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Krawetz meets the Chamber

It was a familiar scene for provincial finance minister Ken Krawetz in North Battleford.
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Finance Minister Ken Krawetz fielded some tough questions when he spoke at the annual post-budget breakfast hosted by the Battlefords Chamber of Commerce Friday.


It was a familiar scene for provincial finance minister Ken Krawetz in North Battleford.


Once again, he was before a Battlefords Chamber of Commerce breakfast audience touting a balanced budget and no tax increases in his annual post-budget address Tuesday.


And again, local officials in the room reacted as before, with their arms outstretched asking for more provincial funding commitments.


That seems to be the way it is for Krawetz in the Battlefords, as he delivered his annual address before a morning audience of businesspeople and municipal officials at the Balych Mural Meeting Room.


The finance minister made the point that achieving a balanced budget for 2014 was a challenging task.


There was less revenue, Krawetz told the audience, and he revealed there had been a decision during the preliminary budget stage to actually increase some taxes.


He noted they had considered raising the Educational Property Tax and raising the fuel tax. In the end, however, the tax increases did not happen.


"Our philosophy has always been a tax increase is a last resort," said Krawetz. The government instead opted to control spending, with $28 million less in expenditures, Krawetz noted.


He acknowledged some disappointment has been expressed with that stance.


"There are people who said 'we expected more. You should have spent dollars over here, you should have spent dollars over here, you should have done this, you should have done this.' You can't. You can't do everything. But what we tried to do is produce a budget that is balanced."


Krawetz did tout several measures that were part of the 2014 budget, talking extensively about infrastructure and the projects the government was committing funds towards this year.


He talked about funding for new "passing lanes" on busy one-lane highways. These lanes, set up to run for a couple of kilometres, are credited with saving lives and are seen as a less expensive option to twinning the entire highway.


Krawetz also touted an extensive list of government funding commitments in health and education, including hospital projects such as Saskatchewan Hospital and other funding commitments.


But in the question and answer period that followed, local officials aired their demands for even more funding to come their way from the province.


The first question was from Light of Christ school board chair Glen Gantefoer, who said "much more money is going to be required to assist boards in achieving the education sector plan," and then pointed to Premier Brad Wall's earlier musings about using the Educational Property Tax money to fund non-education projects such as infrastructure.


"Given the demand for dollars within the educational sector boards of education want to ensure that all funds generated by the Education Property Tax will be devoted to the pressing operations and capital needs of K to 12 education. Can you provide us with that assurance?"


"No" was the swift response from Krawetz, who added "we're building a budget. Sources of revenue are many places" in his extensive response.


The question from North Battleford councillor Ryan Bater focused on the crime issues North Battleford was facing. He wanted to know about the government's plans with respect to setting up two proposed "Centres of Responsibility" focusing on building safer communities.


"I'm just wondering this morning if you are in a position to talk a little bit about the status of those Centres of Responsibility and whether the Battlefords is being considered as a location for one of those," asked Bater.


Bater didn't get a direct commitment from the finance minister beyond general support for community safety efforts.


"There is a definite priority for us in recognizing the importance of both the CORs and the HUBs," he said.


Infrastructure was the concern for Metinota mayor Glenn Wouters, who said he and other mayors in the area wanted something done to address safety concerns on Highway 4. Wouters suggested a passing lane would satisfy them; he also pointed to the heavy traffic likely from the new Husky heavy oil thermal project in Edam and Vawn.


Krawetz acknowledged Wouters made "very valid points" and pointed out that, "with growth in the province comes challenges." It was also noted their representative in the legislature, Cut Knife-Turtleford MLA Larry Doke, had been raising similar points on the issue.


Roads were also a concern for North Battleford councillor Greg Lightfoot, who expressed concern about several projects the City wanted to get going under the provincial Urban Highway Connector Program.


"We put in applications every year for some major intersections that we have some safety issues [with]," said Lightfoot, who voiced concern about a funding cut to the program.


"Last year the budget was $8 million for the Urban Connector Program, this year it's $5.2 (million)." He made the point that communities felt this was "not nearly enough" and asked "why you decreased the program's funding rather than increased."


"Bullet number one" was Krawetz's response, pointing to the large sign set up to his right that listed "balanced budget" as number one in the list of priorities in the 2014 "steady growth" budget.


Lightfoot then pointed to the province's commitment in the budget of "$50 million for a stadium in Regina, where the safety of our residents in North Battleford is being jeopardized because the numbers went down in that area."


Krawetz responded that the government had actually looked to put more money into the Urban Connector Program during the budget process. It had "significant extra dollars put into it, until we were $700 million dollars in the red. Then we had to start reducing, so that's what budgeting is all about," said Krawetz.


He did offer support for the Highway Connector Program in the future, saying there was a need for the program, and urged local officials to keep up lobbying efforts with the Ministry of Highways.


As for the stadium funding, Krawetz said "we're not treating Regina and the stadium any different than we've treated any other municipality."


In speaking to reporters following his remarks, Krawetz addressed a controversy that has flared up recently over the LEAN process for building and designing new hospitals.


NDP leader Cam Broten had been critical of spending on LEAN consultants fees for projects in Saskatchewan. As one of its pre-budget demands, the opposition had called on the government to end its contract with LEAN consultants John Black and Associates, calling LEAN a waste of money.


Krawetz defended the contract and pointed to health facilities that had used the LEAN process and saved millions of dollars.


"I look at LEAN in a different way. I look at it as a way of becoming more efficient," said Krawetz.


"Everybody should be doing that. We do that within our own office. We want to become as efficient as possible and make sure our dollars are spent properly."


He reiterated the government's commitment to LEAN, which has been used in the planning process for the new Saskatchewan Hospital over the past year.


"Here in North Battleford as we move forward with the North Battleford hospital and correctional centre, LEAN will be applied to it to make sure that we're constructing it [properly], to make sure there's no wasting of peoples time as they move from one area of the hospital to another area of the hospital."


As for the four-year contract with John Black and Associates, Krawetz noted the money saved by LEAN so far exceeds the money spent on the contract. "So far it's been $26 million and we know we've saved over $35 million."