PROVINCE PROVIDES NEW FUNDS FOR COMMUNITIES

Saskatchewan people will benefit from a total of $42 million in immediate, one-time funding directed at local governments, as well as a $10 million increase in revenue sharing in the 2006/2007 fiscal year. Premier Lorne Calvert made the announcement today in his remarks to SUMA delegates at their convention in Regina.

The funding comes from the province's improved fiscal position and will flow to all urban, rural and northern municipalities for the benefit of all residents.

"The 1990's were a time for restraint and cutback at all levels of government - federal, provincial and municipal," Calvert said. "Now, as we reap the benefits of sound fiscal prudence at the provincial level, we need to reinvest and rebuild our communities."

The funding announcement includes:

• A one-time, $10 million dollar top-up to revenue sharing for the current fiscal year;

• One time funding of $32 million targeted to municipal capital needs through the new Community Share 2006 program; and

• A $10 million increase in revenue sharing starting in the next fiscal year, for a total of $95 million in annual, unconditional revenue sharing for all municipalities.

"The $32 million for capital funding is meant to address the needs of people and communities – new buildings, recreational or cultural facilities, water, sewers and roads – but municipalities will determine their own capital priorities for these funds," Calvert said.

The $32 million in funding to address capital priorities will be allocated on a per capita basis, and municipalities will determine the timing of their investments. This funding is on top of the province's commitment for $55 million in education property tax relief in 2006/2007 – the second year of a $110 million program.

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For More Information, Contact:

Jay Branch Media Services Regina Phone: (306) 787-6349 Cell: (306) 539-3994