Positive reaction to Budget

Finance Minister Kevin Doherty tabled Saskatchewan’s 2016-17 Budget last week, and to no one’s real surprise the province will run a deficit.

The Budget forecasts total revenue of $14.02 billion and total expense of $14.46 billion for a projected deficit of about $434 million in 2016-17. This is largely due to a drop of nearly a billion dollars in non- renewable resource revenue.

However in a release Doherty put a positive spin on the situation, suggesting the Budget will keep Saskatchewan strong by controlling operational spending and investing in people and infrastructure. This year’s Budget contains no tax increases and no new taxes.

“By keeping taxes low, controlling spending and investing in much needed infrastructure projects like highways, schools and hospitals, we will help Saskatchewan’s economy through a difficult year before the economic recovery which is expected next year,” Doherty said in the release.

Saskatchewan’s economy is expected to rebound in 2017, with GDP growth predicted to be 2.5 per cent, following an expected 0.6 per cent decline in 2016.

“Clearly, a $968 million drop in resource revenue is having an effect,” Doherty said. “Our government opted for a manageable deficit in this Budget, rather than cutting funding to priority areas such as health, education, or social services.

“There are years when unforeseen events -- drops in the price of oil or potash, or costly natural disasters -- make it prudent to run a manageable deficit, rather than implement severe cuts to programs and services or increase the tax burden on Saskatchewan people. This is one of those years. However, we are committed to returning the Budget to balance by 2017-18.”

Local reaction to the Budget in spite of program trims and the deficit has been largely accepting of what the Saskatchewan Party did.

“The first impression, it’s tough times right across the province,” offered Don Rae interim chair of the Sunrise Health Region’s Board of Directors.

That is going to reflect back on the Region where there is no new money on the operating side of things.

“It’s going to be a tough budget,” said Rae. “They usually are.

“There are some things we’re going to have to work through … do some belt tightening.”

The Region will see an additional $507,000 for capital.

In terms of funding Yorkton Mayor Bob Maloney said he was happy to see revenue sharing for municipalities maintained in the Budget.

That said Maloney said a tougher Budget was expected, and the province really needs farming to have a good year.

“Depressed oil and depressed potash we really have to hope agriculture does well this year,” he said. “When agriculture brings in a lot of money it doesn’t really help government, but it helps business.”

Juanita Polegi, manager with the Yorkton Chamber of Commerce said based on material from the provincial Chamber, the Budget was a descent one given the overall economy, in particular “the high level of infrastructure spending.

“Nothing is earmarked for Yorkton, but infrastructure is infrastructure and that helps make the province strong,” she said.

Rae said in difficult times everything the government does has to come under review, and the announced Commission into health regions, and an expected reduction of the number currently at 12, is one of those reviews.

“There’s always room to look at everything,” said Rae. “… There very well may be changes of some sort, but nothing drastic I hope.”

That said Rae said there is good reason to keep a local voice in terms of local health.

“Nobody knows our region better than we do. It’s our region,” he said.

Maloney said it is a situation where everyone needs to begin assessing what they really need as opposed to what they want.

“As a community and as a province we have to come to terms with what we can afford,” he said.

With that in mind locally things such a phase two for the college trades and technology centre and a new hospital are likely not in the short to midterm plans.

“A new hospital for Yorkton is probably on the shelf,” he said, adding “it would be a challenge to build a new hospital in the current economic times.”

Although details of the impact of the budget for local school divisions will likely not be clear for some time, the overall situation appears to be one of austerity.

With a budget increase of just one per cent for education and the inflation rate for Saskatchewan sitting somewhere in the neighbourhood of 2.1 per cent something will have to give.

Lisa Rathgeber, chair Christ the Teacher Catholic schools said a positive 1.5 per cent increase on the operations and maintenance budget was offset by a negative result on salaries.

“We only received a 0.5 per cent increase to the 1.9 per cent increase negotiated in the collective agreement with teachers,” she said.

“We will have to do some digging to find that 1.4 per cent.”

The division understands times are tough, however.

“It is what it is,” Rathgeber said. “You have to work at making it work.”

The Opposition was not so charitable.

“Every school division that I’ve talked to, just for fixed costs, just to keep the lights on, to deal with growth within student populations, to deal with just basic inflationary costs — well beyond that one per cent, up to five per cent,” said Carla Beck, the NDP’s education critic.

Nevertheless, Don Morgan, the education minister is asking school divisions to find a way.

“We know that if we had more money, our education partners would use it wisely,” said Education Minister Don Morgan. “But it has been a challenging year, so we’re asking those people to look at and find some efficiencies within this year and I believe that they will be able to.”

On the capital side, the Province committed to finishing ongoing construction projects including the new school in Langenburg.

The government has heavily hinted it will be looking for other ways of finding efficiency including potentially amalgamating school divisions, but that did not materialize for this fiscal year.