The Saskatchewan Party revealed the province’s 2015 budget last week, and Yorkton MLA Greg Ottenbreit said the result was one he found particularly gratifying.
“It (the budget) did come out a lot better than expected,” he said, adding “it was a lot of difficult decisions.”
Ottenbreit said he has been through a number of budget processes through the years, and “considering all the challenges” this year’s was the one he feels came out in a more positive fashion than it had looked possible to achieve even a few weeks ago.
Ottenbreit said the budget came out better because even with a $700 million shortfall in oil revenues expected, the Saskatchewan economy is now more diverse than it once was buffering hiccups in a single sector. As an example, he said potash revenue looks stronger in the months ahead.
Ottenbreit said in the process of putting the budget together the government worked on the premise of “striking a balance.”
In achieving the balance a few key factors soon became apparent.
To begin with there was no desire to raise taxes.
“We wanted to keep taxes low and we have still been able to do that,” said Ottenbreit, adding holding down on taxes will help keep “business confidence high.”
Ottenbriet said it was felt keeping money in the hands of residents would mean more spending, and help keep the economy rolling.
Two programs were also soon seen as important to maintain. The first was revenue sharing with municipalities (see Yorkton Mayor Bob Maloney’s reaction related story this page), and the property tax funding that has been in place for a few years blew.
“Working through the process the last couple of months it was a long, arduous process,” offered Ottenbriet.
Locally, Ottenbreit said there was some added good news in the budget, including the previously announced $4.5 million commitment for 2015 capital finding for the Parkland College’s Trades and Technology Centre currently under construction in the city, which he added “wasn’t a surprise” since the build in under way.
Ottenbreit said there is also funding for “180 (new) seats for the college as well.” The new dollars show the confidence the province has in what the local college does across the region.
The Sunrise Health Region will see a 5.1 per cent increase in funding which means an additional $9.4 million over last year (see Sunrise Health Region Board Chair Lawrence Chomos’ reaction in related story this page).
There was also $4.5 million for the Kelvington integrated care facility.
There were a few belt-tightening measure in the budget including lowering the income threshold for the senior’ drug plan.
It will mean 6,000 Saskatchewan seniors will no longer qualify for discounted prescriptions.
People eligible for the drug plan pay a maximum of $20 per prescription for drugs listed on the province’s formulary.
Previously, the province used the federal threshold of $80,255 as the cut-off for the drug plan. Anyone with a taxable income in excess of that amount was not eligible for the program.
Now, the threshold will be lowered to $65,515.
In terms of the overall budget, revenues are expected to be $14.28 billion, up 1.2 per cent from last year’s budget. Taxation accounts for $6.8 billion of revenues, with non-renewable resources - $2.5 billion, other own-source revenue - $1.9 billion, transfers from the federal government - $2.2 billion, and net income from government business enterprises $904.9 million.
Spending is budgeted to be $14.17 billion, up 1.2 per cent from last year’s budget. The expenditures include:
• Agriculture - $721.6 million
• Community development - $531.9 million
• Debt charges - $305.1 million
• Economic development - $305.1 million
• Education - $3.7 billion
• Environment and natural resources - $242.1 million
• Health - $5.5 billion
• Protection of persons and property - $625.7 million
• Social services and assistance - $1.2 billion
• Transportation - $544.1 million
• Other - $568.2 million
The budget is based on a razor-thin projected surplus of $107 million.
