Resolutions

Allocating Oil and Gas Revenues to Highways

Year: 2006

Resolution

Be it resolved that SUMA request that the Provincial Government improve the conditions of Provincial highways by allocating oil and gas revenues to the budget of the Department of Highways and Transportation.

Provincial Response

Requesting that the conditions of provincial highways be improved by allocating oil and gas revenues to the Department of Highways and Transportation budget, Saskatchewan does not use a dedicated revenue system. All revenues are placed into the General Revenue Fund, and expenditures are based on provincial priorities. Oil and gas revenues are notoriously volatile, and linking the Saskatchewan Highways and Transportation budget to this revenue source would not provide the stability required to permit prudent, long-term planning. --- The revenue from oil and gas, like most other government revenue, accrues to the Province's General Revenue Fund (GRF), to be allocated each year on the basis of the Government's spending priorities. In this manner, spending on highways competes with other government key funding areas such as health care and education. This approach ensures that the Province is able to respond effectively to future changes in provincial spending responsibilities. In terms of our spending commitment to provincial highways, the 2005-06 Budget contained over $300 million in total funding for the Department of Highways and Transportation, including $125 million in capital for our roads and highways. This capital funding allocation has been used on initiatives such as twinning Highway 1 East, Highway 16 between North Battleford and Lloydminster, and Highway 11 from Warman to Rosthern.

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