Grant cuts in budget could cost Saskatoon $11.4M

Saskatoon Mayor Charlie Clark says a surprise provincial budget cut could cost the city more than $10 million and create a "fiscal crisis" in 2017.

Wednesday's budget put an end to $36 million in grants fromSaskPower and SaskEnergy.

• How will the PST hike hit you in the pocketbook?
• Meewasin Valley Authority losing nearly half its provincial funding
• OPINION|Saskatchewan's 'austerity budget' comes too late

The city said that amounts to an $11.4-million loss, the equivalent of a 5.7 per cent property tax increase.

"There was no mention of it whatsoever and this could engender a real fiscal crisis for our city for this year," Clark said at the legislature after Wednesday's budget release.

'Devastating' loss: Clark

Prior to the change, SaskPower provided payments of $5.5 million to the City of Saskatoon. SaskEnergy paid $5.7 million, and TransGas pays about $200,000.

With the city having already passed its budget, Clark described the loss as "devastating."

"This is an $11.4-million hole in our operating budget for providing core services to citizens," said Clark.

"This amount is more than the cost of running all of our leisure facilities, or 25 per cent of our fire services budget."

He added that it was close to the entire cost of snow and ice management in the city today.

City says it had no warning

Furthermore, Clarksaid the government never mentioned the change in its budget talks with the city in recent months.

"We're still quantifying the numbers but it's a shock because we never had any notice of this," he said.

Clark said he planned to push to have the decision reviewed, saying it came at a time when the city was facing growth pressures from 50,000 new residents over10 years.

Regina reacts

Regina Mayor Michael Fougere also raised concerns about the loss of the Crown corporations' payments.

"We will continue to work in the days ahead to determine the full impact of these changes and the downloading they represent, but we know this represents a significant amount of revenue," Fougere said.

A news release from the government said the cuts would disproportionately affect Regina, adding that measures would be taken to mitigate those impacts.

• MORE SASK. BUDGET NEWS|Province cuts money for libraries
• MORE SASK. BUDGET NEWS|Sask. restaurant industry bracing for '$140M' PST impact
• MORE SASK. BUDGET NEWS|Government redesigning welfare programs to get 'able-bodied' people off the dole
• MORE SASK. BUDGET NEWS|Taxing new home construction 'draconian', builders say
• MORE SASK. BUDGET NEWS| 'It's going to be quite a nightmare': Passengers outraged by STC closure
• MORE SASK. BUDGET NEWS|Fee hikes for long-term care residents among budget health cuts
• MORE SASK. BUDGET NEWS|Sask. government decides not to amalgamate school divisions
• MORE SASK. BUDGET NEWS|Government hopes to save $30.1 million by reducing post-secondary funding