The Saskatchewan government has brought down what it calls a balanced budget that will retain the "Saskatchewan advantage."
There will be no tax increases in the budget handed down Wednesday afternoon in the legislature by Finance Minister Ken Krawetz. There was funding to several areas including to health and infrastructure, as well as increased municipal revenue sharing.
But there were some austerity measures in areas ranging from education to economic development. Regional health authorities, post-secondary institutions and school divisions are being asked to look for savings in their operations.
One area in line for a big chop is Enterprise Saskatchewan. The province says it will no longer fund the program, saving $4 million this year. The Ministry of Northern Affairs is also ending their $800,000 funding.
While restraint was expected in a number of areas, the big news in the budget was the province's decision to get out of funding that program. The finance minister stressed that each enterprise region is an independent organization that can continue to operate with other sources of funding from municipalities and local governments.
"We don't see it as ending it at all," said Krawetz to reporters prior to the budget.
Krawetz pointed to "significant increases in municipal revenue sharing" as funding available to use to keep their local enterprise regions going.
"Decisions on local economic development should happen at the local level," said Krawetz.
"Last year revenue sharing was enhanced to municipalities by 29.5 per cent, and this year it is going to be enhanced by another 9.5 per cent. We are now at record levels of revenue sharing."
Krawetz said he believed municipalities had the resources to "make their own prudent decisions."
As well, the government says it will save $8 million by winding down the Film Employment Tax Credit. And the Seniors' and Children's Drug Plan will rise by $5 per prescription, which will save $10 million, according to the government.
Krawetz told reporters the government intends to live within its means. The government spoke of sustainability in its 2012 budget.
In terms of the projections for 2012, revenue is forecast at $11.29 billion with spending at $11.2 billion, up by 4.7 per cent.
The government says it is posting a pre-transfer surplus of $95 million in the General Revenue Fund and a surplus of $15 million in the Summary Financial Statements, which take into account all government operations including Crown corporations.
The Growth and Financial Security Fund is forecast to finish the year with a balance of $756.4 million, money that can go to unforeseen expenses.
Among the key investments outlined in the budget include $98 million more for regional health authorities for a 3.5 per cent increase; $60.5 million for the Saskatchewan Surgical Initiative, an additional $16.9 million to the Saskatchewan Cancer Agency for chemo and mammograms; $4 million to expand colorectal screening province wide; and $5.5 million more to the Shock Trauma Air Rescue Society helicopter ambulances.
An additional $3.5 million is going to the Senior Personal Care Home benefit and $24.2 million, or a $3.3 million increase, goes to provide Seniors' Income Plan benefit increases of up to $50 per month starting July 2012, an increase of $10 per month in each of the next three years. A total of $113 million, or an additional $17.8 million, goes to an expanded Saskatchewan Assured Income for Disability eligibility.
Impacting on municipalities across the province will be an additional $237.4 million in municipal revenue sharing, an increase of $20.6 million or 9.5 per cent.
The budget also provides $4.6 million to establish the Saskatchewan Advantage Scholarship to provide high school graduates with up to $2,000 toward tuition fees at any Saskatchewan post-secondary institution. There is also a $3 million increase to expand the Active Families Benefit Program to all children and youth under 18, a tax credit of up to $150 per child that is designed to help families with the cost of children's participation in cultural, recreation and sports activities.
The agriculture budget is to go up by $13 million to $430.8 million and is being touted by the government the second largest agriculture budget ever announced.
Nearly three quarters is toward fully funding business risk management programs including AgriStability, AgriInvest and Crop Insurance.
The budget will launch the new education funding distribution model, which the government says will achieve a fairer balance in funding for school divisions.
Government's overall funding to school divisions is $1.74 billion for an increase of 5.0 per cent which includes an increase of $59 million in operating funding. It will include $10 million in transition funding to buffer the impact on school divisions most affected by shifts in funding under the new distribution model. The government says funding increases this year will range from 1.7 to 14.4 per cent.
The budget also addresses rental housing with a new rental housing construction initiative. The government will provide a 10-year rebate of Corporate Income Tax equal to 10 per cent of the expected rental income from new multi-unit residential rental projects. A new Saskatchewan First-Time Homebuyers tax credit of up to $1,100 against Saskatchewan income tax is also introduced.
A total of $788 million in capital expenditures is also being committed in the 2012 budget. It includes $42.7 million to start construction of seven previously announced long term care facilities under a co-ownership model with the health regions; $88.7 million for 21 approved major school projects; and $581.5 million in highways spending.
