1. 2012-13 Pre-Budget Consultation
Blaine Higgs
Minister of Finance

2. Pre-Budget Consultations (2011-12)
Unprecedented level of engagement by New Brunswickers through a variety of means:
On-line pre-budget questionnaire;
Public and stakeholder meetings;
Discussions with unions;
Other and written submissions.

3. Pre-Budget Consultations (2011-12) What We Heard
Government should:
Become smaller;
Reduce costs;
Be more efficient;
Increase revenue;
Focus on needs as opposed to wants.

4. Pre-Budget Consultations (2011-12) What We Did (short-term)
Smaller government
Size of Cabinet reduced;
Fewer ridings in next election;
Reduced senior bureaucracy positions;
Hiring restrictions now in place.
Reduced costs
Controls placed on the wage bill;
CEO & Deputy Minister bonuses suspended;
Public and private pension reviews initiated.

5. Pre-Budget Consultations (2011-12) What We Did (short-term)
Efficiencies
Reduced travel and technology expenditures;
Reduced government operations during Christmas season.
Increase revenue
Discontinued roll-out of personal and corporate tax cuts;
Increased fuel and tobacco taxes;
Increased user fees.

6. Government Renewal

7. Government Renewal 2011-12 Budget commitment;
Launched by Premier on March 25, 2011;
Largest public service engagement exercise undertaken in last 40 years.

8. Government Renewal – What We Learned
Process is still underway, over 300 proposals identified;
Common Themes:
A need to manage public expectations;
Opportunities to drive savings;
Inefficient and ineffective processes;
Means to generate more revenue efficiently;
Alignment and accountability are necessary.

9. What We Learned – Public Expectations
New Brunswickers need to be open to changes in the way services are delivered to ensure we can live within our means.
This includes changes in such areas as:
Health and senior care;
Education;
Social programs and services;
Crown assets.

11. Distribution of Workforce
3,400
4,000
3,100
2,500
11,000
12,600
11,000

12. What We Learned – Attrition ($millions)
Potential annual cost savings
Replacement rate

13. What We Learned – Human Resources
Wage bill;
Absenteeism and sick leave;
Vacation leave;
Retirement allowances;
Public sector pensions.

14. What We Learned - Procurement
Better use of technology and streamlining processes
Procurement Process
Lower costs by being more strategic in how we buy goods and services
Strategic Sourcing
Legislation needs to be modernized
Legislative Review

15. What We Learned - Collections
Better use of technology, a more consistent collection policy and standardized processes
Corporate Solution
Lower costs by expanding the use of Canada Revenue Agency for the collection of receivables
CRA Solution
Legislation needs to be modernized
Legislative Review

16. What We Learned – The NB Power Story
Two years ago NB Power was for sale.
NB Power is now running like a business.
NB Power is showing measures of success in operating and service delivery.
NB Power is focused on continuous improvement and accountability.
NB Power has developed a long-term debt management plan that will see a reduction in debt over the next 10 years.

17. What We Learned – Highway Tolls
Toll rate
Cars
Toll rate
Trucks
Annual Revenue
3 cents/km
9 cents/km
$50M
5 cents/km
15 cents/km
$84M
7 cents/km
20 cents/km
$115M
For example, a return trip from Moncton to Fredericton would cost $11 at 3 cents/km.

18. What We Learned - A Better Way to Manage
Map
Measure
Manage
Where are we going?
Strategy Map
Are we there yet?
Measures
Targets
Can we react?
Initiatives
Review & Revise

19. Government Renewal - Next Steps
The plan will focus on:
Re-aligning government to focus on core services;
Improving accountability through performance measures;
Three-year budget target reductions;
Better managing government resources.

20. Economic and Fiscal Challenges

21. Economic Challenges Real GDP growth (2012) %
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Economic Challenges
Real GDP growth (2012) %
Source: NB Department of Finance

22. Fiscal Challenge
New Brunswick faces a challenging fiscal environment going forward:
Sizable imbalance between revenues and spending;
Revenues impacted by weak economy;
Higher debt service costs due to rising debt levels;
Continued demand and cost pressures on social programs.

24. Where the Money Comes From 2011-2012 Budget
Source: Department of Finance Budget

25. Surplus / (Deficit) - ($millions)
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Surplus / (Deficit) - ($millions)
Our goal

26. Capital Expenditures - ($millions)
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Capital Expenditures - ($millions)
2013 includes $544 million for Route One Gateway
2015 includes $152 million for Restigouche Hospital Centre

27. Draft
Your Input is Required to Shape the Budget and Future Budgets
Seeking ideas on how to reduce spending or increase revenues:
What services can be eliminated or reduced?
What services can be delivered in a more affordable, efficient manner?
What revenues should be increased to help balance the budget?
Comments will be reviewed and considered as part of budget process.

28. Share Your Views Online at: Taxpayers FIRST: www.gnb.ca/nbfirst
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Share Your Views
Online at: Taxpayers FIRST:
Written submissions by mail:
Pre-Budget Consultation
Minister of Finance
P.O. Box 6000
Fredericton NB E3B 5H1
By fax: By
Deadline is January 31, 2012