It has been termed the Saskatchewan advantage by the provincial government, a 2011 provincial budget with a clear focus on tax reduction and encouraging business.
Yorkton MLA Greg Ottenbreit recently spoke with The News Review about what he sees as the highlights of this year's budget.
"It's something that we, as a government, are pretty proud of. It fits into our philosophies. I know we are a conservative-type government, but I've always said that we are a conservative with a social conscience," he notes.
Ottenbreit does not describe the budget as an election year budget, noting that the focus was to deliver a balanced budget with a surplus rather than going all out on programs for political reasons. He says that the government was cautious given the chances for emergencies this spring and a desire to be fiscally responsible overall.
The primary focus of the budget was on tax relief in different areas. The personal income and spousal income tax exemption was increased by $1,000, and the exemption for dependent children increased by $500.
Ottenbreit notes that the change will see more people with low income no longer paying income tax, combined with previous cuts that number has increased by 110,000 since 2007.
Other tax measures include the long in the works reform of the education property tax. With the second stage of this reform, the total property tax relief will be $55.6 million in 2011-12. The biggest beneficiaries of this reduction will be farmers, with education property tax being reduced by approximately 80 per cent.
The benefits of the tax breaks extend to everyone in the province, Ottenbreit suggests, from those with low incomes who will no longer have to pay, to most families who will now pay less annually.
He notes that there were also cuts to the small business tax rate to two per cent, which he notes is a way to show that the province is open for business and encourage the economy. He notes that with a strong economy, the province is able to improve programs and provide the quality of life people want, so encouraging development is a priority.
Debt reduction is another area where Ottenbreit is proud of the government's continued efforts. He notes that the debt has been reduced by a total of $3 billion with this latest budget, for a general debt level total of $3.8 billion. He notes that $5-600 million dollars in interest is saved annually due to these reduction efforts.
There will be a $250 million dollar increase in funding for regional health authorities, and he notes that the increased funding is also working in conjunction with lean measures in health care, focused on finding efficiencies in the system.
"We will see our tax dollars going a lot farther in health, not only improving services but getting more value for our dollar as well."
There will be investments to hold tuition increases in post-secondary education to three per cent as well, a total of $20.8 million. While some call for a tuition hold, Ottenbreit explains that given increased costs that isn't possible, and leads to further problems. The goal is to limit the increases to a reasonable amount, the same percentage as cost of living increases.
"By investing enough money to limit that to the cost of living increase for the year, it gives the institutions the ability to finance those important programs, but also with the investments keeps them affordable to students."
While affordable housing has $1.5 million allocated, on top of $35 million from last year, Ottenbreit says the government has enough room in the budget to work when it has a more clear perspective of the needs of the province.
"There is more to do and there is always more to do, and this is only one part of the affordable housing strategy that our government has. I have confidence that with the housing report that the minister of Social Services will receive early this summer we will see some more initiatives once we have a definitive plan for the direction we need to go."
This is an election year and marks the end of the four year mandate for the provincial government, and Ottenbreit says that the budget is about continuing to meet the expectations the people have for the government.
"The focus of this budget was to make sure we fulfilled all of our commitments. Last year we had to postpone our municipal revenue sharing plans with the full percentage of the PST, we had to hold off on our plan to go the full length on the education property tax plan because the financial situation didn't allow it. With this budget we're able to fulfill those commitments and continue on with some others."
The budget takes a balance approach, Ottenbreit says, and he believes that there is little that the opposition can credibly criticize about the budget overall. He says the government has seen many positive reactions from a variety of fields, and the budget overall is a good example of the government's philosophy.
"We realize that a strong economy means dollars to the people of the province through the government, but we don't do that simply for the purpose of having the money. What do you have the money for? It's there to fund the important services that people expect from the province," he concludes.
