The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Budget 2004 focuses on the priorities of the North. "Today's budget is about building on the strengths of the North and working with residents to create new opportunities for the region and its residents," said Finance Minister Greg Selinger in releasing the budget this week. Supporting Northern Families and Communities Supporting Manitobans and their families, and building safer and prosperous communities has been a focus of government for the past four budgets. Recent achievements include funding the RCMP up to full complement, creating 3,500 new funded child care spaces throughout the province and fully restoring grants to the Manitoba Association of Friendship Centres. Budget 2004 builds on these successes by supporting: ongoing upgrades in community facilities throughout the province including new and expanded recreation centres in Thompson, The Pas and Dauphin Ñ supported by all three levels of government; resources for the expansion of safety aid to provide security equipment to low-income seniors living in northern and rural Manitoba; the expansion of the Lighthouses program, an after-hours program for youth in urban centres including Thompson; a new northern healthy foods initiative to promote local and traditional food production and encourage healthy choices; more funding for libraries in northern centres; additional resources for the United Way Ñ ensuring every dollar donated is spent on community services; and new resources for provincial policing including Opaskwayak Cree Nation Policing and Aboriginal policing at Nelson House. New Personal and Property Tax Cuts Budget 2004 follows through on promised tax reductions, providing for a six per cent middle income tax break that will save Manitobans $39 million this year. With this tax reduction, personal income tax and property tax reductions total $301 million annually since 2000. Budget 2004 provides further tax relief including: A further $10 million cut in the residential education support levy Ñ bringing total property tax relief to $92 million annually since 1999. In 2005, farm education property taxes will be reduced by five per cent as the first step in following through on the commitment to reduce education taxes on farm land by 20 per cent Ñ since 1999, the farm land portion has dropped from 30 per cent to 26 per cent, resulting in $7 million in savings for Manitoba farmers. Education property tax credit delivery to change Ñ starting in 2005. The credits will flow directly to school divisions, resulting in timely payments to school divisions and providing accountability in provincial education funding. New personal tax cuts including tax breaks to help persons with disabilities and their families. See 'Economy' P.# Con't from P.# Budget 2004 also offers continued business tax reductions aimed at stimulating growth. The budget strikes a balance between continuing broad-based tax cuts for business and shifting other business taxes to help finance general business tax cuts. To this end, the capital tax base for banking institutions will be more closely aligned with neighbouring provinces and the federal government. And in keeping with most other provinces, retail sales tax will be applied to legal, accounting, engineering, architectural and security services. Business tax cuts in Budget 2004 include: Small business taxes decrease again Ñ the threshold will rise again for the third straight year to $400,000 in 2005. The small business rate will also decrease again to 4.5 per cent after 2005. Four-year plan to cut general corporation income tax rates continues Ñ with the rate falling from 17 per cent in 2001 to 15.5 per cent in 2004 and 15 per cent in 2005. The rate will decrease again to 14.5 per cent after 2005. Research and development tax credit will be maintained. Maintaining Affordable Government Budget 2004 noted that the province has the third lowest rate of spending on a per capita basis of all the provinces. Manitoba is committed to maintaining front line services in health, education and supports for families and children, while introducing new measures to reduce administration costs and keep government affordable. The budget: eliminates 400 civil service positions through attrition for savings of over $30 million; reduces spending or holds the line to inflation in the majority of government departments; consolidates the sale and lease of provincial Crown lands into a single agency; merges driver vehicle licensing with Manitoba Public Insurance to reduce duplication of administrative services and increase customer service; reduces the province's borrowing costs by a further $32.5 million Ñ Manitoba's borrowing costs are among the lowest in Canada; and increases penalties on overdue taxes. Manitoba milestones reached in 2003 The budget noted that while Manitoba faced challenges in 2003, it also reached some significant milestones. Selinger said Manitoba workers, entrepreneurs and communities in Northern Manitoba have proven to be innovative and resilient. Manitoba achievements in 2003 include: Population growth of 7,584 persons Ñ the highest since 1986. 1,055 more young people came to Manitoba than left. Personal disposable income growth of 3.1 per cent, outpacing the national increase. The lowest inflation rate in Canada, due to low hydro and auto insurance rates. The lowest unemployment rate in the country at five per cent. "Like all provinces, Manitoba has faced serious challenges recently," Selinger concluded. "But the bedrock of our economy remains solid and the outlook is positive."
