Prince Edward Island.

• Author: Johnston, Marian
• Position: Legislative Reports

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The Second Session of the Sixty-fourth General Assembly opened on April 4, 2012, and adjourned to the call of the Speaker on May 30, 2012, after 31 sitting days.

Eight bills, 35 motions and consideration of the supplementary estimates remain on the Order Paper. The Assembly will reconvene November 13, 2012, according to Prince Edward island's parliamentary calendar.

The Speech from the Throne was delivered on April 4, 2012, by H. Frank Lewis, Lieutenant Governor of Prince Edward Island. It outlined four areas of priority for government: economic growth focusing on private sector job creation; a return to fiscal balance and economic stability; investments in education; and measures to ensure accessible and affordable healthcare.

Wes Sheridan, Minister of Finance and Municipal Affairs, introduced his budget on April 18, 2012, which contained expenditures of $1.58 billion. Total operating revenue for 2012-2013 was projected at nearly $1.51 billion, with provincial own source revenues forecast at $891 million. Health continued to account for the largest share of provincial expenditure at nearly $555 million; followed by education at $229 million. Expenditures for most other departments were reduced between three to five per cent. The Minister indicated that the public sector will be reduced by 300 positions over the next three years, with two thirds of those reductions in the current year.

There were some new initiatives in this budget, including the establishment of a $2,000 George Coles Graduate Scholarship, improvements to the existing George Coles Bursary, moving to provide interest-free student loans, and establishing a $500 refundable income tax credit for volunteer firefighters with at least 200 hours volunteer service a year.

In the Budget Speech, government announced it was entering into formal negotiations with the federal government to implement a harmonized sales tax by April 2013. Under a harmonized sales tax, the provincial rate will be reduced from 10 percent to 9 percent. Combined with the federal rate, the harmonized rate will be 14 percent. This drop from the current rate of 15.5 percent means the province will have the second lowest sales tax rate in the Maritimes, instead of leading the country with the highest rate. The proposed model would apply the tax on the same basis as the GST which, for example, does not include basic groceries and prescription drugs. The province will not tax home heating oil...