Government Relations Minister Lori Carr has announced that as part of the Government of Saskatchewan’s response to the COVID-19 pandemic, Municipal Revenue Sharing (MRS) will be fast tracked for the 2020-21 year.
All MRS funds will be paid in full directly to all compliant Saskatchewan municipalities in June, rather than in installments throughout the year.
“The Government of Saskatchewan is committed to ensuring that all municipalities in the province have the resources in place to navigate these challenging times,” Carr said in a release. “This stable, consistent, no strings attached funding for municipalities can be invested in programs and services as the community sees fit.”
Yorkton Mayor Bob Maloney said the announcement is positive, especially for those municipalities with tight finances.
“Many small communities were worried about cash flow this will help them out if they have deferred tax payments to September,” he told Yorkton This Week.
Maloney said the announcement is “another fiscal policy move to help municipalities.
“As always it’s appreciated.”
That said Maloney did have a word of caution as well, noting that the impact of COVID-19 on retail sales now will impact the MRS in two years as it is based on the provincial sales tax collected.
“What the PST revenue will look like in two years is scary,” he said.
Municipal Revenue Sharing, which is based on .75 of one point of PST (from two years’ prior), is at an all time record of $278 million. The announcement is in addition to the two year, $2.0 billion economic stimulus investment for the economy that was unveiled on May 6.
The stimulus plan includes $320 million for municipal infrastructure: $150 million through the new Municipal Economic Enhancement Program, $130 million through the Investing in Canada Infrastructure Program, and $46 million of targeted funding for municipal roads and airports.
For more information on the Municipal Revenue Sharing program, and distribution of funds by community please visit https://www.saskatchewan.ca/government/municipal-administration/funding-finances-and-asset-management/funding/municipal-revenue-sharing.
