Finance minister aims for balanced books

Finance minister predicts other ministries will help compensate

REGINA Six government ministries are getting nearly $200 million in extra funding to fill budget shortfalls, but Saskatchewan’s finance minister still aims to slay the deficit this spring.

Cabinet approved spending of $194,055,000 by special warrant on Thursday. It’s a method of funding government expenses “urgently and immediately needed” when the legislature is not in session.

NDP leader Ryan Meili views it as “cooking the books” to create a veneer of balance next year. The largest expense — $95.1 million for treaty land entitlement payments — is being accounted for earlier than expected.

But Finance Minister Donna Harpauer faulted the opposition leader and said the province was simply following the example of the federal government as negotiations with First Nations look likely to wrap up.

“We don’t just pick this stuff out of a hat,” she said.

Crop insurance payments and health expenses also came in higher than projected. Harpauer said the sum is just a small sliver of the province’s $14-billion budget, though she remains “mindful” of the new expenses. She predicted other ministries will find savings to compensate.

“I’m still quite confident we’ll stay on track.”

Saskatchewan’s mid-year financial update pegged the provincial deficit at $348.3 million for 201819, the third consecutive fiscal year the government spent more than it brought in. Harpauer said she remains confident she’ll be able to table a balanced budget this spring.

“We have seen some economic growth this past year,” she said, “and the projections are for continued growth, albeit modest.”

But Meili said he doesn’t believe that. Even if the columns add up to zero, he predicts the upcoming budget will be little better than a marketing ploy. He said the special warrant funding looks like a way to keep spending from hitting next year’s books.

“That seems to me like one of the many tricks we’ll see from this government to try to pretend that the upcoming budget is balanced,” Meili said.

Harpauer said resource revenues came in over budget at midyear, but have since dwindled back toward the forecast at budget time and could come in under initial projections.

Special warrants are typical as the year wraps up and ministries find their coffers running low. But Harpauer acknowledged that the figure for treaty land entitlement is “unusual.”

Treaty land entitlement stems from a 1992 agreement between the province, the feds and initially 25 First Nations, later expanded to 33. It compensates bands that did not receive the amount of land they were promised under treaties signed to clear the way for European settlement.

The warrant also includes $43 million for health. The Saskatchewan Health Authority will get $25 million to fund an operating shortfall caused by increased health system utilization.

Meili said it’s the second time this year the Ministry of Health has come looking for more money. He argued it stems from a lack of spending elsewhere to prevent people from getting sick.

Harpauer took issue with that, pointing to increased spending on health and social services since the Saskatchewan Party government took office.

The Ministry of Agriculture will get $37.6 million in new funding, with most of it going to cover higher-than-expected crop insurance claims and Agristability Program payments for lentils, chickpeas and hogs.

The Ministry of Advanced Education will get $12 million, partly because of higher university enrolments.