Government Relations Office

1. Overview Federal & Provincial Budgets2004-2005Implications for Post-Secondary Education and Research Government Relations Office

2. Presentation Overview • Federal budget • Overview • Post Secondary Education Measures • Research Initiatives • Public Health • Provincial budget • Overview • Post Secondary Education Measures • Research • Questions? Government Relations Office

3. Budget delivered March 23 Thematic Highlights: Commitment to prudent fiscal management Communities Canada’s relationship with the world Learning Knowledge and commercialization Health care Government Relations Office

4. Commitment to prudent fiscal management… • 7th consecutive balanced budget, with $4B contingency reserve • Debt-to-GDP ratio to fall to 25% within 10 years • Program spending to climb by 4.4%, program review to save $3B • Communities… • $7B in GST relief for cities • Acceleration of infrastructure program commitments • Canada & the world… • $905M for peacekeeping and security • $245M for international assistance Government Relations Office

5. Learning – Implications for PSE… • Canada Learning Bonds • Provides low-income families (<$35,000) with $500 at birth and • $100 annually thereafter to help save for PSE • Canada Student Loans • Restructure program • Increase loan ceilings (from $165 to $210 weekly) • Broadening eligible expense – computers • Ease family income for middle class families • Increasing debt reduction measures Government Relations Office

6. Learning – Implications for PSE… • Grants for 1st year students • $3,000 grants available for 1st year students from low-income families • RESP changes • Increase matching contributions on first $500 to 40% for low-income families and to 30% for middle-income families • Continuing Education • Expand programs and extend education tax credit for work related courses • Misc. • $2,000 grant for disabled students • $15M seed money to establish Canada Corps Government Relations Office

7. Knowledge and Commercialization… • Granting Councils ($90M) • $39M for CIHR • $39M for NSERC • $12M for SSHRC + $3M for CURA program • AUCC advocated for $100M increase • Indirect Costs ($20M) • $20M increase, bringing program to $245M annually • AUCC asked for $55M increase • Genome Canada • $60M and mandate review Government Relations Office

8. Knowledge and Commercialization… • Commercialization Pilot Program • $50M pilot program to further commercialization of university and hospital research. In addition, granting councils to triple their investment in commercialization initiatives • Venture capital • $270M for BDC and FCC to finance start-ups, expected to lever $1B. Prioritized for life-sciences, biotech, ICT, environmental technologies, medical devices, nanotechnology. • Other • Sustainable Development Technology Fund gets $200M top up from sale of Petro Canada shares • $5M for NRC’s IRAP Government Relations Office

9. Public Health • $2B for health to top-up last year’s $35B First Ministers Health Accord • $400M from Health Canada to establish the Canadian Public Health Agency • Significant amount will end up in Winnipeg • Announcement on location? • $665M to improve public health • $165M to develop surge and reaction capabilities • $400M for provincial immunization programs • $100M to set up Canada Health Infoway Government Relations Office

10. Provincial Budget delivered April 19 Thematic highlights: Health care Young Manitobans Manitoba Families Affordable Government Infrastructure Healthy & safe communities Economic growth Water and environment Tax relief Government Relations Office

11. Quick Overview… • Balanced budget, small surplus of $3M • $96M debt and pension liabilities payments • 7% cut in discretionary spending & elimination of 400 jobs • Minor personal tax reductions (6% on middle rate), reduced education support levy ($40 on a $125K home), small reductions to business taxes, off-set by increased taxes on services & sin taxes • 5.2% increase in health care spending • 2% increase in education funding • 3.5% increase in support for Universities and Colleges • Infrastructure investments Government Relations Office

12. University of Manitoba focus of attention… …University of Manitoba specifically mentioned 6 times throughout speech …EITC and Richardson Centre for Functional Foods each referred to 3 times …$50M provincial contribution to Campaign mentioned twice for leveraging $187M …SmartPark singled out with full paragraph recognizing its growth Compares to two references in Budget 2003 Government Relations Office

13. PSE measures • Funding support for universities & colleges up 3.5% (includes elimination of municipal tax) • $364,472,400 to $377,327,700 • Compares to 4% increase last year • Impact on University of Manitoba – 1.7% increase in operating grant Advanced Education & Training Budget Allocation 2004-2005 Government Relations Office

14. Other measures… • Budget commits government to 10% tuition rebate for another year, but no mention of tuition freeze. • Additional resources for training nurses. • Establishment of graduate scholarship program - $350,000 • Increased funding for PSE Initiatives fund to develop new programs • Increase funding for Access programs • Small increase in student aid funding • Increases in vehicle registration fees, diesel fuel and extension of PST to services will increase costs for University. Government Relations Office

15. Research support • University of Manitoba recognized as “one of Canada's major research institutions, and home to more than 20 research centres” • Slight reduction in provincial research funding (.6%) • Science, innovation and business development funding falls from $18,037,000 to $17,920,000 Research support program funding Government Relations Office

16. Questions? Government Relations Office