Photo: Finance Minister Rod Gantefoer slowed down spending in Wednesday's provincial budget.
By Katie Ryan
The Saskatchewan Party government vowed to ‘live within its means’ in Wednesday’s provincial budget. Finance Minister Rod Gantefoer is reducing the government’s overall spending in 2010-11 by $121.3 million, or 1.2 per cent, from last year’s budget.
Gantefoer said during his speech in the Legislature yesterday that the budget’s goal is not just to slow the growth of government spending, but to reduce it and ensure a “balanced budget today” and a “spending trajectory that is sustainable tomorrow.”
To reduce expenditures though Gantefoer deferred capital spending, hiked sin taxes and eliminated government positions. According to Gantefoer’s budget, over the next four years the province wants to cut a total 1,800 positions from its current payroll of 12,000. The province expects to save $30 million this year reducing the payroll.
Other cuts were made as well; provincial funding for chiropractic services were axed, as was the Saskatchewan Communications Networks.
Gantefoer said the budget was built on the “principles of caution on the revenue side, restraint on the spending side and a firm commitment to government living within its means.”
Total revenue is forecast to reach $9.95 billion, with non-renewable revenues expected to generate $2.1 billion, including $1.1 billion from oil and $221 million from potash, compared to last year’s budget estimation of $1.9 billion. The general revenue fund surplus is forecast at $20 million, including a $194.2 million dip into the growth financial security fund to balance the budget, leaving a balance of $510.8 million in the fund. Government public debt will remain unchanged at $4.15 billion.
“This budget is about moving beyond the boom and bust cycle that has defined Saskatchewan budgeting,” said Gantefoer during the budget speech. “(Saskatchewan will) make the decisions that need to be made regardless of the current price of oil or potash.”
As government expenditures hit $10.12 billion, savings are being found in the budgets of 14 ministries. Gantefoer said the budget reduces the “government’s footprint” and strives for a more efficient delivery of government services. Programs that were not “well utilized” were axed and the government has embarked on a process to reduce the size and cost of government operations.
“This budget sets the stage for a new approach to delivering government services,” said Gantefoer.
“We know that the public service must become smaller, more effective and more efficient – and we know it will. This has already begun to happen through the budget process.”
• The only ministries to see a hike in spending increase is Health and Social Service. Health is set to receive a 3.1 per cent increase, including a $123 million increase (5 per cent) to Regional Health Authorities, $10.5 million to reduce surgical wait times and just over $109 million (a 10.1 per cent or $10 million increase) to Saskatchewan Cancer Agency.
• The government said the only tax hike will be on tobacco – 2.7 per cent per cigarette – effective midnight Wednesday. Legislation will also reduce the number of tax-free cigarettes First Nations people can purchase on reserve from three cartons to one. These tobacco changes are predicted to bring the province $35.7 million in new revenue and reduce smoking rates.
• Liquor price hikes will also generate government an additional $18.1 million. The price of a case of beer will jump by 75 cents and for most bottles of spirits, 50 cents.
• The government is also taking a dividend equal of 100 per cent of the profits of all the province’s Crown corporations except SaskPower, which will pay nothing.
• Overall funding for school divisions will increase by $33 million, or 2.1 per cent in 2010-11. The government will invest $17.2 million for school capital, bringing its three-year funding total to $328 in the province’s K-12 education infrastructure. Another $2 million has been slated for 235 addition child care spaces and 18 new Prekindergarten programs. Post secondary institutions will see a five per cent increase in operations funds at $565 million and an additional $97.7 million for student loans, grants and bursaries.
• Municipal revenue sharing continues at $167.4 million for 2010-11, the same as the previous budget.
Local MLA says budget shows restraint
By Katie Ryan
Local MLA Tim McMillan says the 2010-11 budget is readying the province for the years to come.
“Being balanced, I think was really the foundation the budget process started with, that we would have a balanced budget,” he said following Wednesday’s budget speech in a phone conversation with the Source. “It’s a budget that is looking to the future, it is looking to what kind of province we are going to have and what kind of public service is going to serve the people of Saskatchewan in the future.”
Finance Minister Rod Gantefoer reduced spending by more than $120 million and is maintaining a balanced budget, but at a cost. Savings are being carved out of 14 ministries, government positions eliminated and other cuts have been made.
“It is showing restraint, there is no question about it,” said McMillan. “I think the people of Saskatchewan are expecting government to do more with less, to have a civil service that is more efficient and sustainable.”
With respect to the ministries in question, McMillan said it is important that the government evaluates spending on an annual basis.
“This year we found savings in 14 ministries and we were actually able to have a smaller spending budget this year than even last year, an actual reduction year over year,” he said.
“Seeing a budget like this, with a long term plan in reducing our civil service by 15 per cent over the next four years, I think a continual evaluation as to, are we getting the service we need from the positions we currently have is a foundational thing for the province.”
McMillan said the province is embarking on a new path, controlling spending in a way that removes the province from a “boom and bust” cycle.
“We need to commit to a reasonable amount to infrastructure on an ongoing basis,” he said.
“Two years ago we inherited a province that needed substantial infrastructure spending for highways and schools and hospitals and by no means have we caught up to where we need to be.”
NDP say they don't trust budget
Compiled By Source Staff
The Saskatchewan NDP weren’t impressed with the budget that was introduced yesterday in the legislature.
Party leader Dwain Lingenfelter said cuts to programs and service are a direct result of the Sask. Party’s fiscal mismanagement.
“Deficit budgets have become the hallmark of the Wall government and it appears that the Premier was right - you can’t actually stop at just one,” Lingenfelter said, referring to the $623 million summary financial deficit estimated for the year, in a prepared statement.
He noted cuts have been made to health care with the removal of chiropractic services, frontline worker retention initiatives, the Children’s Hospital and long-term care facilities.
Cuts have also come at the expense of the education system with youth skills training programs axed and over $35 million in capital funding lost. Combined with increased property, Lingenfelter said the Wall government’s is hurting Saskatchewan families.
“This is a budget that can’t be trusted presented by a government that can’t be trusted to be open, honest and accountable about the way it handles our public money,” Lingenfelter said.
“Changes to these rules have been driven by the Wall government’s own incompetence, self-interest and desperation and will make it more difficult for the public to track its true performance. Saskatchewan families simply can’t afford a return to the days when prosperity was squandered and they were forced to pay the price. Unfortunately, that’s exactly where this disastrous budget is taking them.”