MORE MONEY FOR HEALTH, HIGHWAYS AND EDUCATION

Released on March 12, 2001

$213.1 million in special warrant funding has been authorized for key

program areas like health, highways and education in the 2000-01 fiscal

year.



"The province has been fortunate in receiving additional revenues this

year, particularly from the resource sector," Finance Minister Eric Cline

said. "It makes good sense to use one-time resource revenue on projects

that have a lasting benefit for Saskatchewan people.



"For example, we are putting an additional $24.9 million into roads and

highways, $10.3 million into the Student Aid Fund and $26 million into post-

secondary capital projects. Saskatchewan people will see lasting benefits

from this spending."



The majority of special warrant funding, $153.4 million or 72 per cent, is

going to priority public services like health, highways and education.

Additional funding for post-secondary education will advance the cash flow

of important capital projects, reducing interest costs for post-secondary

institutions and replenish the balance in the Student Aid Fund, which has

been drawn down over the past several years.



$158.2 million of the additional funds is one-time money, including

previously announced funding for health districts and forest fire control.

Another $14.6 million is spending for which the province will be

reimbursed. The remaining $40.3 million represents an increase of less

than one per cent in the province's ongoing operating budget for 2000-01.



"Total special warrant funding is in line with last year and 43.8 per cent

less than in 1998-99," Cline said. "Ongoing operating expenditures are

basically on target with the budget. The budget will remain balanced.

There is no question about that."



The largest single expenditure is $70.7 million for health. Others include:



$26 million for advancing scheduled capital transfers to post-

secondary institutions;



$24.9 million for highways;



$15.9 million to fully fund the K-12 teachers' contract settlement

in 2000;



$14 million to consolidate funding support for the synchrotron

project;



$10.3 million in additional support for the Saskatchewan Student

Aid Fund; and



$10 million for farm support programs.



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For further information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306) 787- 6578