WHITEHORSE—The federal government has responded to the premier’s efforts and partially restored the cuts to the Territorial Funding Formula.
“It is disappointing that Yukoners will still bear the brunt of a funding cut from Ottawa,” Premier Darrell Pasloski said. “Our expenditures are planned over several years and we anticipated that Yukoners would benefit from the full $23 million. Our strong fiscal management has positioned us to deal with this unexpected challenge and we will continue to protect Yukon taxpayers.”
The Government of Yukon has been working to have the funding restored since the cut was announced in December. The premier met with the federal Finance minister twice, raised the issue with the prime minister and followed up in formal correspondence. The Territorial Funding Formula is a legislated arrangement and the change comes in the middle of the current term.
“The funding formula is based on the principles of stability and predictability, so we felt that the cut in the third year of a five-year agreement was unacceptable,” Pasloski added. “I had the opportunity to raise our concerns with Minister Morneau and I’d like to acknowledge that he heard us and at least restored $16.5 million of the cut.”
Fiscal Relations, Finance