Saskatchewan’s 2019-20 budget will be delivered on March 20, but the province has approved nearly $200,000 in additional midyear spending just over a month before budget day.
First reported by the Regina Leader Post’s Arthur White-Crummy, Saskatchewan’s cabinet signed off on a special warrant worth $194 million on Feb. 14. This additional spending is spread across six ministries.
Opposition Leader Ryan Meili thinks the timing of this money is suspect, and it was approved now to keep it out of the 2019/20 budget.
“I think it’s concerning that we’re only a couple weeks out from budget, a budget that this government has been promising will be balanced and suddenly we’re seeing nearly $200 million spent in this year’s budget,” Meili said.
The largest portion is under the Ministry of Government Relations, $95.1 million for treaty land entitlements. Finance Minister Donna Harpauer says the province is close to finalizing three settlements with First Nations, and this is the total cost.
“A few years ago the provincial auditor cited that we need to book liabilities once we knew the cost of that. In the 2014/15, we booked the clean-up of Gunnar Mine. This is similar accounting we’re doing,” Harpauer said.
These entitlements are the value of land owed to the 33 Saskatchewan First Nations communities that weren’t delivered in full when the treaties were signed.
Harpauer said liabilities like this aren’t necessarily known when the budget is being drafted, so costs are added as settlement values are determined.
An extra $45 million is being spent in health. This includes $2 million for the Saskatchewan Cancer Agency to account for the coverage of new cancer drugs and $18 million for equipment. The remaining $25 million is to cover increased utilization of services.
“We have to remember that we have a growing population, and therefore there are more health expenses in our province,” Harpauer said.
Meili disputed that claim, saying increased health utilization is a consequence of past fiscal decisions.
“Those are the downstream impacts of having not spent wisely in the past, with some of the cuts that have been made to education, and other areas of health services in the past,” Meili said.
“Those wind up resulting in increased utilization, more people sick, more people in poverty, more people involved in crime. So if we really want to reduce spending, we should be spending more wisely to begin with.”
Harpauer took issue with this claim, saying budgets for health, education and social services all increased in the past year.
This additional money comes after $20 million was added to the health budget in the midyear fiscal update. That money was also to address increased utilization.
Crop insurance premiums are driving up Ministry of Agriculture costs by $17.3 million. The AgriStability program also costs an additional $13.8 million this year. In total, agriculture is seeing an additional $35.6 million.
Additional midyear spending includes $12 million for the advanced education sector, $3.3 million for the environment ministry to cover the new Assiniboia, Sask. scrap tire cleanup program and an additional $1 million to the coroner’s office.
“We have seen strengthening in our economy, which is positive, and though it is modest there is still growth in the economy,” Harpauer said.
“We’ve seen increases in other areas of our revenues, which will help.”
This extra revenue includes higher than initially budgeted potash revenue, but Harpauer said oil is still struggling.
As of November’s midyear update, potash revenue is expected to be $434.8 million, up from the initial budget estimate of $308 million.
That update also predicted $718 million in oil revenue. That is up from the initial $700 million budget estimate, but down significantly from $805.9 million in the first quarter update.
Saskatchewan’s budget for 2019-20 will be unveiled on March 20.
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