The Saskatchewan government was touting balanced books as they tabled their 2019-20 budget Wednesday.
The province is reporting a surplus of $34.4 million in the budget handed down by Finance Minister Donna Harpauer. Revenue is reported at $15.03 billion, up 5.5 per cent from the last budget. Expenses are reported at $14.99 billion, which is up 2.6 per cent. The biggest expenses were $5.89 billion for health, $3.28 billion for education and $1.4 billion for social services and assistance.
“Our province’s population and our economy are growing,” Finance Minister Donna Harpauer said. “This budget strikes the right balance by investing into the hospitals, schools, highways, and Crown infrastructure that Saskatchewan people need.”
This budget certainly came across as another don’t-rock-the-boat budget similar to the one the year before.
There were no new taxes or tax increases in this budget. The province is touting the province’s business and corporate taxes as among the lowest in the country.
New non-refundable tax credits are coming to recognize volunteer emergency responders. For those first responders individuals with at least 200 hours in a year can claim a $3,000 tax credit, beginning in 2020.
The budget also includes some changes to the potash tax. Effective April 1, the calculation of the potash production tax will be simplified by eliminating a number of deductions that have been added over the years.
Key revenue assumptions for this year’s budget include a WTI oil price of US$59.75 per barrel for total oil and natural gas royalties of $691.1 million. The potash price is projected at US$221 per KCl tonne for estimated total potash royalties of $618.6 million, and the exchange rate is pegged at $77.19 U.S.
The balanced budget did not come as a surprise, as government politicians had previously indicated the province was on track to balanced books in 2019 after three years of deficits.
Opposition politicians, meanwhile, had spent the last several days casting doubt on claims of a balanced budget, accusing the government of moving numbers around to manufacture a surplus. Concerns were also raised about the province’s rising debt.
At March 31, 2020, the province’s net debt is forecast to be $12.4 billion. All government debt, including that of Crown corporations, is forecast at $21.7 billion as of the same date, up $1.7 billion from last year’s budget. The province attributes this increase to a further investment in capital.
The government’s operating debt is forecast as unchanged at $6.15 billion or roughly 10 per cent lower than 2008.
From her standpoint, Finance Minister Harpauer credited the PST changes a couple of years earlier as leading to the balanced books.
“The PST choices that we made have filled that gap and given us the financial stability and flexibility that we need in order to invest in our people,” Harpauer said in an embargoed news conference earlier in the day.
From a Battlefords standpoint the biggest news from the budget was additional money to operate the new Saskatchewan Hospital.
The Ministry of Health funding for mental health and addictions is $402 million, an increase of almost $30 million.
Included is an increase of $13.7 million increase for the new Saskatchewan Hospital North Battleford, mainly going towards the addition of doctors and nurses at the new hospital.
“This budget makes the largest commitment ever to mental health services in our province,” said Health Minister Jim Reiter in a statement released Wednesday.
“This includes funding for more than 140 new beds to treat individuals with mental health and addictions challenges.”
In addition to mental health funding, the corrections and policing budget also includes an investment of more than $7 million for operation of the new Saskatchewan Hospital North Battleford. The secure side of the facility includes 96 beds for offenders living with significant mental health issues.
“We are very excited to see the new Saskatchewan Hospital North Battleford open to patients and offenders with mental health needs,” said Minister of Corrections and Policing Christine Tell in a statement.
“This will also help with the day-to-day demands of our existing correctional facilities.”
Some of the other highlights from the 2019-20 Budget include the following:
• In addition to the Sask. Hospital money in the mental health budget, $8.39 million will go towards creating 75 new residential support beds for individuals with intensive mental health needs who are transitioning into the community, freeing up hospital space for other patients. As well there will be 50 new pre- and post-addiction treatment beds for individuals transitioning between detox and in-patient treatment or back to the community. Ten new in-patient addiction treatment beds are coming to Pine Lodge and six to Calder Centre in Saskatoon, and there will be six new in-patient addictions beds for youth under 18 in the southern portion of the province.
• Another $1.5 million is being allocated so that the temporary Mental Health Assessment Unit in Saskatoon could become a permanent Mental Health Short Stay Unit. It will feature seven beds and provide individuals with acute mental health care a place to stay up to seven days.
• For policing, the budget includes over $15 million for 128 municipal police positions and targeted policing initiatives in the province. There is also continued commitment to the Protection and Response Team, Crime Reduction Teams, and the Combined Traffic Safety Services Saskatchewan initiative.
• At corrections facilities, $8.5 million is earmarked for increased security, reducing contraband coming in and increasing the number of beds for young offenders. $1.2 million is going to custody services including new staff in correctional facilities, while $3.8 million goes towards replacing security infrastructure.
• $2.7 billion is the amount set aside for infrastructure investment. This includes $1.6 billion of capital investment in the commercial Crown sector and $1.1 billion in capital investment by Executive Government ministries and agencies.
• $1.6 million has been allocated to support the launch of three Rapid Access to Addiction Medicine clinics in Regina, Saskatoon and Prince Albert.
• Municipalities are receiving $251.6 million of municipal revenue sharing, for a $10.5 million increase. This is under the new formula based on three-quarters of one percentage point of the PST.
• Municipal infrastructure funding is pegged at over $229 million in this budget, an 11 per cent increase from last year. That includes new funding under the Investing in Canada Infrastructure Program, as well as funding under the New Building Canada Plan, Clean Water and Wastewater Fund, and the Public Transit Fund.
• SaskPower has $873 million in planned capital investments aimed at connecting more customers and expanding electricity generation assets. SaskPower is also continuing efforts to renew distribution and transmission systems with a goal of reducing CO2 emissions by 40 per cent by 2030.
• Capital investments are coming to SaskTel totaling $321 million. This is for upgrades of its wireless and wireline networks, as well as continuing the rollout of infiNET, the corporation’s high-speed fibre-optic internet service. It is also going to enhancing rural service and adding more cellular sites.
• SaskEnergy is making $340 million in capital investments this year to meet growing customer demand and also to ensure the integrity of its natural gas transmission and distribution systems.
• SaskWater is making $32 million in capital investments towards maintenance of existing infrastructure and the creation of new water and wastewater systems.
• Capital investment of $103 million for health care infrastructure is being provided, including $12 million for a new 72-bed long-term care facility to replace Northland Pioneers Lodge in Meadow Lake, and $5 million for preconstruction design for Victoria Hospital in Prince Albert as well as a new hospital in Weyburn.
• The province has allocated $1.9 billion in K-12 operating funding, for an increase of $26 million.
• Investment in the K-12 school system will be a little over $95 million. Projects include consolidation and replacement of St. Pius and Argyle schools in Regina, and a new joint-use school to replace Sacred Heart, St. Mary, Empire, and Westmount schools in Moose Jaw. Funds have also been allocated to replace St. Frances School in Saskatoon, and $29 million is set aside for ongoing construction of schools in Rosthern and Weyburn.
• Funding for the student loan program is going up $4.7 million, to $26.3 million. This will provide assistance to 18,000 students.
• There is an over $660,000 increase to the Alzheimer Society.
• Individualized autism funding for children under six is going up from $4,000 to $6,000.
• $6.3 million increase is coming for the Saskatchewan Assured Income for Disability program.
• The budget also includes $211 million in targeted investment that to benefit Indigenous communities, businesses and organizations, for a 4.7 per cent increase.
This includes $72.4 million in gaming agreement transfers to First Nations and Métis organizations, and $45 million to First Nations and Métis community-based organizations delivering individual and community supports.
