Winnipeg Free Press

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A N extra $ 215 million from Manitoba's Crown corporations and tighter government spending have reduced the size of the province's budget deficit by $ 86 million, the province reports. The reduction would've been higher if the Selinger government this week had not set aside $ 100 million to help four Interlake First Nations hit by flooding in 2011 to rebuild homes and infrastructure, the province said Thursday in the release of the third- quarter results for the 2013- 14 budget year. Last April, the NDP called for a deficit of $ 518 million, but because of higher- than- anticipated revenue from the Crown corporations - a colder winter has boosted Manitoba Hydro's bottom line - and less government spending, the summary deficit is forecast to decline to $ 432 million. Up to Dec. 31, the province has spent $ 194 million less than budgeted on core government services such as hospitals, schools and child welfare. " We have seen a real effort in all those departments to manage expenditures, to try to find more efficient ways to provide services," Finance Minister Jennifer Howard said. Howard said by budget year- end on March 31, she expects to see spending rise above budget in Justice and Family Services as they deal with escalating jail costs and the challenges of looking after the almost 10,000 children in care. She said overall, the report reflects a government trying to manage its affairs more wisely and on track to balance the books. The NDP has set a target date of 2017 to do that. The new budget will be delivered March 6 when the legislature comes back into session. Howard said working against the government is $ 37 million less in federal transfer payments in 2013- 14 due to the ongoing squabble with Statistics Canada over its alleged underestimate of Manitoba's population by 18,000 people. Statistics Canada maintains its methodology is sound. The third- quarter report says the province has not seen the forecast additional revenue from the July 1 one- point increase to the PST, bringing it to eight per cent. Total PST revenue is about $ 11 million shy of the $ 1.59 billion forecast. Howard said that's because total PST revenue from Christmas sales is not included in the report. Progressive Conservative finance critic Cameron Friesen said part of what's helping government is the sale of the province's property registry to Ontario- based Teranet for a one- time injection of $ 75 million. " They are not substantially closer to balancing the books," Friesen said. " It seems to be the progress they're reporting is only based on the performance of government entities like Manitoba Hydro and the sale of Crown assets. That skews the result right there." Friesen said the NDP is still collecting an additional $ 400 million a year in tax increases, both in the PST hike and the expansion the year before of what goods and services fall under the PST. He added the province says infrastructure spending this year will be $ 1.5 billion, $ 300 million lower than budgeted. " Why would a government that says it's all about infrastructure spending be under- spending on infrastructure?" he said. " It means their key rationale for the PST hike is flimsy." bruce. owen@ freepress. mb. ca THE risk of a major flood in the Red River Valley south of the U. S. border remains low, thanks to average snow and soil conditions and the expectation of another late spring. In its second flood outlook of the year, the U. S. National Weather Service has predicted a 50 per cent chance of moderate spring flooding on the main stem of the Red River from South Dakota to the 49th parallel. The U. S. forecasters based their predictions on average soil- moisture conditions, average stream- flow volumes and below- average snow- moisture content in the North Dakota and Minnesota portions of the Red River Valley - as well as a high likelihood of a delayed thaw, similar to the one experienced across the region last year. Warning- co- ordination meteorologist Greg Gust said in a statement a delayed thaw is good news, as a slow melt usually translates into less runoff at any given point and thus less flooding. But there is a risk of exposure to heavier snow and rain during a late winter, he added. Colder weather should persist into late March and early April, but shouldn't hang around until late April, as it did in 2013, Gust said. " This climate pattern suggests below- normal temperatures and near- normal precipitation, which should result in near- to above- normal snowfall, since colder air has less moisture and produces somewhat fluffier snow," he said. The overall statistical probability of major flooding has increased a very small amount since January, when the National Weather Service issued its first flood outlook. Right now, there's a 50 per cent chance of moderate flooding on the Red River, which translates into a handful of road closures in Fargo and Grand Forks but otherwise minimal disruption. The chance of a flood on the scale of the 2009 or 2011 events has been pegged at less than five per cent for both cities. On the Canadian side of the border, the flood potential appears to be significantly below that of 2011 and 2013, reports Manitoba's flood forecast centre. Manitoba plans to issue its first formal flood outlook later this month. While the snowpack around Winnipeg is high, the snow- moisture content is low here as well, Environment Canada said last week. bartley. kives@ freepress. mb. ca U. S. flood risk still low: report By Bartley Kives Crowns, tighter spending reduce Man. deficit By Bruce Owen A former candidate for the Manitoba Liberal Party has been cautioned by the province's election watchdog to make sure he tells the truth. Joe Chan was investigated by the elections commissioner's office after two New Democrats alleged he provided a false home address on his candidacy papers in the 2011 election. A report from commissioner Bill Bowles, obtained by The Canadian Press, says Chan said his residence was a downtown Winnipeg apartment. Bowles says an investigator found other people living there, who said Chan had never resided in the apartment. According to Bowles, Chan said the apartment was a friend's, but Chan had lived there temporarily the year after the election. - The Canadian Press Ex- Grit candidate gets warning MIKE DEAL / WINNIPEG FREE PRESS FILES Finance Minister Jennifer Howard says the numbers reflect efforts at efficiencies. A_ 09_ Feb- 21- 14_ FP_ 01. indd A7 2/ 20/ 14 6: 33: 34 PM ;