Written by Chris Rasmussen on Tuesday, 03 February 2015
Premier Brad Wall addressed the SUMA convention on Monday amid concerns revenue sharing to municipalities will be cut in the next provincial budget.
Wall reiterated comments he made last month that all options are being considered when it comes to the provincial budget being hit hard by the drop in oil prices. Wall estimates that the province stands to lose up to $800 million because of the drop to oil.
Despite an agreement with cities that revenue sharing be based on 1% of the PST from two years ago, Wall says witholding funding could be used to balance the budget. “Responsibly we have to keep everything on the table.”
The Canadian dollar is lessening the impact of the falling oil prices to a degree but Wall isn’t counting on it to balance out, especially since oil has dropped by nearly 50%.
“We’re going to do the same thing that we do every year, which is to rely on forecasters external to the province.” said Wall. “Some will be from third party economist organizations, some will be from the charter banks. Typically, what we do is take an average and then take a lower amount.”
Wall says that cutting the revenue sharing is a “last resort” while preparing for the budget that’s expected to be finalized later this month.
via Local News http://ift.tt/16u4cQB