Province Releases Strategic Program Review
FREDERICTON–On Friday morning the New Brunswick government released a review of potential cuts and tax hikes for the province.
The report lists different options that would address New Brunswick’s $600 million structural deficit.
“The choices presented in this report were brought forward by New Brunswickers through the review process,” said Health Minister, Victor Boudreau, who is also minister responsible for Strategic Program Review. “Not all choices contained in the report will be implemented; these are for consideration and discussion as we near the end of the review process.”
The review was launched in January 2015. By looking internally, the government says they have already identified $115 million in savings.
Suggestions for potential savings include:
- Cutting civil service to save $20-45 million
- Cutting teachers to save $10-12 million
- Increasing class sizes to save $50-70 million
- Adopting performance-based funding for universities to save $15-45 million
- Privatizing highway maintenance to save $11-22 million
- Selling government buildings to save $1.5-3 million
- Close some rural hospitals, centralize specialized health services in single locations to save $50-80 million
The review also offered options on how the province could increase revenue. They include:
- Increase the HST by two points to a total rate of 15 per cent to generate $175-295 million.
- Highway Tolls: Eight electronic booths around the province, with Moncton-Edmundston round trip $24 for cars, $96 for trucks. This would generate 60 million.
- Privatizing data registries to generate $8-10 million,
- Partial sale of NB Liquor or adjusting its operations to generate $15-20 million.
- Increase to corporate income tax to generate $12 million to $35 million
- Increase to real property transfer tax to generate $4 million to $10 million
- Increase to insurance premium tax to generate $15 million to $20 million
What “options” the government will pursue will be announced as part of the 2016-17 provincial budget.
“By making tough choices in the coming budget, we will be better able to deliver on our priorities, which include creating jobs and helping families through investments in health care and education,” said Boudreau.
You can check out the full report here:
“Choices To Move New Brunswick Forward“