Sask Party's budget delivers cuts

RORY MACLEAN
News Editor

Saskatchewan finance minister Rod Gantefoer presented the budget March 24, announcing significant cuts to the civil service that will see a decrease of about 1,800 positions over four years.

“Our public service has grown much faster than the rate of growth in population,” said Gantefoer.

The Sask Party is intent on eliminating 15 per cent of the province’s 12,000 civil service positions by 2014. This year alone, 529 positions will be eliminated.

“That will take time, but it is done by attrition so people won’t lose their jobs. As jobs are vacated many of them won’t be filled,” he said.

Some civil service jobs, however, will not be cut through attrition.

Funding for the Saskatchewan Communication Network, the government owned educational cable station, has been cut entirely, which could see its 35 employees out of work.

Gantefoer is calling it a balanced budget, with a surplus of $20 million, though this was achieved by pulling $194 million from the province’s rainy day fund. Without this cash injection, the budget would come in with a $174 million deficit.

The budget signals a new era of careful spending for the Saskatchewan Party, which is still adjusting to last year’s fallout in potash revenues.

“This budget moves Saskatchewan away from the boom and bust of fluctuating resource prices,” he said.

Spending for the fiscal year, which begins April 1, is predicted to reach $10.1 billion, down $121 million from last year. Capital and infrastructure accounts for the majority of the spending cuts.

Despite the claim that the budget is balanced, opposition leader Dwain Lingenfelter said the deficit would actually be $622 million if the summary accounts were considered. These include all of government, including Crown corporations, and not just line departments such as health, highways and social services.

“We can’t trust the numbers in the document and we can’t trust the government that’s bringing it to us because of what happened last year,” said Lingenfelter.

“Yet the premier and the finance minister stand up and say with a straight face that this is a balanced budget. I think honesty is what the public wants,” he said.

The budget brings with it many cuts, though health spending is set to increase by three per cent, to $4.2 billion.

Income and sales taxes remain unchanged, although there will be an increase in vice taxes, including an additional 67 cents for a pack of cigarettes and 75 cents per 12 bottles of beer.

Predictions on natural resource revenues have been scaled back this year, but are expected to continue recovering. Oil is the largest source of expected revenue at $1 billion. The Sask Party predicts potash will generate $220 million.