Resolution No. 20-06M

WHEREAS, at one time, the Province of Saskatchewan was financially responsible for all costs associated with the assessment services which were received by all municipalities in the province; and 

WHEREAS, prior to 1999, rural municipalities were not responsible for any costs associated with the provision of Royal Canadian Mounted Police (RCMP) services being provided to their municipalities; and 

WHEREAS, municipalities are now financially responsible for the provision of assessment and RCMP services to their municipalities and these levies have dramatically increased over the years; and 

WHEREAS, other levies and costs which have been further downloaded on municipalities from senior governments include regional library service, and even requests for financial commitment from municipalities for funding towards the capital costs for new health care facilities within their communities; and 

WHEREAS, it is felt that our national and provincial economies are substantially stronger now; and 

WHEREAS, the economic welfare of rural Saskatchewan is in a financial crisis situation;

THEREFORE BE IT RESOLVED, that our senior governments respond in the affirmative to this economic crisis in rural Saskatchewan by reversing the downloading of assessment, police, regional library services, and health care capital infrastructure funding, and that municipalities no longer be financially responsible for any of these services being provided to their municipalities. 

Response from the Honourable Harry Van Mulligen, Minister of Government Relations:

Response from Honourable Len Taylor, Minster of Health: 

Premier Lorne Calvert has forwarded me a copy of your November 16, 2006, letter regarding Resolution No. 20-06M, passed at the Midterm Convention of the Saskatchewan Association of Rural Municipalities.   I appreciate the opportunity to reiterates the existing policy around the Capital Cost Requirement for Municipalities on Health Care facilities.   

The provincial Capital Funding Policy for construction of health care facilities provides 100 per cent funding for eligible costs related to facilities where there is an expectation that they will provide care, not just for local needs, but also for residents from across the province.  This includes the tertiary hospitals in Regina and Saskatoon, as well as Saskatchewan Hospital in North Battleford.  Facilities in the far north are also 100 per cent provincially funded in recognition of the unique challenges facing these communities.   

Facilities that primarily serve a regions’ local population, including those in Regina and Saskatoon, are cost-shared according to the provincial policy of 65 per cent provincial and 35 per cent local share.   

Provincial expenditures on health care as a percentage of total government spending continues to grow each year.  It is difficult to recommend further increases in spending to increase the provincial share of the cost-sharing ratio for health capital when the result may be that spending will crowd out other non-health related provincial priorities.   

Given that there is limited funding available for capital projects, if the province were to consider increasing its share of funding in the future, it follows that fewer capital projects could be undertaken province-wide. 

Communities are encouraged to work with their respective regional health authorities and Saskatchewan Health officials, and communicate their concerns and suggestions regarding facility planning and capital project commitments. 

I assure you that we continue to work with health regions to make certain that our system provides the best possible services, while keeping health care sustainable into the future.

Response sent from SARM to Honourable Harry Van Mulligen, January 23, 2007:

Thank you for your response to SARM Convention Resolution No. 20-06M regarding financial responsibility for certain services.  We would just like to clarify a couple of issues.

Regarding policing, the reply states that “The Task Force considered many options and agreed on the formula that was adopted by the government in 1999.”  It should be noted that SARM was not in agreement with the new formula.

And regarding rural revenue sharing, it must be noted that when the Public Health Levy, the Social Assistance Levy and the Hospital Revenue Tax Levy were eliminated after the 1997-98 year, the amount of these levies were deducted straight from the revenue sharing pool.

Reponse from Honourable Harry Van Mulligen, Minister of Government Relations, February 15, 2007:

Thank you for your letter of January 23, 2007, providing views concerning the government's reponse to a Saskatchewan Association of Rural Municipalities (SARM) Convention Resolution regarding financial responsibility for certain services.

With respect to the policing issue, the formula was established to address inequities that were present in the province in 1999.  The costs allocation formula resulted in a more equitable sharing of policing costs amongst all municipalities.  The implications of the redistribution were reduced costs for urban municipalities with populations betwee 500 and 5,000 that were paying for policing, and increased costs for rural municipalities and smaller urban municipalities that at the time, received policing for free.  The formula was established to address this inequity, and ensure that all municipalities, whether they are a large or small urban centre or a rural municipality, pay a portion of the cost for the policing services that they receive. 

In the context of the overall financial circumstances for municipalities, the government felt it was necessary to help with the transition to increased costs for rural and smaller urban municipalities.  The government decided to provide provincial money to help these municipalities facing the new costs, in order for the municipalities to adjust.  These funds were never intended to be provided on an ongoing basis. 

With respect to the removal of the Public Health Levy, Social Assistance Levy, and the Hospital Revenue Tax Levy, the revenue sharing pool was reduced at the same time.  The reduction in revenue sharing was partly offset by the elimination of these levies, which gave municipalities' additional expenditure room.  This provided an additional $176 million province wide of expenditure room over the past 10 years.  As we have built the level of revenue sharing back up, this new expenditure room has clearly become a benefit to municipalities.

Hopefully, this provides furth clarification to address your concerns.