Premier Dennis Fentie has again announced a decrease in capital spending for the 2007-2008 fiscal year.

In his address to the legislature early this afternoon, Fentie announced $212.3 million in anticipated capital expenditures, representing a $15.6 million decrease from the $228 million forecast for the fiscal year ending three weeks ago on March 31.

In addition to the capital, the premier announced a $649.4 million operation and maintenance budget, for a total annual budget of $862 million, down $5 million from the $867 million for the 2006-07 annual budget.

Typically, however, the government boost its spring budget announcement when it returns to the legislature the fall with it supplementary budget.

In March 2006, for instance, the Yukon Party government brought in a capital budget of $191.7 million, a fair bit below the record $223 million capital budget for the 2005-06 fiscal year.

Seven months later, while still celebrating a second-majority government, Fentie elevated capital spending for this fiscal year with another $75.6 million, once again taking the capital spending to a new high of $268.3 million.

Figures delivered today, however, readjust what Yukoners spent in the last 12 months on capital projects to the $228 million.

Not identified in this budget is the $25 million per year the Yukon will receive from the federal government for the next seven years for capital expenditures as was promised in the federal budget last month. Finance officials with the Yukon government expect the first $25 million payment to show up this year.

In his opening remarks to the legislature, Fentie reminded the House of how the Yukon Party government promised a brighter future for Yukoners.

'Since our re-election last fall, we have been busy working on behalf of Yukoners to turn this vision into reality,' Fentie told the legislature.

'The budget together with the next four successive budgets will be utilized to implement our election commitments over the course of the next five years while we go about Building Yukon's Future Together.'

Of the $212.3 million budget for capital expenditures, $19 million will be recovered from Ottawa as federal contributions.

Another $61.3 million will be recovered from other parties, such as the $29.8 million allotted for the Shakwak project that is covered from the U.S. as part of its contribution to improvements to the northern section of the Alaska Highway.

The Shakwak work remains the largest single item in the capital budget.

The variety of projects identified in the capital budget, however, vary as widely as the responsibilities for each department.

With the completion of the Tantalus School and other major education initiatives, for instance, the Department of Education's capital budget has been slashed in half.

While capital expenditures for the Whitehorse waterfront have fallen to $4 million for this fiscal year from $7.1 million in the 2006-07 budget, funding for the Carcross waterfront has shot up to $1.5 million from $500,000.

There has been $5 million identified for the initial construction stages for the Hamilton Boulevard extension.

The Yukon government has identified another $14.5 million for residential land development.

The major portion of the residential development money, $6.25 million, has been earmarked for the Porter Creek lower bench while $5 million is being directed toward the rural residential Grizzly Valley subdivision; $1 million for completion of phase one for the Whitehorse Copper lots off the Mount Sima Road and $1.75 million for researching and planning rural lots in the Mount Lorne area.

Another $3.2 million for more planning and schematic design work for the new jail has been set aside, to augment the $539,000 spent last year.

Yukon Housing has earmarked $1.8 million to complete its seniors' housing complex in Haines Junction.

Another $6.9 million has been budgeted for Watson Lake continuing care facility, raising the total amount spent and allotted for the facility to $10 million, or almost double the original $5.2 million budgeted.

Department by department budget forcasts for this fiscal year are as follows:

In keeping with the norm, the Department of Highways and Public Works takes the largest share of the capital budget, with an allotment of $72.3 million. The budget amount represents an $11 million or 13 per cent decrease from the $83.3 million forecast for the 2006-07 fiscal year.

Community Services takes the second highest share of the capital budget, with $45.6 million, representing a 28 per cent decrease from last year's $63.2 million.

The Executive Council Office leads the charge in the single largest increase, shooting up this year 251 per cent to $26.5 million, up from $7.6 million last year. Normally a department with a small capital budget, money for the $32 million aboriginal housing program is flowing through the political office.

The capital esimate for Yukon Housing Corp. is up $4 million, from $14 million to $18 million.

The capital allotment for Health and Social Service is up from $8.5 million to $13 million.

Anticipated capital expedentures for the Department of Education have plummetted from $21 million for this fiscal year to $10 million for 07-08.

The Department of Econmic Development fell from $13.2 million to $9.4 million.

Tourism and Cultural is sitting on a relatively even capital budget, with anticipated expenditures this year of $5.5 million, compared to $6 million last year.

Capital spending for Energy, Mines and Resources has been pegged at $5.2 million this fiscal year, down from $5.6 million for the 2006-07 year.

The Department of Justice has a spike in its capital budget, pushed by more money for planning a new jail, is up to $3.8 million this year, from $1.6 million last year.

Capital spending for Environment has dropped to $2.6 million from $3.1 million.

The Department of Finance will have a capital budget for this fiscal year of $296,000, down $1,000 from the 06-07 year.