Special Warrant Approved for Infrastructure Projects

The province has approved a special warrant of $130 million for capital spending projects that may be jeopardized if not awarded by July 1.

"This is about keeping the economy moving, creating jobs, and moving forward with infrastructure projects," said Finance Minister Jamie Muir. "Without budget approval from the legislature, we feel this is a necessary financial measure."

Special warrants are used to authorize government spending in the absence of an approved budget.

The special warrant of $130 million will be added to the existing authority of $170 million for projects funded in the Tangible Capital Assets budget appropriation this year.

Under the Provincial Finance Act, government cannot spend more than 50 per cent of the previous year's appropriation without an approved budget, or a special warrant for additional funding.

The special warrant brings the Tangible Capital Assets spending authority to $300 million. Without a special warrant, the authority is half of the 2008-09 appropriation of $341 million, or $170 million.

This will allow government to proceed with capital projects that might be delayed or compromised unless they are launched soon.

These include those that may lose federal funding, face tight construction schedules for seasonal or other reasons, or form part of multi-year commitments.

The $300-million funding authority covers schools and buildings, highways and roads, information technology, land purchases, and vehicles and equipment. Details of specific projects will become available as departments proceed with the contracting process.