Budget Day

Thursday, March 19, 2009

I went to the legislature to attend the reading of the 2009-10 budget yesterday.

Obviously we need to spend some time analyzing and understanding the full implications of this budget. At first glance, however, some important concerns are apparent.

The numbers

The revenue projections for the budget are based on economic growth for the province of 2% in the coming fiscal years. The most optimistic private sector predictions are 1%. ScotiaBank predicts 0% growth.

Based on these rosy projections, the SaskParty has increased spending by 12%. This is quite worrisome. If their optimistic predictions prove to be incorrect, we will face significant shortfalls and have to dip further into the “Rainy Day Fund” that the SaskParty has already depleted from 1.8 to 1.2 billion.

Of greater concern is that the huge reliance on potash royalties to fund nearly 20% of the global budget. In light of recent layoffs and cuts in production in the potash industry this seems an unwise place for the government to hang its financial hopes.

The SaskParty has a very strange approach to government. They seem to think they can cut taxes and increase spending. The result will be deficit and debt, hard times for Saskatchewan people, and another mess for the next NDP government to clean up.

There are some praiseworthy elements to the budget. The long overdue Children’s Hospital and the improvements in property tax regimes for rural communities are positive steps. My concern is that this budget is so unstable that these positive changes may prove unaffordable.

What’s missing

Another story in this budget is what wasn’t there.

There is nothing to address the overall health of our most vulnerable communities. The West Side Community Clinic on 20th Street in Saskatoon serves the people of some of Saskatchewan’s most disadvantaged neighbourhoods. Recent months have seen a spike in HIV rates, homelessness and other health and social problems in the area. Many agencies want to use the longstanding reputation and community connection of West Side as a base to address these problems. However, the clinic is bursting at the seams and cannot accommodate many of the services needed without expansion.

As you may remember, West Side was set to have an expanded clinic as part of the Station 20 West project. When the SaskParty government revoked the 8 million dollars dedicated to Station 20, West Side’s expansion hope were stalled. However, they were asked to prepare proposals for expansion and led to believe they would receive funding for an expansion at a different site. This week they learned that no such funding would be in this budget.

Considering the huge health disparities in Saskatoon’s Core Neighbourhoods, this is a travesty of neglect that will cost lives and livelihoods. It is also a symptom of a wider problem in this budget and the approach of this government. There is a lot of focus in this budget, and in the recent “booster shot”, on physical infrastructure.

There is nothing to ensure post-secondary education remains affordable. The tuition freeze is gone and fees are set to go up. The SaskParty has missed an opportunity to invest in the future knowledge economy. For countless parents throughout the province, any savings in education property taxes will be more than offset by the additional cost of helping their children face higher tuition and fees.

There is virtually nothing for the environment. Perhaps the most pressing issue of our time gets $14 million for carbon sequestration and a small retro-fitting program. This is business-as-usual thinking that does nothing to address climate change or our energy future. Rather than investing in renewable energy and conservation, this government is putting all its eggs in the expensive and unsustainable nuclear basket and ignoring the real environmental challenges we are already facing.

There is almost no attention paid to human infrastructure, to investing in the people of Saskatchewan. I see nothing in this budget that indicates a long-term plan for addressing poverty, the mounting housing crisis, issues facing First Nations and Métis communities, or any of the other issues that really affect people’s health, wellbeing, and ability to participate in the economy and society. In fact, I see nothing that indicates a long-term vision at all.

Our Future Together

We need a government that will show leadership. We need a plan not for one fiscal year, not for one election cycle, but for a generation. We need to inspire and engage citizens rather than disappoint and ignore their real needs. We need a long-term vision. Today’s budget didn’t deliver what we need.