Highlights '99 English

Building
the
Future

1999-2000 Budget

$74 million extra for health care
$40 million extra for education
$37 million to renovate and repair schools
$20 million extra to improve rural roads
funding hike for universities
reduction in personal income tax rate
reduction in small business income tax rate

Finance

Edmond P. Blanchard, Q.C.
Minister

1999-2000 Budget ($4.6 billion)

The 1999-2000 budget is the fifth consecutive budgetary surplus delivered by this government. This budget shows that careful planning and prudent fiscal management are paying off for New Brunswick. And it reflects a balance between social needs and fiscal prudence.

Health Care ($1.4 billion)

The proposed Health-Care Funding Guarantee Act will ensure that growth in health-care spending annually exceeds the real economic growth of the provincial economy. In 1999-2000, the health-care budget will increase by 5.7%, well ahead of economic growth. The government will spend $74 million more for health care than in the previous budget.

patients requiring ambulance service will pay $120 instead of $275
volunteer ambulance fee reduced from $100 to $60
inter-hospital ambulance transfer fee of $50 is eliminated
funds for new ambulances
$21 million added to hospital services
$20 million added to the community and social services program, including $4.3 million to implement recommendations of the Child Death Review Committee
$9.1 million added to Medicare, including funds to recruit 10 new doctors
$7.6 million added to the Prescription Drug Program
$5.5 million for nursing home services, including $3.8 million for increased patient care
$1 million for new cancer prevention programs

About 30 cents of every tax dollar is spent on health care, about 18 cents on education

Education ($821 million)

The 1999-2000 budget invests in our most important resource - youth - by spending an extra $40 million to put more resources towards education and to improve the environment for learning.

maximum class size will be reduced:
from 28 to 25 for Grade 1 in 1999-2000
from 28 to 25 for Grade 2 in 2000-2001
from 32 to 30 for Grade 3 in 2001-2002
200 people hired for a new program to address the needs of students with behavior disorders
increased funding for supply teachers over the next two years
more money for New Brunswick universities and increased funding for the student assistance program

This year the capital budget includes $37 million for renovations and repairs to schools. This will be the start of a multi-year approach to address health and safety issues in schools throughout the province.

Other Highlights

small business income tax rate reduction from 7% to 6% (worth $3.4 million)
30% equity tax credit of up to $9,000 per year, on eligible investments
$2 million extra for the Small Entrepreneur Capital Assistance Program
more money for economic development
increased investments in tourism and parks
$20 million to improve rural roads and bridges, part of a multi-year, multi-million dollar approach
increased funding for the Sport Development Trust Fund
enhancements to day-care subsidies, Domestic Legal Aid and Small Claims Court
increased grants to Local Service Districts and for clean water control
more Service New Brunswick centres
New Brunswick's personal income tax rate will drop from 61% to 60% of basic federal tax on January 1, 1999 (worth $17 million to New Brunswickers)
fifth consecutive balanced budget with projected surplus of $12.3 million for 1999-2000
four-year cumulative budgetary surplus of $208.3 million (1996-1997 through 1999-2000)
economic growth forecast is 2.3% in real terms for 1999

New Brunswickers said they wanted additional investments in health care and education. The government has listened and responded in the 1999-2000 budget. As our economy grows and our financial situation improves, the government will do even more to secure the health-care system and preserve social programs.