The Saskatchewan government will spend its way out of the pandemic on big items like highways and construction.
That creates jobs and will lead to economic recovery, according to the Saskatchewan Heavy Construction Association.
“In a time when our provincial economy is sluggish, our industry is thankful for the provincial government’s continuation of spending in our sector,” association president Shantel Lipp said in a release. “We believe our industry is one that will lead us to economic stability and future growth.”
This is the third year of the Saskatchewan government’s five-year, $100-million commitment to enhancing highway safety across the province. This construction season will see $22 million dedicated to increased safety at five major intersections in southern and central Saskatchewan.
“The continuation of spending is something that is going to keep our economy growing. We’re thankful to this government for the continued investment and for recognizing that our industry is essential to keeping our economy strong,” Lipp said.
“Road builders and heavy construction contractors are essential and the work they do is an essential service. They ensure to the people of this province a network of fully functioning, safe and reliable infrastructure. They allow manufacturers to distribute supplies to grocery stores, fuel to gas bars and those requiring medical care to hospitals.”
The Regina Chamber of Commerce is supportive of the budget and recognizes COVID-19 remains a challenge.
In a news release Tuesday, the chamber highlighted the new addition of the road user fee for electric vehicles. It stated that type of fee is charged in approximately 15 states, including California. The policy reflects the growing trend toward electric vehicles and the need to maintain transportation infrastructure.
“The Regina & District Chamber of Commerce is strongly of the view that the government’s primary focus must be the health and safety of the people and businesses of the province as well as the economic recovery of the province,” added chamber CEO John Hopkins.
“At the end of the day our province and the vast majority of the people of the province rely upon a healthy economy, one that is positioned for growth. We are on that trajectory with a great deal more to be done.”
The Canadian Taxpayers Federation thinks the government needs to do a better job of curtailing spending.
“It’s true the pandemic is creating costs for government, but every family and business has found ways to save money and the province needs to do that as well,” said Todd MacKay, the CTF’s prairie director. “Spending is going up in 10 out of the 11 major budget categories.
“It’s good to see the Saskatchewan government set a target to balance the budget, but it needs to work harder to hit that target earlier.”
The Saskatchewan budget now projects a deficit of $2.6 billion. The province’s taxpayer-supported debt is projected to hit $17.9 billion this year and soar to $25.2 billion by 2025. This year, Saskatchewan will spend $755 million just to cover the interest charges on the debt.
The Saskatchewan Federation of Labour (SFL) thinks the government should be doing more for workers at this crucial time in the pandemic.
“Today was an opportunity for the government to put workers first, and make meaningful investments that would create jobs and get people back to work, make workplaces safer, and ensure that workers have the supports they need to be able to get through the rest of the pandemic,” said SFL president Lori Johb. “Unfortunately, this budget offers very little for the working people who have been on the front lines of this crisis since day one.”
The SFL wants to see a $15-an-hour minimum wage that would boost the economy and wage top-ups for frontline workers.
It’s not all good news for the Saskatchewan School Boards Association.
“The operating increase announced today in the province’s 2021-22 budget will ensure the collective bargaining agreement with teachers is fully funded next year,” said Dr. Shawn Davidson, president of the SSBA. “It’s important to note though that other inflationary costs are not covered in the increase and therefore school divisions may have difficult decisions to make.”
In a news release, Davidson states school boards are appreciative of the federal and provincial dollars that have been allocated over the past year to address urgent and emergent matters related to the pandemic. The focus on health and safety of students, staff and communities continues to be at the forefront during these challenging times and will be ongoing as the effects of the pandemic on school systems continue to be realized, he said.
“As we start to plan for what future years are going to look like, the overall message that we hear from school boards is around the importance of predictable and sustainable funding,” Davidson added. “As we move forward, post-pandemic, we really need to have a deeper conversation about how education is funded.”