April 12, 2018
Deficit reduced to $365 million, overall expenditures decrease by $200 million.
On Tuesday, April 10, 2018, the Honourable Donna Harpauer, Minister of Finance delivered a budget for 2018-2019. The province remains committed to its plan to return to balance by 2019-2020.
Of Interest to Credit Unions
- The Saskatchewan Housing Corporation (SHC) will launch the Seniors’ Education Property Tax Deferral Program in April 2018. About 1,600 low- to moderate-income senior homeowners will be able to defer the education portion of their property taxes through a repayable loan. CCUA will be contacting SHC for more information on how the program will be administered.
- The Saskatchewan Value Added Agriculture Incentive (SVAI) creates a 15 per cent non-refundable and non-transferable tax credit for new or existing value-added agriculture facilities that make a minimum capital investment of $10 million to expand productive capacity.
- A two-year pilot program will offer a 45 per cent non-refundable tax credit for individual and corporate equity investments in eligible technology start-up businesses (ESBs) capped at a maximum annual benefit of $140,000 per investor.
- The Saskatchewan Rental Housing Supplement will suspend the intake of new applications while a new rental support program is being co-developed with the federal government as part of the new National Housing Strategy. CCUA will monitor the implementation of this commitment.
- The new single provincial health authority is projected to save the province approximately $19 million with lower governance and administrative costs now that the two health regions have been amalgamated.
- The government is restoring $30 million in funding to K-12 education, which the Premier promised during his recent leadership campaign. This additional funding represents a 1.6% increase.
Returning to balance
- Provincial sales tax remains at 6%.
- Personal income tax rates are unchanged, pausing the rate reduction plan announced in 2017.
- PST exemptions for light used vehicles and for Energy Star appliances are being eliminated. (PST will not be applied to the private sale of used vehicles with a purchase price of up to $5,000.)
- SaskPower and SaskEnergy will pay grants-in-lieu of property taxes on owned real-estate assets in Saskatchewan (i.e. office buildings), but exclude generation, transmission, and distribution facilities, as well as pipelines and land.
- SaskEnergy will now collect a municipal surcharge on behalf of all urban municipalities at a rate of five per cent. This charge will appear on SaskEnergy customer bills. Municipalities can choose to opt-out of this program.
- The government is hoping to realize the bulk of its savings with $352 million in reduced pension liability and reduced Teachers’ Superannuation plan expenses.
- The government is looking for $70 million over two years in public sector compensation savings.
- Total revenues are forecast to be $14.24 billion, up 0.6%.
- Taxation—$7.21 billion
- Non-Renewable Resources—$1.48 billion
- Net Income from Government Business Enterprises—$1.08 billion
- Other Own-Source Revenue—$2.01 billion
- Transfers from the Federal Government—$2.46 billion
- Total expenses are forecast to be $14.61 billion, down 1.4%.
- Agriculture—$770.9 million
- Community Development—$642.6 million
- Debt Charges—$654.6 million
- Economic Development—$230.2 million
- Education—$3.26 billion
- Environment and Natural Resources—$251.7 million
- Health—$5.77 billion
- Protection of Persons and Property—$689.9 million
- Social Services and Assistance—$1.38 billion
- Transportation—$519.3 million
- Other—$439.7 million
If you have any questions, please don't hesitate to contact Leslie Trobak at email@example.com or at 306 271 0407.
Our thoughts are with all those impacted by the Humboldt tragedy and we extend sincere condolences to those who have lost loved ones.