Capital Spending Tomorrow s Advantage

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1 Capital Spending Tomorrow s Advantage The Province of Nova Scotia s total capital spending in is approximately $383 million for government departments, district health authorities, and Crown corporations. This represents an increase of $64.8 million over last year. Improving Our Roads, Highways and Bridges Central to this is the strategic importance of our roads and highways system. The Department of Transportation and Public Works overall capital budget for is about $199.1 million, an increase of close to $39 million. About $176.2 million of this is targeted to make improvements to the highways system, which includes roads, bridges, and highways. The province will continue to channel taxes raised from motor vehicle licensing and motive fuel taxes to highway construction and maintenance. Maintaining and Improving Government Buildings In this fiscal year, about $22 million is allocated for renovations to government buildings and new construction projects. This includes renovations to Government House and to the Cobequid Centre. In addition, the province is investing in the construction of two new Justice Centres in Lunenburg and Yarmouth. Improving Education Infrastructure Government continues to recognize the importance of modern equipment and facilities within our education system to enhance learning. This year $38.5 million will be invested in school construction in areas across the province. This year s capital budget also includes $16.3 million for the addition and alteration program to enhance and/or replace major school building components across the province. This is to address building condition, environmental, and program issues. One of the schools to benefit from this is Memorial Composite High in North Sydney. Memorial, which has academic and skills training components, will receive $750,000 to purchase equipment for hands-on skills training. An overall capital investment of $24.8 million in the Nova Scotia Community College will support continued construction of the new metro campus in Dartmouth and capital renovations and upgrades in rural NSCC campuses. An additional $1.1 million will also be invested in the new Dartmouth site to offer a training program for medical laboratory technologists. Currently, Nova Scotians must go outside the province to New Brunswick to train for this.

2 Land Investment for Environmental Conservation and Protection The government has allocated $19.5 million in capital funding to support land acquisitions to add to our important Crown land base in Nova Scotia, to conserve and protect environmentally sensitive areas, and to improve provincial parks. IT Investments Total capital spending on IT for this fiscal year will be $26.9 million. This includes a continued investment in the Department of Community Services Integrated Case Management System, a multi-year project that will modernize computer systems and improve the way services are delivered. The province s Picture Archiving and Communications System (PACS) will also receive capital funding this year. PACS gives physicians instant access to results of diagnostic imaging tests, including CT scans and ultrasounds, and can lead to faster treatment decisions. The Health System This year, capital grants to district health authorities across the province will total $40 million. This will include $38 million in hospital improvements and $2 million in medical equipment. Crown Corporations Capital Grants to Crown corporations total $7.83 million for this year. Capital purchases are directed toward land improvements, building renovations, and sewage treatment upgrade. Capital Spending Priorities ($ millions) Education New schools Additions and alterations Community colleges Buses Justice Courthouses / Correctional facilities Natural Resources and Environment and Labour Land and parks Transportation Buildings Highways Other Ambulances Information technology Project Other Tangible Capital Assets Total Capital Investments ($ millions) Tangible Capital Assets Capital Grants District Health Authorities 40.0 Third Party Entities 7.8 Total Capital Spending 382.8

3 Diverse Communities Thriving communities are built on respect, understanding, and diversity. Nova Scotia is a leader in promoting diversity and will continue efforts to build communities that accept, include, and respect all people. Welcoming Communities To attract and retain immigrants, an additional $439,000 will be available for language training, settlement and integration services, and development grants for immigrants moving into rural communities. As well, to further expand opportunities for immigrants, an additional staff person will be hired for the Nova Scotia Nominee Program a program that has already helped to welcome 1,900 immigrants to the province in the past year. This brings direct funding for settlement services to almost $1.8 million. As well, $200,000 will be invested in training for English as a second language. Regional Outreach According to Statistics Canada (2001), there are about 20,000 African Nova Scotians in the province in more than 48 African Nova Scotian communities. To better support its constituents, the Office of African Nova Scotia Affairs, will open the first of four regional offices in this year. The first satellite office will open in Cape Breton, with locations in the South West, Valley, and Central regions to follow. Honouring Our Past The Office of Aboriginal Affairs will continue to work with the Mi kmaq and other partners to further the work of Mi kmawey Debert, with a $300,000 contribution this year. The objective is to protect this valuable and unique archaeological site while developing opportunities to share the rich history and culture of the Mi kmaq.

4 Opportunities for Learning Great beginnings start with a solid education. This year s education budget is being increased by 6 per cent, bringing the total budget for education to $1.138 billion. Learning for Life II Additional funding of approximately $20 million will help to meet the diverse needs of Nova Scotia s students and will help make the province s public education plan Learning for Life II a reality. The funding will help to focus on priorities like accountability, parental involvement, and results measurement. Classroom Resources Almost $5 million will be provided to extend the plan to reduce class sizes in the early grades. Starting this fall, the maximum class size for grade 3 students will be 25, just as it is for grades primary, 1, and 2. Another $200,000 will add 60 more schools to the accreditation list ensuring high and consistent standards for students. Mentors for Students Almost $1 million will fund reading and math mentors. As well, an additional $200,000 will fund math and reading assessments for grade 3 students. An additional $500,000 will be provided to hire more guidance counsellors. Opportunities and Options An additional $1.4 million will be provided to 27 schools for the Opportunities and Options program. This program matches students with qualified employers and provides practical learning experiences. Successful students are then guaranteed a seat at the Nova Scotia Community College in order to continue their studies. As well, $100,000 will be invested to develop new career-oriented courses for high school students. University Funding In 2004, a three-year agreement was signed with universities, capping tuition for most at the undergraduate level to 3.9 per cent, resulting in average savings of $2,600 per student. This year s commitment is $20.3 million, bringing total university funding to $227.9 million. Post-Secondary Education Incentives Nova Scotia s student debt reduction program which helps about 10,000 students will receive a $1.2-million investment, doubling the employment and repayment bonuses under this program. Graduates will also benefit from a $1,000 tax credit, which can be applied against a graduate s Nova Scotia income tax. Students will have three years after graduating from a post-secondary institution to use the credit.

5 The required parental contribution for student loans will be reduced by 25 per cent. A total of $46 million will now be available to an even greater number of students. Youth in the care of the province will benefit from an extension of the bursary program that covers the cost of tuition and books. Currently, only those under 21 can access the program, and an increased investment of $200,000 means that the age limit will increase to 24. Skills and Learning An additional $787,000 brings the total skills and learning budget to $13.6 million. These funds will expand on the many initiatives designed to develop a skilled and adaptable workforce ready to meet the demands of tomorrow's employers.

6 Families Focus on Child Care Nova Scotia remains committed to providing quality child care. The province will provide a credit to parents to offset provincial taxes on the full value of the federal Universal Child Care Benefit. Nova Scotia families have a new 10-year child-care plan that will add more day-care spaces, increase funding for low-income families, and provide greater support for those working in the child-care sector. The province is committing $130 million to this 10-year plan to provide more flexibility for parents and better training for child-care workers particularly in rural areas. The province will provide ongoing additional funding of $4.7 million a year to child care in Nova Scotia once the federal funds are spent. Protecting Homes, Neighbours The province will invest $850,000 to help families test their wells and septic systems. The Environmental Home Assessment Program will help homeowners determine whether there are problems with wells and septic systems. The program will provide participants with home water and wastewater assessment results, a $50 rebate on septic pumping (if not pumped within the last three years), a water quality sampling kit, water- saving devices, samples of environmentally friendly cleaners (manufactured in Nova Scotia), an oil tank check up, and an oil tank gauge protector. The program is expected to benefit 400 homeowners not on public water and wastewater systems during this fiscal year and expand to 1,000 homeowners in the next. An additional $1.7 million will be invested in Protecting Consumers Consumer protection officers will increase the number of inspections of businesses holding consumers funds in trust accounts, including pre-paid funeral and cemetery services, collection agencies, and payday lender activities. Additional consumer protection officers at a cost of $95,000 will be hired to increase inspections and investigations to better protect Nova Scotians in the marketplace. Making Smart Energy Choices The province will continue its $10 million investment in the Smart Energy Choices program in This program helps educate families about the benefits of energy efficiency, which is the best protection against rising energy costs.

7 Improving Provincial Parks The provincial park system offers a range of options and a wealth of outdoor experiences for families, residents, and visitors. The province will invest $750,000 to improve infrastructure in provincial parks. The investment in annual park maintenance and restoration projects is being increased by $500,000 annually. Studying the Impact of Gaming Problem gambling has a devastating effect on families. To better assess and understand the social and economic impacts of gaming in Nova Scotia, the province will invest $250,000 on an independent study. The study fulfils a commitment of the provincial Gaming Strategy.

8 Focus on Families in Need More Support for Nova Scotians Providing support for low-income families continues to be a priority. An additional $32 million will be invested in programs and supports, bringing the total budget for Community Services to $748 million. This investment in Nova Scotians is helping people achieve their goals, and many are returning to work through enhanced employment support services. In fact, the number of people receiving income assistance has steadily declined, from 38,000 in 2000 to 31,000 today. Increasing Assistance For the third consecutive year, income assistance rates will be increased. Effective October 1, 2006, all income assistance clients will receive a personal allowance increase of $10 per month. Shelter allowance rates will be raised by $15 a month for single renters and $20 a month for households. Pharmacare Children of low-income working families (with an income under $20,921 and in receipt of the Nova Scotia Child Benefit) will benefit from extended prescription drug coverage. More than 33,000 children under the age of 18 will benefit from Pharmacare, through a $1-million investment by the province this year, increasing to $2 million next year. Help for Foster Families Nova Scotia s foster families provide a valuable service for children who need a home. Foster parents ensure that children are living in safe family environments that promote their physical, mental, and emotional well-being and social development. The province will increase base rates by 5 per cent for foster families to $14.46 per day for children under the age of 10 and $21.02 per day for children 10 years and older. Providing More Affordable Housing Homes that are safe, affordable, and sustainable help to create healthy communities. In 2002, the province signed the Affordable Housing Agreement with the federal government, committing $56.18 million to create affordable housing by As of March 31, 2006, $37.3 million has been committed for the construction or renovation of more than 900 units. In the years ahead, another $18.9 million will be invested in this program. As well, the province will invest an additional $3.4 million in housing repair programs.

9 Health Reducing Wait Times The province continues its commitment to shorter wait lists for tests, treatment, and care. With the doubling of the federal wait time reduction fund from $18.2 million to $34.7 million, some key issues can be addressed. Funding of $4.0 million will help to bring international medical graduates to the province, providing more family doctors for our citizens. The province s four new MRIs will become operational with a $3-million investment for staffing and implementation. There will be $700,000 provided to address the wait list for individuals experiencing chronic pain. The Sound Start program will receive an additional $700,000 to ensure that all newborns in the province undergo screening for hearing. Continuing Care The province will spend $12.6 million on continuing care initiatives and an additional $3.8 million to develop and expand access to home and community support services. Community-Based Solutions The province will provide $3.6 million to district health authorities to implement community-based initiatives for patients who need some level of home nursing support. By providing the appropriate level of care in settings other than hospitals, those who require critical and emergency care will be better served. Improving Access to Cancer Drugs Oncology drugs costs are growing by about 25 per cent a year. There have also been significant increases in cancer rates and survivors. To meet increased demands, the province will invest $15.9 million for new and more effective cancer drugs, more specialists, and more treatment supports for cancer programs in Capital Health and Cape Breton districts. Improving Access to Dialysis Services An additional $750,000 will be invested to develop a provincial Renal Program and expand services. The funds will be used to hire additional staff, develop standards for renal care, and open a satellite dialysis clinic in the Guysborough Antigonish District Health Authority. As well, an additional investment of $313,000 will open six new dialysis chairs in Cape Breton.

10 Recruitment and Retention An additional $5.2 million will be invested to ensure the province s medical specialists continue to live and practise here. This investment will go to funding plans for 150 of these medical professionals. To ensure the professionals are available to provide care at appropriate locations throughout the province, $451,200 is once again being provided to fund eight new undergraduate medical training seats at Dalhousie Medical School. Bursaries to medical lab technician students will total $462,000, while almost $400,000 will be provided to expand nursing seats at St. Francis Xavier University.

11 Health Promotion and Protection The province is continuing to meet its commitment to double the funding for health promotion in and adding additional funding to accommodate the transfer of public health. Much of this will go directly into communities around the province promoting everything from healthy eating to injury prevention. Healthy Choices The province is giving youth and their families the tools and supports they need to make healthy food choices. An investment of $600,000 will ensure the Health Promoting Schools program continues to help students make healthy food choices. As well, public health nutritionists will work in partnership with schools, parents, and their communities to support healthy eating. To complement these initiatives, a new school nutrition policy is being developed. An investment of $2.4 million in a comprehensive physical recreation strategy will enhance recreational facilities and programs. An Active Healthy Living Framework will be created for the benefit of all Nova Scotians. Public Health Renewal This year, $1.1 million in new funding will support the first phase of the renewal of the public health system based on findings from a public health review, post-sars. The goal is to develop an efficient, effective, responsible, and coordinated system that protects and enhances the health of all Nova Scotians. An additional investment of $600,000 will ensure that youth health centres continue to operate, providing vital information and resources to youth around the province. Taking Preventative Action While significant progress has been made in the reduction of smoking, it remains the number one cause of preventable illness and death. A further investment of $82,000 will fund community-based education and early surveillance programs to better understand the health-related costs associated with tobacco use. Addiction prevention and treatment continues to be a priority, with $469,000 for education and support services, which will include alcohol and drug education curriculum resources for high school students. The injury prevention strategy will expand with an investment of $255,000 to include road and helmet safety and ensure continued support for the IWK Child Safety Link. Physical education will be a mandatory high school credit beginning in The province will invest $400,000 in this budget to increase the number of physical education teachers.

12 Household Energy Rebate Nova Scotia consumers will get an 8 per cent rebate on a wide range of fuels used for residential heating, starting in January The rebate will also be applied to residential electricity used for non-heating purposes. The Household Energy Rebate will provide relief from high energy prices to an estimated 400,000 households, regardless of family income. The average Nova Scotia household is expected to save around $200 per year. The rebate program will be applied to electricity, home heating fuel, propane, natural gas, wood, and other fuel sources used to heat homes. The rebate is equivalent to the value of the provincial portion of the Harmonized Sales Tax. Removing this amount will bring Nova Scotia taxes on home heating energy in line with those of most other Canadian provinces, where GST only is charged on home heating fuel. The program has an estimated cost to government of $75 million annually at full implementation. The budget sets aside $32.1 million for the program, assuming a January 2007 start date. How it works: Government will first seek the assistance of the Canada Revenue Agency (CRA) to deliver this benefit to Nova Scotians via a point-of-sale rebate on the HST. If they agree, the rebate will come directly off the bill at the time of purchase, similar to the provincial rebate provided on books. If CRA chooses not to participate, Nova Scotia will administer the home heating rebate through Service Nova Scotia and Municipal Relations. The budget includes $2 million for provincial implementation of the program if required. Under a provincial administrative system, vendors of bulk home heating energy sources (electricity, home heating oil, propane, and natural gas) will apply a rebate at the point of sale. Consumers will see the 8 per cent reduction on their electricity or heating bills. Non-bulk heating sources such as wood pellets, wood, coal, and kerosene will also qualify for the rebate. Consumers will send in receipts to apply for a rebate. The Household Energy Rebate replaces the Keep the Heat program administered in recent years by Service Nova Scotia and Municipal Relations. The rebate is paid to the person who receives the heating or electricity bill. In the case of rental accommodations, the amount may go to the landlord. Measures to create the rebate program will be included in the 2006 Financial Measures Act.

13 Regulations will be developed to implement the legislation, following consultation with vendors and suppliers. Typical Annual Savings Heat and Basic Electricity 1700 square foot home Heating Source Savings* Oil $190 to $245 Electric $140 to $215 Gas $140 to $165 Propane $240 to $400 Wood $115 to $130 * Estimated savings include both the heating source and general electricity. Savings will vary with the efficiency of the furnace or other heating system.

14 Municipalities Greener Communities Improvements to Nova Scotia s municipal infrastructure continues with an additional $1.5 million directed to the Provincial Capital Assistance Program (PCAP) for a total budget of $4.25 million. These funds are used to help municipalities with sewer, water, and solid waste projects, like the Halifax Harbour Project. Nova Scotia is investing $500,000 in and $1.4 million in to improve septage facilities. Operators of existing privately and municipally operated treatment facilities will be eligible for up to 50 per cent of the cost (up to $100,000) of new technologies for treatment systems, including engineering studies, environmental monitoring requirements, construction costs, and sludge treatment. Operators of existing facilities will also benefit from a grant program that will provide up to 50 per cent of improvement costs (up to $50,000). This program will help protect the quality of drinking water and groundwater resources through proper construction, maintenance, and operation of these treatment facilities. Grants Increased Approximately $3.2 million will be provided from Nova Scotia Power Inc. to be used in lieu of taxes to municipalities. The investment will result in a increase of $1 million in equalization payments received by municipalities, an increase of $1 million in grants to municipalities based on the location of NSPI assets, and an increase of $1.2 million in grants for university properties. This allows the province to commit to 100 per cent funding of university resident grant payments and fulfils a long-standing municipal request. Community Connections A feasibility study will be conducted into the 211 service for communities. The CRTC has provided this number to the United Way to help Canadians find information and referral services for community, social, health, and government services. There are 211 services now in the United States and in Toronto, and this study will help to determine whether there is a business case for this approach in Nova Scotia. Rate Reduced The Mandatory Education Rate is being reduced. This reduction puts the rate at 34.5 per $100 of assessment, down from per $100 of assessment. Municipal contributions to education will still increase by $7 million; however, that contribution was projected at $10.2 million before the rate reduction.

15 Tax Relief for Nova Scotians The Province of Nova Scotia will provide tax relief to Nova Scotians in and beyond through a series of changes to personal and corporate income taxes. Tax changes for individuals are worth over $50 million in this year s budget; others will be phased in over the next four years. Government has also made a commitment to completely phase out the Large Corporations Capital Tax by This tax currently brings in annual revenue of approximately $60 million. Income Tax Changes The budget introduces measures to gradually lower personal income taxes starting in January These measures are worth an estimated $19.2 million in this year s budget. The basic personal amount, a credit against personal income tax, will increase by $1,000 over the next four years, or $250 in each year. This is expected to save individuals about $200 over the next four years. The budget provides for ongoing increases in other Nova Scotia personal tax credits, such as the spousal, disability, pension, and age amounts. These will be increased by 13.8 per cent over four years. The value of the tax credit changes to each family will depend on their individual circumstances. Starting in 2011, the basic personal amount, non-refundable tax credits, and personal income tax brackets will be indexed. The Graduate Tax credit, offsetting provincial income taxes owed, will be available to students who graduate from an eligible postsecondary program and who live and work in Nova Scotia. The province will increase the Healthy Living Tax Credit to $500 from $150 to help with the cost of registering children and youth in sport or recreation activities that offer health benefits. A new Child Care Benefit Tax Credit will be available to Nova Scotia parents/guardians of children under the age of six to offset provincial taxes resulting from the new federal Universal Child Care Benefit program. Tax Relief for Energy Costs Nova Scotia consumers will get an 8 per cent rebate on a wide range of fuels used for residential heating, starting in January The rebate will also be applied to residential electricity used for non-heating purposes. The Household Energy Rebate will provide relief from high energy prices to an estimated 400,000 households, regardless of family income. The typical Nova Scotia household is expected to save around $200 per year.

16 The province has budgeted $32 million for the program in ; it is expected to cost in the range of $75 million in future years. The Biodiesel Incentive exempts Nova Scotia produced biodiesel that meets the American Society for Testing and Materials fuel-quality specification from motive fuel tax. Business Taxes The province continues to phase in changes to promote a more competitive corporate tax environment. For large corporations, there is a further reduction in the Large Corporations Capital Tax, with the commitment to fully eliminate it by A new Energy Efficiency Tax Credit against the Large Corporations Capital Tax will be introduced for eligible investments after July 2006 to help promote energy conservation and the use of renewable energy. As per the budget, the small business threshold for the low corporate income tax rate has increased this year, effective April 1, 2006.

17 Safer Communities Renewed support to law enforcement will further enhance and protect Nova Scotia s quality of life. Funding to address youth crime, child pornography, and illegal drugs will help keep homes and streets safer. Addressing Youth Crime The province will invest $450,000 to create a Youth Attendance Centre designed to provide an improved response to youth crime. The centre will provide intense support and supervision for young offenders in the community. Protecting Children Additional police officers will be hired to address Internet- and technology-based offences. This $330,000 investment will be critical in addressing child pornography and will allow for better tracking of serial offenders. Taking Action against Drugs Along with legislation that will allow Nova Scotia to control the distribution of products used in the manufacturing and production of illicit drugs, $685,000 will be provided to law enforcement to improve coordination among the RCMP and municipal police. The improved links will enhance policing efforts against organized crime, as part of our $6-million commitment to Criminal Intelligence Service Nova Scotia. Safe Homes, Safe Streets A $540,000 investment will create a Public Safety Investigative Unit under the Safer Communities and Neighbourhoods Act. This unit will target criminal activities such as the illegal sale of drugs and alcohol, prostitution, and illegal gaming. Offenders will be under more intense supervision with $400,000 invested in an electronic supervision program that uses global positioning system (GPS) technology. It s a Canadian first and allows Nova Scotia to more closely monitor offenders on house arrest or those serving conditional sentences. Another $200,000 will help police monitor bail compliance and ensure more aggressive monitoring of offenders in the community. Legal Aid An additional $700,00 will be invested in legal aid funding to allow for speedier trials and resolution of issues in the courts.

18 Prosperous Communities People are earning more, in fact about 4.4 per cent more than last year. There were 443,000 Nova Scotians employed in 2005 the highest number in our history. Families spent more, with retail sales increasing by 3 per cent last year. Economic growth is expected to continue, with personal income expected to expand by 3.3 per cent in 2006 and 3.2 per cent in Nova Scotia s gross domestic product (GDP) is projected to grow by 2.2 per cent in 2006, and retail sales are expected to increased by 3.7 per cent in The province is also taking a number of steps to spur economic activity. Export Expansion The province will invest just over $250,000 to expand economic opportunities to business. The Export Expansion Program will help small and medium businesses increase their export activities. Atlantic Gateway The province intends to become North America s preferred eastern gateway, which will improve trade, tourism, and the economy. To that end, the province is investing $250,000 in the Atlantic Gateway Strategy, which coordinates efforts of partners responsible for roads, rail, air, and ports. Community Development The province will invest $250,000 to expand and support its Community Development Policy initiative. The initiative will support community prosperity and growth through greater co-operation, capacity building, and accountability. The province is also investing $100,000 to further improve C@P (Community Access Program) sites around the province. Business Growth A business retention and expansion program will be established in several locations in the province. The $127,000 investment for this initiative is designed to keep and grow businesses in the province. As well, $400,000 will be invested to enhance activities in the second year of the Competitiveness and Compliance initiative, which is designed to improve the way laws are designed, communicated, and enforced in Nova Scotia. Better for Business Effective January 1, 2007, the province will eliminate the Liquor Licence Levy. Food services, hotels, beverage rooms, and bars will all benefit from this change, as will the tourism industry, by putting Nova Scotia on an equal footing with neighbouring provinces.

19 Offshore Opportunities A $6.4-million investment was provided for critical research and development. These funds will help exploration companies understand Nova Scotia s geology and environmental issues.