expenditure
      for
      the
     
     
      province
      after
      Health
     
     
      and
      Social
      Services
     
     
      which
      takes
      up
     
     
      $321.9
      million
      (or
     
     
      36.5%
      ofall
     
     
      expenditures)
      and
     
     
      Education
      which
     
     
      accounts
      for
      $189.6
     
     
      million
      or21.5%of
     
     
      all
      expenditures.
     
    

    
     
      The
     
     
      government
     
     
      announced
      several
     
     
      pre
      election
      goodies
     
     
      in
      several
      areas.
      I
      will
     
     
      not
      bore
      you
      by
     
     
      going
      through
      them
      all
     
     
      but
      I
      will
      providea
     
     
      summary
      of
      what
      I
     
     
      think
      are
      important.
     
     
      The
      Tories
      will
      be
     
     
      buyinga
      Linear
     
     
      Accelerator
      Unit
      for
     
     
      the
      Cancer
      Treatment
     
     
      Centre
      and
      a
     
    
   
   
    
     
      Magnetic
      Resonance
     
     
      Imaging
      (MRI)
      Unit.
     
     
      They
      will
      begin
     
     
      constructing
      an
      East
     
     
      Prince
      Health
      Facility
     
     
      and
      they
      set
      aside
     
     
      money
      to
      try
      to
     
     
      recruit
      doctors
      and
     
     
      nurses
      to
      the
      Island.
     
     
      Other
      areas
      of
      health
     
     
      expenditure
      included
     
     
      prevention
      strategies
     
     
      and
      research.
     
     
      In
      education,
     
    

    
     
      _
      the
      government
      took
     
     
      biggest
      is
      the
      $1.5
     
     
      million
      being
      spent
      to
     
     
      implementa
      province
     
     
      wide
      kindergarten
     
     
      program
      (the
      last
     
     
      province
      in
      Canada
     
    

    
     
      to
      do
      so).
      They
      have
     
     
      -
      boosted
      spending
      at
     
     
      UPEI
      (as
      outlined
      a
     
     
      couple
      of
      weeks
      ago)
     
     
      and
      have
      increased
     
     
      their
      funding
      by
      $1.2
     
     
      million
      to
      the
     
     
      operating
      budget
      this
     
    
   
   
    
     
      year
      and
      made
      a
     
     
      commitment
      to
     
     
      increase
      it
      by
      another
     
     
      million
      for
      each
      of
      the
     
     
      next
      two
      years.
      They
     
     
      have
      made
      a
      $3
     
     
      million
      investmentin
     
     
      elementary
      and
     
     
      secondary
      schools
     
     
      througha
      variety
      of
     
     
      initiatives
      (although
     
     
      they
      did
      not
      pay
      heed
     
     
      to
      the
      PEI
      Teachers
     
     
      Federation
      request
     
     
      that
      40
      additional
     
     
      teachers
      be
      hired
      to
     
     
      improve
      teaching).
     
     
      They
      also
      spent
     
    
   
   
    
     
      years.
      Overall,
     
     
      growth
      is
      expected
      to
     
     
      be
      at
      3%
      of
      the
     
     
      economy.
      The
      one
     
     
      thing
      that
      eats
      at
      this
     
     
      growth
      is
      inflation,
     
     
      which
      was
      measured
     
     
      at
      1.2%,
      But
      Mella
     
     
      mentioned
      something
     
     
      that
      I
      warned
      about
     
     
      several
      months
      ago.
     
     
      She
      pointed
      out
      that
     
     
      rising
      fuel
      costs
      will
     
     
      probably
      increase
     
     
      inflation.
      To
      find
      out
     
     
      real
      growth
      after
     
     
      inflation
      (the
      actual
     
     
      amount
      the
      economy
     
    
   
   
    
     
       
     
    
   
   
    
     
      The
      upside
      to
     
     
      inflation
      is
      that
      it
     
     
      means
      that
      personal
     
     
      income
      rises.
      From
     
     
      1998
      to
      1999
      (the
     
     
      most
      update
      statistics
     
     
      available),
      personal
     
     
      average
      income
      for
     
     
      all
      Islanders
      rose
     
     
      from
      $19,124
      to
     
     
      $19,706,
      which
      is
     
     
      good.
     
    

    
     
      After
     
     
      digesting
      all
      of
      these
     
     
      crazy
      numbers,
      we
     
     
      waited
      for
      Mella
      to
     
     
      arrive
      to
      answer
      our
     
     
      questions.
      She
      did
     
    
   
   
    
     
      Last
      year’s
      budget
      had
      a
      $16.5
     
     
      million
      surplus
      which
      the
      Tories
     
     
      managed
      to
      bury
      in
      a
      manner
      that
     
     
      would
      make
     
    
   
   
    
     
      money
      on
      book
     
     
      acquisitions
      and
      other
     
     
      education
      areas.
     
    
   
   
    
     
       
     
    
   
   
    
     
      Paul
      Marti
     
     
      envious.
     
     
      actually
      grew)
      one
      not
      look
      like
      she
      was
     
     
      arrivesat1.8%which
      having
      thetimeofher
     
     
      isn’t
      bad
      but
      is
      not
      an
      life.
      Flanked
      by
      her
     
     
      economic
      explosion.
      economists,
      she
     
    
   
   
    
     
      Finally,
      they
     
     
      made
      a
      lot
      out
      of
     
     
      their
      varied
      job
     
     
      creation
      schemes.
     
     
      What
      this
      is
      is
      a
      way
     
     
      to
      reward
      party
     
     
      hacks
      with
      high
     
     
      paying
      no
      work
      jobs
     
     
      ina
      variety
      of
     
     
      important
      part
      of
      the
     
     
      job
      equation
      is
      that
     
     
      PEI
      has
      the
      highest
     
     
      number
      of
      people
     
     
      employed
      in
      its
     
     
      history,
      64,800
      of
      the
     
     
      138,000
      people
      living
     
     
      on
      the
      Island.
      The
     
     
      unemployment
      rate
      in
     
     
      February,
      2000
      was
     
     
      11.5%,
      which
      is
      its
     
     
      lowest
      rate
      in
      12
     
    
   
   
    
     
      answered
      questions
     
    
   
   
    
     
      with
      their
      help.
      Each
     
     
      question
      would
      see
     
     
      these
      economists
     
     
      scramble
      through
      their
     
     
      files
      and
      produce
      the
     
     
      crazy
      number
      asked
     
     
      for.
      Mella
      showed
      a
     
     
      great
      ability
      to
      answer
     
     
      questions
      while
     
     
      reading
      files.
      I
     
     
      managed
      to
      even
      fire
      a
     
     
      couple
      of
      questions
     
     
      her
      way.
      I
      found
      it
     
     
      amazing
      how
      when
     
     
      one
      journalist
      raises
      a
     
     
      point
      the
      others
      start
     
     
      circling
      around
      that
     
     
      point
      like
      a
      shark
     
     
      around
      a
      bleeding
     
     
      victim.
      She
      seemed
     
     
      confident
      that
     
     
      borrowing
      institutions
     
     
      would
      react
      positively
     
     
      to
      this
      budget.
     
    

    
     
      The
      one
      area
     
     
      that
      I
      wanted
      an
     
     
      answer
      to
      I
      got.
     
     
      Basically,
      the
      federal
     
     
      government
      has
      given
     
     
      the
      provinces
      the
     
     
      option
      to
      set
      up
      their
     
     
      own
      tax
      system
      and
     
     
      rates.
      PEI
      will
      be
     
     
      doing
      this.
      This
      is
     
    
   
   
    
     
       
     
    
   
   
    
     
      important
      because
     
     
      since
      the
      federal
     
     
      government
      cut
      their
     
     
      taxes,
      it
      effects
     
     
      provincial
      revenues
     
     
      (downward)
      because
     
     
      they
      take
      a
     
     
      percentage
      of
      the
     
     
      federal
      government
     
     
      tax
      grab.
      Mella
     
     
      assured
      me
      that
      all
     
     
      tax
      cuts
      would
      be
     
     
      passed
      on
      in
      full
      to
     
     
      Islanders
      as
      PEI
     
     
      would
      use
      the
      same
     
     
      tax
      brackets
      as
     
     
      Ottawa.
      Whether
      or
     
     
      not
      they
      intend
      to
     
     
      keep
      this
      promise
      is
     
     
      another
      matter
     
     
      altogether
      because
     
     
      when
      revenues
      fall
     
     
      you
      can
      be
      sure
      they
     
     
      will
      find
      the
      money
     
     
      from
      somewhere.
     
     
      And
      that
      somewhere
     
     
      usually
      means
      you
      or
     
     
      I.
     
    
   
   
    
     
      GONZO
      OUT