Flooding will cost Saskatchewan taxpayers at least $161.7 million this year, mostly in agricultural payments for unseeded acreage.
Finance minister Ken Krawetz last week released the government’s first quarter financial report, saying unexpected weather-related costs will be offset by increases in non-renewable resource revenue.
“We have been able to meet some significant challenges and still stay on track to a balanced budget,” he told reporters.
Most of the extra spending is $144 million for the province’s share of the $30 per acre excess moisture program available to producers who couldn’t seed.
The Provincial Disaster Assistance Program, which assists individuals who lost property or infrastructure, will pay out at least $18.5 million.
“The amount of expense in PDAP is still a very uncertain number,” Krawetz said.
Claims could still come in and this year’s stormy weather might not be over, he said.
The province has applied to Ottawa to have its disasters considered a single event. That would result in optimal federal assistance.
Deputy finance minister Karen Layng said that is still under negotiation. PDAP benefits are usually paid out over four years and on the basis of actual receipts.
She anticipates the federal share of the costs will be between 80 and 85 percent.
“In this particular report, we are anticipating that by the end of this year the province will pay out $18.5 million and we are anticipating … $13 million in federal revenue to offset that,” Layng said.
Officials are forecasting a revenue increase of $215.2 million. Crown land sales for oil and mineral rights are expected to double the budget forecast, while potash, oil and natural gas revenues are likely to be lower than budgeted.
“While we have suffered a setback in agriculture because of flooding, the economy continues to perform very well in other areas,” Krawetz said.
He still expects a $20 million surplus as budgeted, and $797.3 million in the government savings fund.
But NDP finance critic Trent Wotherspoon said the government is running a $600 million deficit when the crown sector spending is included in the numbers. The finance department only reports summary financial statements at mid-year and year-end.
Last week’s numbers also showed that spending on the ethanol tax rebate program is up $2.3 million from budget. That’s because the original program was extended while changes announced in the March budget are being made.
Those changes will cut the subsidy amount payable to ethanol producers to nine cents from 15 for companies that produce up to 25 million litres and to six cents for producers of more than that.
The move is expected to save $12 million.
