$200 million contingency fund spent
The Saskatchewan government has used up the contingency fund it set aside for the COVID -19 pandemic, and then some, as cabinet approves $322.8 million in unbudgeted spending.
The spending was approved through special warrants, which allow cabinet to pay for added expenses when the legislature isn't sitting, and announced through a news release Monday.
The 2020-21 budget had set aside $200 million as a contingency for unexpected costs related to COVID-19. The government already used $40 million of that money to pay for its Safe School Plan in August.
The remaining $160 million is now being allocated as follows:
■ $75.6 million for Saskatchewan Health Authority (SHA) COVID -19 pressures;
■ $20 million for the Saskatchewan Small Business Emergency Payment Program;
■ $17 million for tourism;
■ $14.2 million for Municipal Grants for Growth;
■ $12.3 million for public safety response;
■ $9.9 million for custody services;
■ $5.5 million for the chief electoral officer;
■ $3.2 million for court service enhancements;
■ $1.8 million for Saskpolytechnic Dental Lab renovations;
■ $500,000 to support the Conexus Arts Centre
But that doesn't fully cover the cost of added expenses, some of which were unrelated to the pandemic. Six ministries came looking for extra funding.
The largest sum allocated through the special warrants goes to the Ministry of Health, which needed a total of $179.5 million more than provided for in the budget.
That includes $75 million to address SHA service pressures, $52.9 million for various costs across the health system and $50.3 million for equipment purchases related to COVID -19.
The Highways Ministry gets the second biggest boost, with $96 million in total.
That includes $57 million to pay for contractors who did extra work due to a good construction season.
The Ministry of Corrections, Policing and Public Safety got $35.4 million, with the large majority related to COVID-19 pressures, including added salary costs for overtime at correctional centres. Smaller amounts for the ministries of justice, agriculture and advanced education rounded out the list.
Meanwhile, the NDP criticized the government for holding off on its third quarter financial report. Usually, the report would come along with the budget in March.
But now both are delayed until an unusually late start to the legislature's spring sitting on April 6.
In a news release, NDP finance critic Trent Wotherspoon said the people of Saskatchewan deserve transparency about the province's finances at “a critical point in our economic history.”
“There's absolutely no reason why they should be hiding last year's finances two months after the end of the third quarter,” said Wotherspoon, “especially since all the large Crown corporations have released their reports.”
Saskatchewan's mid-year report pegged the 2020-21 deficit at just over $2 billion, about $382 million better than the June budget.