Saskatchewan again has a balanced budget in 2014 as Finance Minister Ken Krawetz delivered the province's budget Wednesday.
There are few surprises or goodies associated with the budget.
The 2014 budget pledges to control spending, reducing expenditures by $28 million and the budget does not feature any new tax increases. Despite musings earlier this year about potential changes to the Education Property Tax, that mill rate remains unchanged.
"This budget will keep Saskatchewan on a path of steady growth," said Krawetz in a news conference held prior to his address in the legislature.
"It contains no tax increases, it controls spending, while still making important investments in infrastructure and important investments in people."
A budget surplus of $71 million is forecast. Revenue is essentially flat at $14.07 billion, down by 0.7 per cent from last year. Expenses are estimated at $14.0 billion, down 0.2 per cent.
Krawetz told reporters net income from the Crown and insurance sectors is down $200 million, but tax revenue is up due to growth in individual income tax. Income from non-renewable resources is up slightly, with oil increases offsetting potash decreases.
The budget presentation this year marked a significant change from years past. The government has changed to solely a summary budget presentation, in response to feedback from the provincial auditor and the public.
Krawetz said it means it includes all government entities, including ministries and Treasury Board organizations such as school boards, regional health authorities and SIAST, as well as commercial crowns and insurance organizations such as the Workers Compensation Board and Auto Fund. A new document, the Core Operational Plan for government ministries, is included in the budget.
Amendments will be introduced to the Growth and Financial Security Act to reflect the changes, likely in the fall session.
Krawetz said the government had a choice to make: whether to balance the budget by increasing taxes, or by controlling spending.
"Our preference will always be to balance the budget by controlling spending," said Krawetz.
A focus of attention across the province has been infrastructure funding. The 2014 budget proposes $2.9 billion on infrastructure projects across the province. Those include such things as highways and hospitals, power generation facilities and schools.
One of the infrastructure initiatives mentioned in the budget of direct significance to the Northwest region is a new Saskatchewan Hospital. More funding has been confirmed for 2014.
The budget document states the "Saskatchewan Hospital North Battleford and integrated corrections facility, also continues to move forward. The 2014-15 budget includes $2.5 million in early stage funding for this much-needed project, including due diligence regarding the use of a P3 procurement model."
As for other projects in the budget document, Saskatchewan's commercial Crown corporations including SaskPower, SaskTel and SaskEnergy are projected to spend $2.0 billion on capital projects in 2014-15, up $100 million or 5.3 per cent from last year. In addition to Crown capital investments, $886.9 million is to be spent on a range of government infrastructure projects this year, an increase of $39.4 million or 4.7 per cent.
A total of $664.5 million is set aside towards building, maintaining and operating Saskatchewan's highways and transportation system. The government says it is on track to meet a commitment to spend $2.2 billion on transportation infrastructure over four years.
Funding includes $405.2 million to provide provincial highway and transportation infrastructure upgrades, including twinning Highway 16 from Saskatoon to Clavet, pre-construction work on twinning projects on Highways 6, 7 and 39, and pre-construction work for passing lanes on Highway 7 from Delisle to Rosetown.
The government has also committed to the Regina Bypass P3 Project and work on the west portion of the bypass continues this year, as well as funding a new commuter bridge in the north industrial area of Saskatoon with funding expected to flow in 2015-16 for that latter project.
In hospital infrastructure, $16.0 million has been earmarked to complete the new hospital in Moose Jaw, while $2.0 million goes towards planning the renewal of Victoria Hospital in Prince Albert;
In education, $4.1 million is earmarked for planning four new major school projects including replacing the Connaught and Sacred Heart schools in Regina as well as major renovation projects for St. Brieux School and Sacred Heart in Moose Jaw;
A total of $32.6 million is transferred for post-secondary capital initiatives, an increase of $7.1 million or 28 per cent over last year.
Other highlights spelled out in the 2014 budget document include:
$5.0 billion through the Ministry of Health - a 3.0 per cent increase compared to last year - towards delivery of high quality health care services;
Regional health authorities are to receive $3.25 billion, up 3.4 per cent from a year ago, for operating funding and targeted initiatives;
$60.5 million goes to the surgical waitlist initiative, aiming to meet a three-month waitlist target for all regional health authorities by the end of 2014-15;
$13.15 million goes to operation of five collaborative emergency centres as well as to enhance primary health care sites; up $3.4 million;
$3.7 million for ongoing enhancements to the Seniors' Care Urgent Action Fund to address issues in long-term care facilities;
$800,000 to develop a new Seniors' House Calls program;
$956.5 million to be spent through social services - up $65.8 million;
$1.76 billion to be spent through education, up $52.4 million;
School operating funding to school divisions is $1.82 billion, up 2.4 per cent, made up of $1.17 billion from the Ministry of Education and $646.7 million from Education Property Tax;
$668.9 million is earmarked for post-secondary institution operating grants and targeted funding, up $16.8 million;
Increases of $2.1 million for 700 new adult basic education spaces, and $1 million for 300 new apprenticeship training seats;
$189.2 million - up $4.4 million or 2.4 per cent - for initiatives directly benefiting First Nation and Métis people, including $6.0 million to double funding for initiatives related to the Joint Task Force on First Nation and Métis Education and Employment;
$394.6 million of direct provincial support to municipalities, an increase of $32.8 million, or 9.1 per cent, from last year and an increase of $152.7 million or 63.1 per cent from the 2007-08 budget.
A total of $257 million is being allocated to municipal revenue sharing based on the formula of one point of the Provincial Sales Tax. The allocation represents a decrease of 2.8 per cent from the last budget, due to a change in the accounting standard for PST revenue reporting.
The government will also maintain current provincial tax provisions for credit unions, including the special income tax reduction and the exemption from paying the provincial capital tax.
