| |                                        
| | ---------------------------------------
| | 2004-2005Saskatchewan
Provincial Budget

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|                                              |                                
|--------------------------------------------- | -------------------------------
|The Hon.Harry Van MulligenMinister of Finance | Supplementary EstimatesNovember

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|General Revenue Fund
Supplementary Estimates              
|----------------------------------------------------------
|
|Introduction                                              
|Statement of Operations and Accumulated Deficit           
|Statement of Change in Net Debt                           
|Fiscal Stabilization Fund                                 
|Schedule of Budgetary Appropriation                       
|Schedule of Capital Appropriation                         
|Schedule of Appropriation by Classification               
|Schedule of Lending and Investing Activities              
|Debt Redemption                                           
|Budgetary Appropriation - Executive Branch of Government  
|Agriculture, Food and Rural Revitalization                
|Corrections and Public Safety                             
|Culture, Youth and Recreation                             
|Health                                                    
|Highways and Transportation Capital                       
|Industry and Resources                                    
|Information Technology Office                             
|Justice                                                   
|Learning                                                  
|Northern Affairs                                          
|Saskatchewan Property Management Corporation              
|Budgetary Appropriation - Legislative Branch of Government
|Legislative Assembly                                      
|Amortization                                              

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# Introduction

Supplementary Estimates are estimates
of additional spending from the General Revenue Fund (GRF) that were not included in the
Estimates presented with the Governments Budget. The main purpose of Supplementary
Estimates is to obtain the Legislatures approval to spend additional money. Once the
Legislature has reviewed and approved (voted) the additional spending, it will pass an
Appropriation Act to provide that money.

Supplementary Estimates are prepared
in accordance with section 12 of The Financial Administration Act, 1993 which
requires that it include:

- Expenses to be voted on by the Legislature;
- Expenses that do
not require voting by the Legislature (statutory);
- Loans, advances and investments to be
voted on by the Legislature: and,
- Loans, advances and investments that do not require
voting by the Legislature (statutory).

Voted and statutory expenses
(including capital spending) are referred to as Budgetary appropriations.

Additional to be voted
appropriations are presented in Supplementary Estimates by Vote (department), by subvote
(major program area) and by allocation where the monies are required. The
departments mandate and subvote description provided in the Estimates apply to the
Supplementary Estimates. Subvote descriptions for new subvotes are incorporated into the
explanation for the purpose of additional monies required.

Reductions in statutory spending and
reduction in utilization of voted appropriations (lapsing) are reflected on a Vote basis
in the Schedule of Budgetary Appropriations.

Financial plans for the GRF Budget
and Mid-Year Report reflect total expenses on an accrual basis of accounting. Expenses may
differ from appropriations to be provided from the GRF particularly for spending on
tangible capital assets such as land, highways, buildings and equipment. Spending on these
assets must be appropriated when the asset is acquired. The impact of that spending on the
GRFs surplus (expensing of the asset) is recognized over the expected useful life of
the asset.

The Financial Administration Act,
1993 requires that any monies appropriated by special warrant be included in the next
Appropriation Act that is not for interim supply. Therefore, monies provided by special
warrant are included in the Supplementary Estimates. Specific notes and explanations are
included on money that has been provided by special warrant.

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4

Statement of Operations and Accumulated Deficit

(in thousands of dollars)

|                                        | Original
Estimated
2004-05 | Revised
Estimated
2004-05 | Change
2004-05
|--------------------------------------- | -------------------------- | ------------------------- | --------------
|Revenue                                 |                            |                           |               
|Operating Expense                       |                            |                           |               
|Operating Surplus                       |                            |                           |               
|Debt Servicing                          |                            |                           |               
|Transfer from Fiscal Stabilization Fund |                            |                           |               
|Surplus for the Year                    |                            |                           |               
|Accumulated Deficit, Beginning of Year3 |                            |                           |               
|Accumulated Deficit, End of Year        |                            |                           |               

|1 | This
amount includes an additional $13M provided to the Department of Health by Further
Estimates prior to the passage of the main Appropriation Act.                                                                                                                                   
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2 | This
amount is adjusted by $13M to offset the increase provided to the Department of Health.                                                                                                                                                                                            
|3 | Starting
in 2004-05, the General Revenue Fund has adopted accrual accounting for capital assets.
 The accumulated deficit is reflected on that basis.                                                                                                                                   
|4 | This amount
is due to a $46.1M adjustment to recognize a change in accounting treatment for transfers
under the Net Income Stabilization Account, the variance between the 2003-04 forecast and
actual surplus (on a full accrual basis) and changes in the valuation of capital assets.

Statement of Change in Net Debt

(in thousands of dollars)

|                                                         | Original
Estimated | Revised
Estimated | Change
|-------------------------------------------------------- | ------------------ | ----------------- | ------
|Annual Surplus                                           |                    |                   |       
|Acquisition of Capital Assets                            |                    |                   |       
|Amortization of Capital Assets                           |                    |                   |       
|(Increase) Decrease in Net Debt from Operations          |                    |                   |       
|Capital Assets transferred from Government Organizations |                    |                   |       
|Net Debt at Beginning of Year                            |                    |                   |       
|Net Debt at End of Year                                  |                    |                   |       

|1 | This
amount is due to a $46.1M adjustment to recognize a change in accounting treatment for
transfers under the Net Income Stabilization Account and the variance between the 2003-04
forecast and actual change in net debt.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Fiscal Stabilization Fund

(in thousands of dollars)

|                                             | Original
Estimated | Revised
Estimated | Change
|-------------------------------------------- | ------------------ | ----------------- | ------
|Fiscal Stabilization Fund, Beginning of Year |                    |                   |       
|Transfer from (to) General Revenue Fund2     |                    |                   |       
|Fiscal Stabilization Fund, End of Year       |                    |                   |       

|1 | This
amount represents the difference between the 2003-04 forecast and actual transfer to the
Fiscal Stabilization Fund.
|- | ------------------------------------------------------------------------------------------------------------------------
|2 | The transfer from the General Revenue Fund to the Fiscal
Stabilization Fund is a statutory appropriation.               

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5

Schedule of Budgetary Appropriation

(in thousands of dollars)

|                                                 | Original
Estimated2004-05 | Supplementary
Estimated2004-05 | Estimated
Reductions2004-05 | Revised
Estimated2004-05
|------------------------------------------------ | ------------------------- | ------------------------------ | --------------------------- | ------------------------
|Executive Branch of Government                   |                           |                                |                             |                         
|Agriculture, Food and Rural Revitalization       |                           |                                |                             | 264,809                 
|Community Resources and Employment               |                           |                                |                             | 602,254                 
|Corrections and Public Safety                    |                           |                                |                             | 118,827                 
|Culture, Youth and Recreation                    |                           |                                |                             | 42,141                  
|Environment                                      |                           |                                |                             | 162,380                 
|Executive Council                                |                           |                                |                             | 7,371                   
|Finance                                          |                           |                                |                             | 40,011                  
|- Public Service Pensions and Benefits           |                           |                                |                             | 204,263                 
|- Servicing Government Debt                      |                           |                                |                             | 614,000                 
|Government Relations and Aboriginal Affairs1     |                           |                                |                             | 195,105                 
|Health                                           |                           |                                |                             | 2,700,095               
|Highways and Transportation                      |                           |                                |                             | 169,182                 
|Highways and Transportation Capital              |                           |                                |                             | 125,565                 
|Industry and Resources                           |                           |                                |                             | 56,551                  
|Information Technology Office                    |                           |                                |                             | 2,609                   
|Justice                                          |                           |                                |                             | 199,823                 
|Labour                                           |                           |                                |                             | 14,187                  
|Learning                                         |                           |                                |                             | 1,099,282               
|- Teachers' Pensions and Benefits                |                           |                                |                             | 119,123                 
|Northern Affairs                                 |                           |                                |                             | 5,225                   
|Public Service Commission                        |                           |                                |                             | 8,210                   
|Saskatchewan Property Management Corporation     |                           |                                |                             | 16,808                  
|Saskatchewan Research Council                    |                           |                                |                             | 7,779                   
|Legislative Branch of Government                 |                           |                                |                             |                         
|Chief Electoral Officer                          |                           |                                |                             | 761                     
|Conflict of Interest Commissioner                |                           |                                |                             | 122                     
|Information and Privacy Commissioner             |                           |                                |                             | 387                     
|Legislative Assembly                             |                           |                                |                             | 18,695                  
|Ombudsman and Children's Advocate                |                           |                                |                             | 2,731                   
|Provincial Auditor                               |                           |                                |                             | 5,755                   
|Budgetary Appropriation                          |                           |                                |                             | 6,804,051               
|"To be Voted" Appropriation                      |                           |                                |                             | 5,953,610               
|"Statutory" Appropriation                        |                           |                                |                             | 850,441                 
|Appropriation to Expense - Reconciliation        |                           |                               
|Budgetary Appropriation                          |                           |                                |                             | 6,804,051               
|Amounts appropriated for previous year's expense |                           |                                |                             | - - -                   
|Acquisition of Capital Assets                    |                           |                                |                             | (146,781                
|Amortization of Capital Assets                   |                           |                                |                             | 104,263                 
|Budgetary Expense                                |                           |                                |                             | 6,761,533               

|1 | Effective
October 1, 2004 the department was restructured under The Government Organization Act and
renamed Government Relations.  A portion of the department    was transferred to the new
Department of First Nations and Metis Relations.  For the remainder of the 2004-05 fiscal
year, funding for both departments will remain under the original department
structure.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2 | This amount includes
$13M provided by Further Estimates prior to passage of the 2004-05 main Appropriation Act.                                                                                                                                                                                                                                                               
|3 | This amount includes a $76.4M
special warrant for Education Infrastructure Financing Corporation loans that were written-off in
2003-04.  The loans were originally provided to finance learning facilities capital asset
acquisitions.                                                                                                                                       
|4 | Reductions include lower
than originally estimated "statutory" spending and "to be voted" appropriations that are
expected to lapse at fiscal year-end.                                                                                                                                                                                                                       
|5 | This amount includes appropriations
for capital asset acquisitions provided by Supplementary Estimates and net transfers between capital
and non-capital budgetary appropriations.                                                                                                                                                                                            

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6

Schedule of Capital Appropriation

(in thousands of dollars)

|Capital Asset Acquisitions                             | OriginalEstimated2004-05 | SupplementaryEstimated2004-05 | TransfersFrom (to)Non-CapitalAppropriations2004-05 | RevisedEstimated2004-05
|------------------------------------------------------ | ------------------------ | ----------------------------- | -------------------------------------------------- | -----------------------
|Agriculture, Food and Rural Revitalization             |                          |                               |                                                    | 570                    
|Community Resources and Employment                     |                          |                               |                                                    | 1,155                  
|Corrections and Public Safety                          |                          |                               |                                                    | 80                     
|Environment                                            |                          |                               |                                                    | 2,960                  
|Executive Council                                      |                          |                               |                                                    | 25                     
|Finance                                                |                          |                               |                                                    | 3,442                  
|Health                                                 |                          |                               |                                                    | 275                    
|Highways and Transportation                            |                          |                               |                                                    | 6,850                  
|Highways and Transportation Capital                    |                          |                               |                                                    | 125,565                
|Industry and Resources                                 |                          |                               |                                                    | 50                     
|Justice                                                |                          |                               |                                                    | 250                    
|Labour                                                 |                          |                               |                                                    | 20                     
|Learning                                               |                          |                               |                                                    | 5,519                  
|Legislative Assembly                                   |                          |                               |                                                    | 20                     
|Capital Asset Acquisitions                             |                          |                               |                                                    | 146,781                
|                                                       |                          |                              
|Capital Transfer Payments                              |                          |                              
|Environment                                            |                          |                              
|Saskatchewan Watershed Authority                       |                          |                               |                                                    | 3,222                  
|Government Relations and Aboriginal Affairs            |                          |                              
|Transit Vehicles for the Disabled                      |                          |                               |                                                    | 275                    
|Rural Revenue Sharing - Roads and Other Infrastructure |                          |                               |                                                    | 3,250                  
|Canada-Saskatchewan Infrastructure Program             |                          |                               |                                                    | 22,658                 
|Government House Redevelopment                         |                          |                               |                                                    | 1,250                  
|Municipal Infrastructure                               |                          |                               |                                                    | 4,600                  
|Health                                                 |                          |                              
|Health Facilities                                      |                          |                               |                                                    | 22,085                 
|Medical Equipment                                      |                          |                               |                                                    | 18,000                 
|Highways and Transportation                            |                          |                              
|Highways Facilities                                    |                          |                               |                                                    | 800                    
|Learning                                               |                          |                              
|K-12 Facilities                                        |                          |                               |                                                    | 26,030                 
|Post-Secondary Facilities                              |                          |                               |                                                    | 22,960                 
|Saskatchewan Property Management Corporation           |                          |                              
|Government Buildings and Facilities                    |                          |                               |                                                    | 14,400                 
|Capital Transfer Payments                              |                          |                               |                                                    | 139,530                
|                                                       |                          |                              
|Capital Appropriation                                  |                          |                               |                                                    | 286,311                

|1 | These
amounts were provided by special warrant for Education Infrastructure Financing
Corporation loans that were written-off in 2003-04.  The loans were originally
provided to finance learning facilities capital asset acquisitions.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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7

Schedule of Appropriation by Classification

(in thousands of dollars)

|                                             | Government Delivered Programs | Transfers | 
|-------------------------------------------- | ----------------------------- | --------- | 
|
|
|Executive Branch of Government               |                               |           | 
|Agriculture, Food and Rural Revitalization   |                               |           | 
|Corrections and Public Safety                |                               |           | 
|Culture, Youth and Recreation                |                               |           | 
|Health                                       |                               |           | 
|Highways and Transportation Capital          |                               |           | 
|Industry and Resources                       |                               |           | 
|Information Technology Office                |                               |           | 
|Justice                                      |                               |           | 
|Learning                                     |                               |           | 
|Northern Affairs                             |                               |           | 
|Saskatchewan Property Management Corporation |                               | - - -     | 
|                                             |                               |          
|Legislative Branch of Government            
|Legislative Assembly                         |                               |           | 
|                                             |                               |           | 

|1 | This
amount was provided by special warrant for Education Infrastructure Financing Corporation
loans that were written-off in 2003-04.  The loans were originally provided to finance
learning facilities capital asset acquisitions.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Schedule of Lending and Investing Activities

(in thousands of dollars)

|Disbursements                                                        | OriginalEstimated2004-05 | RevisedEstimated2004-05 | Change2004-05
|-------------------------------------------------------------------- | ------------------------ | ----------------------- | -------------
|Crown Corporations - Loans                                           |                          |                         |              
|Vote                                                                 |                          |                        
|165  Crown Investments Corporation of Saskatchewan                   |                          |                         |              
|170  Education Infrastructure Financing Corporation                  |                          |                         |              
|151  Municipal Financing Corporation of Saskatchewan                 |                          |                         |              
|161  Saskatchewan Crop Insurance Corporation                         |                          |                         |              
|152  Saskatchewan Power Corporation                                  |                          |                         |              
|153  Saskatchewan Telecommunications Holding Corporation             |                          |                         |              
|140  Saskatchewan Water Corporation                                  |                          |                         |              
|150  SaskEnergy Incorporated                                         |                          |                         |              
|Crown Corporations - Loans (Statutory)                               |                          |                         |              
|Other - Loans                                                        |                          |                        
|145  Highways and Transportation                                     |                          |                         |              
|171  Industry and Resources                                          |                          |                         |              
|169  Learning                                                        |                          |                         |              
|163  Northern Affairs                                                |                          |                         |              
|Other - Loans (To Be Voted)                                          |                          |                         |              
|Loans                                                                |                          |                         |              
|Investments                                                          |                          |                        
|176  Contributions to Sinking Funds (Statutory)                      |                          |                         |              
|146  Agriculture, Food and Rural Revitalization - Land (To Be Voted) |                          |                         |              
|Investments                                                          |                          |                         |              
|Disbursements                                                        |                          |                         |              

Debt Redemption

(in thousands of dollars)

|                                        | OriginalEstimated2004-05 | RevisedEstimated2004-05 | Change2004-05
|--------------------------------------- | ------------------------ | ----------------------- | -------------
|Debt Redemption                         |                          |                         |              
|Vote                                    |                          |                        
|175  Crown Enterprise Share (Statutory) |                          |                         |              
|175  Government Share (Statutory)       |                          |                         |              
|                                        |                          |                         |              

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10

General Revenue FundSupplementary Estimates

For the Fiscal Year Ending March 31, 2005(in thousands of dollars)

|                                                    | VotedSupplementaryEstimates
2004-05
|--------------------------------------------------- | -----------------------------------
|Budgetary Appropriation                             |                                    
|Executive Branch of Government                      |                                    
|Agriculture, Food and Rural Revitalization - Vote 1 |                                    
|Farm Stability and Adaptation (AG08)                |                                    
|Bovine Spongiform Encephalopathy Recovery Program   |                                    
|Financial Programs (AG09)                           |                                    
|Financial Programs Management                       |                                    
|                                                    |                                    

| | Additional funding
is required to provide for payments under Bovine Spongiform Encephalopathy programs.
| | -------------------------------------------------------------------------------------------------------

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|                                        | 
|--------------------------------------- | 
|Corrections and Public Safety - Vote 73 | 
|Administration (CP01)                   | 
|Administration                          | 
|Adult Corrections (CP04)                | 
|Adult Corrections Facilities            | 
|                                        | 

| | Additional funding
is required to provide for increased costs in Administration and for costs in Adult
Corrections due to incidents requiring increased security and use of contingency bed
space in correctional facilities.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Supplementary Estimates

Continued(in thousands of dollars)

|                                        |  | VotedSupplementaryEstimates
2004-05
|--------------------------------------- |  | -----------------------------------
|Culture, Youth and Recreation - Vote 27 |  |                                    
|Culture (CR03)                          |  |                                    
|Centennial Operations Support           |  |                                    
|Centennial Initiatives                  |  |                                    
|Recreation (CR09)                       |  |                                    
|Recreation Operations Support           |  |                                    
|Heritage (CR07)                         |  |                                    
|Heritage Operations Support             |  |                                    
|                                        |  |                                    

| | Additional funding
is required to support activities to celebrate Saskatchewan's Centennial in 2005 and to
provide increased operational support, primarily directed at the federally-funded
initiative to preserve and promote Canada's historic places.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                                       |  | 
|------------------------------------------------------ |  | 
|Health - Vote 32                                       |  | 
|Provincial Health Services (HE04)                      |  | 
|Provincial Targeted Programs and Services              |  | 
|Health Quality Council                                 |  | 
|Immunizations                                          |  | 
|Saskatchewan Health Information Network                |  | 
|Medical Services and Medical Education Programs (HE06) |  | 
|Medical Services - Fee-for-Service                     |  | 
|Medical Services - Non-Fee-for-Service                 |  | 
|Regional Health Services (HE03)                        |  | 
|Equipment - Capital Transfers                          |  | 
|Regional Targeted Programs and Services                |  | 
|                                                       |  | 

| | Additional funding
is required to provide for expansion of childhood immunization programs, health sector
employee extended health benefit program and investment of new federal funding, arising
from the First Ministers' meeting in September 2004, in health system wait list
management, equipment, infrastructure, health provider retention, and system improvement.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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12

Supplementary Estimates

Continued(in thousands of dollars)

|                                              | VotedSupplementary
Estimates2004-05
|--------------------------------------------- | -----------------------------------
|Highways and Transportation Capital - Vote 17 |                                    
|Airport Capital (HC03)                        |                                    
|Airport Capital                               |                                    
|                                              |                                    

| | Additional funding
is required to provide for the Stony Rapids Provincial airport rehabilitation and
upgrading capital project fully funded under the federal Airport Capital Assistance
Program.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                      | 
|------------------------------------- | 
|Industry and Resources - Vote 23      | 
|Investment Programs (IR07)            | 
|Northern Uranium Mines Rehabilitation | 
|                                      | 

| | An appropriation
is required to provide for the Province's expected share of multi-year costs associated
with the clean-up of former uranium mine sites in northern Saskatchewan.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                                         | 
|-------------------------------------------------------- | 
|Information Technology Office - Vote 74                  | 
|Information Management and Technology Initiatives (IT03) | 
|Information Technology Initiatives                       | 
|                                                         | 

| | Additional funding
is required to accelerate consolidation of information technology (IT) services across
executive government in order to use IT resources more efficiently, support IT
information security and privacy, and for increased support for on-line access to
government programs.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                              |  | 
|----------------------------- |  | 
|Justice - Vote 3              |  | 
|Legal Services (JU04)         |  | 
|Civil Law                     |  | 
|Public Prosecutions           |  | 
|Boards and Commissions (JU08) |  | 
|Inquiries                     |  | 
|                              |  | 

| | Additional funding
is required to provide for costs related to civil actions and completion of the Neil
Stonechild inquiry.
| | ---------------------------------------------------------------------------------------------------------------------------

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13

Supplementary Estimates

Continued(in thousands of dollars)

|                                     | VotedSupplementary
Estimates2004-05
|------------------------------------ | -----------------------------------
|Learning - Vote 5                    |                                    
|Post-Secondary Education (LR11)      |                                    
|Post-Secondary Capital Transfers     |                                    
|K-12 Education (LR03)                |                                    
|School Capital Transfers             |                                    
|Education Property Tax Relief (LR09) |                                    
|Education Property Tax Relief        |                                    
|                                     |                                    

| | An appropriation
was provided by special warrant for Education Infrastructure Financing Corporation loans
that were written-off in 2003-04.  The loans were originally provided to finance learning
facilities capital asset acquisitions.  In addition, funding is required to provide for
the first year of the government's two-year commitment for education property tax relief.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                         | 
|---------------------------------------- | 
|Northern Affairs - Vote 75               | 
|Administration (NA01)                    | 
|Administration                           | 
|Resource and Economic Development (NA04) | 
|Resource and Policy Development          | 
|                                         | 

| | Additional funding
is required to provide for Northern Uranium Mine Rehabilitation program coordination and
administration, Environmental Quality Committee program delivery and incremental economic
development funding.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                                       | 
|------------------------------------------------------ | 
|Saskatchewan Property Management Corporation - Vote 53 | 
|Asset Renewal (SP02)                                   | 
|Asset Renewal                                          | 
|                                                       | 

| | Additional funding
is required to provide for 2005 Canada Summer Games site preparation in Wascana Park.
| | --------------------------------------------------------------------------------------------------------

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14

Supplementary Estimates

Continued(in thousands of dollars)

|                                 | VotedSupplementary
Estimates2004-05
|-------------------------------- | -----------------------------------
|Legislative Branch of Government |                                    
|Legislative Assembly - Vote 21   |                                    
|Administration (LG01)            |                                    
|General Administration           |                                    
|                                 |                                    

| | Additional funding
is required to provide for replacement of the audio system and access to computer use in
the Legislative Chamber and for sound improvement to the Visitor Gallery.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                            | 
|------------------------------------------- | 
|Total Budgetary Appropriation - To Be Voted | 

Amortization

Capital assets and inventory require an
appropriation in the fiscal year they are acquired.  These assets are not expensed upon acquisition.
Under accrual accounting, capital assets are charged as an expense over their useful service life as they
are consumed.  The consumption of capital assets is referred to as amortization and does not require an
appropriation.  Usage of inventory is classified as an operating expense, however, for Estimate purposes
the changes in valuation of year-end inventory that does not require an appropriation is shown as an
amortization expense.

|                                                                                              | 
|--------------------------------------------------------------------------------------------- | 
|Amortization of Capital Assets                                                                | 
|Highways and Transportation                                                                   | 
|Legislative Assembly                                                                          | 
|Amortization is a non-voted, non-cash expense and is presented for information purposes only. | 

| | The amortization
expense is increased to reflect the forecasted change in valuation of road maintenance
aggregate (gravel) inventory, changes to highway infrastructure amortization and for
asset amortization associated with capital enhancements in the Legislative Chamber.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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