By Tara de Ryk
December 14, 2009
As the fall session of the provincial legislature wrapped up Dec. 3, Premier Brad Wall said Saskatchewan is well positioned to take advantage of economic growth.

After his premier had touted the accomplishments of the government as the legislative session drew to a close, last week finance minister Rod Gantefoer warned of a spending freeze to come.

During pre-budget consultations, Saskatchewan's finance minister has given ministries the goal of a zero-per cent increase in spending from the 2009-2010 budget's expenditure figure of $10.25 billion.

The belt tightening is coming because over the last two years, the Saskatchewan Party has increased spending by 24 per cent, including a record $2.5 billion in infrastructure spending, meanwhile projected revenues never came into the provincial coffers due to a sharp drop in potash prices.

The provincial government overestimated potash revenues by $1.8 million, meanwhile in the 2009 budget, increased spending.
"Our next budget is going to be tighter," said Greg Brkich, Arm River-Watrous MLA. He said the government would be making tougher spending decisions in the next budget. Some of the spending in the past two years was one-time increases, Brkich said.

"That $100 million given to municipalities was a one-time deal and they knew that," he said.
The increase in infrastructure spending was to "backfill the infrastructure deficit and to keep our economy rolling in the future," Brkich said.

In hindsight, he added, the government will be more cautious in its revenue predictions.

"We don't have a crystal ball and potash took an unprecedented dip," he said.

The opposition NDP is warning that the spending freeze will cause the government to backtrack on programs, contract negotiations with public sector unions, and revenue sharing and tax agreements.
"We'll be watching for where the cuts are coming," says David Forbes, MLA Saskatoon Centre.

His party, the opposition NDP, accuses the provincial government of mismanaging finances and wracking up a more than $1-billion deficit.
Forbes said the government created expectations and is now pulling back.

"It's tough for us to accept. For example, there were 13 long-term care homes they frame as being deferred. We were led to believe in the spring they are shovel ready," Forbes said.

He pointed out the province set aside $100 million for the proposed children's hospital in Saskatoon. That spending is among deferrals on capital projects.

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