Housing is a key priority in Nunavut’s $2.5B budget

Finance minister says he’s willing to spend budget surplus on more housing

Housing Minister Lorne Kusugak, shown in a file photo, announced with Premier P.J. Akeeagok plans to build 3,000 new housing units in Nunavut by 2030. (File photo by Emma Tranter)

By David Lochead

The first proposed budget for Nunavut’s newly elected legislative assembly put a focus on housing, including $27 million for new public and staff housing.

“One of the biggest things we lack in Nunavut is housing,” Finance Minister Lorne Kusugak said in the budget speech he delivered Thursday in the legislative assembly.

The territory’s 2022-23 budget proposes $2.58 billion in spending this fiscal year, which is complemented by $2.62 billion in expected revenue.

The budget also contains a $75 million contingency fund to use for emergency spending.

Because the COVID-19 pandemic reduced the amount of programming the GN could fund last fiscal year, it’s now projecting an operating surplus of $40 million dollars this year. That surplus is a rebound from last year’s $31 million deficit.

But with costs to build housing in Nunavut reaching $1 million per unit, Kusugak told reporters before his speech that spending the government’s surplus on additional housing is worthwhile.

“It’s good to build a surplus but you can’t just build these surpluses for the sake of having them,” Kusugak said.

“There needs to be a purpose behind them.”

In his speech, Kusugak indicated his government intends to create short-term deficits in future budgets to address the housing crisis.

That intention blends with the sixth legislative assembly’s mandate, Katujjiluta, which commits to build 1,000 housing units during its four-year term.

Other highlights in the spending plan point to the mandate’s priorities including aging with dignity, health and healing, education and diversifying local economies.

Of the $27 million allocated for housing, $21 million of it will go toward new public housing, while $6 million toward staff units. That’s part of the $51.5 million total the government is proposing to spend on the Nunavut Housing Corporation, Kusugak said in his speech.

An additional $1.5 million is proposed to go to homeless initiatives, such as transitional housing and the Ikur’raq cabin building program. The same amount is allocated for family violence shelter funding.

For health care, the budget proposes funding for 75 new health-care support positions, with $2.1 million for 31 medical travel clerks to improve services for medical travel.

For elder care, Kusugak said his government will invest $19 million on construction of the Rankin Inlet long-term care facility.

The budget also proposes two new positions in the Department of Executive and Intergovernmental Affairs to create an elder care strategy and implementation plan.

In education, the budget proposes $2.5 million to hire 25 staff for positions that include school counsellors, secretaries and custodians.

To help diversify local economies Kusugak said his government plans to invest $17.2 million in the fibre project that aims to bring high-speed fibre optic internet to Nunavut by 2025.

Kusugak said his government is also proposing to give $500,000 for the GN’s renewable energy support program. The program provides grants to cabin owners to install renewable energy, such as solar panels.

Other highlights from the proposed budget include:

  • $2.8 million to hire 28 new staff at the Aaqqigiarvik Correctional Healing Facility
  • $1.5 million to help implement the Mental Health Act
  • $1.7 million for Nunavut youth to participate in the Arctic Winter Games
  • $1.4 million for more school bussing in the territory

Before it can be passed, the territory’s MLAs will review the proposed budget over the coming weeks in committee meetings with each government department.

with files from Emma Tranter

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(26) Comments:

  1. Posted by Paul on

    2.5 Billion annual budget, that is huge for a small population, maybe it’s time for the GN to actually implement all the recommendations and reviews that are done by the auditor general?
    Instead of being shelved and collecting dust.
    Housing corp should look at other ways of building houses, prefabricated would make sense but these big businesses like Kudlik would lose there marbles if the GN decided to be more economical and save money while building more homes.
    I still can’t get over how much money this government has but really can’t get much done with all that funds.
    But hey, let’s blame the Inuit organizations for not doing enough. Lol

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    • Posted by Both can be true on

      You can be right about the GN and it can still be true that the Inuit orgs don’t do much of anything.

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      • Posted by Incorrect on

        Maybe you just don’t deal or know about what the Inuit organizations do, for their size and budget they do a lot more then what our GN does.

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        • Posted by Both can be true on

          Maybe you’re right, and I don’t know.

          Tell us some of what you see NTI doing that makes you think they are achieving more ‘pound for pound’ than the GN is for Nunavut?

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          • Posted by Yes both can be but one is a thousand times more on

            For their size NTI seems to do ok with the programs they administer and the reports and reviews they conduct.
            NTI is not there to take over the incompetence of the GN’s mandate but to try and work with them on solutions to their incompetence.
            To look out for the best interests for Inuit. The GN which seems to go against or just are unable to do the right things.
            Here’s another fine example,
            https://www.cbc.ca/news/canada/north/nunavut-housing-corporation-cancelled-public-tenders-1.6465354
            Millions and millions wasted because of incompetence and no one seems to be accountable, imagine if this was NTI or any other Inuit organizations doing this, all hell would break loose and everyone would be demanding heads and why we have these organizations, but it’s the GN and it seems to be accepted for whatever odd reason.

      • Posted by Both sides? Maybe more one side on

        With the GN being the largest employer in Nunavut a lot of GN procrastinators will be agree with you on that one Both can be true.

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    • Posted by Umingmak on

      The only groups more incompetent than the GN are the Inuit Orgs. They do nothing whatsoever.

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      • Posted by Amarok on

        I don’t think any other organization can be more incompetent the our GN, they top that title by a long shot.

  2. Posted by ILLUVUT on

    where are the funds to assist the rate payers who are trying to stay out of staff housing. only Gov of NU workers get an amount which is very low amount.

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    • Posted by home on

      agree! once in a home there needs to be help to keep it up or to lose it,

      • Posted by John W Paul Murphy on

        Nunavut Housing Corporation has lots of programs available to help homeowners.

        You just need to do a bit of research instead of anonymous complaining.

  3. Posted by home builder on

    Check my math:
    $2,500,000,000 / $1,000,000 per house (includes admin and contractors) = 2500 houses in the territory. Less than 10% should go to Iqaluit.
    .
    Also, this would be the homeless initiative remedy, building homes. So put that initiative money back in the house pot.

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    • Posted by Budget on

      2.5 billion is the total Nunavut budget. This covers other department programs, employee salaries and benefits etc..

      Unfortunately, the total amount couldn’t be spent on housing alone.

    • Posted by Southerner in the North on

      $2.5 billion is the total budget for the GN. So, if you want to shut down health care, schools, elder care, income assistance and layoff everyone who works for the GN for a year, then you could build your 2,500 homes. Except there would be no one to pay the contractors, train the local workers or monitor compliance.

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      • Posted by Northerner on

        No one is saying we want to shut down the GN, what we want is a accountable government that doesn’t waste all these funds, so much funds for the population of Nunavut.
        I think a lot of us are starting to get frustrated in our government and how pathetic they have been working or lack their of.
        Every department needs improvements, rotating doors of transient workers, inability to make any improvements. The list goes on.

    • Posted by alex on

      That is very valid, if only 2.5 billion was for housing…..add every other expenditure of the gov of nunavut, including the famous medical travel program…..True post if only 2.5 billion was strictly for housing.

    • Posted by Northern Guy on

      Why should Iqaluit get less than 10%? The city currently boasts well over 20% of the territory’s population and therefore a similar level of need.

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      • Posted by John W Paul Murphy on

        20% of the population and I suspect 75% of the employed population who can afford to pay their own way.
        The communities don’t have jobs available (other than Pond Inlet who just threw jobs away at the mine).
        Percentages are irrelevant compared to the real need.

  4. Posted by Ragin Ronnie on

    Staff housing? Something is amiss here. Look at the GN job board. Most positions with the exception of Health do not include staff housing. Even if the GN builds an extra 100 units they would not come online for 2 years? In the meantime these positions go unfilled. I mean who is going to come work here and spend 50% of their disposable income on a one bedroom apartment in the Brown building. Apparently the GN thinks they can hire locally which is delusional.

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    • Posted by Umingmak on

      Bingo. This year in Cambridge Bay, they have posted job ads for the positions of District Director, Maintenance Officer and Finance Officer, just for NHC alone. All have been posted with no housing, and all have gone un-filled, because no sane, qualified person would ever apply for these jobs without housing being provided. These same positions had housing included in the past. There is plenty of unoccupied staff housing in Cambridge Bay. The GN’s HR department is a dumpster fire.

  5. Posted by S on

    “One of the biggest things we lack in Nunavut is housing,” Finance Minister Lorne Kusugak said in the budget speech he delivered Thursday”

    Sadly, though there is a dire need for more and improved housing, there are MANY higher priorities

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  6. Posted by Northern Guy on

    No where else in the known world would a population of only 38,000 people be entrusted with a annual operating budget of $2.5 billion dollars. That amounts to almost $66,000 for every man woman and child in the territory. It almost makes one want to laugh if it wasn’t so ludicrous.

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    • Posted by Karl on

      You are correct, 2.5 Billion is immense for such a small population, take Greenland with a population of about 50,000, the government here receives about seven hundred million (Canadian dollars) from Denmark, travelling to Nunavut in the past we don’t understand why there is so much dysfunction and lack of basic infrastructure when your government has so much more funds.
      The difference we see is better structured education system that prepares our people to take on government jobs, language and culture is recognized as being important for successful and healthy society and it’s incorporated in our education system. Financial support for high school students and trades and university students.
      Maybe we can work closer together and learn from each other. Not everything works well here and we can also learn from Nunavut.

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  7. Posted by Umingmak on

    $2.5B budget, and only $27M (1.08%) for housing doesn’t exactly demonstrate that housing is a priority for the GN. Never mind the fact that they cancelled all of the 2022-2023 builds that were tendered earlier this year (meaning there will be absolutely NO new housing this fiscal year). The housing crisis gets worse every single year, and nothing that the GN or feds are doing is even coming close to solving the problem.

  8. Posted by Frankly on

    Won’t happen. Gn is broke. Billions of dollars just a story on paper. Gn cannot take care of its own people. The orgs mentioned are all in it for the money and won’t spend a cent on any initiative to help its own beneficiaries. Big fat period ⚫️

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    • Posted by Franky on

      2.5 Billion bucks and broke ?

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