It could be a case of sending out mixed messages when it comes to the governing Saskatchewan Party and next week’s provincial budget.
Due to the loss of revenues thanks to sharp reductions in crude oil prices on the international markets, the provincial government has issued statements claiming they have to overcome a potential $600 million shortfall in income. They proposed to do this by imposing immediate cuts to such things as unnecessary travel by government ministry officials as well as any government-connected agency.
But there were announced exceptions, such as the ongoing educational trips to Seattle and Utah to engage workers in health care facilities and factory floors who are deploying the Lean system of work place efficieny.
The NDP opposition and other skeptics have frequently raised questions as to just how efficient the efficiency experts have been as the $40 million Lean contract with John Black and Associates winds down prematurely, a significant sign that perhaps the Lean gurus and senseis weren’t as sharp as they were originally cracked up to be. So why the continued spending on the tail end of a contract that is quickly slipping away? We’re not sure and we’re not getting clear-cut answers either.
There is a temporary freeze on MLA salaries, not a cut.. This supposedly guarantees a saving of a few thousand bucks. Unfortunately, during the salad days of huge resource revenues, a decision was made to add three more MLAs, boosting the constituency representations to 61 MLAs from 58. Three more MLAs with their additional Regina and constituency office expenses plus salaries, translates into additional costs on the MLA side of the ledger, not a saving.
School divisions were told to take a big swing at cutting costs too. So they have, even though there is a $1 billion deficit in school building repairs and new school construction programs. Further delays on those files simply means a larger bill to pay five years from now, no matter what process is used to pay the bill, it still will need to be paid, by taxpayers.
So far, no corresponding cuts have been ordered for hard-pressed health regions, so it is expected that next Wednesday’s budget and financial statement will see a careful three to four per cent increase allowed on that file, once again, even though health takes up almost half of the provincial revenue already. It’s a dilemma for the politicians, ratepayers and health care officials who are generally used to generous pay increases on an annual basis. They might be asked to forego one of those this year, if only for the optics, if nothing else.
Municipalities that had their revenue sharing amounts lowered last year, were told that these revenue would be restored, and then some, this year. Well, we will just have to wait and see if that happens in this new era of knee-jerk cuts that are being deemed necessary for the good of the team, and will allow the government to proclaim a balanced budget.
So our advice for political junkies who will be tuned in to Finance Minister Ken Krawetz’s budget delivery, look for cuts in education, social services, resources, and agriculture while provincial governance and health costs will continue to rise while money sent along to municipalities should increase … but may not. We’re predicting that our RMs, towns and cities may end up being the suckers having to, once again, “take one for team Saskatchewan.”
We hope we’re wrong.
