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Premier Brad Wall’s bad budget will linger

By Murray Mandryk

It was a spring sitting Premier Brad Wall and his Saskatchewan Party government won’t soon forget, although one might assume that’s exactly what they would like to do.

Determined to deal with the $1.3-billion deficit in last year’s budget, the spring sitting that ended last week was highlighted by a 2017-18 budget with nearly a billion dollars in new taxes and service cutbacks including the shuttering of the Saskatchewan Transportation Company (STC).

But firmly rooted in the history of the Grant Devine Progressive Conservatives of the 1980s, Wall has made it known he has no intention of leaving behind a legacy of debt and financial mismanagement.

The 2017-18 budget is the sixth deficit budget out of nine delivered by the Sask. Party government; this, despite great economic years for most of his mandate.

This has meant we are adding $3 billion more in debt in the budget. Public debt will be $16.1 billion by the end of this year, then 18.2 billion by the end of 2018 and $22.8 billion by 2021.

Presenting a budget in which the debt has more than doubled is another memory from this session that Brad Wall certainly wishes he hadn’t created.

However, the real frustration for Wall and the Sask. Party is the bad memories won’t go away a while.

The true difficulty with a bad budget is that it tends to linger with the government for some time.

This was certainly the case for former NDP premier Roy Romanow’s 1993 budget that also raised taxes and closed 52 rural hospitals and the Plains Health Centre in Regina.

It would be silly at this point to equate Brad Wall’s 2017 budget to what happen to the NDP in 1993.

Many are already giving Wall credit for the foresight in not allowing the fiscal situation to get out of hand, something that’s appeared to happen in NDP Alberta after latter-day Progressive Conservative governments set that province on a path towards big debt.

But Wall and company have to see this session for what it is: a brutal one, whose impact may linger.

And at least for the remainder of this year comes the difficult task of carrying out that brutal budget agenda.

Last month, the deputy minister in Ministry of Education served noticed that

locally elected school trustees need to achieve the provincial government's "expected reduction in total compensation costs by 3.5 per cent with no increase in the subsequent three years."

“The direction of the government, as the funder, is clear and it is expected that you engage in the direct negotiations with the bargaining agents of your various employee groups without delay," Education Ministry Julie MacRae wrote in her April 3 memo to all school division chairs.

"It is critical that this important work commence without delay and be undertaken with necessary urgency."

The memo goes on to state a "monitoring and reporting template has been developed, which will be used to measure progress towards meeting these objectives." 

In other words, there will be an escaping the government directive to develop the equivalent of a 3.5-per-cent wage cut followed by a three-year wage freeze. But there just isn’t much chance for the Sask. Party to change the channel, as it is now committed to overseeing this massive wage cut.

Sure, budgets aren’t the only things government do.

But consider the Sask. Party’s legislative agenda this session: the Saskatchewan Grain Car Corporation (to sell cars); the Tobacco Tax Amendment Act (to increase tax); the Fuel Tax Amendment Act, 2017 (to increase tax), and the Provincial Sales Tax Amendment Act (to increase tax).

All are about the budget’s direction to cut services and increase taxes.

The 2017-18 budget won’t do away with this any time soon. 

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