A call by a broad coalition of labour and community groups for Ottawa to reinvest the growing surplus in the social programs and public services that bore the brunt of deficit reduction was echoed in an "alternative federal budget" released earlier this month.

Following hard on the heels of special interest groups pressing for massive tax cuts, the goal of the alternative budget this year is "to show that the government can and should repair the damage that's been done to the programs and services that benefit all Canadians," said Paul Leduc Browne, co-chair of the alternative budget and a senior research fellow with the Canadian Centre for Policy Alternatives.

"In every case, the business lobby's proposed tax cuts -- reducing or eliminating the tax on capital gains, raising the RRSP contribution limit, eliminating the high income surtax, and lowering top marginal tax rates -- would disproportionately benefit only those with the highest incomes," he added.

"Our response is that we need to deal with first things first and reinvest in our communities. Our budget helps everyone while remaining fiscally responsible."

The alternative federal budget suggests Ottawa's books can remain balanced while at the same time the government could meet the most pressing needs of children and families, including housing, income support, child care, and access to post-secondary education.

Key measures proposed include: an enriched Child Tax Benefit to combat child poverty; an additional package of anti-poverty measures designed to reduce the poverty rate from 17.5% to 9% within five years; a reinvestment of the $6 billion unemployment insurance surplus into enriched benefits for the unemployed and for parental leave; a national housing program to combat homelessness and provide decent and affordable housing to all Canadians; a national child care and early development program; and a national home care and prescription drug program.

The alternative federal budget also aims to increase the accessibility and quality of university and college education by establishing a federal post-secondary education fund. In the first year, the fund would be set at $3.1 billion -- an increase of about $1.5 billion over current levels -- and would grow with the economy. An additional $400 million would be allocated in the first year to help universities and colleges to make repairs to their deteriorating infrastructure.

"Deep cuts in federal payments have resulted in soaring tuition fees, a decline in college and university faculty members, a reduction in research capacity, and reduced spending on infrastructures such as libraries and laboratories," Browne noted. "We show that the federal government has a role to play in guaranteeing all Canadians have access to a high quality post-secondary education system."

To achieve this, the alternative budget proposes that a National Post-Secondary Education Act be established. Like the Canada Health Act, the PSE Act would ensure that Ottawa and the provinces (with the right for Quebec to opt out) provide post-secondary education according to a set of common principles. A national advisory council on higher education and research, with representation from all stakeholders, would be established to ensure that community needs are met by the post-secondary education system.

The alternative budget also notes that Canada is one of only three industrialized nations without a national system of grants for post-secondary education students.

"The present formula of student loans, interest relief, and income tax credits has generated huge debt loads, rising from about $9,000 in 1990 to $28,000 in 2000," Browne said.

"The alternative budget would create a national system of student grants based solely on need."