Saskatchewan budget: Revenue sharing rises for municipalities

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Saskatchewan’s budgets typically see significant funding flow through cities, towns and rural municipalities. In some cases, the province also uses programs and funding to address issues brought forward by local governments. The 2024 provincial budget, unveiled on Wednesday, is no exception, with millions in transfers and program spending meant to benefit communities.

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Here are a few of the biggest items:

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1. REVENUE SHARING

The province has given a boost to its most direct funding mechanism for local governments.

The municipal revenue-sharing program got $340.2 million, up 10.7 per cent from the $297.9 million delivered through the program last year.

Unlike other streams of provincial funding, revenue-sharing dollars come with no strings attached. Local governments can spend their share however they like.

The program uses a funding formula that sets aside the equivalent of three-quarters of one point of the provincial sales tax from two years prior. This means the funding grows alongside the economy and inflation, unlike the property taxes most cities, towns and RMs rely on as their primary sources of money.

The 2024 pot of revenue-sharing funds will be split with about $218 million going to urban municipalities, just under $97 million for rural communities and about $25.2 million for northern communities.

2. INFRASTRUCTURE

The province has increased infrastructure funding benefiting local communities to just under $163.7 million, up about $11 million, or just over seven per cent from last year.

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Most of the money — approximately $127 million — goes to the provincial contribution to the Investing in Canada Infrastructure Program.

ICIP is a federal initiative that sees Ottawa contribute 50 per cent of funding for eligible provincial projects, and 40 per cent for projects by non-profits.

A program for rural roads gets about $17.4 million, up $2.4 million from last year. A program that pays local governments to maintain key connector roads for the provincial highway system got $8.6 million, a $2 million increase after funding had previously stayed flat at about $6.6 million in 2022 and 2023.

3. GRANTS

The budget included $52.9 million in other grants and funding for local governments.

The largest share of this funding — $22.7 million — is set aside for policing grants, which rose by $329,000 compared to last year.

Most programs in this category, such as $11.6 million in provincial library funding, were held steady from last year’s amounts.

Funding to support transit services for people with disabilities, a discount bus pass program and funding for urban parks all held to 2023’s totals.

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Grants the province pays to municipalities in lieu of property taxes rose $295,000 compared to 2023, to about $8.8 million.

4. PROPERTY TAX

While residents of Saskatchewan’s largest cities saw their municipal and library property tax rates hiked for 2024, the province is leaving the education portion of property tax unchanged from last year.

5. INCOME AND HOUSING SUPPORTS

Members of city councils in Saskatchewan’s two largest cities have repeatedly called for a more robust provincial response to a rising homelessness crisis straining both city budgets and the harmony of communities.

The budget features previously announced initiatives, including the addition of 60 new emergency shelter beds in each of Regina and Saskatoon, as part of $7.2 million in increased funding for emergency shelter operations.

Along with calls for more shelter spaces, and better programming to transition people from shelters to permanent housing, municipal officials have criticized the Saskatchewan Income Support (SIS) program since it replaced prior programs in 2021, with the change blamed for a rise in evictions and homelessness.

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SIS got a $7.4 million increase, which will increase support payments to eligible households by up to $60 a month.

Saskatchewan’ Assured Income for Disability (SAID) saw a $6.3 million increase, which will raise benefits by up to $55 a month for eligible households.

The province is also adding $250,000 to expand trusteeship and money management services, which is meant to help about 150 additional clients pay rent and bills on time.

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