's future.

Up 10 Down 3

sam white on Jan 25, 2017 at 10:53 pm

Open, transparent and accountable seem to be easier for Mr. Silver to direct to Ministers rather than enact it as the Minister of finance.
Brad (future leader) Cathers has thrown down the challenge who can we trust. He has said there was no deficit and Mr. Silver says its $8 million.
Why not let us decide? show us the figures (graphs work well)
– show us the figures, what were the dollars voted (department totals should be sufficient),
– what were the dollars already spent in those departments on December 3, 2016 swearing in (you can fudge things all you want - that is the day power changed hands, after that day Silver was responsible for every penny and it doesn’t matter who’s budget it was) and
– What are the total amounts for each department that required these special warrants.
If you wanted to be accountable you could also put a note beside the line item showing the area of increased need and the rational for the extra money so we as the public can decide who made the decisions to overspend the budget. Or, is it that the administration had a free for all with one outgoing and an incoming government and both not checking the actual facts.
Unlike your article the Department of Finance shouldn’t be let off by saying it’s a political issue, they work for the Yukon people not the politicians. Numbers are numbers print them or let the public know who told you not to.
Or are we like our southern friends in the land of alternate facts.
I can hardly wait to hear how O&M for departments can be out by over a million dollars? Did someone forget a couple of months of the year?

Up 8 Down 4

BnR on Jan 25, 2017 at 8:27 pm

Dear Auditors say differently
Please provide English translations for your comments.
Thank you.

Up 29 Down 35

Auditors say differently on Jan 25, 2017 at 3:15 pm

Liberals like Ottawa can't wait to go into debt and destroy Yukon economy like they did before. The Economic outlook group.

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