Yukon Party’s ‘surplus’ is actually a deficit
The former Yukon Party government left behind a budget deficit, Premier Sandy Silver said Monday.
By Chuck Tobin on January 24, 2017
The former Yukon Party government left behind a budget deficit, Premier Sandy Silver said Monday.
“Coming into office, we understood that Yukon had a surplus budget,” Silver said in a press release issued yesterday to announce another $29.4 million in spending brought forward through a special warrant approved by an order-in-council.
“There is no surplus; there is a deficit.”
Silver, who also serves as the Finance minister, told the Star this morning the $8-million deficit was run up by the former Yukon Party government’s spending prior to the Nov. 7, 2016 territorial election.
The previous government did not plan for the additional spending because it wanted to campaign on a surplus budget, he suggested.
Silver said his government is not looking back, however, but is focused on going forward with his promise to deliver the first Liberal budget in March.
Having the deficit budget means finding areas to reduce spending, he said.
When Silver had the legislature convened for just one day on Jan. 12, he explained he simply wanted to kickstart the work of government by appointing the different all-party legislative committees.
He did not want to spend any time in the legislature having to answer questions about a territorial budget he had nothing to do with, he explained on the day of the session.
With the additional $29.4 million, the territorial budget for the current fiscal year ending March 31 rises to $1.42 billion, up from $1.39 billion.
Of the $29.4 million, $21.6 million is required for operation and maintenance and $7.8 million is needed for additional capital spending.
Government officials were unavailable to explain what the $8-million deficit means for the territory’s savings account.
No Yukon Party opposition MLA was available for comment this morning to discuss what has happened.
When former premier Darrell Pasloski introduced his second budget last April, he boasted how his government had never run a deficit – and how his 2016-17 budget included a $9-million surplus.
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 the Department of Education: $12.1 million for operations and maintenance and $3.2 for capital purposes.
The Yukon Housing Corp. is the recipient of the second increase under the special warrant, with $2.4 million more earmarked for capital projects.
Monday’s announcement says some of the additional spending is linked to the new collective agreement with government employees ratified last summer, election expenses, last September’s royal visit to the territory and the additional education expenses.
Earlier this month, for instance, the government released figures showing the cost of the royal visit to the Yukon government was $429,286.
The Elections Office is receiving an additional $100,000, as outlined in Monday’s order-in-council.
While the annual budget for the Elections Office is normally around $500,000 or less, the fiscal budget for this election year provided for $1.7 million.
A new collective agreement for 3,750 Yukon government employees was approved in July 2016 and called for a five-per cent wage increase over the three-year life of the contract.
According to the order-in-council, other departments requiring additional spending are:
• Office of the Ombudsman – $10,000 O & M, $25,000 capital;
• Executive Council Office – $1.9 million O & M;
• Environment – $1.3 million O & M, $125,000 capital;
• Finance – $1.4 million O & M;
• French Language Services Directorate – $268,000 O & M, $5,000 capital;
• Health and Social Services – $1.4 million O & M;
• Justice – $1.4 million O & M;
• Tourism and Culture – $1.6 million O & M, $1.8 million capital;
• Women’s Directorate – $116,000 O & M.
Comments (16)
Up 5 Down 1
ralpH on Jan 30, 2017 at 12:15 pm
What we really need is a tale of the tape. Premier Silver is probably right and as some stated his background will not make him the fool. But we need a good dose of reality and that comes from a hard accounting of the facts. How much waste generated from bad managerial decisions, how much spent on employees that should not be in the public sector, how much spent on perks IE trips and per diems. how much spent on wasteful law suits. How much spent on studies that go nowhere, And the list goes on and on. Oh did I mention the over bloated Bureaucracy.
Up 6 Down 3
Why has the Premier cut off staff in Finance on Jan 28, 2017 at 11:38 am
give Yukoners the facts. What is it hiding? For better Yukon.
Up 3 Down 1
Gordon of Riverdale on Jan 27, 2017 at 12:47 pm
What, are you saying, old man? When, you use someone's name, make sure you have clue or two. Defender of Yukoners that are not clueless.
Up 5 Down 4
George Clarke on Jan 26, 2017 at 11:13 pm
Hey, if the YTG wrong financial budgeters get ferreted out they can always find a job with the COW transit department as their figures are the stuff of lalaland evidenced in the attempted sweetheart report submitted to council last year. People are gullible but there are limits.
Up 7 Down 2
Gordon of Riverdale on Jan 25, 2017 at 8:01 pm
"Lost in the Yukon" = "Clueless in the Yukon"
(a Wilf Carter nom-de-plume perchance ?)
Up 3 Down 8
This is the 20 century on Jan 25, 2017 at 3:26 pm
not the 1900 century, which the premier was born in and still lives by those values.
Up 19 Down 6
Not Hard on Jan 25, 2017 at 12:20 pm
Sandy has a degree in mathematics and psychology. I doubt a Finance minister has ever been less likely to be bamboozled by bureaucrat-math.
8 million is about 0.6% of the total budget. Anybody who doesn't think they can find that kind of efficiency gain in the Yukon bureaucracy can't live here.
The real workers that deliver the services we need and value - the nurses, teachers, grader operators, they are all way over-managed. Lose some of the generous email-pushing fat in the middle YP built up and this will be dealt with in no time and none of us will notice any change in service.
Actually it will probably get better.
Up 24 Down 9
June Jackson on Jan 25, 2017 at 11:14 am
The YP were never transparent or honest about anything... Many of the government employee's had a hay day while the YP leadership did nothing. Poorest service ever under the Yukon Party.
Ministers were appointed to departments they knew nothing about, so they hired more ADMs, more Directors, who also knew nothing... Government is so top heavy it should be cleaned out. I believe these number are correct..but I also believe its YTG employee's that provided those numbers and the Minister took them as true because they simply didn't know any better.. the Minister is gone now..but the employee that gave them those figures is still there providing bad advice and bad information. One can only hope that Silver and partners know enough about budgets and finance to cut the crap from the truth.
Up 9 Down 6
Hugh Mungus on Jan 25, 2017 at 10:00 am
@lost in Yukon. Do you just string together random words to try to make a point? When you resort to name calling in your opening volley you've already lost the debate.
Up 9 Down 1
Deficit? on Jan 25, 2017 at 9:22 am
It's a good thing those Billion dollar transfer payments from drilling oil in Alberta and Saskatchewan don't count as debt.
Up 21 Down 5
sam white on Jan 24, 2017 at 10:47 pm
Let me get this straight YTG finance personnel under Pasloski tell Yukoners that we will have a $9 million surplus and then under Silver the same people tell him that there is a $8 million deficit, $17 million dollar difference, in some parts of the Yukon that may be a passing grade in math but in Whitehorse it is a fail.
if these people are still employed by YTG it sends a message that it is ok to be incompetent or worse that it is ok for the public service to allow false information to be communicated to the public.
Up 27 Down 8
Colleen on Jan 24, 2017 at 8:17 pm
The Yukon Party was spending money like a bunch of bandits before the election. It was so irresponsible and pathetic.
Up 28 Down 41
Lost in the Yukon on Jan 24, 2017 at 4:41 pm
As Jim Nabors would say "Surprise, surprise, surprise!"
Totally predictable on the part of Sunny Ways Silver. Now he has a ready made excuse for not living up to any of his campaign promises ... "Gee it was the Yukon Party's fault"
You now get a glimpse of the tactic to be used in the next sitting of the House. Sunny Ways will be blaming the YP for all the problems and the cutbacks he has been forced to make - against his will.
Expect a hiring freeze, suggestions of wage roll backs, service cuts ... but with so many former YP loyalist working out of the Cabinet Office are we surprised.
Up 23 Down 29
ProScience Greenie on Jan 24, 2017 at 3:44 pm
I'd call BS on this but Silver is a math teacher so it is probably true especially as we are learning that pharmacists do not require any math ability for things like counting out highly addictive pills or keeping track of prescriptions. Anyways not to worry as soon the government will be 5% richer with the carbon sin tax and most of us will be 5% poorer.
Up 17 Down 29
The deficit is because of liberal unexpected cut backs to funding on Jan 24, 2017 at 3:05 pm
for the Yukon by the Federal Liberal government. How about the millions were losing to cut backs by Ottawa?
Up 51 Down 11
Doug on Jan 24, 2017 at 2:39 pm
Whenever has an incoming party EVER came into power saying..."yeah, the books look good"
This story was only a matter of time. Like clockwork. Shoulda had a pool going.