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Originally Posted by someone123
I'm also not sure about your assertion that the province cannot pay. My understanding is that capital expenditures often are not included in the deficit; the debt can go up while the books are "balanced". This may or may not be desirable but I don't believe that the province can be counted out at this early stage.
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You have to pay back the loan, which increases the amount of budget going to cost of borrowing, which is a real issue in this province.
So for example the HRM has a policy of paying down debt, I think it is $3 million a year, so mostly except the two years of stimulus spending, the debt goes down. This is why it is safe to say HRM only has $145 million a year for capital projects, give or take a few million. You can see the five year budget forecast.
The province is trying to stop the increase in debt servicing costs, so ultimately there is a limited amount you can borrow and afford to borrow. We already owe $12.5 billion... we are one of the highest debt per capita jurisdictions in North America. That said, the province has a lot of money to spend on capital projects so they could move some around....
I recognize and respect that folks here are talking apples, oranges and bananas here. Some folks want the full on CFL stadium, the province has no money for that. Bananas.
Most folks here want that modest $60 million or so, lets call that oranges, the province says it has no money for that, but I bet they do. The lower the price, the better chance you can get Darryl to pay a part, as it would be more of a rec thing than a pro-sports thing. The lower the price, the closer it gets to the basic apple model, the easier it will be for him to back down from today's statement. EDIT just read your last post, and I agree - I am surprised that Dexter made that statement at all, knowing the feds cannot and will not fund a pro-sports stadium. A 20-30-40 million stadium is still money, but its not stupid crazy money. I'm kind of surprised.
But because some folks are still talking about the full banana, it is relevant to post articles like that one in the Nation, and I am not implying that you want to build that size stadium.