CENTENNIAL BUDGET BUILDS FOR THE NEXT 100 YEARS

"We are building for the next 100 years."

That was the message Finance Minister Harry Van Mulligen delivered in handing down the government's centennial year budget which revealed record levels of funding to health and education, a one-time Centennial University Tuition Grant, which will allow our two universities to hold tuitions at 2004-05 levels in the Centennial year, measures to build on the province's strong economic momentum and significant capital investment to leave legacies into the next century.

"We are funding Saskatchewan peoples' priorities," Van Mulligen said in handing down government's 12th consecutive balanced budget. "With this Budget, we've funded health and education to record levels. There are no tax increases. We've enhanced social programs. We're establishing an independent Business Tax Review committee, to see how we can make Saskatchewan an even better place to do business. And, with a significant capital budget of almost $327 million, we're literally building for future generations."

"This budget marks year two of our four-year fiscal plan. It is a plan that continues on the path that has turned our financial situation around. A path that has enabled us to see a vast improvement in the debt to GDP ratio. A path that has enabled us to continue to invest in Saskatchewan priorities. A path that has garnered us 11 credit rating upgrades," Van Mulligen said. "We are building on a proud tradition in this, our Centennial year."

Highlights of Budget 2005-06 include:

· 12th consecutive GRF balanced budget

· No tax increases

· $6.7 million one-time Saskatchewan Centennial University Tuition Grant, allowing our two universities to hold tuitions at 2004-05 levels in the Centennial year

· $6.5 million in new funding for youth initiatives

· $55.05 million in education property tax relief; $110.1 million over two years

· Health spending of $2.9 billion (up 7.1 per cent or $192 million)

· Education spending of $1.2 billion (up 6.8 per cent or $74.4 million); when including teachers' pensions and benefits, the total climbs to $1.33 billion

· $326.9 million in total capital spending

· $57.9 million in health capital for buildings and equipment, including funds for facilities in Swift Current, Ile-a-la-Crosse, Preeceville, Moosomin, Maidstone, Outlook, Humboldt, Saskatoon and Regina, as well as $1.2 million for first steps toward a new Provincial Lab ($27 million committed in total for the lab)

· $19.2 million for forest fire capital in 2005-06, including the purchase of two CV-580A tracker aircraft as well as infrastructure upgrades. This is part of the $42 million announced at Mid-Year 2004-05 to modernize our forest fire fighting fleet. Last year, two bird dog guide planes were purchased; as well, we signed agreements to overhaul six amphibious water bombers.

· $3.9 million for the first year of replacement of the 1913 section of the Regina Correctional Centre ($40.7 million committed in total)

· $3.15 billion in transfers to third parties such as schools, municipalities, hospitals, etc. (up 7.3 per cent or $215.3 million)

· 3.0 per cent real GDP growth in 2005

· 28 per cent debt to GDP forecast (compared to a high of 69 per cent in 1993); it's dropped by almost 40 percentage points in a little over a decade

· $179.3 million in permanent debt reduction in 2004-05; heading into 2005-06, Saskatchewan's government debt is now at its lowest point in 14 years

"Saskatchewan's economy is performing well, and measures in this Budget will encourage the economy to grow. With this Budget, we continue to build a bright future for Saskatchewan youth, with more training seats and tuition grants – we want our youth here, to help us realize even greater potential.

"Our social programs are significantly enhanced and will continue to help those who need it most. This Budget includes increases in social housing units and related supplements, increases in child care spaces, and increases in allowances for people with disabilities. We're also enhancing our immigration efforts, to bring more qualified workers to Saskatchewan and help build this great province – echoing the pioneering spirit of 100 years ago. Indeed, 'from many peoples, strength'.

"And, our capital investments will ensure legacies that last into the next century," Van Mulligen added.

"Our government has long maintained that Saskatchewan is an excellent, affordable place to live and raise a family. As the home of Medicare, we have the best health care in Canada. We enjoy a green and prosperous economy. And, we have opportunities for young people," Van Mulligen said. "This budget delivers on those themes."

Ensuring Saskatchewan is an Affordable Place to Live and Raise a Family

· $85 million in revenue sharing continued for municipalities; since 2002, we have provided incremental funding to municipalities through revenue sharing of over $90 million

· $110.1 million over two years for education property tax relief

· $1.9 million increase for social and human service Community Based Organizations

· 600 new affordable housing units committed for 2005, with the goal of 2,000 by 2008

· $7.7 million to increase the adequacy of support for low-income families in Saskatchewan through affordable and quality housing. The Saskatchewan Rental Housing Supplement includes the new Family Housing Supplement (providing up to $113 a month for up to 10,000 low-income families) and the new Disability Housing Supplement (providing up to $151 a month for as many as 3,000 households for people with disabilities)

· $3.15 billion in third-party transfers (up $215.3 million or 7.3 per cent over 2004-05)

· With federal funding of $21.7 million in 2005-06, we are investing in Saskatchewan children by developing a new provincial plan for Early Learning and Child Care, building on the previously announced Child Care Saskatchewan that will create 250 spaces this year, and a total of 1,200 new child care spaces by 2007

· An investment of $6 million to provide further resources for low-income families and individuals and to improve their ability to get work and become independent. This includes an increase to the Saskatchewan Assistance Plan's adult basic allowance, benefiting 24,000 individuals on social assistance. There is also funding to help low-income families to cope with higher rent levels, and a boost to the Child Nutrition and Development Program.

· $45,000 in Energy Conservation grants for families acquiring homes through the Neighborhood Home Ownership Program.

· 625 caseload reduction in Social Assistance Plan caseloads by providing programs and services to help low-income people find and maintain work

· Funding for 18 new police officers, for a total of 169 officers hired since 1999, to help keep our communities and families safe.

· Intercity comparison of taxes and household charges shows Saskatchewan is one of the most affordable places in Canada to live and raise a family; one of the factors being Saskatchewan families having the lowest utility rate bundle in the country

Providing the Best Health Care in Canada

· $2.9 billion in health spending (up $192 million or 7.1 per cent)

· Health capital of $57.9 million for buildings and medical equipment, a $17.8 million or 44.6 per cent increase

· $4.0 million to expand surgical volumes and reduce wait times for 1,200-1,500 additional patients who have been waiting more than 12 months

· $4.7 million to increase MRI, CT and bone mineral density testing volumes (4,600 additional MRI scans, 16,500 additional CT scans to bring the total over 102,000, and a 50 per cent increase in bone mineral density testing)

· $9.25 million to continue primary health care reform by establishing 23 new primary health sites

· Expanding cancer treatment capacity, allowing room for close to 250 new patients, more than 560 chemotherapy visits and close to 2,000 additional radiation treatments

· Training and recruiting health professionals, including:

- 280 new and 109 continuing bursaries for students in nursing, internships, specialized health fields and other disciplines

- 50 new and 65 continuing physician bursaries

- $547,000 for nine new residency seats at the College of Medicine, with four of those seats reserved to provide foreign-trained doctors with better access to residency positions

- 100 new nursing education seats in the Nursing Education Program of Saskatchewan and 40 new seats in Northern NEPS; total nursing seats will increase to 1,332 for the four-year program

· $3.9 million to fund new childhood vaccines including the meningococcal and chicken pox vaccines introduced in 2004-05 and the pneumococcal vaccine to be introduced in 2005-06

· $2.8 million to expand renal dialysis capacity, increasing dialysis treatments by 8,000 procedures

· $2.4 million for initiatives to improve wait list management and improve non-surgical treatment options for back and major joint injuries

· $1.8 million to continue development of the electronic health records through the Saskatchewan Health Information Network

· $1.8 million to introduce a provincial alcohol and drug strategy

· $800,000 to improve public health capacity - funding will be used to hire additional Regional Health Authority public health officers, increase provincial readiness to respond to a major public health threat and provide initial public education and enforcement for the province-wide public smoking ban

Building a Green and Prosperous Economy

Green Economy:

· $19.2 million on fire program enhancements, including purchase of two CV-580A tracker aircraft, to help protect our northern forests and communities

· $22.7 million under the Canada Saskatchewan Infrastructure Program, including $10.8 million in federal provincial municipal infrastructure projects primarily dedicated toward "green" infrastructure (such as water and wastewater systems, energy efficient public transit, waste management and recycling initiatives)

· $9.2 million under the Canada Saskatchewan Municipal Infrastructure Fund, with an estimated $3.4 million of that total for green projects

· $4.9 million in rebates under the Ethanol Fuel Tax Rebate program

· $1 million in anticipated PST savings for purchasers of EnergyStar appliances. Point-of-sale PST exemptions are effective April 1st

· $900,000 for the Great Sand Hills Environmental Study to determine future land uses in the area

· $500,000 for parks maintenance equipment

· $100,000 for assessment of cost and process to clean up abandoned non-uranium mines

· $43,000 SARCAN grant increases

· $200,000 for Green Team Employment, to provide about 100 students with environment-sector summer job opportunities

· $24.6 million for continued implementation of the Safe Drinking Water Strategy

· $1 million for the Energy Sector Initiatives Fund to support research and development activities related to energy development and conservation

· $1.7 million for investments to increase energy efficiency of government buildings

· SaskPower's Green Power Portfolio ensures Saskatchewan's electricity needs over the next four to five years will be met from environmentally friendly sources that do not increase greenhouse gas emissions

· SaskPower will complete the Rushlake Creek wind power facility, which will add 150 megawatts of zero emission alternative energy - that's enough to provide green power to 64,000 homes

· $400,000 to provide 22 per cent of executive government's power consumption from wind energy

Prosperous Economy:

· Business Tax Review commitment, acting on recommendations of the Saskatchewan Institute of Chartered Accountants and others at the Saskatchewan Centennial Summit, to look at improving business taxation to encourage job creation and investment. This independent committee will make recommendations to government in time for 2006-07 budget deliberations.

· $125 million in capital for our roads and highways – including significant twinning initiatives on Highway 1 East, Highway 16 between North Battleford and Lloydminster, and Highway 11 from Warman to Rosthern

· Creation of a new department of Rural Development; to act on priorities of the ACRE committee to explore and expand on ways to make rural Saskatchewan thrive

· Fully funding the province's portion of crop insurance and maintaining the funding level for CAIS at $98.8 million for the 2005 claim year

· $600,000 in new funding including $400,000 to deliver federally cost-shared Enhanced Language Training services, $150,000 to implement an immigration internship pilot project that will facilitate connections between immigrant and refugee job seekers and employers, and $50,000 to enhance settlement agency assessment and referral services

· Nominating for federal approval/entry an estimated 400 immigrants under the Saskatchewan Immigrant Nominee Program

· $2.8 million in savings for industry in 2005-06 through the Enhanced Oil Recovery (EOR) royalty and tax incentive strategy to improve the investment climate for EOR projects

· $137 million in Research and Development funding, which includes $12.4 million for agricultural research, $1 million for the Petroleum Technology Research Centre and $860,000 for expansion of the Geological Core Library

· $800,000 in annual savings for the aviation industry by reducing tax on aviation fuel from 3.5 to 1.5 cents per litre to encourage major airlines and aerial applicators to purchase aviation fuel in Saskatchewan; and eliminating the fuel tax on aviation fuel used in international flights that have a scheduled stop in Saskatchewan (both measures effective midnight, March 23rd)

· $700,000 in annual savings under the Prorated Vehicle Tax (PVT) for Saskatchewan interprovincial truckers by permitting a refund of the PVT on vehicle registrations cancelled during the registration year. Average annual PVT paid on behalf of each truck is about $545, with some companies incurring PVT costs of as much as $4,885 per truck. (effective Oct. 1st)

· More support for economic development including an increase of $4.7 million for the film employment tax credit, an increase of $1 million for the Western Economic Partnership Agreement, an increase of $4 million for the ethanol fuel tax rebate, an increase of $727,000 for Tourism Saskatchewan and an increase of $200,000 for the Saskatchewan Trade and Export Partnership grant

· Two major business initiatives from SaskTel will be rolled out over the next few years, providing economical Internet access to rural communities, farms and northern and remote areas of the Province to let businesses in these regions leverage the same competitive advantage through advanced communication as urban businesses. CommunityNet II will provide wireless high-speed Internet access to a minimum of 71 communities in the province and their surrounding areas over the next three years. The Northern Broadband Network (NBN) initiative, to be completed at the end of 2006, will see the expansion of high-speed Internet to 35 northern communities. Once these initiatives are completed, SaskTel will provide high-speed Internet access to about 86 per cent of the population.

· The province's new investment Crown, Investment Saskatchewan Inc., continues to proactively source and invest in companies which will increase economic activity in the province. In 2005, up to $50 million has been earmarked for investment opportunities in provincial businesses that show growth potential and promise commercial return.

Building the Future Here for Young People

· $1.2 billion in education spending (an increase of $74.4 million or 6.8 per cent); when including teachers' pensions and benefits, the total climbs to $1.33 billion

· $32.1 million in capital, including government-owned and third-party capital

· 160 million in total to fund more than 27,000 training spaces

· $16.2 million (6.8 per cent) increase for universities, federated and affiliated colleges, which includes:

- $6.7 million for the Saskatchewan Centennial University Tuition Grant

- $4.7 million (2.0 per cent) increase in operating grants

- $3.8 million for accreditation at College of Medicine

- $888,000 for enhanced and expanded nursing programs as well as College of Medicine enrolment expansion

· a $4.75 million (6.8 per cent) increase for SIAST, which includes $900,000 for expansion of the Nursing Education Program of Saskatchewan

· $6.5 million in new money for youth initiatives which includes $3.4 million to expand the Saskatchewan Bursary program by increasing bursary assistance for up to 10,000 students, $2 million to increase training opportunities through 1,000 additional training opportunities in JobStart/Future Skills, Basic Education and Apprenticeship programs, doubling the Centennial Merit Scholarship Program from $500,000 to $1.0 million for 2005-06 to be matched by post-secondary institutions (and quadrupling it by 2007-08, to $2 million), $150,000 to bring youth interns to Agriculture and Food to work on the agri-business development agenda, $100,000 to establish local councils to enhance employer relationships with youth and strengthen involvement in development, design and delivery of K-12 and post-secondary initiatives, and $300,000 in additional funding for digital learning (on-line courses) at the K-12 level

· Providing student loans to 16,500 students

· Reserving 86 seats for Saskatchewan students at post-secondary institutions across Canada, including five new seats in Sonography

· At least 700 jobs for youth created through the Centennial Student Employment Program, and an additional 100 Green Team environment sector summer jobs for students

· Nine work-term placements at government's Information Technology Office, including six spots for First Nations students

· Government has provided $7.5 million for the Western College of Veterinary Medicine, $30 million for the Lab Building at the U of R and $27.6 million for renewal and capital maintenance at the universities and federated colleges

· The Small Business Loans Association program will continue its youth component for successful applicants between 18-30 to start up/expand their business

· Increase in the Graduate Tax Credit for post secondary grads, to $675

· As well, there are numerous employment initiatives in the Crown sector targeted toward youth and aboriginal participation, including:

- Aboriginal Bursary Program: $2 million in bursaries over five years for Aboriginal students enrolled in FNUC or U of R (to assist 34 students a year; recipients will receive $2,500/semester)

- Gradworks: hiring 250 interns over five years through the Gradworks program, to provide post-secondary graduates with internships in Crown corporations. CIC will pay gross salary of $2,300/month, which Crowns may top up. 85 participants are targeted for 2005.

- U of S Math & Science Enrichment Program For Aboriginal Students: will serve as an important bridge to careers that require a background in mathematics and science, providing a structured and supportive learning environment for up to 50 Aboriginal students each year. $1.05 million over five years dedicated to this (for instructors, elders), with program starting in fall of 2005.

· at the K-12 level:
- $527.9 million in Foundation Operating Grants (same as in 2004-05)

- $4.5 million for school division restructuring costs

- 16.9 million for major projects at Saskatoon, Ile-a-la-Crosse, Warman, La Loche, PA, and Moose Jaw; and $9.7 million for smaller maintenance and renovations throughout the province

- $55.05 million for education property tax relief will be expensed in 2005-06 (estimated tax reduction of 8 per cent of the education portion of property tax)

Van Mulligen added that along with various community events and festivities organized through the Centennial Office, individual departments are undertaking numerous special initiatives to celebrate the centennial year, ranging from special parks promotions to establishing a genealogical data base for historians and genealogists looking to research their roots in the Centennial year.

"This Budget expands on what have achieved over the past century – and builds for our next 100 years."

For a list of significant capital projects, and all other Budget-related documents, please visit www.gov.sk.ca/finance.

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For More Information, Contact:

Lorri Thacyk Finance Regina Phone: (306) 787-6605 Cell: (306)537-0943