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HANSARD a Report from the Government Relations Office APRIL 2007 the BUDGET ISSUE

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HANSARD a Report from the Government Relations Office APRIL 2007 the BUDGET ISSUE HANSARD A Report from the Government Relations Office APRIL 2007 THE BUDGET ISSUE IN THIS EDITION… Federal Budget 2007: “A Stronger, Safer, Better • Message • The Federal Budget Canada” • The Provincial the provinces, direct spending and tax meas- Budget ures this year. • Visits by Dignitaries TRANSFERS TO PROVINCES & • Upcoming Events TERRITORIES • Heard on the Hill Budget 2007 delivers $39B in additional federal On March 19, 2007, federal Finance Minister funding to the provinces over a 7 year period to • Breakfast & nd Jim Flaherty presented his 2 budget “ ASPIRE restore the so-called fiscal balance. Included is Brainstorms to a stronger, safer, better Canada ” in the $12.7B for a revamped Equalization program in House of Commons. 2007-08 ($1.5B higher than in 2006-07). In Budget 2007 contains a wide range of spending 2006-07, Manitoba received $1.709B in legis- Welcome to this latest initiatives and tax measures aimed at appealing lated payments. Under the ’new’ program, edition of the Govern- to the middle class. Polling showed Conserva- Manitoba will likely receive $1.826B in 2007-08 ment Relations Office tive popularity rose to as much as 40% in the (an increase of $123M). (GRO)’s Hansard news- immediate wake of the Budget release. Opposition Leader Stéphane Dion claims that letter—the first to be The following is a summary of Budget measures the equalization formula “is little more than using distributed strictly on an of interest to the university community. Overall, taxpayers own money to buy favour” since the electronic basis. the Government indicates in Budget 2007 that Government has “already cut nearly $10B in over $8.4B will be provided in support of post- provincial transfers since taking power by We made the switch to a secondary education (PSE) through transfers to scrapping agreements on child care, labour paperless format to Continued onto page 2... allow for wider, faster and more cost-effective distribution. Manitoba Provincial Budget 2007: With this new format, we The Building Budget hope to publish approxi- On April 4, 2007, Manitoba’s Minister of 2007 suffered from the mately 6 editions of Finance, Greg Selinger, presented Budget 2007 fatal flaw that “The Hansard each year to – The Building Budget in the Legislature, his budget continues the provide timely updates eighth straight ‘balanced’ budget. same old NDP sham of on government matters announcing and re- As noted by the Winnipeg Free Press on Budget affecting the university. announcing millions in Day, “Selinger has at his disposal almost $100M government spending in new money from Ottawa, as well as rising I hope that you enjoy while getting little real income tax revenues and an economy pegged this edition and find it to results for working Manitobans.” He also noted to grow faster than the Canadian average in be informative. that university students are faced with 2007.” “voluntarily hiking their tuition fees to fix crumb- - John Alho With a provincial election looming, Budget 2007 ing university facilities and retain top caliber pro- Associate Vice- takes advantage of this new money by including fessors.” President (External) ‘something for everyone’ setting the basis for Progressive Conservative Opposition Leader, the NDP Government’s upcoming campaign Hugh McFadyen, likened the Budgetary tax cuts platform. to mere "crumbs for Manitoba families." However, the Budget is also fodder for the other The following is a summary of many of the provincial party leaders. In a posting on his Budget measures of interest to the university blog, Dr. Jon Gerrard, the leader of the Mani- community. toba Liberal Party, commented that Budget Continued onto page 4... HANSARD Page 2 Federal Budget Continued from page 1 ... market partnerships and more…” Dion argues the net benefit sciences and humanities through SSHRC). of Budget 2007 over the next 5 years would only be $1.1B. Changes will also be made to registered education savings Also included in the additional funding to provinces will be plans (RESPs) by eliminating the $4,000 limit on annual con- monies for a “strengthened” Canada Social Transfer (CST) tributions and increasing the lifetime contribution from that will be legislated to 2013-14. Specifically, Budget 2007 $42,000 to $50,000, and increasing the maximum Canada includes a CST base increase of $687M in 2007-08, a further Education Savings Grant (CESG) annual amount from $400 increase of $1.05B in 2008-09, and an automatic 3% in- to $500. “Each child will continue to be eligible to receive up crease per year thereafter. to $7,200 in CESGs.” Budget 2007 also improves access to The CST will be made more ‘transparent’ by explicitly identi- RESP assistance for part-time students. fying the dollar amount within it for each of the 3 priority ar- As well, Budget 2007 indicates that the Minister of Human eas: PSE, support for children, and other social programs. Resources and Social Development will be leading a review Budget 2007 proposes to dedicate 25% of the CST for PSE, of the Canada Student Loan Program (CSLP), in consultation meaning: in 2007-08 an additional $176M will be earmarked with the provinces, territories and stakeholders. Resulting for PSE transfers and in 2008-09 an additional $800M will be changes will be announced next year. transferred to provinces. The Budget also proposes further increases in the future, reaching a total of $3.8B in additional The Liberal Party of Canada argues that Budget 2007 fails to “put a penny into the pockets of Canada’s under-graduate funding by 2013-14. students.” Should the Liberals be elected to power in the Unfortunately, the Government did not create a separate PSE next election, the party has already committed to investing transfer fund and the commitment to dedicate 25% won’t be $3.1B over 5 years for students’ financial assistance, gradu- legislated until 2013/14. With monies still flowing through the ate scholarships, and international study. CST, there is no guarantee that the provinces and territories will actually direct funding to universities and other PSE insti- RESEARCH INVESTMENTS tutions, despite it being ‘earmarked’ for that purpose. Budget 2007 includes $1.3B in new spending on research and innovation. STUDENTS Budget 2007 points out that Canada has the highest post- The Budget contains $85M per year for the granting councils secondary attainment rates among OECD countries and is ($37M for each of NSERC and CIHR and $11M for SSHRC ranked 2 nd , and nearly on par with the United States, in terms — an overall increase of 5.3%) “for research targeted on key of total post-secondary expenditures as a percentage of priorities: health sciences, energy, the environment, informa- GDP. Nonetheless, the Government acknowledges that the tion and communications technologies and management, country’s success must never be taken for granted. business and finance.” An additional $15M per year is allocated for indirect costs [T]he global, knowledge-based economy and bringing the annual support in 2007-08 to $315M or 25.4% of changing demographics are presenting Canadi- federally sponsored research - falling short of the $200M in- ans with major new challenges. At a time when crease required to raise the reimbursement rate to 40%. the growth of the country’s population is slowing, Canadians must learn to adapt to changing tech- The government also allocates $510M to CFI for another nologies and meet the new knowledge and skills major competition before 2010 and an additional $100M in requirements of the labour market. Investments in 2006-07 year-end monies to Genome Canada “to extend post-secondary excellence are key to meeting promising research projects and sustain funding for regional these challenges and building Canada’s Knowl- genome centres and related technology platforms” (falling edge Advantage. short of the $380M over the next 3 years requested by Ge- nome Canada). Budget 2007 companion document—The Budget Plan 2007 Budget 2007 allocates: $120M in 2006-07 to CANARIE Inc. In order for Canada to be well-positioned to succeed in this to maintain CA*net for the next 5 years and to develop the new global economy, Budget 2007 includes investments next generation CA*net5; $10M over the next 2 years to the made “to create the best-educated, most-skilled and most Canadian Institute for Advanced Research “to help Canadian flexible labour force in the world.” students and researchers participate in and lead ground- breaking research on the international stage”; and $6M in Budget 2007 includes $15M in 2007-08, $20M in 2008-09 2008-09 towards the relocation of Natural Resources Can- and $27M per year thereafter to support an additional 1,000 ada’s CANMET Materials Technology Laboratory to the students (for a total of 5,000 students) each year through the McMaster Innovation Park. Canada Graduate Scholarships Program. These new schol- arships will be divided and named as follows: 400 Sir Freder- The Government indicates in Budget 2007 that it will “launch ick Banting and Dr. Charles Best scholarships (health-related an independent expert panel that will consider options for studies through CIHR); 400 Alexander Graham Bell scholar- transferring federal laboratories to universities or the private ships (natural sciences and engineering through NSERC); sector” as well as identify up to 5 laboratories that could be and 200 Joseph-Armand Bombardier scholarships (social early candidates for the transfer. Continued onto page 3... HANSARD Page 3 Federal Budget Conclusion from page 2 … $350M is allocated over 2006-07 and the next 2 years to sup- years to Environment Canada “to develop a targeted sci- port 9 Centres of Excellence in Commercialization and Re- ence plan and a Canada-Manitoba Agreement to support search across Canada. A further $165M in 2007-08 and the long-term sustainability” of Lake Winnipeg ; $39M over 2 $30M in 2008-09 is allocated to support competitions under a years to the Department of Fisheries and Oceans “to in- new Centres of Excellence in Commercialization and Re- crease fisheries science research programs to strengthen search program.
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