Saskatchewan Minister of Finance Donna Harpauer. (Lisa Schick/CKOM News Staff)

By paNOW Staff

2020-21 budget

Province releases budget estimates

Mar 18, 2020 | 2:44 PM

A future deficit may be possible for Saskatchewan given the global economic uncertainty amid the COVID-19 pandemic.

Today’s 2020-21 budget includes some elements associated with major projects in our region but there was a big emphasis on the immediate challenges in light of the novel coronavirus.

The province removed revenue estimates from this year’s announcement and instead provided only budget estimates.

Many had called on the province to delay releasing the estimates, but Finance Minister Donna Harpauer said the province needs stability at this time of uncertainty.

“This is an unprecedented and challenging time in our province, our country and the world,” Harpauer said. “We are all feeling the impact of the COVID-19 pandemic, and our government’s first priority is the safety and health of Saskatchewan people. That is precisely why we need to proceed with these expenditures now, providing stability and much needed new spending at the start of the fiscal year.”

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Harpauer highlighted the province has $1.3 billion in cash reserves to help manage through the health and economic challenges of the pandemic. There will be an additional $2.7 billion of capital investment from Crown Corporations and executive government to serve as economic stimulus.

Provincial spending is up 3.1 per cent from last year. However, Harpauer conceded her estimates may not be on track because of the unknown surrounding the pandemic.

“Is it enough to fully address the impact of COVID-19 in Saskatchewan? Nothing is certain right now,“ she said. “We may have to make adjustments to address the economic fallout caused by this pandemic. We fully recognize that this may mean a deficit.”

Money for north-central Saskatchewan

In terms of support for the North, much of it will be health care related. The province will commit $15 million of its $142 million committed for health care spending to support the early stages of the Prince Albert Victoria Hospital renovation and expansion.

“Shovels will not be in the ground this year,” Harpauer said in a telephone conference with provincial media.

Meadow Lake is also slated to receive infrastructure funding with $15.7 million toward the continued construction of a 72-bed long-term seniors care facility.

The province is committing $2 million toward the purchase of a new CT machine in Melfort.

Carrot River is estimated to receive $1.3 million for a new consolidated elementary and high school, with construction expected in about two years. Harpauer said further funding may be committed in the future to the project.

Health

The Ministry of Health expenses will be $5.77 billion, with an increase of more than $211 million or 3.8 per cent from the 2019-2020 budget.

To help doctors, nurses and other health care staff, the government will provide a $3.74 billion grant to the Saskatchewan Health Authority this year. The $140.6 million or 3.9 per cent increase will support the battle against COVID-19.

Mental health and addictions supports and services will receive a $12 million increase compared to last year with $5.8 million to support those fighting addictions and $6.2 million to fund mental health services.

The estimates will provide $20 million to address delays in surgical wait times. It will help pay for 3,700 additional surgeries.

Infrastructure and the PST

To help families afford a newly built home, and to help homebuilders and tradespeople, the government will provide a PST rebate for new home construction. The rebate will account of up to 42 per cent of the PST paid on a new house contract up to $350,000, excluding land purchases, for homes purchased after March 31, 2020 and before April 1, 2023.

Harpauer was asked why the rebate was solely for newly built residential homes and not for major projects including arenas and other infrastructure. She said the province lacks the financial strength to do so.

“That would be over a $400 million loss in revenue that, quite frankly, we don’t have the fiscal strength to do,” she said.

To support new and expanded pipelines and pipeline terminals and ensure oil flows to markets, the province will introduce a tax incentive in the Oil Infrastructure Investment Program.

Northern needs

In the press conference, Harpauer was asked about targeted health care, suicide prevention, addictions, and mental health support for northern and Indigenous communities as the budget appeared to not specify specific locations for funding.

“This funding is done on an RFP (request for proposal) process and then vetting as to what proposals come forward and what gaps there are,” Harpauer said. “It’s what they did with their funding last year. The details would then have to come from that ministry.”

Fighting COVID-19

To support research and innovation, there will be an estimated $400,000 increase in funding to the Vaccine and Infectious Diseases Organization to support the construction of a new vaccine manufacturing facility. A research team is currently working with several colleagues across Canada to develop and fast-track the testing of a vaccine for the novel coronavirus.

Education

The Ministry of Education’s expense for the 2020-21 period will be $2.57 billion, which will include an increase of $86 million, or 3.5 per cent from the previous year.

The province’s 27 school divisions are set to receive $1.94 billion in operating funding for the 2020-21 school year, which is an increase of $42 million to address enrolment increases, inflation and collective bargaining.

For post-secondary institutions and to help support students and graduates, the Ministry of Advanced Education will receive $739 million, an increase of $11.2 million in the estimated budget, which will include maintaining the Graduate Retention Program.

Social Services

The expense for the Ministry of Social Services is estimated at $1.29 billion for this year, up $50.6 million or 4.1 per cent from last year. There will be $10.9 million of increased funding to third-party service providers, including a $6.8 million increase for staff who work with those who have intellectual disabilities. Service-providers who help at-risk children, youth and families will receive a $2.5 million increase.

Indigenous Communities

The estimates provided by the province include $213 million to help prioritize Indigenous communities, businesses and organizations. The amount is up $6.1 million or nearly 3 per cent from last year.

Public Safety

More than $85 million is estimated for the Saskatchewan Public Safety Agency. There will be a $1.7 million increase for the Gang Violence Reduction Strategy to address gun and gang activity across Saskatchewan. There will be a $14 million to fund community service organizations to help vulnerable individuals and families.

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panews@jpbg.ca