We have a new Saskatchewan Premier this week, but we also have the same old financial problems.
Brad Wall’s successor will have the final say in addressing these matters, but with all the animosity emerging out of this leadership — not to mention differences of opinion on a lot of the key questions — getting policy consensus may be rather difficult.
The wisest move for the new premier would be to adopt the best ideas emerging out of the leadership.
But it may also likely require going beyond what was discussed in the leadership debate.
However, let’s begin by exploring the biggest financial challenges and what the leadership candidates had to say about them.
Arguably, the most immediate issue will be whether to carry on the plan to have a balanced budget in 2020 or seen the plan extended to 2021 or beyond.
It is this issue that will determine spending for so many other critical issues in.
When asked how they would address the issue, both Alanna Koch and Tina Beaudry-Mellor said they would extend. Beaudry-Mellor argued a $140 million was needed to reinstated the provincial sales tax exemption on insurance.
However, Ken Cheveldayoff (who signed the Canadian Taxpayer Federation’s Protection Pledge committing to a balanced budget in 2019-20) along with Gord Wyant and Scott Moe. (Moe also vowed to reinstate the PST insurance exemption.)
It will be difficult to find compromise for that next provincial budget that should be unveiled in next couple months.
But unless the new premier is able to do so, the long-term issue of deal with the $20.9 billion public that will increase to $24.6 by 2021 cannot be properly addressed.
On the matter of the debt Beaudry-Mellor noted Saskatchewan’s “lowest debt-to-GDP ratio in the country.” That said, she Wyant, Moe, Cheveldayoff and Koch all agree a balanced budget must be a priority.
Koch advocated “efficiencies within government such shared services models and back office consolidation” as a means of lowering public debt.
Similarly, all candidates favoured a heritage/sovereign wealth fund for any future natural resource windfalls, but all agreed balanced budgets and debt paydown had to come first.
Asked specifically about proposed. 3.5-per-cent rollback of public sector wages and remuneration to get the government’s books in order, all stepped back from Wall budget position of any specific target number.
That said, there was consensus that keeping public sector wages in check — something that didn’t always happen in the Wall government years that saw registered nurses receive a 36-plus-per-cent increase in one four-year contract.
What is clear is none of the candidates really seen Crown corporation selloffs — either in whole or part — as a wise strategy to balance budgets or reduce debt.
While the Wall government did occasionally toy with the notion, this would be a continuation of the on-going Sask. Party government position of Saskatchewan keeping its Crowns.
It doesn’t seem that any of the candidates see reducing the current 61 seat legislative assembly as part of the solution. Most skirted around that issue, saying it was a matter for the next Electoral Boundaries Commission the new Premier will have to appoint.
Similarly, there is no thought of rural municipal amalgamation — similar to what we’ve seen with health and school boards — to reduce government costs.
In fact, cuts to any government service or tax benefits were generally avoided in the five months of leadership debating.
The leadership hopefuls were divided on whether to maintain public ownership of the Global Transportation Hub.
However, there was little admission of how capital expenditures like the $1.9-billion Regina by-pass has added to the province’s financial burden.
So successfully addressing the tough financial questions may require the new Premier to go well beyond what was said in the leadership race.
Murray Mandryk has been covering provincial politics for over 22 years.
