Saskatchewan is moving ahead with a spending increase of 3.1 percent to $14.15 billion for 2020-21
Finance Minister Donna Harpauer tabled the estimates Wednesday, despite the opposition asking for delays.
Harpauer says without the estimates the province would be frozen to last year’s expenditures.
“I think it’s important that people know that there’s increases in healthcare to manage this situation we’re in. Life is going on, even though it’s not business as usual, and I think the province and the people of the province need the certainty of what funding is going to be available to support services that are very important to them.”
Harpauer explained she doesn’t expect the budget to pass, in the house and special warrants will likely need to be used to secure funding. Insisting that despite the increases the government will stick to not raising taxes, adding that the province is in a very strong cash position of 1.3 billion and well positioned to manage through this challenging time. She spoke about the possibility of using the reserves to fill gaps in expenses due to the coronavirus, saying at this time the only expense is testing.
“We don’t know if that is where it will stay, should there be more expenses within the healthcare system itself, then we’ll have the case to increase their budget. Will it effect our deficit position? Absolutely, because then it goes on the ledger, but we don’t have to scramble.”
Capital investment of $2.7 billion by Crown corporations and Executive Government is expected to serve to provide economic stimulus.
Minister Harpauer says even with the increases in spending, taxes will not be raised, nor are they likely to be decreased.
“At this time I don’t think it is a wise decision to try to back fill this catastrophic situation we’re in with raising taxes and shocking the economy even more.”
Budget Highlights
The Ministry of Health will have a record $5.77 billion expense which is an increase of $211 million or 3.8 percent. This includes:
-A grant of 3.74 billion (increase of $140.6 million or 3.9 percent) to fund doctors nurses and health care professionals who are on the front lines in the battle against COVID-19.
-$8 million in new funding for 36 acute care beds at Royal University Hospital and 2.3 million for 110 new beds in Regina and Emerald Park
-$435.5 million for mental health and addictions support (an increase of $12 million)
-additional $20 million dollars to address surgical wait time and pay for approximately 3,700 additional surgeries.
-Saskatchewan Cancer Agency received up more than 10 percent to $196.4 million
-$142 million in health care capital spending includes $15 million this year to support planning, design and procurement activities for the more than $300 million project for Prince Albert’s Victoria Hospital.
-$400,000 increase to funding for the Vaccine and Infectious Disease Organization to support construction of a new vaccine manufacturing facility. A VIDO research team is currently working with colleagues across Canada to develop and fast track testing on a coronavirus vaccine.
The Ministry of Education’s expense will increase $86 million to $2.57 billion in 2020-21 (or 3.5 percent from the previous year). Saskatchewan’s school divisions will receive $1.94 billion in operating funding a $42 million increase to address enrollment growth, inflation and collective bargaining. Seven new school projects and three major renovation projects will be apart of $130.4 million in education capital funding (up nearly $35 million, or more than 36 percent).
The Ministry of Advanced Education will see an increase of $11.2 million dollars to $739 million for post-secondary institutions, including maintaining the graduate retention program.
The provincial government will now provide a PST rebate for new home construction , up to 42 percent of the PST paid on a new house contract up to $350,000, excluding the land, for new homes purchased after March 31, 2020 and before April 1, 2023.
The Ministry of Social Services will see $1.29 billion, up $50.6 million.
-$613 million for enhanced programming and support for people with disabilities
-$6.8 million to those who work with people with intellectual disabilities
-Saskatchewan housing benefit launched with $3.4 million going towards making housing more affordable for individuals or families who require rental support .
$85 million will be alloted for the Saskatchewan Public Safety Agency, to address any emergency situation that may arise in the province. An increase of $1.7 million will for the Gang Violence reduction strategy.
The Ministry of Energy and Resources will introduce the Oil Infrastructure Investment Program, a SaskFirst new growth tax incentive aimed to support new and expanded pipelines, terminals and to flow oil to markets.
Saskatchewan Highway’s will see nearly $648 million to improve safety and increase capacity. With more than 1,000 kilometres of provincial highways expected to be upgraded in 2020-21. Municipal infrastructure will see nearly $166 million for various municipal projects.
Crown corporations will invest a total of 1.7 billion for upgrades to improves services provided by SaskPower, SaskTel and SaskEnergy.