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MUNICIPAL REVENUE SHARING LEVELS TO BE MAINTAINED FOR 1996

Released on March 28, 1996

Municipal Government Minister Carol Teichrob today announced municipal
revenue sharing grants for 1996-97 will be maintained at last year's
level.

"When we asked Saskatchewan people how to handle federal cuts to
funding for health care, post secondary education and social services,
they told us they wanted to preserve these programs. They asked us to
search for savings in other areas -- and we have," Teichrob said.
"However, we have also kept our commitment to municipalities.
Municipalities in the process of budgeting can count on the same level
of funding as last year."

Teichrob also announced funding levels for 1997 will be reduced by $20
million, a decrease of 25 per cent. The announcement of this reduction
was made now so municipalities can plan for next year.

Teichrob indicated that the government is willing to discuss options to
mitigate reductions to the municipal sector including the more than $18
million in levies that municipalities now collect at the request of the
provincial government. These include levies for hospitals, public
health and social assistance.

"Our current system of municipal government has many strengths. It is
community-based, delivers important local services and its elected
representatives are accountable and accessible to the people they
serve.

"In the coming year we will seek the cooperation, input and ideas of
the Saskatchewan Association of Rural Municipalities, the Saskatchewan
Urban Municipalities Association and Saskatchewan people so that our
municipal system will be able to manage in a changing environment. We
must ensure that our municipal system can provide affordable,
sustainable services into the 21st century," Teichrob said.

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For more information contact:

Maureen Boyle
Municipal Government
Regina
Phone: (306) 787-5959

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