Province warns rural municipalities that while infrastructure funding is coming, future revenue sharing will be down
Rural municipalities received good news and bad from the Saskatchewan government last week.
New funding is on its way to help with infrastructure projects but government relations minister Don McMorris warned that revenue sharing will be down in the future.
The province commits .75 percent of PST revenue to municipal revenue sharing, based on previous years. Last year, municipalities shared a record $278 million, which was based on 2018-19 public accounts.
Rural municipalities received nearly $80 million of that.
The 2021 budget coming in April will include revenue sharing of about $275 million. But after that, the effect of COVID-19 on budgets will be felt.
Read Also
First annual Ag in Motion Junior Cattle Show kicks off with a bang
Ag in Motion 2025 had its first annual junior cattle show on July 15. The show hosted more than 20…
McMorris said while municipalities benefit when PST intake is strong it also means that they have to accept when it drops.
“We don’t know what this year is going to total out as far as PST, but part of the municipal revenue-sharing plan was to provide predictability into the future so I would say to municipalities across this province be aware of this fiscal year as PST is projected to drop,” he said during an address to the Saskatchewan Association of Rural Municipalities. “We don’t know how much, but that will be felt in a couple years’ time.”
McMorris announced spending of $33 million for 26 projects to improve recreation, water and bridge infrastructure. Of that, $22 million is coming from Ottawa and the remainder from the province. The recipients are also spending an additional $12 million.
Not all the projects will be in rural municipalities but two are bridge replacements in the RMs of Porcupine and Preeceville.
In his address to delegates, premier Scott Moe announced the province will advance $11.2 million in stimulus funding for the Rural Integrated Roads for Growth program to get a head start on this year’s construction season.
As well, he announced $2 million over the next two years to help with channel clearing. The original budget through Water Security Agency was $600,000 over two years.
SARM president Ray Orb said more infrastructure money is a constant concern for municipalities. He said SARM believes it is not getting its fair share from the federal government.
“We have over 1,400 bridges for one thing and unless we can acquire hundreds of millions of dollars to replace them, our transportation system in our province will soon be in jeopardy,” he said.
Meanwhile, Moe said the coming budget will include more money for long-term care, a sector particularly devastated by the COVID-19 pandemic.
“It’ll be a budget that protects, builds and grows,” he said during his speech.
The Saskatchewan budget is expected April 6 when the legislature reconvenes for a spring sitting.
