The provincial government has tabled a budget with a deficit of $2.6 billion. It anticipates deficits of $1.7 billion, $1.2 billion and $770 million over the next three years with a return to balance in 2026-27. Our total debt is projected to be $27.8 billion at March 31st, 2022. That would be an increase of $4.2 billion compared to last year. Still, the province says our net debt-to-GDP ratio will remain among the lowest in Canada.
Saskatchewan’s real GDP is forecast to grow 3.4 per cent this year but that follows a projected 4.2 per cent contraction last year. Revenue is forecast at $14.5 billion in 2021-22, with most revenue categories forecast to increase compared to the latest 2020-21 forecast. Expense of $17.1 billion is projected, an increase of $1 billion compared to last year’s budget.
The province is also introducing tax changes which it says will improve tax fairness. These include taxation of vapour products and heat-not-burn tobacco products, as well as a road-use fee for electric vehicles at the time of registration to ensure that all road users contribute to road maintenance and replacement.
The provincial government forecast expenses this year at about $15.96 billion. The actual budget is for $17.089 billion. The heavy hitters are social services and assistance, at $1.557 billion, education at $3.753 billion, and health at $6.535 billion. Those three alone account for $11.844 billion in spending. That’s about 70 per cent of the entire budget.
The health budget includes $1.5 billion in COVID-19 supports. There is also $458 million for mental health and addictions services programs; that’s up from $23 million.
HEALTH
The 2021 Ministry of Health Budget is a record-setter at $6.12 billion. The Saskatchewan Health Authority alone will receive $3.96 billion. That’s a 5.9 per cent increase from a year ago. Some of that is targeted towards reducing wait times for diagnostic imaging services, and for the CT Scan program in Melfort, as well as additional resources to the pediatric hematology oncology program including an additional specialist position in Saskatoon, nursing and other staff.
There will also be a four bed ICU expansion in Saskatoon: Two at RUH and two at St. Paul’s. There is more money to further establish the RUH 48 bed acute care unit. Victoria Hospital in Prince Albert will receive funding to expand resources and operations for the neonatal ICU.
The Saskatchewan Cancer Agency will receive a nearly four percent increase in funding to help with new oncology drug programs and growth in existing treatments, as well as expansion of treatment available in regional hospitals. There is also money for a new medical oncologist position plus support staff.
$5.0 million will increase supports for people with diabetes. Financial coverage will now include continuous and flash glucose monitoring systems for children and youth under 18 who are insulin dependent. The Insulin Pump Program is also expanding to support individuals of all ages with Type 1 Diabetes.
Children between the ages of six and 11 with Autism Spectrum Disorder will be eligible to receive individualized funding of $6,000 annually, in addition to children under age six who currently receive $8,000 annually.
MENTAL HEALTH
The provincial government has announced $458 million for mental health and addictions programs and services in the province. It’s an increase of 5.4 per cent over last year. The government says the budget will increase $7.2 million for targeted mental health and addictions services including specific youth-focused initiatives, suicide prevention, and in harm-reduction and addictions treatment. The rest of the increase will be mostly for hospital-based mental health and addictions services, physician visits, and prescription drug costs.
The government says it is also committing to building upon the success of the new addition treatment centre in Estevan. $850 thousand will be allocated for 12 additional provincial addiction treatment beds as well as two new pre-treatment beds. This will increase the total number of beds at the facility to 32 treatment and six pre-treatment beds.
HIGHWAYS
In today’s budget (tues), $830 million has been ear-marked for highways. $50 million of that is for what the province calls, strategic capital investments to improve safety and efficiency on key highway corridors. One of those is twinning Highway 3 to roughly eight kilometres west of Prince Albert. Design happens this year with the contract to be tendered in the fall and completion in the fall of 2022. There will be passing lanes added on highways 2, 3, 12, 14 and 16.
There will also be three sets of passing lanes on Highway 7, from Kindersley to the Saskatchewan-Alberta border; two sets of passing lanes and widening on Highway 5 from Saskatoon to Highway 2; and completion of the remaining passing lanes on Highway 39 – Corrine to Estevan.
Money has also been set aside for 250 km of repaving, 510 km of pavement sealing, 225 km of medium treatments, like micro surfacing, 25 km of gravel rehabilitation, 280 km of Thin Membrane Surface (TMS) and rural highway upgrades, and 60 km of twinning and passing lanes.
Highways will invest $44.5 million to rehabilitate or replace 14 bridges and multiple culverts across the province.
Highways will invest an additional $455,000 in its mowing program to enhance safety and improve control of noxious weeds. The budget also includes investments in shortline railways and municipal transportation infrastructure.
EDUCATION
One of the line items that gobbles up taxpayers’ money is for education in the province. The Ministry of education budget this year is the largest in history, at $2.66 billion. That’s for Prekindergarten to Grade 12, early learning and child care, as well as libraries and literacy. This year’s budget is an increase of 2.3 per cent over last year. The 27 school divisions in the province will receive $1.96 billion in school operating funding for the school year.
The budget provides just under $190 million for school capital. It’s an increase of 13.3 per cent from last year. It includes about $102 million to support 21 ongoing capital projects to build 16 new schools and renovate five others.
There is funding for an additional 176 licenced home-based child-care spaces and 51 new licensed centre spaces.
Qualified independent schools will receive an additional $3.1 million. Community-based organizations will see an additional $1.6 million.
PROPERTY TAXES
The province has announced a slight increase in Education Property Tax mill rates for this year. The one property escaping that fate is agriculture. It will actually see a decrease from 1.43 to 1.36. Residential goes up to 4.46 from 4.2. Commercial/Industrial rises to 6.75 from 6.27 and Resource goes to 9.79 from 9.68.
Despite the numbers, the province says that since the last revaluation in 2017, the taxable assessment of agricultural properties has increased while the taxable assessments for the others have declined.
The 2021 revaluation follows the recent decision by the government to reduce the percentage of value taxable assessment rate for commercial/industrial and resource properties from 100 per cent to 85 per cent. The next will be in 2025.
CAPITAL PROJECTS
The budget includes $3.1 billion in capital projects. $162 million of that is directed at health care including $7.6 million for the 80-bed La Ronge long-term care facility; $3.6 million for the future Grenfell long-term care facility; a planning stage investment of $550,000 for new Watson and Estevan long-term care facilities; and $500,000 of planning dollars for replacement of long-term care beds in Regina.
$5.7 million has been set aside for Urgent Care Centres in Saskatoon and Regina, $1.4 million for Weyburn Hospital planning and $1.4 million for program and design plans for Victoria Hospital in Prince Albert.
$830 million goes to roads and highways. $190 million goes to education capital. $324 million will be directed to government services infrastructure including construction of the remand centre at the Saskatoon Correctional Centre, and $3.8 million to replace and expand the urban camp there.
$245 million is going to municipal infrastructure. And, Saskatchewan’s Crown corporations will spend $1.6 billion on major capital projects.
(CJWW)
