closed
Tuesday, December 5, 2017 - 10:25
To get you started
The Yukon government is facing financial challenges. Over the past ten years Yukon government revenue growth of 1.7% per year in real dollars has not kept pace with spending growth of 2.5% per year.
Yukon’s Financial Advisory Panel was tasked to develop a series of DRAFT options to ensure a healthy financial future. The options have been prepared, with consideration of the input received from the early engagement process, and are ready for YOUR INPUT and FEEDBACK.
Below you will find FIVE discussions, pick the discussion(s) you are MOST interested in and contribute your response by answering the following questions:
- What pros, opportunities and benefits are associated with these options?
- What cons, challenges and limitations are associated with these options?
WHAT DO YOU WANT TO TALK ABOUT?
List of Discussions- Options for SHORT Term financial health
- Options for MEDIUM Term financial health
- Options for LONG Term financial health
- Successfully Implementing Yukon government’s 4 Priorities
- Improving Yukon government Efficiency & Effectiveness
closed
Tuesday, December 5, 2017 - 10:24
Discussion A - OPTIONS FOR SHORT TERM FINANCIAL HEALTH
The Government of Yukon anticipates a significant shortfall of money (deficits) in the coming years, where the spending levels are higher than the anticipate revenue. The Panel has developed the following options to improve the currently forecasted budget deficits:
Option 1: Restrain Spending Growth
In order to achieve a balanced budget by 2020, the Yukon government could restrain spending growth by limiting spending increases to 1% per year. Alternatively, a more relaxed approach with spending growth capped at 2% per year would balance the territorial budget by 2022/23.
Option 2: Increase Government Revenue
The Government of Yukon could establish a territorial sales tax. A sales tax would address near-term fiscal challenges and would grow with the territory’s GDP. Each 1% increase in the sales tax would raise an additional $7 million per year in government revenues.
The revenue collected from a territorial sales tax could be redistributed through lowering personal and business tax. Additionally, visitors to the Yukon would contribute a substantial share of the sales tax revenue, perhaps in excess of 25 cents of each dollar collected, and therefore Yukoners overall would pay less tax.
Option 3: Combine New Revenues with Spending Restraint
There is an opportunity to combine both Option 1 and 2 where the outcome of a balanced budget would be achieved sooner as well as the costs of the change are distributed more equitably. The Government of Yukon could combine new revenues and spending growth by:
What do you think?
- Capping spending growth at 2% and introducing a 4% territorial sales tax in order to balance the territorial budget by 2020/21.
- Capping spending growth at 1.5% and introducing a 4% territorial sales tax in order to balance the territorial budget by 2019/20.
- Capping spending growth at 0.5% and introducing a 2% territorial sales tax in order to balance the territorial budget by 2019/20.
What do you think?
- What pros, opportunities and benefits are associated with these options?
- What cons, challenges and limitations are associated with these options?
Discussion B - OPTIONS FOR MEDIUM TERM FINANCIAL HEALTH
What do you think?
Comments
Discussion C - OPTIONS FOR LONG TERM FINANCIAL HEALTH
What do you think?
Comments
Discussion D - Successfully Implementing YG’s 4 Priorities
Priority 1 Our people-centred approach to wellness helps Yukoners thrive.
Undertake comprehensive review of the healthcare sector
Support innovations in healthcare delivery
Consider “co-pay” arrangements in healthcare
Invest in social spending
Focus on supporting adult functional literacy challenges
Priority 2 Our strategic investments build healthy, vibrant, sustainable communities.
Use proposed savings fund as source for social infrastructure
Introduce working income tax credit
Priority 3 Our strong government-to-government relationships with First Nations foster reconciliation.
Assess the educational outcomes for aboriginal students
Consider joint ventures, including public-private partnerships, with First Nations governments
Priority 4 Our diverse, growing economy provides good jobs for Yukoners in an environmentally responsible way.
Reduction in business taxes
Consider use of public-private partnerships [P3]
Evaluate business support programs against outcomes
Comments
Discussion E - Improving Yukon government efficiency & effectiveness
Focus on evaluation of outcomes in government programs and services
Contracting out services and/or collaborating with other governments
Improve efficiency of YG operations and programs
Comments
What does success of the four priorities look like for you?
What would be the same? What would be different? From your perspective, what would need to happen or change to make it so? See Details & Sample Responses here.
Comments
What advice or guidance would you give to the Yukon Financial Advisory Panel?
Comments
What will ensure the process is meaningful?
Comments