Financial Measures Act Introduced

Several initiatives announced in the 2004-05 budget will be implemented under the Financial Measures Act, introduced in the legislature today, April 26, by Finance Minister Peter Christie.

The establishment of a debt retirement fund is the centerpiece of this year's legislation, Mr. Christie said. "The province's commitment to reducing the debt is now enshrined in legislation, with $6 million designated to the fund each year, beginning this year."

While the 10 per cent personal income tax rate cut for Nova Scotia's lowest income earners stays in effect, changes to the higher tax rates are retroactive to Jan. 1, 2004. About 53 per cent of Nova Scotians will keep their full 10 per cent tax cut, while more than 90 per cent of Nova Scotians will pay less tax in 2004 than in 2003. A fourth income tax bracket is now included in personal rates. Corporate income tax changes will also take effect with this legislation.

Mr. Christie said the province's public accounts must now be filed by Sept. 30, instead of Dec. 31. "In the interest of increased financial accountability to the taxpayer, we will speed up the reporting on our fiscal year-end financial statements."

A new tuition support program is being developed in recognition of the small number of students with special needs who may benefit from the specialized expertise of private schools for a period of time. Processes and eligibility criteria will be finalized with regulation changes, in consultation with partners.

The South Shore, Tri-County and Strait district school boards will move to regional school board status in August 2004. The act includes a provision that will allow the South Shore and Tri- County boards to share administrative services.

Eliminating the proposed 39 per cent salary increase for MLAs is also contained in the Financial Measures Act. The senior officials' pay for performance will be cancelled if a deficit occurs in 2004-05.

All previously announced fee cost increases are contained in this act. Some fees will now become a tax.

A number of financial and administrative housekeeping items are also covered by this act.