New Brunswick.

• Position: Legislative Reports

The Second Session of the Fifty-fifth Legislature resumed Wednesday, March 30, 2005, when Finance Minister Jeannot Volpe (Madawaska-les-Lacs) brought down the 2005-2006 Budget.

The budget focused on the five objectives set out in last year's budget:

* record investment in health and senior care (increased by $163.1 million to $2.3 billion); and education (increased by $38.5 million to $1.2 billion) and children;

* further tax relief for small businesses (small business corporate income tax rate will be lowered to one per cent and the income threshold will be increased to $500,000); more capital investment and new community economic development programs (capital expenditures for roads, highways, hospitals, schools and other priorities will increase three times faster than all other program spending, to help create jobs and better public infrastructure);

* no raise in or creation of any new taxes;

* stronger value for taxpayers by saving money in back-office government operations in order to reinvest in front-line government services; and

* the budget is balanced with a surplus of $98.9 million and a reduction in net debt of $4.0 million; gross consolidated revenue is projected to be $6.109 billion, up 2.9 per cent from revised 2004-2005 estimates; gross consolidated expenditure is estimated at $6.105 billion, up 3.7 per cent from last year.

Education spending will include funding for K-12, initiatives under the Quality Learning Agenda, 85 more teaching positions, the second year of the pilot laptop research program, quality technology infrastructure enhancement, and increased investments in universities and community colleges.

Health and wellness spending is increased for Medicare, hospital services, ambulance services, prescription drug program, promotion of healthy living for children and youth in the areas of physical activity, nutrition and healthy eating, tobacco cessation, mental health and resiliency, nursing programs, and support for families, children, persons with disabilities and seniors. Social assistance rates will increase by 6% over the next three years--the largest increase since 1991; nursing homes, by 9.1%; support agencies by 10% over the next three years; and an investment of $11.8 million in the Early Childhood Development Agenda.

The budget provides an additional $11 million in tax relief: all provincial income tax credit amounts and tax brackets have been indexed to protect against inflation effective January 1, 2005.

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