BUDGET 2008-09: READY FOR GROWTH

$1 billion capital investment for hospitals and health facilities, schools, roads and highways

Ensuring Saskatchewan is "Ready for Growth" - that was the focus of the 2008-09 Provincial Budget handed down by Finance Minister Rod Gantefoer today.

"This Budget is about keeping our promises, and making sure Saskatchewan is ready for growth," Gantefoer said. "This Budget delivers on 40 of our government's campaign promises, and it begins to address the infrastructure deficit left by the previous government.

"Our $1 billion Ready for Growth Initiative is the largest infrastructure investment in the history of Saskatchewan and will help ensure we don't repeat the mistakes of other jurisdictions," Gantefoer said. "We want to manage our growth as we continue our economic momentum. We need the right facilities and the right equipment to educate and train more students, doctors and nurses. We need safe roads to carry the wheels of the economy and transport the important goods we send to markets around the globe."

The $1 billion Ready for Growth Initiative provides:

• $408 million for roads and highways across the province;
• $191 million to improve hospitals and health facilities, purchase medical equipment and to continue construction of the new provincial laboratory;
• $164 million for new K-12 school projects and post-secondary capital;
• $139 million for municipal infrastructure ($102 million) and community facilities ($37 million through the Building Communities Program); and
• $98 million for other initiatives - $27 million for forest fire fleet renewal and fire towers; $6 million for parks; $65 million for various government-owned investments such as completing construction of the Regina Provincial Correctional Centre, replacing FleetNet with an up-to-date emergency communications system, maintaining other government buildings and replacing equipment.

"Saskatchewan people gave us a mandate to govern based on promises we made" Gantefoer said. "I am very proud that this budget fulfils 40 of our commitments. Saskatchewan people are seeing real benefits in this budget. We're making investments in health care and nursing, in community safety, in students and graduates to encourage them to make their futures here, plus we're providing tax relief."

Budget 2008-09 highlights include:

• $156.6 million in education property tax relief - an increase of $48.7 million (annual savings for the average agricultural ratepayer: about $2,072; for the average homeowner: $133; for the average commercial/industrial ratepayer: $590);
• $621.1 million for school operating - an increase of $34.6 million or 5.9 per cent; 
• $130.1 million for revenue sharing for urban, rural, and northern municipalities - an increase of 7 per cent from 2007-08;
• $91.5 million to fully fund new agricultural risk management programs - AgriStability and AgriInvest (formerly known collectively as CAIS) for improved income support for producers; plus $129.8 million for Crop Insurance, an increase of $25.8 million;
• $45.3 million in funding for child care and early childhood development and learning (with 500 new child care spaces and 4 per cent wage lifts for child care workers);
• $25.5 million to continue the university tuition freeze;
• $12 million Graduate Retention Program - up to $20,000 tuition rebate for post-secondary graduates from Saskatchewan institutions who make their careers here;
• $20.7 million for nurse recruitment and retention - on top of the $60 million partnership with the Saskatchewan Union of Nurses funded in 2007-08;
• $10.5 million for more nursing training seats (120, bringing the total to 520 by 2009-10);
• $6.1 million for more physician recruitment, retention and training seats (100 medical students and 120 residents seats by 2010-11); and
• $5 million for foodbanks and Community Based Organizations (CBOs) - for life skills and job skills training. As well, CBOs will receive a $3.3 million increase for salaries and operating costs.

"We've also increased funding to maintain and enhance our parks, doubled the tax credit for caregivers and increased other tax credits to support people with disabilities and have funded school lunch and hunger programs," Gantefoer said. "We're keeping people safe by directing more money toward addictions treatment and sexual assault centres. We're making our communities safer by putting more police on the streets."

Gantefoer noted Saskatchewan's thriving economy has resulted in a $9.37 billion revenue forecast for 2008-09 allowing government to invest in $8.57 billion in expenditures.

"At the same time as our economy has allowed us to fund these, and many more initiatives, we are mindful - always - of the bottom line and how we move forward," Gantefoer said. "Sound fiscal management is paramount. This is our government's first budget; it is a balanced budget that includes a $250 million debt reduction to better position Saskatchewan for future generations.

"Our Government sees great things for this province. I'm confident we'll look back to this day and agree: we did make the right investments, we were Ready for Growth. Saskatchewan people will see real results from this Budget."

More information, including the fulfilled campaign promises, can be accessed under "Related Documents" at the bottom of the news release on the main government website, or by going to www.finance.gov.sk.ca.

-30-

For more information, contact:

Lorri Thacyk
Finance
Regina
Phone: 306-787-6605
Email: lthacyk@finance.gov.sk.ca