Scott Moe defends Saskatchewan’s municipal funding formula amid city pressure

Saskatchewan Premier Scott Moe says the province has no plans to change its municipal revenue-sharing formula, pushing back on suggestions that cities like Regina and Saskatoon should receive a larger share as they face growing service demands.

Speaking to rural leaders this week, Moe defended the province’s long-standing model – which is based on three-quarters of one point of PST revenue – as predictable and stable, even in what he described as a tight budget year.

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Saskatchewan announced this week that municipalities will receive a record $392.4 million through municipal revenue sharing in 2026-27, up $30.7 million from the previous year.

“It’s a formula-based (model),” Moe said.

“It’s not available anywhere else in Canada. It is exclusive to municipalities in Saskatchewan.”

Moe said the government had to make difficult decisions heading into the upcoming provincial budget, which is expected to include a deficit when it is tabled on Wednesday, but chose to continue the program.

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“This is an example of a number of decisions that we had to make as a government this year, in a very tight budget year, like every other province is, you know, do we start to look at trimming programs like this? And we didn’t,” Moe said.

The comments came after the premier was asked whether Saskatchewan had considered changing the formula to direct more money toward its two largest cities, where leaders have spoken publicly about financial pressures and the need for more revenue.

Regina Mayor Chad Bachynski recently said the province’s revenue-sharing agreement was appreciated, but cities need more diversified sources of income to support growth.

Moe shut down the idea of amending Saskatchewan’s model.

“The formula is there, and we continue to follow it,” he said.

Moe said larger urban centres have already benefited from substantial provincial capital spending outside of the revenue-sharing model, particularly in health care.

“When you see some of the builds in our larger centres, and I would point to some of the capital flows, not just the (Investing in Canada Infrastructure Program) projects from the federal government and such, but some of the capital flow in our provincial health-care system where the hospitals in Saskatoon and Regina and, more recently, Prince Albert, they’re 100 per cent capital funded by the provincial government,” he said.

Moe contrasted that with smaller communities, where local fundraising has historically played a more significant role in hospital construction.

The premier also acknowledged that many rural communities facing a challenge keeping up with aging infrastructure and limited tax bases.

“The amalgamation discussion actually came up,” Moe said, referring to talks around villages potentially being absorbed into surrounding rural municipalities.

He said concerns included liabilities such as landfills or outdated water plants, and whether rural municipalities could afford to bear those costs.

“It’s an ongoing conversation,” the premier said, noting that operational costs for villages of less than 100 people are often quite high.

Moe pointed to a recent announcement from Government Relations Minister Eric Schmalz, who said the province is increasing support tied to those municipal pressures. Schmalz announced the record-setting revenue-sharing total earlier this week, ahead of the provincial budget.

Despite the challenges, Moe said he still sees a future for rural Saskatchewan, arguing the province’s economy depends on the connection between rural resource production and urban labour and investment.

“Our natural resources are in rural Saskatchewan, but the people that add value and produce those natural resources live in urban Saskatchewan,” he said. “It really is a scenario where, you know, one plus one actually equals something much more than two.”