Premier Brad Wall says changing revenue sharing 'last resort'

The president of the Saskatchewan Urban Municipalities Association (SUMA) wants guarantees the provincial government won't alter its revenue sharing agreement with towns and cities across Saskatchewan.

Right now, the province shares the value of one percentage point, or 1/5, of its 5 per cent provincial sales tax with cities and towns.

However, when asked about the agreement last month, Premier Brad Wall said that "nothing was off the table" in this year's budget.  Due to low oil and gas prices, the province is expected to face a revenue drop of between $600-million and $800-million this year.

Speaking at the SUMA convention, Wall said final budget decisions won't be made until the end of the month. He said changing the revenue formula would be a last resort.

"We came to this agreement with municipalities in good faith," said Wall. "And they have responded in good faith."

The formula has become very popular with cities and towns in Saskatchewan. Many municipalities build their budgets around the money, treating it as stable, long-term funding. 

"I'm not going to sleep any better tonight than I did last night still hearing that it all needs to be on the table," said SUMA President Deb Button. "It's a concern for myself and for our 400 members in SUMA."

While Button said she understands this budget will be difficult for the provincial government, she won't stop lobbying for things to stay the same.

"We'll keep doing what we're doing now and hammering home the point that the urban municipalities in this province are growing at an unprecedented rate," said Button. "And to stay in the new Saskatchewan and to keep the economy moving, we need revenue sharing.

Jim Reiter, Minister of Government Relations, will address the SUMA convention tomorrow. On Wednesday, provincial cabinet will open itself up to questions from mayors during its annual 'bear-pit' session.