As drought conditions and wildfires have dried up the territory’s finances, the GNWT will now ask Ottawa to raise the debt level cap beyond the current $1.8 billion borrowing limit, says Finance Minister Carolyn Wawzonek.
In an update to the Assembly on Friday, Wawzonek noted Marine Transportation Services, the Northwest Territories Power Corporation and the need to maintain stability in the health-care system have all faced cost increases.
She projected the NWT will end the fiscal year needing $700 million in short term borrowing.
Combined with the additional $75 million required by the Power Corporation to deal with delays with the Taltson expansion and generators burning extra diesel fuel in many communities, it brings the total authorized debt to just $60 million below the federal limit.
“We have begun the process of requesting a borrowing limit increase to ensure we have the necessary room to absorb further fiscal shocks,” she said.
“As I’ve said before, and will emphasize again, even in the face of these challenges, I remain optimistic when looking at the long-term potential of the Northwest Territory’s economy and our ability to restore balance to the NWT’s fiscal health.”
Wawzonek said she’s looking for ways to delay spending, but “while the short-term fiscal situation is tight, we will avoid knee jerk actions that could unnecessarily disrupt government programs or services, causing more severe impacts on residents, businesses for the overall economy.”
On the second day of the fall session, the government’s support of transitioning Aurora College to a polytechnic university was questioned by several MLAs.
Education Minister Caitlin Cleveland in the Assembly October 12. (Image courtesy of Assembly livestream)
In fact, some even called for the College’s funding to be cut, or the board disbanded altogether as happened in 2017, if better results aren’t realized.
In a recent CBC story, a research chair who quit his post at the College, said he found a mix of “unpreparedness, unwillingness to offer support and overly bureaucratic processes” at the institution.
Range Lake MLA Kieron Testart, asked Education Minister Caitlin Cleveland how much more time is she prepared to give Aurora college to fail?
“What is she doing to help the college succeed, saying that it’s not my responsibility, it’s theirs, and I’m going to work with them. We need more than answerability. We need accountability. Is it time to take the reins away for Aurora College, put them back in the hands of the minister, and get this done right this time?”
Replied the Minister:
“I really want to see this transformation succeed, because this transformation is not just about bricks and mortar. This transformation is about ensuring that we have a quality post-secondary education or institution providing education that leads to jobs that we need homegrown people to be able to take advantage of, that we need to be able to attract to our knowledge economy, to be able to do research.”
The session continues Monday at 1:30 p.m. Each evening during session, CKLB replays the day starting at 7 p.m.
Aurora College’s Yellowknife campus. (CKLB files)
UPDATE: Original headline stated $1.8M, when it was $1.8B.
