The Government of the Yukon is faced with many challenges in the areas
you specify: health care, the territorial funding formula, and natural
resources. The Yukon territorial government is largely dependent upon
transfers from the Canadian federal government to meet its expenses.
In fact, transfers account for almost 72% of the territory's budget.
An examination of the territorial government's budget provides an
excellent means for understanding the focus of its policies and the
initiatives it is pursuing.
Clearly, the top goal of the government is to promote economic
development, but social concerns also exist. In the absence of
significant amounts of economic activity, the only way the government
can generate funds for its agenda is through transfer payments from
the federal government. One reason put forth for the difficulties in
the territory's economic development is the change in ruling party
following each of the last three Yukon elections. One official
believes economic planning in particular has been seriously impaired.
"Consensus Government In Brief" by Aaron Spitzer, CBC Online News
(November 3, 2003) http://www.cbc.ca/nwtvotes2003/features/consensusGovernment_sidebar.html
As a result, the negotiation of a new five-year Territorial Funding
Formula was a primary focus of the government in 2004. The government
also sought changes in Health Support and Economic Development
transfer payments:
"(1) increasing the TIFF expenditure basis to compensate for the 5%
reduction in the expenditure base in 1995 that cut almost $200 million
out of our transfers since that time;
(2) the removal of the GDP ceiling in 2004-2005; and
(3) including a proposed expenditure item for economic development funding.
We are seeking to secure more funding under the Canada Health and
Social Transfer to incorporate the $20 million from the 2003 First
Ministers' Accord on an ongoing basis beginning in 2006-07 by rolling
it into our expenditure base."
"Budget Address 2004-2005" presented by Premier Dennis Fentie
http://www.gov.yk.ca/depts/finance/publications/budgets/budget04-05/speech/speech.pdf
Details on desired federal transfers can be found in "Evidence" 38th
Parliament, 1st Session (November 22, 2004)
http://www.parl.gc.ca/committee/CommitteePublication.aspx?SourceId=93390
A new agreement for the Territorial Funding Formula was reached in
October of 2004. "PRIME MINISTER ANNOUNCES NEW EQUALIZATION AND
TERRITORIAL FUNDING FORMULA FRAMEWORK" Government of Canada (October
26, 2004) http://www.scics.gc.ca/cinfo04/800043004_e.pdf
An explanation of some of the deficiencies of the previous Territorial
Funding Formula with respect to Yukon can be found in: ?Evolution of
the Federal Center-Northern Regions Financial Relationship and its
Consequences for ?Organized? Migration out of the North? fulfilled by
John Rayner and Shauna McLarnon (March 2001) pages 25-26
http://www.aucc.ca/_pdf/english/programs/cepra/rayner.pdf
The capital budget established for 2004-2005 was the largest in Yukon
history and was designed to promote economic development over all time
horizons. The previous Economic Development Funds established for
Yukon by the Canadian federal government expired in 1997 and had not
been replaced even though the federal government committed to create a
new fund in its 1998 budget. Rejuvenating the economy through
promoting private sector development, particularly through
exploitation of natural resources including mining, forestry, and oil
& gas reserves, is the key objective of the Yukon territorial
government.
A listing of highlights of the budget can be found at "FENTIE TABLES
$705.7 MILLION BUDGET" Yukon Government (March 25, 2004)
http://www.gov.yk.ca/news/2004/04-075.html
A second priority of the government is to establish strong
relationships with the First Nations, Indian governmental entities
that have an equal status to the government of Yukon with respect to
their lands and citizens. In fact, they even have the ability to
supersede laws passed by the Yukon government. Avoiding gridlock with
these new governments while simultaneously promoting economic
development that benefits members of First Nations, is an important
objective.
Health and social issues also remain a concern. In particular, rates
of teen pregnancy are extremely high, as are rates of sexually
transmitted diseases. "...Alcohol and drug abuse and high rates of
interpersonal assault" are also areas needing attention. It is
believed that an effort to promote more equal social and economic
development will help address these problems.
"'Creating a Framework for the Wisdom of the Community:' Review of
Victim Services in Nunavut, Northwest and Yukon Territories"
Department of Justice Canada (November 4, 2004)
http://canada.justice.gc.ca/en/ps/rs/rep/rr03vic-3/rr03vic-3_04_01.html
A variety of environmental programs are also being pursued. One of
special importance was the acquisition of the Yukon Game Farm and
Wildlife Reserve. A complete listing of environment budget items can
be found in the "Budget Address 2004-2005" beginning on page 44.
Sincerely,
Wonko
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