If I remember correctly, it's the 2007 budget. In 2006 there was a budget that acknowledged that. Because the Conservatives had just been elected there was not a full year to really prepare their own budget, but that budget in 2006 acknowledged the problems that existed in the federation in terms of the fiscal arrangements.
To a large extent, 2007 fixed the problems, and the deal in 2007 was that social transfers, including health and also other social transfers, would be largely per capita. That would mean that wealthier provinces would gain and less-well-endowed provinces would lose. What accompanied this was that the equalization program was much improved following the recommendations of the committee chaired by Al O'Brien.
This was sort of the deal in 2007, and it was a good deal. It was a deal that said we're not going to use social transfers to do equalization; we're going to use equalization for that. But then that deal lasted a year. In 2008 there was a ceiling that was put on equalization. This brings back the problems that existed when Paul Martin was finance minister; that is to say, that the size of the envelope is not determined by the formula of equalization, but by economic growth. Therefore, if economic disparities between the provinces increase, the program does not respond well.
All this to say that you have to look at social transfers, along with equalization, and they balance each other.