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Standing Committee on Intergovernmental Affairs and Justice STANDING COMMITTEE ON INTERGOVERNMENTAL AFFAIRS AND JUSTICE Hansard Verbatim Report No. 15 – March 30, 2009 Legislative Assembly of Saskatchewan Twenty-sixth Legislature STANDING COMMITTEE ON INTERGOVERNMENTAL AFFAIRS AND JUSTICE Mr. Delbert Kirsch, Chair Batoche Ms. Deb Higgins, Deputy Chair Moose Jaw Wakamow Mr. Fred Bradshaw Carrot River Valley Mr. Greg Brkich Arm River-Watrous Mr. Michael Chisholm Cut Knife-Turtleford Ms. Joceline Schriemer Saskatoon Sutherland Mr. Trent Wotherspoon Regina Rosemont Published under the authority of The Honourable Don Toth, Speaker STANDING COMMITTEE ON INTERGOVERNMENTAL AFFAIRS AND JUSTICE 229 March 30, 2009 [The committee met at 15:00.] Why the name change? Well it’s really a more accurate way to describe the purpose of the program. Urban, rural, and northern The Acting Chair (Mr. Chisholm): — Good afternoon, municipalities will be getting $167.4 million. To break it down everyone. And welcome to the Standing Committee on a bit further, urban municipalities are getting $107 million, rural Intergovernmental Affairs and Justice, this being Monday, municipalities are getting $48 million, and northern March 30. The Chair is absent today. The Vice-Chair, Ms. municipalities are getting $12 million. This is equivalent to 90 Higgins, has asked that I fill in as temporary chairman in order per cent of one point of PST [provincial sales tax]. In 2010 and that she be able to ask her questions as this is her critic area. ’11 and subsequent years, the equivalent of 100 per cent of one point of PST will be provided for municipalities. I don’t think The Chair has advised the committee that pursuant to rule it’s an overstatement to call this an historic change to funding 146(1), the estimates for the following ministries and agencies municipalities. Municipal operating grants have risen from were deemed referred to this committee on March 26, 2009: $117.2 million in 2007-08 to $167.4 million budgeted for vote 25 and 163, First Nations and Métis Relations; vote 81, 2009-10. This is an increase of 42.9 per cent. Intergovernmental Affairs; vote 3, Justice and Attorney General; vote 30, Municipal Affairs; and vote 27, Tourism, Now when you combine this with the reductions in education Parks, Culture and Sport. And this afternoon we will be dealing property tax, our government’s hope is that higher municipal with vote 30, Municipal Affairs. operating grants will help make life more affordable for people throughout our province and help reduce the need for property I’ve been advised that we have substitutions today. We have tax increases overall. Tim McMillan is substituting for Delbert Kirsch; Laura Ross substituting for Joceline Schriemer; and David Forbes is I would also like to point out that this budget provides $75.8 substituting for Mr. Wotherspoon. Very good. Okay. million for municipal capital investment through such programs as the Building Canada fund-communities component, General Revenue Fund Saskatchewan infrastructure growth initiative, urban Municipal Affairs development agreements, Municipal Rural Infrastructure Fund, Vote 30 municipal infrastructure grants, and provincial municipal support. Subvote (MA01) In this budget in fact we are spending $266 million in municipal The Acting Chair (Mr. Chisholm): — The first item of financial assistance. This is a 39 per cent increase over last year. business then is the estimates for the Ministry of Municipal This includes municipal operating grants, municipal capital Affairs found on page 119 to 121 of the Saskatchewan investment through the programs I have already mentioned, Estimates book. Mr. Minister, I would appreciate if you would transit assistance for the disabled, grants in lieu, funding for introduce your officials and perhaps if you have any opening SAMA [Saskatchewan Assessment Management Agency]. comments. And then we will proceed directly. This budget has a $2.9 million budget for transit assistance for Hon. Mr. Hutchinson: — Thank you very much, Mr. Chair. the disabled and it also has $13 million in grants in lieu of It’s a pleasure to be with you here today. And I am indeed taxes. We’re also providing $6.7 million to support the joined by senior officials from the ministry, including the operations of the Saskatchewan Assessment Management following: Mr. Terry Coleman, deputy minister; Ms. Maryellen Agency, SAMA. We also made a mandate commitment about Carlson, assistant deputy minister; Ms. Wanda Lamberti, the Saskatchewan infrastructure growth initiative, or SIGI as we executive director of central management services; Mr. Russ call it for short. With the introduction of the SIGI program back Krywulak, executive director, grants administration and in 2008, we kept our mandate commitment and we will soon financial management; Ms. Kathy Rintoul, director, New Deal announce the 2009-10 approvals for 30 new lot development secretariat; and finally, Mr. John Edwards, executive director of and off-site infrastructure projects in 27 communities. Over the policy. four-year program, we estimate this mandate commitment will cost the provincial government 67 and a half million dollars. I’d like to begin with a few broad comments on our budget with respect to municipal capital investment and our government’s This budget sees the municipal rural primary weight corridors approach to revenue sharing — what we are now calling program moved to the Ministry of Highways and Infrastructure. municipal operating grants. Then we would be happy to address This budget also sees $60.2 million provided through the any questions committee members may have. federal gas tax program, or an 86 per cent increase. This of course is a flow-through of federal funding. Our government has set clear priorities to keep Saskatchewan’s economy strong and steady, achieving a fairer balance in Overall it means infrastructure funding and funding for other funding for our municipalities to manage the growth carefully programs like transit and grants in lieu, dollars that affect and responsibly, and to keep our promises. We made a mandate northern, rural, and urban communities, have increased from commitment to deal with the issue of revenue sharing for $83.3 million in 2006-07 to $151.5 million in 2009-10. As the municipalities. We have kept this promise and we kept it a year Minister for Municipal Affairs, overall I am proud of this earlier than we first stated. budget. We not only kept major mandate commitments, we have also made history in support of the municipal sector. We This budget introduces the municipal operating grant program. will continue to work with other governments, ministries, and 230 Intergovernmental Affairs and Justice Committee March 30, 2009 municipal partners to build effective government-to- Ms. Higgins: — I just wanted to be sure on that. government relationships. So now that you’ve come to a decision and an agreement on We’d be pleased now to answer any questions or respond to basically attaching municipalities to revenue from the province, comments you might have on the Ministry of Municipal Affairs that gives more consistency, better opportunity to plan and budget. Thank you very much, Mr. Chair. move ahead with their budgeting more. I mean it just works in more appropriate ways than these haphazard or ad hoc type of The Acting Chair (Mr. Chisholm): — Just prior to we get into increases or adjustments. Are you looking at any changes to the the questions, I just ask that any of your staff would please breakdown in the formula by which the dollars are distributed? introduce themselves if they are addressing the committee. Or is everyone happy with the way it’s currently being done? Thank you. Vote no. 30, subvote (MA01), central management and services. Questions. Hon. Mr. Hutchinson: — Thank you, Mr. Chair, for the question. The distribution formula was one of the primary Ms. Higgins: — Thank you very much, Mr. Chair, and thank elements of the discussion with all four of the tables represented the minister and his officials for being here this afternoon. Mr. simultaneously. The cities, towns, villages, rural folks, and Minister, I must say municipalities were quite pleased that there northern communities all had this kind of discussion going on at is a revenue-sharing or municipal operating grant — is that’s the same time. They brought their facts and figures to the table what it’s been switched to? That’s not a good acronym; you in order to enable this discussion and move it further ahead. The need something catchier. Anyway I mean municipalities were distribution agreement that was eventually worked into the happy. There’s been many years of work that’s gone into program comes directly out of the discussions with each of putting this together. those tables, based on the figures that they presented. And I think Maryellen has further detail that she would like to add to I know in the initial set-up to go into the municipal sector that. discussions, there was a number of other background issues. I guess background isn’t really the appropriate term because it Ms. Carlson: — I would only add that the distribution between covers a great deal more than that. When we talked about in the pools was based on the needs-based analysis that all the respect to the roles and responsibilities of whether it’s federal, pools agreed to. That being said, over time there may be a need provincial, municipal — looking at roles and responsibilities — to revisit that down the road. But for the short term we’ll leave did that continue to be part of the lead-up to the formula and the the pools as they are. changes that we saw put in place just with this budget? Ms. Higgins: — So in your estimation then, what is short term Hon. Mr. Hutchinson: — Thank you very much for the and what is down the road? I’m just trying to look at, you know, question.
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