What the NWT wants from Thursday’s federal budget

Journalists, bureaucrats and experts will hunker down on Thursday and pore over hundreds of pages of budget documents to determine where the federal government’s priorities lie.

The federal budget determines which programs will be funded, changed or axed. All levels of government, interest groups and businesses will have their eyes peeled for policies and funding that impact them, and the NWT government has a laundry list of measures it wants to see.

In a statement, the territorial government said it is looking for a federal budget that advances major projects, builds housing in the NWT and transforms the economy.

One of the GNWT’s key wishes is for federal infrastructure programs to provide up to 100-percent contribution rates for territorial, municipal and Indigenous governments, in recognition of the higher cost of building and maintaining infrastructure in the North.

The GNWT also wants Ottawa to create a “federal funding navigator position” to help territorial and Indigenous governments identify and access federal funding streams.

The territory is asking Ottawa for dedicated funding for housing and water infrastructure, direct funding for Indigenous governments (including communities not on reserve), a commitment to renew the existing National Housing Strategy Canada-NWT Bilateral Agreement, and continued investment through the Build Canada Homes and the Build Communities Strong Fund.

Other priorities include federal investment in critical infrastructure and major projects that connect northern communities to the broader Canadian economy – like the Mackenzie Valley Highway – alongside clean energy projects. The GNWT’s statement put an emphasis on Indigenous economic participation and integrating modern treaty commitments into federal procurement processes. 

Northern mining incentives

When it comes to the mining economy – which has been in decline in the North, as seen in the diamond industry – the territory has two specific tax incentives in mind.

Industry minister Caitlin Cleveland is hoping to see a new “North of 60 Mineral Exploration Tax Credit” to help boost investment in the territories.

For years, the three territories have been asking the federal government to implement a 15-percent tax credit that would apply only in the North to help offset the higher cost of doing business and attract investment. NWT and Nunavut Chamber of Mines CEO Paul Hébert wants this potential tax credit to be higher, at 20 percent. 

Hébert recently told Cabin Radio he feels optimistic about this measure materializing in the budget or a spring update. Hébert and the GNWT also want zinc added to the list of eligible minerals under the existing Clean Technology Manufacturing Investment Tax Credit.

The GNWT wants funding designed to increase and strengthen the capacity of Indigenous governments and organizations to participate meaningfully in land and resource management processes. 

Ideally, the territory stated, the budget will include investments in federal defence infrastructure that also benefit communities and create opportunities for northern and Indigenous businesses to participate in defence procurement.

Jordan’s Principle education funding gap

Education funding is a highly anticipated area of the budget as the GNWT presses the federal government to fill the gap left by changes to Jordan’s Principle and the Inuit Child First Initiative.

Cleveland, who is also the NWT’s education minister, has been pushing the federal government to do something to get NWT education funding back on track – whether that’s an influx of money or more changes to Jordan’s Principle – but whether Ottawa will acquiesce and throw NWT education bodies a lifeline remains to be seen.

“The teachers that I serve are feeling overwhelmed, their working conditions are becoming unsustainable,” Rita Mueller, president of the NWT Teachers’ Association, told Cabin Radio. The federal government needs to rethink its changes to those two programs and understand that the needs of Indigenous students are still there, she said.

“We’re going to see teachers leaving the Northwest Territories because they feel they’re ineffective,” said Mueller.

“They’re not able to sustain not only their own workload, but they’re not making the kind of difference they want to that drives them to helping students.”

She added investments in the NWT’s chronically underfunded education system should be a priority if the federal government is serious about building Canada’s North and the workforce necessary to carry out its major projects and defence agenda.

Mueller gave the federal government credit for previously expanding its student loan forgiveness program to include teachers working in rural and small communities. She hopes these types of incentives continue and challenged the federal government to ask itself whether it is doing enough to incentivize teachers to move to small, northern communities. 

The GNWT-Canada agreement on the National School Food Program is set to end on March 31. Though the federal government has committed to fund the program through to 2028-29, the amount available for next year has not been negotiated yet, the GNWT noted. The territory wants the federal government to start those discussions immediately to ensure a new agreement is in place before the current one expires.

The territory also said Ottawa should increase support for Indigenous language revitalization, including language education, learning opportunities and cultural exchanges.

‘Fair’ healthcare funding

On healthcare, the GNWT said it wants “fair reimbursement” of eligible Non-Insured Health Benefits costs and federal funding to support similar benefits for Métis residents.

“As the North sees increasing economic and strategic investment, maintaining a strong and sustainable health and social services system will be essential to supporting healthy communities, population growth, and long-term northern development,” the territory stated. Other points of emphasis include retaining healthcare professionals and improving access to care close to home.

In an emailed statement, the union PSAC North called for the federal government to conduct its promised review of northern and Arctic healthcare and stop “reckless cuts” to the public service.

“In the North, where resources are already stretched thin and federal funding is critical to everyday supports and services, we often feel these decisions the hardest, as even the smallest cuts go deep,” the union’s statement read.

“Too often, the most vulnerable are hit hardest: remote and Indigenous communities, as well as equity-seeking groups.”

Inclusion NWT, a charity supporting northerners with intellectual disabilities, told Cabin Radio it wants to see a federal budget that strengthens the Canada Disability Benefit. Other income security measures should also better reflect the real cost of living, executive director Gareth-Boyd Henry said.

“We need a federal funding approach that recognizes the unique challenges of delivering disability services in the North,” Henry said, citing higher operational costs, transportation barriers, workforce shortages and limited infrastructure. 

Programs and funding that fit the North

NWT Métis Nation President Garry Bailey and the territorial government both called on Ottawa to fully implement the Daniels decision and ensure equitable access to federal programs and services for Métis people.

Ahead of the next wildfire season, the GNWT is also hoping for investments in community-level funding support to help reduce wildfire risk and improve capacity to respond to increasingly severe wildfire seasons driven by climate change.

Climate adaptation measures that address issues like permafrost thaw, shoreline erosion, land degradation and the impacts of changing conditions on highways, winter roads and supply chains are also a priority this budget cycle, the GNWT said.

Federal measures must take into account the circumstances of Indigenous-majority communities in the NWT that are not designated as reserves, the territory’s statement stressed.

The GNWT said it wants federal-territorial collaboration on public safety to continue, particularly when it comes to addressing the transportation of illegal substances into small and remote communities.