13.0 Financial Arrangements
13.1 In each of fiscal years 1997/98 to 1999/2000, Canada agrees to allocate for expenditures in Newfoundland and Labrador under the employment benefits and support measures an amount to be determined in accordance with the allocation methodology set out in the letter of June 26, 1996 from Canada's Deputy Minister of Human Resources Development to Newfoundland and Labrador's Deputy Minister of Development and Rural Renewal and Deputy Minister of Education.
13.2 The currently projected allocations for each of those fiscal years is as follows:
- fiscal year 1997/98: $85,837,000
- fiscal year 1998/99: $106,319,000
- fiscal year 1999/00: $115,799,000
For greater certainty, it is understood that the above allocations relate only to allocations of financial assistance payable under Part II of the Act and do not include insurance benefits payable under Part I of the Act (by virtue of section 25) to active EI claimants participating in training or other employment activities under the employment benefits. For planning purposes this amount is estimated at a constant $26,069,000 annually.
Newfoundland and Labrador recognizes, however, that given the nature of the allocation methodology, the actual amount of the allocation in each fiscal year cannot be ascertained until shortly after January of the immediately preceding fiscal year.
13.3 For each fiscal year after fiscal year 1999/2000 during the period of the Agreement, the amount of Canada's allocation of funding for expenditures in Newfoundland and Labrador under the employment benefits and support measures will be the subject of future negotiations between the parties. During fiscal year 1999/2000, the parties agree to review and discuss the manner by which Canada determines the amounts to be allocated by it for expenditures under its employment benefits and support measures in Newfoundland and Labrador. The parties will establish a mechanism that will allow them to carry this review in a way that will be mutually acceptable.
13.4 In conducting the annual reviews referred to in section 13.3, Canada undertakes to provide Newfoundland and Labrador with projected three year allocations on a rolling basis. It is understood that these allocations are merely forecasts or estimates based on current methodology and trends and are subject to change.
13.5 The agreed amount of Canada's annual allocation for its employment benefits and support measures for each fiscal year after fiscal year 1999/2000 will be specified in the Annual Annex for that fiscal year.
13.6 It is understood that any unexpended allocated funds in a given fiscal year will lapse and, as such, may not be carried forward to supplement the allocation for the following year.
13.7 Subject to section 13.8, the Labour Market Partners agree that the Management Committee will determine, within the total annual allocation for Newfoundland and Labrador referred to above, the funding to be allocated to each employment benefit and support measure in the coming fiscal year, including allocations for each Regional Committee for Labour Market Development.
13.8 In keeping with the intent of Canada to discontinue, by June 30, 1999, the provision of financial assistance in support of training through government-to-government and government-to-educational institution course purchase arrangements under its Purchase of Training Employment Benefit and to move to the provision of assistance in the form of skills loans and grants, as referred to in section 5.2, it is understood and agreed that the amount of funding to be allocated for government-to-government course purchases under the Purchase of Training Employment Benefit will be reduced as follows:
- Fiscal Year 1996/97: $5.42M
- Fiscal Year 1997/98: $4.071M (75% of 96/97)
- Fiscal Year 1998/99: $2.714M (50% of 96/97)
- Fiscal Year 1999/00: 0
It is also agreed that amounts allocated for Government-to-Educational Institution course purchases will be phased out using a similar formula, but that the 1997/98 allocation will not be less than 75% of the 1996/97 allocation, and that the 1998/99 allocation will not be less than 50% of the 1996/97 allocation.
13.9 Canada agrees to utilize the resources identified in the letter of September 25, 1996 from the Deputy Minister of Human Resources Development Canada to Newfoundland and Labrador's Deputy Minister of Development and Rural Renewal and Deputy Minister of Education in support of this Agreement annually, subject to a service delivery review in consultation with Newfoundland and Labrador.
13.10 Newfoundland and Labrador agrees to provide the Management Committee with its financial allocations for provincial employment programs prior to the start of each fiscal year.