It’s not entirely fair to compare American-based political and economic decision makers with their Canadian counterparts, since rules and regulations vary substantially, but, on occasion, some comparisons just have to be made.
In a spring issue of the Crosby Journal, the newspaper that serves the well-known town, and their Divide County circulation base, it was noted that state-infused surge funds could be expected soon.
The funds, from what we can discern, are monies that are tabulated for communities impacted by the past increases and interest in oil patch activity. They are to be used to mitigate damages, restore or increase infrastructure and help communities prepare for the next round of heavy activity and strain on their system.
Divide County was about to receive $9.8 million in assistance while the City of Crosby (yes, they call most communities in North Dakota, cities), was about to receive $8 million. (With a population of around 1,500, that represents a fairly healthy per-capita investment). But bear in mind, the state had been the recipient of an additional $480 to $750 million, thanks to the activity in the Bakken oil fields.
But just like in Saskatchewan, the oil action just a few kilometres south, has also softened along with prices.
The residents were upset. They were expecting something a little closer to $40 million to help them restore roads, rebuild refuse collection sites, build potable water supplies and extend sewer services while easing up more properties on which to build.
But, with the downturn, Crosby received just $8 million and the country picked up under $10 million.
So, let’s begin the comparison.
The City of Estevan received a total of $2.3 million from our provincial government in the form of a revenue-sharing grant. There were no other equalization or resource-induced revenue programs. It was just our regular dollop of recognition of our existence.
Since we exist, we shall receive, a small percentage of what we have sent into the provincial coffers to aid and abet 61 MLAs and a host of government ministries, agencies, organizations, Crown corporations and employees.
We expect our immediate surrounding rural municipality received a dribble of cash as well, perhaps $1 million?
How does $2.3 million to spread among 13,000 people versus $8 million among 1,500 people, strike you?
And we have not mentioned the value of the U.S. dollar compared with our now deflated Canadian counterpart.
Now, let’s attempt to be fair here.
Our provincial government is up to their ears in paying for our health-care costs, whether they be intense emergencies and acute care down to the regular petty clinic visits for those suffering from aching joints.
On the other side of the 49th parallel, they pay full price, individually or through a business benefit plan and they pay dearly while the state doesn’t have to worry very much about that file.
There is also a belief in some corners that per capital spending on kindergarten to Grade 12 educational programs might come up short compared with Saskatchewan’s provincial input into programming, so we must not be harsh. In many respects, we are comparing apples with oranges, but it may still raise some questions on the public front as to whether or not our province is truly sharing the wealth in an equitable manner. And, also, what they actually receive in royalties from the industry compared with our immediate southern counterparts?
Of course, with the current downturn in the oil patch, we shouldn’t be expecting any major shifts in policies regarding royalty review.
But maybe it would be wise to keep these numbers in mind when dealing and speaking with our provincial money changers and distributors.
