The 2016-17 provincial budget delivered on June 1, 2016 presented projected revenues of $14.02 billion and projected expenses of $14.46 billion resulting in a $434 million deficit.

A full quarter of the budget ($3.5 billion) is dedicated to capital spending, including $1.7 billion for schools, healthcare facilities, highways, and municipal infrastructure, and another $1.8 billion in Crown corporation projects.  While some of this spending includes the annual costs for multi-year projects that are already in-flight, it is still extremely positive to see the government’s continued commitment to capital investment.

It suggests a strategic interest in maintaining and growing ways to bring goods to the international market to support this province’s strong exporting economy given the significant decline in resource revenue. It also demonstrates recognition that while Saskatchewan has recently enjoyed record population growth, with that growth comes the need to invest in this province’s infrastructure.   

However, while we continue to hear about record investments in new capital projects, it is equally important that government commit to increased investment in the renewal of existing infrastructure.  The 2016 Infrastructure Investment Report Card published by the Canadian Federation of Municipalities suggests approximately 30% of current municipal infrastructure across Canada ranked “fair” to “very poor”.  Replacement cost of these assets is estimated to be $905 billion nationally. 

For years, the Association of Consulting Engineering Companies – Saskatchewan (ACEC-SK) has been a strong advocate for informed, strategic infrastructure investment. It is interesting that today the infrastructure investment conversation is finally including such phrases as “shovel worthy”.  Informed decisions about which infrastructure projects should be funded are critical to deliver the best return on investment for Saskatchewan taxpayers.